Colton City Council
June 16, 2026

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In addition to the recharge required by the Settlement Agreement, members of the Rialto Groundwater Council can voluntarily purchase SWP from SBVMWD’s Table A supply to recharge the Rialto-Colton Basin, once the Cactus Basin Recharge project is implemented.

4.2.3 Riverside North Basin
Planned normal year production from the Riverside North Basin is summarized in Table 4-6.

There is no current obligation to recharge the Riverside North Basin under the Western Judgment, because the mean water level of three index wells is above 822.04 ft (see Section

3.2). There are currently no recharge efforts planned, however two possible recharge methods have been proposed: the Riverside North Aquifer Storage and Recovery (Rubber Dam) project (discussed in Section 3.10.2.4) and imported water spreading at turnout WR-23.

Table 4-6: Planned Pumping from Riverside North Basin (AFY) AGENCY 2030 2035 2040 2045 2050
Colton 4,100 4,100 4,100 4,100 4,100
Rialto 1,200 1,200 1,200 1,200 1,200
WVWD 1,041 1,041 1,041 1,041 1,041
Other/Private SB Pumpers 1,520 1,520 1,520 1,520 1,520
RIX Over-extractions2 2,700 2,700 2,700 2,700 2,700
Total Riverside North Basin
Production, San Bernardino County
Entities
10,561 10,561 10,561 10,561 10,561
RHWC3 3,219 3,166 3,195 3,225 3,255
Notes: 1San Bernardino County entities base period production (1959-1963) was 9,609 AFY. Even when production exceeds base period production, recharge is not required as long as the three index wells water level is above 822 ft.
2RIX Over-extractions are groundwater extractions by RIX treated with UV disinfection and discharged to the Santa Ana River in excess of groundwater infiltrations from the RIX plant in order to maintain hydraulic control. The estimate of 2,700 AFY is from the year 2040 estimate from the SBMWD SBWRP 2020 Facilities Master Plan.
3RHWC is a Riverside County entity in the Judgment which has numerical rights to the SBB and pumps within them.

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4.2.4 Yucaipa Basin
Planned normal year production from the Yucaipa Basin is summarized in Table 4-7. The Yucaipa Basin is managed by a Groundwater Sustainability Plan which established the sustainable yield at 10,980 AFY. Planned production is below the safe yield, so recharge is not required. However, YVWD and Western Heights Water Company are planning voluntary recharge projects, which are estimated to recharge 5,500 AFY long-term average into the Yucaipa Basin.

Table 4-7: Planned Pumping from Yucaipa Basin (AFY)
AGENCY 2030 2035 2040 2045 2050
South Mesa Water Company 1,878 2,002 2,025 2,049 2,073
Yucaipa Valley Water District 3,045 3,500 4,000 4,500 5,000 Western Heights Water
Company 2,200 2,200 2,200 2,200 2,200
South Mountain Water
Company 540 540 540 540 540
Total 7,663 8,242 8,765 9,289 9,813
Yucaipa Basin GSP Safe Yield 10,980 10,980 10,980 10,980 10,980 Supply Surplus 3,317 2,738 2,215 1,691 1,167

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4.3 Demands for Imported Water
In the Region, imported water is used for direct deliveries to several retail water producers, direct delivery to Bear Valley Mutual Water Company in-lieu of releases from Big Bear Lake, and groundwater recharge.

4.3.1 Direct Deliveries
Several retail water producers have water treatment plants to treat imported water. The following agencies are planning to continue taking direct delivery of imported water in the future:

EVWD, Redlands, WVWD, YVWD, FWC, CLAWA, and Marygold Mutual Water Company (via WVWD).

4.3.2 In-Lieu Deliveries
Bear Valley Mutual Water Company constructed the original Bear Valley Dam in 1884 to create Big Bear Lake as a storage reservoir for their customers, downstream farmers. In 1964, the residents of Big Bear Lake formed the Big Bear Municipal Water District (Big Bear Municipal) in an effort to eliminate Lake releases to Bear Valley Mutual so that the lake level would remain high for recreational use and tourism. After more than a decade of litigation, a Judgment was executed in 1977 which reduced the amount of Lake releases to Bear Valley Mutual. Under the terms of the 1977 Judgment, Big Bear Municipal purchased from Bear Valley Mutual the lake bottom, Bear Valley Dam, and the right to utilize and manage the surface of Big Bear Lake for recreation and wildlife. In return, deliveries to Bear Valley Mutual were capped at a total of 65,000 AF in any ten-year period. These deliveries can be made in the form of Lake releases or can be provided from other sources “in-lieu” of Lake releases (in-lieu deliveries). In-lieu deliveries to Bear Valley Mutual are preferable to Big Bear Municipal since they do not result in water being removed from the lake.

In 1996, Big Bear Municipal Water District entered into a water purchase agreement with San Bernardino Valley that reduces the amount of water Big Bear Municipal must release from Big Bear Lake. For an annual payment to San Bernardino Valley, San Bernardino Valley provides SWP water for the downstream water needs that would have historically been met by lake releases whenever the Lake is at specified levels. San Bernardino Valley may also provide water from other sources when the SWP supply is limited. This historic agreement helped Big Bear Municipal achieve its mission of Lake level stabilization for recreation while providing Bear Valley Mutual with the water it needs for its customers. Under the terms of the Agreement, Bear Valley Mutual may request any amount of delivery for a given year, provided that the total of all their requested deliveries do not exceed 65,000 AF in any ten-year period. Bear Valley Mutual typically limits its request to no more than the ten-year average, or 6,500 AFY. SBVMWD may also provide water from other sources, such as groundwater in storage, when the SWP supply is limited.

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4.3.3 Groundwater Recharge
One of the primary water management strategies in the Region is to store imported water when it is available so that it can be used during drought periods. Any unused San Bernardino Valley SWP water is available to be purchased by retail agencies and other customers to be stored in the regional groundwater basins for later pumping.

4.3.4 Total Imported Water Demands
Requests for delivery of supplemental imported water in the SBVMWD service area are subject to approval as set forth in SBVMWD Resolution 888. Table 4-8 summarizes projected normal year direct and in-lieu demands for imported water during the period of this Plan. Planned deliveries may be higher or lower depending on SWP Table A allocation and available carryover water. Projected uses of imported water for groundwater recharge is discussed further in Section 5.1.1.2.

Table 4-8: Normal Year Imported Water Direct Deliveries (AFY) AGENCY 2030 2035 2040 2045 2050
Redlands 1,000 1,000 1,000 1,000 1,000
CLAWA 60 60 60 60 60
WVWD 7,000 7,000 7,000 7,000 7,000
BVMWC 6,500 6,500 6,500 6,500 6,500
EVWD 3,223 3,568 3,677 3,788 3,898
FWC 3,200 3,200 3,200 3,200 3,200
Marygold MWC 320 320 320 320 320
YVWD 6,000 6,000 6,000 6,000 6,000
Total 27,303 27,648 27,757 27,868 27,978

4.4 Demands for Recycled Water
Some water agencies in the Region are currently using recycled water to meet non-potable demands and for groundwater recharge. Additional recycled water production and use is planned in the future. Table 4-9 summarizes the anticipated future uses of recycled water and additional details are included in each agency’s respective chapter in Part 2.

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Table 4-9: Recycled Water Use Projections (AFY)
AGENCY1 2030 2035 2040 2045 2050
Direct Use (Non-Potable) 4,716 4,869 5,001 5,132 5,264
Redlands 3,357 3,510 3,642 3,773 3,905
Rialto 15 15 15 15 15
SBMWD 1,344 1,344 1,344 1,344 1,344
Groundwater Recharge (all in SBB) 17,293 17,466 17,624 17,788 22,438 Redlands2 4,037 4,210 4,368 4,532 4,702
SBMWD 4,256 4,256 4,256 4,256 8,736
EVWD 9,000 9,000 9,000 9,000 9,000
Notes: 1 While YVWD and FWC are included in other supply tables that are shared supplies with participating agencies, they are excluded from this table because their direct non-potable recycled water use is independent of participating agencies.
2Bunker Hill Salinity Management Feasibility Study (Water Systems Consulting, Inc., 2025).

4.5 Water Use Efficiency
The Region has invested in expanding and optimizing local water resources to improve long term water supply reliability for its residents. At the same time, the Region continues to advance water use efficiency and conservation programs that have meaningfully reduced per-capita demand and strengthened long-term supply reliability. These conservation efforts are a core component of the Region’s resource management strategy and help maximize the value of available supplies.

Since 2005, there have been several regulatory changes related to conservation including new standards for plumbing fixtures, a new landscape ordinance, a state universal retrofit ordinance, metering and billing requirements, new Green Building standards, demand reduction goals and more.

4.5.1 Reducing Per Capita Water Use
The Water Conservation Act of 2009 (SB X7-7) required a 20-percent reduction in urban per capita water use in California by December 31, 2020 (20 by 2020). The bill required each urban retail water supplier to determine their baseline per capita water use (gallons per capita per day

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or gpcd), develop an urban water use target for year 2020 and set a 2015 interim urban water use target. Each of the agencies participating in this Plan have met their 2020 targets, as shown in Figure 4-4 and some have continued to reduce their per capita water demand beyond the 2020 target. These significant reductions in per capita water use essentially expand the water supply for the Region by reducing use of local groundwater supplies.

Figure 4-4: 20x2020 Compliance

4.5.2 New Water Conservation Legislation
Going forward, Participating Agencies that are retail suppliers are continuing to align with new water use efficiency standards from the CWOL Regulation, which supersede SBX7-7 standards.

In 2018, two policy bills were enacted by the California Legislature, Assembly Bill 1668 (AB1668, Friedman) and Senate Bill 606 (SB606, Hertzberg), collectively referred to as the “2018 Water Conservation Legislation.” Based on the 2018 Water Conservation Legislation, related legislation, and subsequent adoption of the CWOL Regulation, each urban retail water supplier must calculate and comply with its specific Urban Water Use Objective (UWUO), with efficiency standards becoming increasingly stringent through 2040. DWR and the State Water Resources Control Board (State Board) have developed a reporting framework for calculating the UWUO and compliance annually. The UWUO is composed of several standards to create one comprehensive objective, as shown in Figure 4-5 and described further below. Additionally, each urban retail water supplier must submit an Annual Water Use Report (AWUR) starting January 1, 2024 to document progress toward complying with the UWUO regulations. The 0 50
100
150
200
250
300
350
400
Colton Loma
Linda
Redlands Rialto RHWCo SBMWD SMWC WVWD
Per Capita Water Use (GPCD)
Baseline GPCD 20x2020 Target Actual 2020 GPCD Actual 2025 GPCD

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required calculations and reporting associated with the CWOL Regulations are complex and extensive and are therefore not required to be included in the UWMP.

Figure 4-5. Urban Water Use Objectives Regulation Overview Indoor Residential
The indoor residential water use standard was set as part of Senate Bill (SB) 1157, which adopts recommendations made by DWR and the State Water Board to reduce indoor water use targets from 55 gpcd to 47 gpcd by 2025 and 42 gpcd by 2030.

Outdoor Residential
Outdoor residential use is expected to be based on the amount of irrigable area and an increasingly stringent landscape efficiency factor with compliance progress measured annually through 2035, when the efficiency factor is proposed to remain constant. The SWRCB assists agencies in calculating outdoor residential use budgets by providing aerial imagery that delineates irrigable irrigated, irrigable but not irrigated, and non-irrigable areas. This data has been provided to suppliers and is expected to be updated in five-year cycles.

Commercial, Industrial, and Institutional Landscape
Commercial, industrial, and institutional (CII) standards will be based on total gallons used and will require implementation of dedicated irrigation meters or in-lieu technologies, and other performance measures for conservation. Additionally, CII customer accounts will need to be classified into specific and general categories for reporting and compliance over the course of several years yet to be determined by the State.

4.5.2.1 Water Loss
The water loss component of the UWUO is a standalone component that must be met on its own beginning in 2028, as described in this section.

Distribution system water losses are the physical potable water losses from the water system, calculated as the difference between water produced and the amount of water billed to customers plus other authorized uses of water. Sources of water loss include:
- Leaks from water lines – Leakage from water pipes is a common occurrence in water systems. A significant number of leaks remain undetected over long periods of time as

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they are very small; however, these small leaks contribute to the overall water loss.

Aging pipes typically have more leaks.
- Water used for flushing and fire hydrant operations.
- Unauthorized uses or theft of water.
- Customer Meter Inaccuracies – Customer meters can under-represent actual consumption in the water system
In accordance with DWR requirements, the individual retail agencies have quantified their water losses, using the American Water Works Association (AWWA) Water Audit process, in their respective UWMPs. Water lost through leaks represents a loss of revenue for the retail agencies and increases the amount of groundwater or surface water that must be produced.

Because the region relies so heavily on groundwater, this water is not permanently lost; it eventually contributes to recharge of the local groundwater basin.

CWC Section 10608.34 required the State Water Board to develop water loss performance standards for urban retail water suppliers to minimize water waste through system leaks. Water loss performance standards were developed through a rulemaking that became effective in 2023. Under the regulations, each supplier will be required to comply, by 2028, with an individualized volumetric water loss standard based on real loss, using the economic model developed by the State Water Board and the supplier’s own unique data. Real loss is the physical loss of water from water distribution systems, as opposed to apparent losses, which are revenue losses due to meter inaccuracies, billing errors or unauthorized consumption. A supplier’s baseline water loss is calculated as the average water loss from at least 3 of the 4 water loss audits from 2017 – 2020. The real water loss performance standard is based on gallons per service connection per day (gpscd), or gallons per mile of pipe per day (gpmd), depending on how the supplier reports real loss. Post-2028 compliance with volumetric water loss standards will be assessed every three years based on the average of the supplier’s real loss from the preceding three years, with an allowed variation of 5 gallons per connection per day above the supplier’s water loss standard. Apparent loss standards are equal to the baseline apparent loss and compliance is evaluated at the same time as compliance with the Real Water Loss Performance Standard.

Although the compliance period has not yet started, CWC Section 10631 (d)(3)(C) requires water suppliers to provide data in the UWMP to show whether the supplier met its State Water Board water loss performance standard. Each supplier’s 2025 UWMP includes a discussion water loss performance and actions that are being taken to reduce water loss.

4.5.3 Regional Demand Management Measures
San Bernardino Valley has consistently invested in water conservation efforts since its Water Conservation Master Plan was first adopted in 2007. The demand reduction measures in the Master Plan were incorporated into the 2010 RUWMP, 2015 RUWMP, and 2020 IRUWMP updates and are making a measurable impact on demand reduction.

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In 2021, SBVMWD developed an enhanced Demand Management Program that will use demand management measures (DMMs) as the basis for funding and assessing the performance of water conservation measures, programs, and incentives within the Region. This data-oriented and performance-based approach will allow SBVMWD to fund a wide range of water conservation measures, programs and incentives proposed by retail suppliers that will have a greater impact on reducing the total amount of water use.

The overarching goal is consistent demand management into the future. The proposed program includes both demand-side and supply-side conservation and is cost effective through economies of scale and leveraging grant funding for the service area. The program focuses on enhancing the technical, managerial, and financial capacity of retail agencies to deliver on urban water conservation and utilize broad-based partnerships and public engagement to help the retail agencies meet their upcoming water use objectives.

Demand Management Measures being implemented by individual retail agencies are described in their respective UWMPs.

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5.0 Comparison of Regional Supplies
and Demands
This chapter compares the total supplies and demands in the Region under various hydrologic scenarios, including an average (or “normal”) year, single dry year, 5-year drought.

Wet year impacts and water quality impacts are also
discussed. The analysis concludes that the Region has sufficient supplies to meet demands through 2050 in all analyzed
hydrologic scenarios.

IN THIS S ECTION
• Regional Supply
and Demand
Balance
• Imported Water
Recharge
• Dry and 5-Dry
Year Balances

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The UWMP Act requires urban water suppliers to assess water supply reliability by comparing total projected water use with the projected water supply over the next twenty years or beyond in 5-year increments. The UWMP Act also requires an assessment for a single-dry year and 5- year drought.

5.1 Water Supply Reliability
Chapter 3 provided information about regional water supplies and Chapter 4 provided information on total projected demands during a normal year. This section compares the total supplies and demands in the Region under the different hydrologic conditions listed above. A discussion of the supplies and demands for each participating retail agency are described in their respective chapters in Part 2, or the respective UWMPs of non-participating agencies.

5.1.1 Imported Water Supply Reliability
Imported water supply reliability is discussed in detail in Section 3.1. According to the 2025 Delivery Capability Report, SBVMWD expects its Table A allocation to vary depending on the type of year, and generally be reduced in the future. For single dry years, SBVMWD anticipates taking delivery of 10,000 AFY of carryover water stored from previous years to supplement Table A deliveries. During 5-year droughts, it is assumed that carryover water will not be available. SBVMWD prioritizes direct deliveries to surface water treatment plants when supplies are limited and coordinates with the requesting agencies to allocate available supplies if full delivery requests cannot be met. For purposes of this Plan, an example of direct delivery curtailments are given during dry years, however this Plan does not prescribe how supplies will actually be distributed when all delivery requests cannot be met. As described in Section 3.1, SBVMWD has invested in Sites Reservoir, which is anticipated to provide deliveries by 2040 and will supplement water supplies during single dry and multiple dry years.

Table 5-1: San Bernardino Valley Anticipated Imported Water Supplies (AFY) 2030 2035 2040 2045 2050
Normal Year (1922-2021)
% Table A Available (Table 3-3) 51% 49% 46% 43% 41%
Anticipated Deliveries (Table 3-3) 52,668 49,932 47,196 44,460 41,724 Carryover from Previous Table A
(Section 5.1.1) - - - - -
Storage from Sites Reservoir
(Section 3.1.4) - - 11,200 11,200 11,200
Total Normal Year Supply 52,668 49,932 58,396 55,660 52,924

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2030 2035 2040 2045 2050
Single Dry Year (2014, 2021, 2022)
% Table A Available (Table 3-4) 5% 5% 5% 5% 5%
Anticipated Deliveries (Table 3-4) 5,130 5,130 5,130 5,130 5,130 Carryover from Previous Table A
(Section 5.1.1) 10,000 10,000 10,000 10,000 10,000
Storage from Sites Reservoir
(Section 3.1.3)
- - 11,200 11,200 11,200
Total Single Dry Year Supply 15,130 15,130 26,330 26,330 26,330 5 Consecutive Dry Years (Table 3-4)
% Table A Available (Table 3-4) 15% 15% 14% 14% 14%
15,105 14,820 14,535 14,250 13,965
Carryover from Previous Table A
(Section 5.1.1) - - - - -
Storage from Sites Reservoir
(Section 3.1.3)
- - 10,000 10,000 10,000
Total 5 Dry Year Supply 15,105 14,820 24,535 24,250 23,965 Wet Year (Table 3-4)
% Table A Available (Table 3-4) 84% 83% 83% 82% 82%
Anticipated Deliveries (Table 3-4) 86,184 85,158 85,158 84,132 84,132 Carryover from Previous Table A
(Section 5.1.1) - - - - -
Storage from Sites Reservoir
(Section 3.1.3) - - - - -
Total Wet Year Supply 86,184 85,158 85,158 84,132 85,132

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5.1.1.1 Dry Year Direct Delivery Reductions
Direct delivery imported water demands are met by normal year Table A allocations. In both single dry and consecutive dry years, approximately 15,000 AFY of imported water is available (excluding Sites Reservoir), as shown in Table 5-1. The numbers differ slightly; single dry years have lower Table A allocations but have carryover water available, and multiple dry years have higher Table A allocations and are assumed to have no carryover water available. Normal year direct delivery demands are projected to be 27,648 AFY in 2035 (see Section 4.3.1). Direct deliveries would need to be reduced from normal year levels in response to lower imported water availability until Sites Reservoir is online in 2040. Table 5-2 provides an example of how direct deliveries could be reduced in dry years to align with available supply. However, this Plan does not prescribe how supplies will be distributed when all delivery requests cannot be met (actual deliveries would be determined by SBVMWD in collaboration with the retailers requesting direct delivery in a given year). These example reductions were applied in each participating agency’s UWMP dry year water supply reliability analysis.

BVMWC typically receives 6,500 AFY of imported water in-lieu of receiving Big Bear Lake releases (see Section 4.3.2). SBVMWD can deliver SBB groundwater to BVMWC instead of imported water if imported water supplies are not available. In 2022, which was a very dry year with 5% Table A allocation, BVMWC took 1,750 AFY of imported water and 6,500 AFY of SBB groundwater. There may be operational requirements that prevent Bear Valley Mutual from taking any less imported water, so 1,750 AFY was considered the minimum quantity of imported water that could be given to BVMWC, with the balance of its in-lieu demand met by SBB groundwater. The remaining agencies would distribute the remaining imported water proportionally to normal year supplies, each receiving approximately 40% less than normal year deliveries.

Starting in 2040, Sites Reservoir would provide supplemental imported water supplies in dry years that would avoid the need for a reduction in direct deliveries to any agency except for BVMWC, which would have varying reductions of up to 4,000 AFY through 2050 that would be made up with in-lieu SBB groundwater.

Table 5-2: Example Reductions in Imported Water Direct Deliveries (AFY) AGENCY 2035 NORMAL YEAR

DELIVERY
2035 DRY YEAR

DELIVERY
Redlands 1,000 600
CLAWA 60 36
WVWD 7,000 4,200
BVMWC 6,500 1,750

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AGENCY 2035 NORMAL YEAR

DELIVERY
2035 DRY YEAR

DELIVERY
EVWD 3,568 2,141
Marygold MWC 320 192
FWC 320 1,920
YVWD 6,000 3,600
Total Demand 27,648 14,439
2035 Single Dry Year Imported Water Available 15,130
2035 Five Consecutive Dry Year Imported Water
Available 14,820

5.1.1.2 Imported Water Recharge
While recharge is not currently required under the Western Judgment or under the Yucaipa GSP for any groundwater basin in this Plan, the regional water agencies remain committed to proactively recharging groundwater basins with imported water, when available in excess of direct delivery demands. Table 5-3 shows the proposed voluntary recharge amounts for each basin over a long-term average, totaling 22,500 AFY. Recharge typically does not occur in dry years since Table A supplies are prioritized for direct deliveries, therefore during wet years, more recharge must occur to achieve the desired long-term average.

Table 5-3: Proposed Long-term Average Imported Water Recharge (AFY)

BASIN QUANTITY NOTES
San Bernardino Basin 16,000 AFY 2000-2025 average imported water recharge Rialto-Colton Basin 3,000 AFY Cactus basin spreading
Yucaipa Basin 3,000 AFY YVWD purchases, 2021-2025 average Yucaipa Basin 500 AFY WHWC ASR well

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BASIN QUANTITY NOTES
Total 22,500 AFY Long-term average
1FWC in-lieu Rialto-Colton Basin recharge through the Summit WTP is excluded because it generally does not use Table A supplies.

Table 5-4 the amount of imported water available for recharge in normal years and wet years.

During wet years, agencies may also take more imported water as direct deliveries above their normal year amounts, which would have an in-lieu recharge effect as they use less groundwater.

Table 5-4: Imported Water Recharge and Available Supply in Different Year Types (AFY) 2030 2035 2040 2045 2050
Normal Year / Long-Term Average
Available Imported Water Supplies 52,668 49,932 58,396 55,660 52,924 Direct Delivery Demands 27,303 27,648 27,757 27,868 27,978 Available for Recharge 25,365 22,284 30,639 27,792 24,946 Wet Year
Available Imported Water Supplies 86,184 85,158 85,158 84,132 84,132 Direct Delivery Demands 27,303 27,648 27,757 27,868 27,978 Available for Recharge 58,881 57,510 57,401 56,264 56,154 The Region has enough imported water supplies to meet direct delivery demands and the 22,500 AFY of proposed recharge. Starting in 2040, due to falling Table A allocations with climate change, long-term average Table A allocations alone would not provide enough for normal year direct deliveries and 22,500 AFY of recharge. However, with Sites Reservoir yielding deliveries starting in 2040, the region would be able to meet normal year direct deliveries and 22,500 AFY of recharge, as shown in years 2040-2050 in Table 5-4. Without Sites Reservoir, the region would be more susceptible to reduced long-term average recharge and reductions in direct deliveries in dry years, resulting in increased reliance on groundwater.

Additional local stormwater capture projects could be considered to achieve the desired groundwater recharge (see Section 3.10.2).

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5.1.2 Local Water Supply Reliability
During multi-year and single-year droughts, total SWP supplies and local surface water supplies are reduced so the Region is more reliant upon groundwater.

Although local and imported surface water supplies are highly dependent on local and statewide hydrology, the Region benefits from more than 5.6 million acre-feet of available groundwater storage capacity in the San Bernardino Basin,1.7 million acre-feet of available groundwater storage in the Rialto-Colton Basin, and 2.8 million acre-feet of available groundwater storage in the Yucaipa Basin (Geoscience, 2020). The San Bernardino Basin and Yucaipa Basin can be recharged with imported water and are used to store water when supplies are available and then pumped in dry years. The Rialto Basin will also soon be able to be recharged with imported water. By maximizing deliveries of SWP water in wet years when those supplies are available and supplementing that with other local supplies like stormwater capture and recycled water, the Region expects to accrue sufficient storage to enable a high level of water supply reliability, even during extended droughts.

Annual change in storage evaluations prepared by San Bernardino Valley show that the SBB experiences significant increases in storage during wet years such as 2005, 2011, 2019, and 2023, as shown in Table 5-5.

Table 5-5: SBB Storage Increase in Wet Years

YEAR INCREASE IN GROUNDWATER IN STORAGE (AF)
2005 223,000
2011 159,000
2019 161,000
2023 223,000
In addition to existing recharge programs, SBVMWD, SBVWCD, Western, SBMWD and RPU are currently developing Projects for Enhanced Recharge Capacity (PERC) and additional Active Recharge Projects (see Section 3.10.2). The list of projects has not been prioritized or scheduled for construction, but for purposes of this Plan, it is assumed that one recharge project will come online every five years starting in 2030, with an average long-term yield of 2,000 AFY per project.

Storing local surface water and imported SWP water in the local groundwater basins in wet years for later use during dry periods will continue to be one of the foundational water management strategies in the Region. As a result of this strategy and the demonstrated success, the available supply from the local groundwater basins in this analysis is not reduced in dry and multiple dry years.

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5.2 Summary of Regional Supplies and Demands

5.2.1 Normal Year
In a normal year, SWP and local surface water supplies are used at retail agency treatment plants and any unused SWP supply is available to be recharged. Some non-potable demands in the region are met with recycled water and additional recycled water is recharged into the SBB.

The remaining demands are met from local groundwater sources.

Table 5-6 and Figure 5-1 provide a comparison of regional water supplies and demands for a normal year and demonstrate that adequate regional supplies are anticipated for years 2030 to 2050 under normal/average conditions. In a normal year across all of the supplies available in the region, there is a surplus of supply, which results in accumulated storage in local groundwater basins for use in dry years.

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Table 5-6: Normal Year Regional Supply and Demand Balance 2030 2035 2040 2045 2050
San Bernardino Basin
Surface Water
Production 21,665 21,767 21,799 21,831 21,864
Groundwater Production1 106,773 112,113 115,927 118,001 120,797 Total Production 128,438 133,880 137,726 139,832 142,661 Safe Yield with New
Conservation 172,745 172,745 172,745 172,745 172,745
San Bernardino Basin Balance 44,307 38,865 35,019 32,913 30,084 Rialto-Colton Basin
Groundwater Production 12,865 12,865 12,865 12,865 12,865 Baseline Period Pumping 8,235 8,235 8,235 8,235 8,235
Rialto-Colton Basin Balance2(4,630) (4,630) (4,630) (4,630) (4,630) Riverside North Basin
Groundwater Production 10,561 10,561 10,561 10,561 10,561 Baseline Period Pumping 9,609 9,609 9,609 9,609 9,609
Riverside North Basin Balance1,2 (952) (952) (952) (952) (952) Yucaipa Basin
Groundwater Production 7,663 8,242 8,765 9,289 9,813
Safe Yield 10,980 10,980 10,980 10,980 10,980
Yucaipa Basin Balance 3,317 2,738 2,215 1,691 1,167
Imported Water
Direct Deliveries 27,303 27,648 27,757 27,868 27,978

5.0 Comparison of Regional Supplies and Demands
2025 RUWMP
San Bernardino Valley | 5-10
2030 2035 2040 2045 2050
Imported Water Available3 52,668 49,932 58,396 55,660 52,924 Imported Water Balance4 25,365 22,284 30,639 27,792 24,946 Recycled Water Direct Use5
Recycled Water Demands 4,716 4,869 5,001 5,132 5,264
Recycled Water Supplies 4,716 4,869 5,001 5,132 5,264
Total Demands 191,547 198,065 202,675 205,546 209,141
Total Supplies 258,953 256,370 264,966 262,361 259,757
Total Supply Balance 67,407 58,306 62,290 56,814 50,615 Notes: 1Excludes RHWC demands on each supply source and its rights to produce from those basins. 2Rialto-Colton and Riverside North Basins are not under recharge obligations because the three key index wells are above 822 ft. If projected pumping above baselines leads to falling groundwater levels and triggers a recharge obligation, imported water supplies can be used to recharge the basins. 3Includes Sites Reservoir starting in 2040.
4Balance of imported water is available for recharge.
5Excludes recycled water recharge, summarized in Section 4.4.

5.0 Comparison of Regional Supplies and Demands
2025 RUWMP
San Bernardino Valley | 5-11
Figure 5-1: Normal Year Regional Supply and Demand Balance (AFY) While the Region currently has sufficient supplies, it continues to invest in additional water supply projects to ensure it has enough for the future. Figure 5-2 shows that the Region currently has invested in over 17,000 AFY of recycled water recharge and direct use in the SBB and has identified projects to provide an additional 45,000 AFY in recharge of stormwater, imported water, and recycled water by 2050.
0 50,000
100,000
150,000
200,000
250,000
300,000
2030 2035 2040 2045 2050
San Bernardino Basin
(Groundwater and Surface
Water)
Imported Water
Yucaipa Basin
Riverside North Basin
Rialto-Colton Basin
Recycled Water Direct Use
Total Demands

5.0 Comparison of Regional Supplies and Demands
2025 RUWMP
San Bernardino Valley | 5-12
Figure 5-2: Existing and Proposed SBB Supply Improvement Projects (AFY)

5.2.2 Single Dry Year
In addition to population and employment, two major factors that affect water usage are weather and water conservation. Historically, when the weather is hot and dry, water usage increases due to outdoor irrigation uses. The increases vary according to the number of consecutive years of hot, dry weather and the conservation activities imposed. For this analysis it is estimated that total regional demands will increase by approximately 5 percent during dry years, based on an average of dry year demand increases across all Participating Agencies.

Table 5-7 and Figure 5-3 provide a comparison of regional water supplies and demands for a single dry year and demonstrate that adequate regional supplies are anticipated for years 2030 to 2050 even under dry conditions.

Total dry year demands in Table 5-7 do not appear significantly higher than normal year demands in Table 5-6 despite the 5% increase in demands during dry years. This is because some non-participating agencies receive less supplies from this region during dry years but make up those supplies by relying on supplies outside the scope of this Plan, therefore the demand on those supplies does not appear in this table. For instance, FWC receives approximately 6,500 AFY less in dry years from SBB Groundwater (Lytle), SBB Surface Water (Lytle Creek), and Imported Water from SBVMWD, but makes up those supplies as well as weather-related demand increases with Chino Basin groundwater and/or imported water from IEUA, which are not recorded as demands in this table.
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2030 2035 2040 2045 2050
SBWRP TTS Phase 3
Sites Reservoir
SBWRP TTS Phase 2
Stormwater Capture Projects
Imported Water Recharge
SBWRP TTS Phase 1 (Existing)
SNRC Recycled Water
Recharge (Existing)
Redlands Tertiary Recycled
Water (Existing)
Redlands WRF Recharge
(Existing)

5.0 Comparison of Regional Supplies and Demands
2025 RUWMP
San Bernardino Valley | 5-13
Table 5-7: Single Dry Year Regional Supply and Demand Balance (AFY) 2030 2035 2040 2045 2050
San Bernardino Basin Supply 172,745 172,745 172,745 172,745 172,745 Rialto-Colton Basin Supply 8,235 8,235 8,235 8,235 8,235 Riverside North Basin Supply 9,609 9,609 9,609 9,609 9,609 Yucaipa Basin Supply 10,980 10,980 10,980 10,980 10,980 Imported Water Supply 15,130 15,130 26,330 26,330 26,330 Recycled Water Supply 4,716 4,869 5,001 5,132 5,264
Total Single Dry Year Supplies 222,621 222,775 234,105 234,237 234,368 Total Dry Year Demands 194,299 201,143 205,984 208,999 212,773 Total Supply Balance 28,322 21,632 28,122 25,238 21,595 Figure 5-3: Single Dry Year Regional Supply and Demand Balance (AFY) 0 50,000
100,000
150,000
200,000
250,000
2030 2035 2040 2045 2050
San Bernardino Basin
(Groundwater and Surface
Water)
Imported Water
Yucaipa Basin
Riverside North Basin
Rialto-Colton Basin
Recycled Water Direct Use
Total Demands

5.0 Comparison of Regional Supplies and Demands
2025 RUWMP
San Bernardino Valley | 5-14

5.2.3 5-Year Drought
For this analysis, it is estimated that total regional demands will increase by approximately 5 percent during dry periods, including a 5-year drought. Although conservation efforts may be effective in reducing demands during the later years of a 5-year drought, a 5% increase is assumed to be constant through the 5-year drought to be conservative.

During a 5-year drought, Table A supplies are, on average, higher than a single dry year, but carryover water is assumed not to be available. Because of this, slightly less imported water is available in each year of a 5-year drought as a single dry year. Starting in 2040, supplemental imported water supplies from Sites Reservoir help to meet the demands of direct deliveries.

Table 5-8 and Figure 5-4 provide a comparison of regional water supplies and demands for a 5- year drought and demonstrate that adequate regional supplies are anticipated for years 2030 to 2050 even under extended dry conditions.

Total dry year demands in Table 5-8 do not appear significantly higher than normal year demands in Table 5-6 despite the 5% increase in demands during dry years. This is because some non-participating agencies receive less supplies from this region during dry years but make up those supplies by relying on supplies outside the scope of this Plan, therefore the demand on those supplies does not appear in this table, as explained in the Single Dry Year analysis.

Table 5-8: Five Consecutive Dry Year Regional Supply and Demand Balance (AFY) 2030 2035 2040 2045 2050
San Bernardino Basin Supply 172,745 172,745 172,745 172,745 172,745 Rialto-Colton Basin Supply 8,235 8,235 8,235 8,235 8,235 Riverside North Basin Supply 9,609 9,609 9,609 9,609 9,609 Yucaipa Basin Supply 10,980 10,980 10,980 10,980 10,980 Imported Water Supply 15,105 14,820 24,535 24,250 23,965 Recycled Water Supply 4,716 4,869 5,001 5,132 5,264
Total 5-Year Drought Year Supplies 221,390 221,259 231,105 230,951 230,798 Total Dry Year Demands 194,299 201,143 205,984 208,999 212,773 Total Supply Balance 27,091 20,116 25,121 21,952 18,024

5.0 Comparison of Regional Supplies and Demands
2025 RUWMP
San Bernardino Valley | 5-15
Figure 5-4: Five Consecutive Dry Year Regional Supply and Demand Balance

5.2.4 Long-Term Drought
Analysis of a long-term drought is not required by the UWMP Act but was included in this Plan as a qualitative discussion to be comprehensive and demonstrate how the Region responds to extended droughts. Figure 5-5 shows how imported water supplies may be impacted during a period of 20 dry years, assuming a 95% level of concern of climate change risk (95% likely to not be worse than this), to be conservative. The most recently modeled 20-year period had average SWP Table A allocations of 37%, and the lowest 20-year allocation period modeled was 1922-1941 with a 35% allocation. Long-term droughts typically have average higher supply than a single dry year or five-year drought, because there are typically some wetter years scattered throughout a long-term drought, as shown in Figure 5-5. 0 50,000
100,000
150,000
200,000
250,000
2030 2035 2040 2045 2050
San Bernardino Basin
(Groundwater and Surface
Water)
Imported Water
Yucaipa Basin
Riverside North Basin
Rialto-Colton Basin

5.0 Comparison of Regional Supplies and Demands
2025 RUWMP
San Bernardino Valley | 5-16
Figure 5-5: Modeled Table A Allocation at 95% Climate Change Level of Concern Based on Historic Hydrology (2025 DCR)
In an extended drought, the Region would continue to prioritize direct deliveries with imported water. A 35% average SWP allocation equates to 35,910 AFY of Table A supply and would be sufficient to meet SBVMWD’s demand for direct deliveries, but with little leftover to recharge compared to the region’s recharge targets in Section 5.1.1.2. Higher temperatures and lower rainfall during drought would also lead to higher outdoor water use in many years, similar to a 5- year drought.

The Region has invested in groundwater recharge to prepare for extended droughts and currently has 4.9 million acre-feet stored in the San Bernardino Basin and 2.2 million acre-feet stored in the Yucaipa Basin as of 2025, and an additional 2.2 million acre-feet between the Rialto-Colton Basin and Riverside Basin (as of 2020), which can all be drawn upon if needed.

Over the course of a drought, groundwater levels would decline as natural and supplemental recharge is limited and groundwater pumping is higher than usual. However, wetter years within the long-term drought period would provide critical opportunities to recharge groundwater supplies drawn down over time. Figure 5-6 shows how during the last extended drought, which started around 2000, the San Bernardino Basin experienced reduced groundwater in storage over time. It also shows that in the occasional wet years such as 2005, 2011, 2019, and 2023, storage levels temporarily rebounded due to natural and supplemental recharge, which helped support ongoing reliance on groundwater storage during subsequent dry years. 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1922192519281931193419371940194319461949195219551958196119641967197019731976197919821985198819911994199720002003200620092012201520182021 SWP Table A Delivery Percent of Maximum SWP Table A
1922-1941 average: 35% 2002-2021 average: 37%

5.0 Comparison of Regional Supplies and Demands
2025 RUWMP
San Bernardino Valley | 5-17
Figure 5-6: San Bernardino Basin Groundwater Change in Storage (AFY) Finally, each supplier in the region has also prepared Water Shortage Contingency Plans that outline demand management actions that could be implemented if needed in an extended drought to help reduce demand and stretch available supplies. The Region has invested in a diverse set of supplies and infrastructure and has focused on maximizing groundwater storage to prepare itself for future dry periods. The Region intends to further expand recharge opportunities to provide additional supply reliability during future long-term droughts. -800,000
-600,000
-400,000
-200,000
0 200,000
400,000
200020012002200320042005200620072008200920102011201220132014201520162017201820192020202120222023 Annual Change in Storage Cumulative Change in Storage

References
2025 RUWMP
San Bernardino Valley | REF-1
References
Berkeley Research Group. (2024). Benefit-Cost Analysis of the Delta Conveyance Project.

Geoscience. (2020). Usable Groundwater in Storage Estimation for the San Bernardino, RialtoColton, Riverside, and Arlington Groundwater Basins – Summary Report.

Inland Empire Labor and Community Center. (2025). State of Workers in the Inland Empire.

Rialto Basin Groundwater Council. (2025). DRAFT Rialto Basin Groundwater Management Plan.

San Bernardino County Flood Control District. (January 2021). Planning Memorandum of Understanding by and between the San Bernardino County Flood Control District and San Bernardino Valley Water Conservation District Contract Number 21-140.

San Bernardino Valley. (2024). Climate Adaptation and Resilience Plan.

Sites Project Authority. (2023). Sites Reservoir Project Final Environmental Impact Report/Environmental Impact Statement.

Southern California Association of Governments. (December 2025). 2025 Southern California Economic Update. Southern California Association of Governments.

Tetra Tech. (2020). 2020 Comprehensive Groundwater Sampling Event Report, Former LPC Site Invesitgation Order 94-11 and Crafton-Redlands Plume Cleanup and Abatement Orders 94-37 and 97-58, as amended by 01-56.

Tetra Tech, Inc. (2022). CONCEPTUAL SITE MODEL TECHNICAL MEMORANDUM CRAFTON-REDLANDS PROJECT. Prepared for Lockheed Martin Corporation.

Water Systems Consulting, Inc. (2025). Bunker Hill Regional Recycled Water Salinity Management Feasibility Study. Prepared for the Bunker Hill Regional Recycled Water Coaliton.

West Yost. (October 2023). 2021 Ambient Water Quality Pilot Study. Prepared for the Basin Monitoring Program Task Force, administered by the Santa Ana Watershed Project Authority.

WSC. (2024). San Bernardino Basin Optimization and Stewardship Program Framework – Basin Context Summary.

2025 Urban Water
Management Plan
Public Draft
Part 2 Chapter 2
MAY 2026 CITY OF COLTON

CITY OF COLTON
2025 Urban Water
Management Plan Public
Draft
MAY 2026
Prepared by Water Systems Consulting, Inc, and Blua
Consulting LLC

ACKNOWLEDGEMENTS
The 2025 Urban Water Management Plan Public Draft was prepared by Water Systems Consulting, Inc. and Blua Consulting, LLC. The primary authors are listed below.

Laine Carlson, PE
Aaron Morland, PE
Patricia Parks, PE
Ariana Lopez
Madeline Blua
Water Systems Consulting, Inc. and Blua Consulting LLC would like to acknowledge the significant contributions of Colton. The primary contributors are listed below.

Bassam Alzammar
Cecilia Griego

Table of Contents
2025 Urban Water Management Plan Public Draft | i

TABLE OF CONTENTS
2 City of Colton................................................................................................................ 2-1

2.1 System Description................................................................................................... 2-3

2.2 Water Use................................................................................................................. 2-5

2.3 SBX7-7 Compliance & Future Water Use Efficiency Requirements ........................ 2-15

2.4 Water Supply .......................................................................................................... 2-16

2.5 Water Service Reliability Assessment..................................................................... 2-27

2.6 Drought Risk Assessment....................................................................................... 2-31

2.7 Water Shortage Contingency Plan .......................................................................... 2-33

2.8 Demand Management Measures............................................................................ 2-34

2.9 Adoption, Submittal, and Implementation................................................................ 2-37

List of Figures
2025 Urban Water Management Plan Public Draft | ii

LIST OF FIGURES
Figure 2-1: City of Colton Water Service Area Map................................................................. 2-2 Figure 2-2: City of Colton 2021-2025 Water Consumption by Customer Class........................ 2-7 Figure 2-3: City of Colton Projected Future Water Consumption by Customer Class (AF) .... 2-13 Figure 2-4: City of Colton Projected Supply and Demand Comparison (AF).......................... 2-25

List of Tables
2025 Urban Water Management Plan Public Draft | iii

LIST OF TABLES
Table 2-1: DWR 3-1R Current and Projected Population ........................................................ 2-4 Table 2-2: City of Colton 2021-2025 Connections by Customer Class .................................... 2-5 Table 2-3: City of Colton 2021-2025 Actual Water Use Approximation (AF)............................ 2-6 Table 2-4: DWR 4-5R Month Water Loss Audit Reporting....................................................... 2-8 Table 2-5: DWR 4-6R Progress Towards 2028 Water Loss Standard ................................... 2-10 Table 2-6: SCAG 2024 Regional Transportation Plan Household and Employment Growth Rates for City of Colton Water Service Area ......................................................................... 2-11 Table 2-7: DWR 4-2R Projected Demands for Water (AF) .................................................... 2-12 Table 2-8: DWR 4-3R Total Gross Water Use (AF)............................................................... 2-13 Table 2-9: DWR 4-3R Inclusion in Water Use Projections..................................................... 2-14 Table 2-10: SBX7-7 2020 Target Progress ........................................................................... 2-15 Table 2-11: DWR 6-1R Groundwater Volume Pumped (AF) ................................................. 2-17 Table 2-12: DWR 6-2R Wastewater Collected within Service Area in 2025 (AF)................... 2-19 Table 2-13: DWR 6-3R Wastewater Treatment and Discharge within Service Area in 2025 (AF) ............................................................................................................................................. 2-20 Table 2-14: DWR 6-8R Actual Water Supplies in 2025 (AF).................................................. 2-22 Table 2-15: DWR 6-9R Projected Water Supplies (AF)......................................................... 2-23 Table 2-16: DWR 7-2R Normal Year Supply and Demand Comparison (AF)........................ 2-24 Table 2-17: Basis of Water Year Data................................................................................... 2-28 Table 2-18: DWR 7-3R Single Dry Year Supply and Demand Comparison (AF) ................... 2-29 Table 2-19: DWR 7- 4R Multiple Dry Years Supply and Demand Comparison (AF).............. 2-30 Table 2-20: Five-Year Drought Risk Assessment (AF).......................................................... 2-32

2025 Urban Water Management Plan Public Draft 2-1
2 City of Colton
This chapter describes information specific to the City of Colton (Colton), its supplies, demands, and water use efficiency programs.

The information and analysis in this chapter is supplemental to the regional information presented in Part 1 of the 2025 Regional Urban Water Management Plan (RUWMP) and is provided to meet the City of Colton’s reporting requirements for 2025 under the Urban Water Management Plan (UWMP) Act.

IN THIS S ECTION
• System Description
• Water Use
• SBX7-7 Compliance
• Water Supply
• Water Service Reliability
• Drought Risk Assessment
• Water Shortage Contingency
Plan Summary
• Demand Management Measures
• Adoption, Submittal, and
Implementation

City of Colton
2025 Urban Water Management Plan Public Draft 2-2
Figure 2-1: City of Colton Water Service Area Map

City of Colton
2025 Urban Water Management Plan Public Draft 2-3

2.1 System Description
The City of Colton Water Department (Colton) is the municipally owned utility that provides potable water at retail to customers primarily within the City of Colton. Colton is a retail public water supplier that meets the definition of an urban water supplier with over 10,600 municipal water service connections in 2025.

The City of Colton was incorporated in 1887 and is bounded by the City of San Bernardino on the north and northeast, the City of Grand Terrace, and unincorporated areas of Riverside County on the south, the City of Loma Linda on the east, and the City of Rialto on the west.

Colton provides water services for domestic consumption, fire protection, and irrigation customers within its service area. Colton's existing potable water system facilities consist of eight wells, three main booster pumping plants, six water storage reservoirs, two pressure reducing facilities, and over 180 miles of water transmission and distribution pipelines.

Colton's service area covers approximately 90 percent of the City of Colton. It includes 14 square miles in the City of Colton and approximately 0.8 square miles of unincorporated area in San Bernardino County. Figure 2-1 shows the boundary of the Colton Water Service Area.

This section describes the population and land uses within Colton’s service area.

2.1.1 Population
Estimates of population served by Colton are based on the 2020 U.S. Census. A geographic information systems (GIS) analysis of 2020 Census data was used to determine the Colton 2020 service area population. The 2020 population and the number of residential connections served by Colton in 2020 were used to derive a 2020 persons per residential connection factor of 5.3. This factor was then multiplied by the number of residential connections in 2024 and 2025 to estimate the 2024 and 2025 population served by Colton. The 2025 population is reported in this Plan.

To project the population served by Colton from 2024 (projections were done prior to having 2025 connections data available) to 2030 and from 2030 to 2035, known developments from specific plans provided by Colton were used to determine the increase in households. There are 847 units in the Roquet Ranch Specific Plan that are anticipated by 2030, and 350 units in the Reche Canyon Specific Plan are anticipated from 2030 to 2035.

To project the population served by Colton from 2035 to 2050, average annual household growth rates from Southern California Association of Governments (SCAG) projections were applied to the 2035 population estimate. SCAG prepared population, household, and employment estimates for 2019, 2035, and 2050 as part of the 2024 Connect SoCal Regional Transportation Plan based on land use data in the region through extensive processes that emphasizes input from local planners and is done in coordination with local or regional land use authorities, incorporating essential information to reflect anticipated future populations and land uses. SCAG’s projections undergo extensive local review, incorporate zoning information from city and county general plans, and are supported by Environmental Impact Reports.

City of Colton
2025 Urban Water Management Plan Public Draft 2-4
A GIS analysis of SCAG projection data was used to determine the SCAG growth rates specific to the Colton service area. SCAG projected an increase in the number of households from 2035 to 2050 averaging 0.47% per year. Estimated current and projected populations of the Colton service area are presented in Table 2-1.

Table 2-1: DWR 3-1R Current and Projected Population
POPULATION SERVED 2025 2030 2035 2040 2045 2050
TOTAL: 49,038 52,971 54,826 56,113 57,430 58,778

2.1.2 Land Use
Per the 2013 City of Colton General Plan Land Use Element, 27% of the land within the City of Colton is residential, 4% is commercial, 12% is industrial, 5% is public and institutional, 2% is railroad and utility rights of way, 14% is open space, and 36% is vacant land.

City of Colton
2025 Urban Water Management Plan Public Draft 2-5

2.2 Water Use
This section describes the current and projected water uses within Colton’s service area. Colton serves only potable drinking water.

2.2.1 Water Use By Sector
Colton categorizes its water customers into four categories for the purposes of billing:

Residential, Commercial, Municipal, and Sales to Other Agencies. Colton has one wholesale connection to the Terrace Water Company. In 2026, Terrace Water Company will be integrated in Colton’s water system (see Section 2.2.2). The number of active connections in each category from 2021 to 2025 are shown in Table 2-2. Residential connections include both single family and multifamily connections.

Table 2-2: City of Colton 2021-2025 Connections by Customer Class CUSTOMER CLASS 2021 2022 2023 2024 2025
Residential 8,983 9,015 9,054 9,080 9,215
Commercial 1,090 1,094 1,100 1,107 1,265
Municipal 166 166 165 164 167
Sales to Other Agencies 1 1 1 1 1
TOTAL: 10,240 10,276 10,320 10,352 10,648

2.2.1.1 Past and Current Water Use
An approximation of Colton’s actual water use by customer class from 2021-2024, and actual water use in 2025, are shown in Table 2-3 and Figure 2-2. From 2021-2024, a widespread customer meter reading issue rendered all consumption data from that four-year period unusable for this Plan. The 2021-2024 production data was unaffected. The 2021-2024 consumption by customer class was reconstructed by taking annual production, subtracting losses from the Annual Water Loss audit for that year, subtracting deliveries to Terrace Water Company, and then distributing remaining demand to residential, commercial, and municipal uses based on the average use between the categories in 2016, 2017, and 2019. This was completed before 2025 data was available and before the 2024 Water Loss Audit was completed, so average 2021-2023 water loss was used for the 2024 water loss quantity.

City of Colton
2025 Urban Water Management Plan Public Draft 2-6
Table 2-3: City of Colton 2021-2025 Actual Water Use Approximation (AF) CUSTOMER CLASS 2021 2022 2023 2024 2025
Residential 4,643 4,077 4,222 4,144 4,402
Commercial 3,561 3,126 3,237 3,178 3,233
Municipal 310 272 282 276 203
Sales to Other Agencies 339 300 262 276 278
Water Loss 400 1,445 424 756 627
TOTAL: 9,253 9,220 8,426 8,631 8,744

City of Colton
2025 Urban Water Management Plan Public Draft 2-7
Figure 2-2: City of Colton 2021-2025 Water Consumption by Customer Class

2.2.1.2 Distribution System Water Losses
Distribution system water losses are the physical potable water losses from the point of water entry to the distribution system to the point of delivery to the customer’s system. Water loss can result from aging infrastructure, leaks, seepage, theft, metering inaccuracies, data handling errors, and other causes. Addressing water losses can increase water supplies and recover revenue. Colton monitors its water loss and prepares an annual American Water Works Association (AWWA) Water Audit to estimate the volume of water loss. Colton has submitted all required water loss audits to the State, as shown in Table 2-4. -
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
2021 2022 2023 2024 2025
Sale to Other
Agency
Calculated
Water Loss
Municipal
Commercial
Residential

City of Colton
2025 Urban Water Management Plan Public Draft 2-8
Table 2-4: DWR 4-5R Month Water Loss Audit Reporting
Public Water System ID #
Reported in Table 2-1R
Reporting Period
Submitted to DWR Water
Loss Audit Program
CA3610014 2020 Yes
2021 Yes
2022 Yes
2023 Yes
2024 Yes
DWR NOTES:
2020 AWWA: Copy of City of Colton -2020 AWWA Water Audit - Final.xlsx 2021 AWWA: Colton-2021 CY Audit_Final.xlsx
2022 AWWA: City of Colton 2022 Water Loss Audit Ver. 6_Final.xlsx 2023 AWWA: City of Colton - CY 2023 Water Audit Software 6.0.xlsx 2024 AWWA: City of Colton - CY 2024 Water Audit Software 6.0 Updated.xlsx California Water Code (CWC) Section 10608.34 required the State Water Resources Control Board (SWRCB) to develop water loss performance standards for urban retail water suppliers to minimize water waste through system leaks. Water loss performance standards were developed through a rulemaking that became effective in 2023. Under the regulations, each supplier will be required to comply, by 2028, with an individualized volumetric water loss standard based on real loss using the economic model developed by the SWRCB and the supplier’s own unique data.

Real loss is the physical loss of water from water distribution systems, as opposed to apparent losses, which are revenue losses due to meter inaccuracies, billing errors, or unauthorized consumption. A supplier’s baseline water loss is calculated as the average water loss from at least three of the four water loss audits from 2017 through 2020. The real water loss performance standard is based on gallons per service connection per day (gpscd), or gallons per mile of pipe per day (gpmd), depending on how the supplier reports real loss. Post-2028 compliance with volumetric water loss standards will be assessed every three years based on the average of the supplier’s real loss from the preceding three years, with an allowed variation of five gpscd above the supplier’s water loss standard. Apparent loss standards are equal to the baseline apparent loss and compliance is evaluated at the same time as compliance with the Real Water Loss Performance Standard.

City of Colton
2025 Urban Water Management Plan Public Draft 2-9
Although the compliance period has not yet started, CWC Section 10631 (d)(3)(C) requires water suppliers to provide data in the UWMP to show whether the supplier met its SWRCB water loss performance standard.

Based on data released by the State on January 30, 2026, Colton’s baseline real water loss is

47.0 gpscd, the real water loss standard is 16.1 gpscd, and the apparent loss standard is the baseline of 13.3 gpscd. As shown in Table 2-5, based on the most recent water loss audit from 2024, Colton has not yet met the real water loss performance standard, but is working toward that goal by 2028. Section 2.8 discusses Colton’s programs to assess and manage distribution system real loss.

City of Colton
2025 Urban Water Management Plan Public Draft 2-10
Table 2-5: DWR 4-6R Progress Towards 2028 Water Loss Standard Public
System ID #
Reported in
Submittal
Table 2-1R
Did the
Water
Board
Calculate
a Water
Loss
Standard
for this
Public
System?
2028
Real
Water
Loss
Standard
per Unit
per day
Units for
Real Water
Loss
Standard
Number
of Units
Volume
of Total
Real
Water
Loss
(from
AWWA
Water
Loss
Audit)
2025 or
Most
Recent
Year Real
Water
Loss per
Unit per
Day
2028
Apparent
Water
Loss
Standard
per Unit
per Day
Units for
Apparent
Water
Loss
Number of
Connections
Volume
of Total
Apparent
Loss
(from
AWWA
Water
Loss
Audit)
2025 or
Most
Recent
Year
Apparent
Water
Loss per
Unit per
Day
CA3610014 Yes 16.1 gpscd 10,351 62 5.4 13.3 gpscd 10,351 457 39.4

City of Colton
2025 Urban Water Management Plan Public Draft 2-11

2.2.2 Projected Water Use
Various demand projection scenarios and conditions were considered for this UWMP. Historic demand trends and water use per connection for each connection type (single-family residential, multifamily residential, commercial, etc.) were assessed along with expected growth rates to project demand through 2050. The major assumptions used to develop demand projections are listed below:

Baseline Water Use: A historic baseline period is used to approximate “normal” demand patterns representative of what is expected in the future given normal conditions for influential factors impacting demand, known as “demand drivers.” A key demand driver is rainfall. Baseline years incorporate impacts of dry and wet years since demand typically fluctuates with rainfall due to the need for more irrigation in dry years and less in wet years. For this UWMP, a baseline period of 2021-2024 is used, which captures two dry years and one wet year. A baseline water use per connection was established for each connection type.

Connection Growth Rate: Residential connections are anticipated to grow by 847 through 2030 (Colton, Roquet Ranch Specific Plan, 2018), by an additional 350 by 2035 (Colton, Reche Canyon Specific Plan, 1991), and by 0.47% per year from 2035 to 2050 (approximately 247 per five-year period) based on SCAG household projection data (Table 2-6). These are the same assumptions used for population projections in Section 2.1.1, assuming that persons per household remains constant. Commercial, Industrial, and Institutional (CII) connections are anticipated to grow at the SCAG employment growth rate (Table 2-6).

Table 2-6: SCAG 2024 Regional Transportation Plan Household and Employment Growth Rates for City of Colton Water Service Area
PARAMETER 2019-2035 ANNUAL GROWTH
RATE
2035-2050 ANNUAL GROWTH
RATE
Households 0.76% 0.47%
Employment 0.45% 0.29%
Water Loss: The 2021-2024 losses ranged from 5% to 19%. This demand projection assumes water losses will be 10% through 2050. Meter issues from 2021-2024 may have impacted the quality of water loss audits. See Section 2.2.1.1.

Total Projected Demand (“status quo”): For each connection type, the baseline water use per connection was multiplied by the projected future number of connections to estimate future water use by connection type. The water loss percent was applied to the subtotal of demand for all connection types to determine the total projected future demand. This represents a “status quo” future demand assuming demand patterns remain the same as the baseline period.

City of Colton
2025 Urban Water Management Plan Public Draft 2-12
Improvements in Per-Connection Water Use: To reflect that Urban Water Use Objective (UWUO) requirements, building code changes, and social behavior changes may impact future water use, the following assumptions were made for how existing and future connections’ water use will change:
• Existing Connections
o Indoor residential use will become 1% more efficient by 2030. o CII use will become 1% more efficient by 2030.
• Future Connections
o Residential indoor water use will become 12% more efficient by 2030, reflecting that indoor water use in future connections should be 42 gallons per capita per day (GPCD) or less due to water efficiency standards and building codes. o CII water use will become 1% more efficient by 2030.

Projected future demands by customer class are presented in Table 2-7, Table 2-8, and Figure 2-3. Terrace Water Company is currently served by Colton through an interconnection, and its demands are represented here as “Sale to Other Agency.” After 2026, Terrace Water Company will be consolidated into Colton’s system, and the 300 AFY annual demand shown as “Sale to Other Agency” will be accounted for as residential, commercial, and municipal demands within Colton. It is shown as “Sale to Other Agency” in this Plan for simplicity, as Terrace Water Company was not a participant in this Plan.

Table 2-7: DWR 4-2R Projected Demands for Water (AF)
CUSTOMER CLASS 2030 2035 2040 2045 2050
Residential 4,640 4,793 4,902 5,010 5,118
Commercial 3,360 3,435 3,485 3,535 3,584
Municipal 286 293 297 301 305
Sale to other agency 300 300 300 300 300
Water Loss 859 882 898 915 931
TOTAL: 9,445 9,703 9,882 10,060 10,239

City of Colton
2025 Urban Water Management Plan Public Draft 2-13
Table 2-8: DWR 4-3R Total Gross Water Use (AF)
2025 2030 2035 2040 2045 2050
Potable and Raw Water
From Table 4-1R and 4-2R
8,774 9,445 9,703 9,882 10,060 10,239
Recycled Water Demand
From Table 6-4R
- - - - - -
TOTAL WATER USE: 8,774 9,445 9,703 9,882 10,060 10,239
Figure 2-3: City of Colton Projected Future Water Consumption by Customer Class (AF) -
2,000
4,000
6,000
8,000
10,000
12,000
2030 2035 2040 2045 2050
Normal Year Demands (AFY)
Losses
Sale to Other
Agency
Municipal
Commercial
Residential

City of Colton
2025 Urban Water Management Plan Public Draft 2-14

2.2.3 Water Use for Lower Income Households
Senate Bill 1087 requires that water use projections in an Urban Water Management Plan include projected water use associated with single-family and multifamily residential housing for lower-income households, as identified in the housing elements of any city, county, or city and county within the supplier’s service area. The Regional Housing Needs Assessment (RHNA) establishes housing needs for each jurisdiction over the applicable planning period. SCAG adopted the 6th Cycle RHNA Allocation Plan, which covers the planning period from October 2021 through October 2029 (SCAG, 2021). SCAG’s population and household projections inform the RHNA Allocation Plan and are used in the determination and allocation of housing needs, including lower-income housing, for individual jurisdictions. The growth projections in this UWMP are based on SCAG projections for the service area and therefore also incorporate the lower-income housing projections. The projected demands in this UWMP represent water use from all future growth and are inclusive of water use for lower-income households.

Table 2-9: DWR 4-3R Inclusion in Water Use Projections
Are Future Water Savings Included in Projections? Yes (Section 2.2.2) Are Lower Income Residential Demands Included in Projections? Yes

2.2.4 Climate Change Considerations
A topic of growing concern for water planners and managers is climate change and the potential impacts it could have on California’s future water supplies.

Recent climate change modeling for the Santa Ana River (SAR) watershed suggests that a changing climate will have multiple effects on the Region. Adaptation and mitigation measures will be necessary to account for these effects. Part 1 Chapter 2 includes an assessment of the potential impacts of climate change.

City of Colton
2025 Urban Water Management Plan Public Draft 2-15

2.3 SBX7-7 Compliance & Future Water Use Efficiency
Requirements
SBX7-7 was incorporated into the UWMP Act in 2009 and required that all water suppliers increase water use efficiency with the overall goal to decrease per-capita water consumption within the state by 20 percent by the year 2020.

SBX7-7 required DWR to develop certain criteria, methods, and standard reporting forms through a public process that water suppliers could use to establish their baseline water use and determine their water conservation targets. SBX7-7 and DWR's Methodologies for Calculating Baseline and Compliance Urban Per Capita Water Use (State of California Department of Water Resources, 2021) specify methodologies for determining the baseline water demand, 2015 interim urban water use target, and the 2020 urban water use target for Colton as described in the 2020 UWMP. This section also demonstrates that Colton achieved its 2020 water use target.

Table 2-10 below establishes Colton’s 2020 actual and 2020 target GPCD. As shown, the Colton met its 2020 target. Most recently, in 2025, the water use was 159 GPCD, which is well below the 2020 target of 205 GPCD.

Table 2-10: SBX7-7 2020 Target Progress
2020 Target GPCD 2020 Actual GPCD Did Supplier Achieve Target? 205 177 Yes
New water use efficiency standards from the “Making Conservation a California Way of life Regulation” (CWOL Regulation) supersede SBX7-7 standards. In 2018, two policy bills were enacted by the California Legislature, Assembly Bill 1668 (AB1668, 2018) and Senate Bill 606 (SB606, 2018), collectively referred to as the “2018 Water Conservation Legislation.” Based on the 2018 Water Conservation Legislation, related legislation, and subsequent adoption of the CWOL Regulation, each urban retail water supplier must comply with its UWUO. DWR and SWRCB have developed a reporting framework for calculating the UWUO and compliance annually with efficiency standards becoming increasingly stringent through 2040.

City of Colton
2025 Urban Water Management Plan Public Draft 2-16

2.4 Water Supply
Colton's water supply is comprised entirely of groundwater extracted from the Bunker Hill Basin (part of the San Bernardino Basin Area or SBB Area) the Rialto-Colton Basin (RCB), and the Riverside-Arlington Basin (Riverside North Basin portion). Colton does not currently import water to meet the demands of its service area. More information about local groundwater basins is included in Part 1 Chapter 3 of the 2025 RUWMP.

2.4.1 Purchased or Imported Water
Colton does not currently import water. For the period of this Plan, groundwater pumped by Colton is expected to meet all water supply needs.

2.4.2 Groundwater
Colton extracts groundwater from three adjudicated basins: Bunker Hill (part of the SBB), RialtoColton, and Riverside North Basin Areas. Colton currently utilizes three SBB wells, two RCB wells, and three Riverside North Basin wells. Colton also receives RCB water through an intertie with Rialto as part of the Four-Party Implementation Agreement described in Part 1 Section

3.9.2.2.5. Colton participates in several ongoing water conservation measures and contributes to regional recharge projects through the SBB Groundwater Council and Rialto Basin Groundwater Council to optimate and enhance the reliability of local groundwater resources.

Relevant portions of the adjudications and judgments that govern groundwater use are discussed in Part 1, Chapter 3 of the 2025 RUWMP.

2.4.2.1 San Bernardino Basin
There are no restrictions on Colton’s extractions from the Bunker Hill Basin except within the Lytle Creek Region and the City of San Bernardino’s groundwater management zone, which restricts new or additional pumping. Restrictions on Colton’s rights from the Bunker Hill Basin are that all the water is to be used within the boundaries of the San Bernardino Valley.

2.4.2.2 Rialto-Colton
Colton has groundwater extraction rights in the RCB, specifically within the boundary of the 1961 Rialto Decree, discussed in more detail in Part 1 Chapter 3. In any year in which the average of the elevation of the spring-high water level, measured in March, April, and May, in the three index wells is above 1002.3 feet mean sea level (MSL), Colton has no restrictions on yearly extractions. When the average standing water levels in the three index wells falls below 1002.3 feet MSL and is above 969.7 feet MSL, West Valley Water District (WVWD) is restricted to total groundwater extractions of 3,900 acre-feet per year (AFY). When the average of the three index wells drops below 969.7 feet MSL, groundwater extractions are reduced for all parties stipulated in the decree by one percent per foot below the 969.7-foot level, but not to exceed 50-percent reduction.

Colton has a total water right allocation in the Rialto Basin of 3,900 AFY, including 890 AFY that are fixed rights and 3,010 AFY that are adjustable and subject to a percent reduction each year

City of Colton
2025 Urban Water Management Plan Public Draft 2-17
based on groundwater levels in the index wells. Over the previous 10 years, the percent reduction has ranged from seven percent in 2010 to 50 percent in 2025. For the purposes of this plan, Colton and the other agencies who pump from the Rialto Basin are assuming a 50-percent reduction in adjustable rights in the planning period. Recharge opportunities are planned to increase water levels and adjustable rights throughout the planning period.

Several other entities also withdraw water from the Rialto Basin. The Fontana Union Water Company (FUWC) has one well located within the basin but was omitted from the adjudication decree. In 2018, Colton, San Bernardino Valley Municipal Water District, FUWC and Cucamonga Valley Water District entered into a Settlement Agreement that resulted in FUWCs No Man’s Land production of 5,014 AFY being counted as part of the Rialto Basin production limits in the 1961 decree. These parties also agreed to form a Rialto Basin Groundwater Council (Rialto Basin GC), which was formed in 2021. The Rialto Basin GC is developing a sustainable groundwater management plan, which will include implementing groundwater recharge projects to restore groundwater levels.

Colton receives its Rialto Decree rights through the Randall intertie with Rialto via the FourParty Implementation agreement. Colton also has two wells, 22 (recently rehabbed) and 23, in the RCB that are not within the Rialto Decree boundary and are not subject to reductions in adjustable rights.

2.4.2.3 Riverside North Basin
Colton can produce water from the Riverside North Basin under the terms of the Western-San Bernardino Judgment (see Part 1 Section 3.2.4).

Colton’s historical production for the past five years is shown in Table 2-11.

Table 2-11: DWR 6-1R Groundwater Volume Pumped (AF)

GROUNDWATER TYPE

LOCATION OR
BASIN NAME 2021 2022 2023 2024 2025
Alluvial Basin
Bunker Hill (part of
SBB)
1,743 2,239 1,569 965 1,599
Alluvial Basin Rialto-Colton 3,401 2,670 3,317 3,055 2,750 Alluvial Basin
Riverside-Arlington
(North)
4,109 4,311 3,540 4,610 4,395
TOTAL: 9,253 9,220 8,426 8,630 8,744

2.4.3 Surface Water
Colton currently has no plans for future use of surface water supplies.

City of Colton
2025 Urban Water Management Plan Public Draft 2-18

2.4.4 Stormwater
Colton is participating in regional project planning efforts to capture additional stormwater for purposes of groundwater recharge to increase sustainability of the basins Colton produces water from. These regional projects are discussed in Chapter 3.

2.4.5 Wastewater and Recycled Water
Colton owns, operates, and maintains a wastewater collection, pumping, and treatment system.

The wastewater treatment plant also serves the City of Grand Terrace and unincorporated San Bernardino County areas. The plant utilizes a conventional and extended aeration secondary treatment process to product treated effluent in compliance with Regional Water Quality Control Board regulations.

Treated effluent from Colton's wastewater treatment plant is conveyed to the Rapid InfiltrationExtraction (RIX) facility, which Colton jointly owns with Santa Bernardino Municipal Water Department (SBMWD). The RIX facility treats a combined secondary-treated effluent stream of approximately 5 million gallons per day (MGD) from Colton's Wastewater Treatment Plant (WWTP) and 14 MGD from the San Bernardino Water Reclamation Plant to tertiary standards.

The RIX facility utilizes natural biofiltration through the use of percolation basins, followed by an ultraviolet disinfection system. All the RIX-treated water is discharged to the Santa Ana River.

It is estimated that approximately 73% or 3.8 MGD of the wastewater collected at Colton’s WWTP was generated within Colton’s water service area in 2025.

Information about wastewater collected and treated is presented in Table 2-12 and Table 2-13.

City of Colton
2025 Urban Water Management Plan Public Draft 2-19
Table 2-12: DWR 6-2R Wastewater Collected within Service Area in 2025 (AF)

NAME OF

WASTEWATER

COLLECTION
AGENCY

WASTEWATER
VOLUME

METERED OR

ESTIMATED

WASTEWATER
VOLUME

COLLECTED

FROM UWMP

SERVICE AREA
IN 2025

NAME OF

WASTEWATER
AGENCY

RECEIVING

COLLECTED

WASTEWATER

WASTEWATER

TREATMENT

PLANT NAME

WASTEWATER

TREATMENT
PLANT

LOCATED WITH

UWMP AREA

WWTP OPERATION

CONTRACTED TO A

THIRD PARTY
City of Colton Estimated 4,205 City of Colton
Colton Water
Reclamation Plant
Yes No
TOTAL: 4,205

City of Colton
2025 Urban Water Management Plan Public Draft 2-20
Table 2-13: DWR 6-3R Wastewater Treatment and Discharge within Service Area in 2025 (AF)

WASTEWATER

TREATMENT

PLANT NAME

DISCHARGE

LOCATION NAME OR

IDENTIFIER

DISCHARGE

LOCATION

DESCRIPTION

METHOD OF

DISPOSAL
PLANT
TREATS

WASTEWATER

GENERATED

OUTSIDE OF

SERVICE
AREA

TREATMENT
LEVEL

WASTEWATER

TREATED

DISCHARGED

TREATED

WASTEWATER

RECYCLED
WITHIN

SERVICE
AREA
Colton
Water
Reclamation
Facility
Rapid
Infiltration/Extraction
(RIX) Plant
To RIX for
Additional
Treatment
Other Yes
Secondary –
disinfected

2.2 5,760 5,760 -
RIX Plant Santa Ana River Santa Ana
River
River of
creek outfall
Yes Tertiary 21,679 21,679 -

City of Colton
2025 Urban Water Management Plan Public Draft 2-21

2.4.5.1 Potential, Current, and Projected Recycled Water Uses No recycled water is currently used in the Colton service area. Construction of such facilities is cost prohibitive at this time, and no recycled water use is anticipated during the period covered by this Plan. More information about the regional approach for utilizing recycled water for direct use and meeting habitat needs in the Santa Ana River is presented in Part 1 Chapter 3.

2.4.6 Water Exchanges and Transfers
Colton does not anticipate regular or long-term transfers or exchanges, during the period covered by this Plan. Any transfer or exchanges would be as-needed related to an emergency.

2.4.6.1 Emergency Interties
Colton has two emergency water system connections with the City of San Bernardino (1,000 GPM and 800 GPM).

2.4.6.2 Future Water Projects
Colton completed a Water Master Plan in 2016 to identify necessary upgrades to its water distribution system. These projects are intended to increase the reliability of the Colton’s system; they are not intended to create new sources of supply.

Colton recently rehabilitated Well 24 in the Riverside North Basin and Well 22 in the non-decree portion of the RCB. Colton is constructing Well 33 in the San Bernardino Basin to increase supply reliability. Colton is also planning future booster station and reservoir upgrades and new facilities throughout their water system.

2.4.7 Summary of Existing and Planned Sources of Water
Colton's water supply is comprised entirely of groundwater extracted from the SBB Area (Bunker Hill Basin portion), the RCB, and the Riverside-Arlington Basin (Riverside North Basin portion). This same mix of supplies is anticipated to be used in the future.

The volume of water utilized from each source in 2025 is summarized in Table 2-14 and projected supply by source is summarized in Table 2-15. Colton has sufficient supplies to meet demands in normal years. If demands are higher than projected, Colton can produce more from the SBB to meet demands.

City of Colton
2025 Urban Water Management Plan Public Draft 2-22
Table 2-14: DWR 6-8R Actual Water Supplies in 2025 (AF)

WATER SUPPLY ADDITIONAL DETAIL ACTUAL VOLUME WATER QUALITY

TOTAL RIGHT OR SAFE

WATER YIELD
Groundwater (Not Desalinated) Bunker Hill (Part of SBB) 1,599 Drinking Water Groundwater (Not Desalinated) Rialto-Colton 2,750 Drinking Water Groundwater (Not Desalinated) Riverside North 4,395 Drinking Water TOTAL: 8,744
Notes: See Part 1, Chapter 3 for discussion of safe yield of regional groundwater basins

City of Colton
2025 Urban Water Management Plan Public Draft 2-23
Table 2-15: DWR 6-9R Projected Water Supplies (AF)
2030 2035 2040 2045 2050

WATER SUPPLY

ADDITIONAL
DETAIL

REASONABLY

AVAILABLE
VOLUME

REASONABLY

AVAILABLE
VOLUME

REASONABLY

AVAILABLE
VOLUME

REASONABLY

AVAILABLE
VOLUME

REASONABLY

AVAILABLE
VOLUME
Groundwater (Not
Desalinated)
Bunker Hill (Part of
SBB)
1,950 2,208 2,387 2,565 2,744
Groundwater (Not
Desalinated)
Rialto-Colton 3,395 3,395 3,395 3,395 3,395
Groundwater (Not
Desalinated)
Riverside North 4,100 4,100 4,100 4,100 4,100
TOTAL: 9,445 9,703 9,882 10,060 10,239

City of Colton
2025 Urban Water Management Plan Public Draft 2-24
Table 2-16: DWR 7-2R Normal Year Supply and Demand Comparison (AF) 2030 2035 2040 2045 2050
Supply Totals
From Table 6-9R
9,445 9,703 9,882 10,060 10,239
Demand Totals
From Table 4-3R
9,445 9,703 9,882 10,060 10,239
DIFFERENCE: - - - - -

City of Colton
2025 Urban Water Management Plan Public Draft 2-25
Figure 2-4: City of Colton Projected Supply and Demand Comparison (AF)

2.4.8 Energy Intensity
Reporting water energy intensity has many benefits for water utilities and their customers including:
• Identifying energy saving opportunities as energy consumption is often a large portion of the cost of delivering water.
• Calculating energy savings and greenhouse gas (GHGs) emissions reductions associated with water conservation programs.
• Potential opportunities for receiving energy efficiency funding for water conservation programs.
-
2,000
4,000
6,000
8,000
10,000
12,000
2030 2035 2040 2045 2050
Normal year Supplies (AFY)
Bunker Hill /
SBB
Riverside North
Rialto-Colton
Normal Year
Demands

City of Colton
2025 Urban Water Management Plan Public Draft 2-26
• Informing climate change mitigation strategies.
• Benchmarking of energy use at each water acquisition and delivery step and the ability to compare energy use among similar agencies.

Colton has two major contributors to water facility energy consumption: well consumption and water treatment.

Energy consumption data for 2025 was not available while preparing this Plan. The energy consumption for each of these processes in 2019 was as follows:
• Well Production = 4,562,560 kilowatt-hour (kWh).
• Water Treatment = 4,898,000 kWh.

In 2019, Colton consumed a total of 9,460,560 kWh of energy for water facilities and delivered 8,495 AF of water, for an energy intensity of 1,114 kWh per AF.

City of Colton
2025 Urban Water Management Plan Public Draft 2-27

2.5 Water Service Reliability Assessment
This section considers Colton’s water supply reliability during normal years, single dry years, and up to five consecutive dry water years. The supply reliability assessment discusses factors that could potentially limit the expected quantity of water available from Colton’s current source of supply through 2050.

2.5.1 Constraints on Water Sources
Perchlorate was first detected in Colton’s water supply wells in the Rialto-Colton Basin (RCB) in 1997. Colton evaluated best available treatment technologies for perchlorate, and two ion exchange treatment systems were installed in 2003 to treat water from three wells (Colton wells 15, 17, and 24). Colton currently operates Well 24 with treatment by the ion exchange system, but does not use Well 15 or 17.

Ongoing investigations by Colton and others in 2009 and 2010 have shown that the perchlorate plume persists. Until basin-wide efforts are implemented by the responsible parties to remediate the perchlorate, Colton will continue to use wellhead treatment systems.

Based on current conditions, water quality is not expected to affect Colton’s supply reliability.

However, water quality issues are constantly evolving. Colton will take action to protect and treat supplies when needed, though water quality treatment is known to have significant costs.

Colton as four wells that may require treatment for per- and poly-fluoroalkyl substances (PFAS) in the future, but treatment is not required at this time.

2.5.2 Year Type Characterization
In general, groundwater is less vulnerable to seasonal and climatic changes than surface water (i.e., local and imported) supplies. The Western-San Bernardino Watermaster, in collaboration with the Basin Technical Advisory Committee (BTAC), monitor groundwater levels and implement supplemental recharge to maintain long-term sustainability of local groundwater sources. Further discussion of regional water resource management is included in Part 1 Chapter 3.

Per UWMP requirements, Colton has evaluated reliability for an average year, single dry year, and a five-consecutive dry year period.

The UWMP Act defines these years as:
• Normal Year: This condition represents the water supplies a supplier considers available during normal conditions. This could be a single year or averaged range of years that most closely represents the average water supply available. • Single Dry Year: The single dry year is recommended to be the year that represents the lowest water supply available.
• Five-Consecutive Year Drought: The driest five-year historical sequence for the Supplier, which may be the lowest average water supply available for five years in a row.

City of Colton
2025 Urban Water Management Plan Public Draft 2-28

2.5.3 Water Service Reliability
The results of the reliability assessment are summarized in the tables below.

Under single dry and consecutive dry year conditions, the assessment assumes that demands will increase by as much as four percent due to increased outdoor water use. Although water use may decrease in the later years of a multiple-year drought due to implementation of conservation measures and drought messaging, the assessment is based on a four percent increase throughout the five-year drought to be conservative. The results of the reliability assessment are summarized in the tables below. As described in Part 1 Chapter 3, the effects of a local drought are not immediately recognized since the region uses the local groundwater basins to simulate a large reservoir for long-term storage. Colton is able to pump additional groundwater from Bunker Hill and Riverside North to meet increased demands in dry years and participates in efforts to replenish the basins with imported and local water through regional recharge programs. Colton’s groundwater supplies are not reduced in dry years so 2025 is considered the base year for all year types. Based on the analysis, Colton does not anticipate any shortage due to single or consecutive dry years. Even though localized drought conditions should not affect supply, Colton participates in several ongoing water conservation measures and regional recharge projects to optimize and enhance the use and reliability of regional water resources. Colton also has a Water Shortage Contingency Plan to put into action as appropriate to reduce the demand during critical drought years or other supply emergencies.

A summary of the basis of water year data is presented in Table 2-17. The percent of average supply increases in drought years because Colton’s groundwater production will increase to meet an assumed increase in demands.

Table 2-17: Basis of Water Year Data

YEAR TYPE BASE YEAR

AVAILABLE SUPPLY IF YEAR TYPE REPEATS

AS PERCENT OF AVERAGE SUPPLY
Average Year 2025 100%
Single Dry Year 2025 104%
Consecutive Dry Year 1st Year 2025 104%
Consecutive Dry Year 2nd Year 2025 104%
Consecutive Dry Year 3rd Year 2025 104%
Consecutive Dry Year 4th Year 2025 104%
Consecutive Dry Year 5th Year 2025 104%

City of Colton
2025 Urban Water Management Plan Public Draft 2-29
The projected supply and demand during a normal year are shown in Table 2-15. The projected supply and demand during a single dry year are shown in Table 2-18. Colton’s demands in single dry years are assumed to increase by four percent above normal year demands. The local groundwater basins Colton produces water from have storage for use in dry years so Colton can produce the volume of water needed to meet one hundred percent of demands in single dry years. Colton’s supplies are one hundred percent reliable during single dry years.

Table 2-18: DWR 7-3R Single Dry Year Supply and Demand Comparison (AF) 2030 2035 2040 2045 2050
Supply Totals 9,810 10,078 10,264 10,450 10,635
Demand Totals 9,810 10,078 10,264 10,450 10,635
DIFFERENCE: - - - - -
The projected supply and demand during five consecutive dry years are shown in Table 2-19.

Colton’s demands in multiple dry years are assumed to increase by 4% above normal year demands. The local groundwater basins Colton produces water from have storage for use in dry years so Colton can produce the volume of water needed to meet 100% of demands in multiple dry years. Colton’s supplies are 100% reliable during multiple dry years.

City of Colton
2025 Urban Water Management Plan Public Draft 2-30
Table 2-19: DWR 7- 4R Multiple Dry Years Supply and Demand Comparison (AF) 2030 2035 2040 2045 2050

FIRST YEAR
Supply Totals 9,810 10,078 10,264 10,450 10,635
Demand Totals 9,810 10,078 10,264 10,450 10,635
DIFFERENCE: - - - - -
SECOND
YEAR
Supply Totals 9,810 10,078 10,264 10,450 10,635
Demand Totals 9,810 10,078 10,264 10,450 10,635
DIFFERENCE: - - - - -

THIRD YEAR
Supply Totals 9,810 10,078 10,264 10,450 10,635
Demand Totals 9,810 10,078 10,264 10,450 10,635
DIFFERENCE: - - - - -
FOURTH
YEAR
Supply Totals 9,810 10,078 10,264 10,450 10,635
Demand Totals 9,810 10,078 10,264 10,450 10,635
DIFFERENCE: - - - - -

FIFTH YEAR
Supply Totals 9,810 10,078 10,264 10,450 10,635
Demand Totals 9,810 10,078 10,264 10,450 10,635
DIFFERENCE: - - - - -

City of Colton
2025 Urban Water Management Plan Public Draft 2-31

2.6 Drought Risk Assessment
The Drought Risk Assessment (DRA) is required for the 2025 UWMP, with a focus on the fiveyear consecutive drought scenario beginning in 2026. Because Colton has access to groundwater basins with significant storage, total available supplies do not vary on a monthly or seasonal basis, so this analysis is conducted on an annual basis. Projected demands and supplies from 2026-2020 are shown in Table 2-20.

Demands for 2026-2030 were assumed to increase at a uniform rate between the 2025 actual use and 2030 projected use. The 2025 and 2030 values were increased by four percent to reflect higher anticipated demands during dry years, based on the same methodology when calculating the five-dry consecutive years scenario.

Although projections in this Plan show that the regional water supplies are sufficient to meet the demands of Colton and the Region as a whole, even during a 5-year drought (see Part 1 Chapter 5), Colton remains committed to water conservation and to being a good steward of regional water resources to preserve supplies for the future due to the possibility of experiencing more severe droughts than anticipated in this Plan.

City of Colton
2025 Urban Water Management Plan Public Draft 2-32
Table 2-20: Five-Year Drought Risk Assessment (AF)
2026
Gross Water Use 9,228
Total Supplies 9,228
SURPLUS: -
2027
Gross Water Use 9,374
Total Supplies 9,374
SURPLUS: -
2028
Gross Water Use 9,519
Total Supplies 9,519
SURPLUS: -
2029
Gross Water Use 9,665
Total Supplies 9,665
SURPLUS: -
2030
Gross Water Use 9,810
Total Supplies 9,810
SURPLUS: -

City of Colton
2025 Urban Water Management Plan Public Draft 2-33

2.7 Water Shortage Contingency Plan
The Water Shortage Contingency Plan (WSCP) is a strategic plan that Colton uses to prepare for and respond to foreseeable and unforeseeable water shortages. A water shortage occurs when water supply available is insufficient to meet the normally expected customer water use at a given point in time. A shortage may occur due to a number of reasons, such as water supply quality changes, climate change, drought, regional power outage, and catastrophic events (e.g., earthquakes). Additionally, the State may declare a statewide drought emergency and mandate that water suppliers reduce demands, as occurred in 2014 and 2022. The WSCP serves as the operating manual that Colton will use to prevent catastrophic service disruptions through proactive, rather than reactive, mitigation of water shortages. The WSCP provides a process for an annual water supply and demand assessment and structured steps designed to respond to actual conditions. The level of detailed planning and preparation provides accountability and predictability and will help Colton maintain reliable supplies and reduce the impacts of any supply shortages and/or interruptions.

The WSCP was prepared in conjunction with the 2025 RUWMP and is a standalone document that can be modified as needed. Colton’s WSCP is attached as Part 4 Appendix B.

City of Colton
2025 Urban Water Management Plan Public Draft 2-34

2.8 Demand Management Measures
Colton is committed to conservation and has an effective water conservation program in place.

The Demand Management Measures (DMMs) section outlines the water conservation framework Colton has utilized over the past five years, is currently implementing, and plans to implement to reduce demand. By successfully achieving its SBX7-7 targets in 2020 and 2025, Colton has demonstrated the effectiveness of its conservation strategy. Moving forward, these measures will serve as the foundation for meeting new urban water use objectives and ensuring long-term supply reliability.

2.8.1 Existing Demand Management Measures
Consistent with CWC requirements, the following details the specific DMMs within the service area. These programs represent Colton’s ongoing commitment to water-use efficiency and are designed to maintain consumption levels below established benchmarks. Colton intends to continue programs for the foreseeable future to provide stable, sustainable water management for all customers.

2.8.1.1 Water Waste Prevention Ordinances
Colton has full authority to adopt and enforce ordinances through their municipal codes. Colton adopted a no-waste ordinance in September 2014 and updated in June 2015 (both attached in Part 4, Appendix B). Colton will enforce the no-waste ordinance, including responding to reported or observed violations and educating and assisting the user in corrective action.

2.8.1.2 Metering
All of Colton’s customers (residential and commercial) are metered, as are all new connections.

All customers are billed with commodity rates. Colton has a meter maintenance and replacement plan where meters are replaced either when they fail or every ten years. Colton is currently evaluating updating customer meters to Automated Metering Infrastructure (AMI).

Meters that are two inches or less are repaired or replaced as needed, if found to be operating incorrectly. Defective meters are usually found by the meter reader or by the customer service department, which reviews consumption histories. Colton will soon implement a large meter (three inch plus) testing program.

2.8.1.3 Conservation Pricing
Colton bills all domestic water accounts volumetrically, per 100 cubic feet of use, plus a monthly service based on meter size.

2.8.1.4 Public Education and Outreach
The public information program encourages Colton's customers to conserve water and provides a means by which customers can measure the effectiveness of water conservation efforts.

City of Colton
2025 Urban Water Management Plan Public Draft 2-35
• Utility Billing Messaging: Water bills feature comparative data, allowing customers to track usage against previous months and show the consumption for the same month over the last several years.
• Educational Literature: Colton distributes specialized pamphlets via utility bills and public offices. These resources cover:
o Water-efficient landscaping techniques.
o Practical daily conservation habits.
o Local and state water consumption and waste statistics. • Social Media: Colton uses #waterconservationwednesday on their Instagram and Facebook where tips on how to reduce water consumption and information on lowwater-use plant. • Online Resources: Detailed guides and educational materials are available at coltonlandscape.com.
• School Outreach: Colton coordinates classroom visits to teach students about local water resources and the importance of sustainability.
• SoCal STEAM Challenge: As a participating supplier for the event (socalsteamchallenge.com), Colton provides students with hands-on engineering experience and water conservation messaging.
• Community Events: Colton maintains a presence at the annual Earth Day event and other annual events to engage directly with the public on conservation.

2.8.1.5 Programs to Assess and Manage Distribution System Real Loss Colton completes the annual Water Loss Audit to improve operational and maintenance programs to reduce real water loss. To date, Colton has been conducting leak detection and repair as necessary to maintain its distribution system. Colton maintains comprehensive records and mapping of distribution system leaks and repairs. By analyzing this data, Colton can strategically prioritize and schedule the replacement of pipelines and facilities within its Capital Improvement Program. Colton is implementing a water line replacement program to reduce the incidence of leaks within the distribution system. Maintenance crews are on call at all times to respond to water leaks, pipeline ruptures, and damaged facilities as needed. Continued implementation of water loss control practices and procedures is anticipated to further reduce demand along with future initiatives such as a planned acoustic leak detection program.

2.8.1.6 Water Conservation Program Coordination and Staffing Support In 2013, a Water Conservation Specialist was hired and in 2015, they were promoted to Senior Water Conservation Specialist. Colton also hired a part-time office specialist to assist with rebates, outreach, and water waste notifications.

2.8.1.7 Other Demand Management Measures
Colton maintains up-to-date building codes and provides a comprehensive suite of rebates to help customers transition to water-efficient fixtures and landscapes.

City of Colton
2025 Urban Water Management Plan Public Draft 2-36
Colton offers financial incentives for the following high-efficiency installations:
• Indoor: Toilets, dishwashers, washing machines, and showerheads. • Outdoor: Sprinkler heads, weather-based irrigation timers, drought-tolerant plants, drip irrigation systems, and mulch.
• Turf Removal: Incentives are available for replacing grass with sustainable landscaping.

Rebates are evaluated on a case-by-case basis according to budget availability. For large-scale projects, such as a multi-unit complex requesting 30 high-efficiency toilets, Colton assesses current funding to determine the maximum per-unit rebate (e.g., $100 per fixture). Commercial customers are eligible for up to $5,000 for turf removal and a combined $2,500 for droughttolerant plants, drip irrigation, and mulch.

In addition to rebates, Colton also has the following ongoing programs:
• Leak Detection & Notification: Colton proactively notifies customers of suspected leaks on their side of the meter to prevent water waste and high bills. • Adopt-a-Tree Program: This program provides funding for street trees in parkways, available to all customer types to enhance the local canopy and reduce the heat-island effect.

Finally, Colton is working on expanding conservation programs to include:
• Multi-Family Direct Install: A program to provide and install water-efficient fixtures directly in multi-family properties.
• Commercial Landscape Conversion: A turnkey service where City-contracted professionals manage the removal of turf and the installation of drought-tolerant landscaping for commercial properties.
• Municipal Smart Irrigation: Colton is currently retrofitting all City-owned landscapes, including parks and medians, with weather-controlled smart irrigation controllers.

City of Colton
2025 Urban Water Management Plan Public Draft 2-37

2.9 Adoption, Submittal, and Implementation
This section describes Colton’s process for adopting, submitting, and implementing the 2020 IRUWMP and Colton’s WSCP.

2.9.1 Notice of Plan Preparation and Notice of Public Hearing A joint notice of plan preparation was provided on behalf of all agencies whose 2025 UWMPs are part of the 2025 RWUMP to all cities and counties and other stakeholders within the region for which that 2025 RUWMP is being prepared. This notice was sent at least 60 days prior to Colton’s public hearing. The recipients are identified in Part 1 Chapter 1 and include all cities and counties within Colton’s service area. A second notice was provided to these cities and counties with the date and time of the public hearing and the location where the draft report was available for review.

Colton provided notice to the public through its website and published announcements of the public hearing in a newspaper on two occasions before the hearing. Copies of the proof of publication are included in Part 4 Appendix B.

2.9.2 Public Hearing and Adoption
Colton held a public hearing on June 16, 2026, to hear public comment and consider adopting this 2025 RUWMP and Colton’s WSCP.

As part of the public hearing, Colton provided information on their baseline values, water use targets, and implementation plan required in the Water Conservation Act of 2009. The public hearing on the 2025 RUWMP took place before the adoption of the Plan, which allowed Colton the opportunity to modify the 2025 RUWMP in response to any public input before adoption.

After the hearing, the Plan was adopted as prepared or as modified after the hearing.

Colton’s adoption resolution for the 2025 RUWMP and Colton’s WSCP is included in Part 4 Appendix B.

2.9.3 Plan Submittal
Colton will submit the 2025 RUWMP and Colton’s WSCP to DWR, the State Library, and cities and counties within 30 days after adoption.

The 2025 RUWMP submittal to DWR will be done electronically through WUEdata, an online submittal tool.

2.9.4 Public Availability
No later than 30 days after filing a copy of its Plan with DWR, Colton will make the plan available for public review during normal business hours by placing a copy of the 2025 RUWMP and Colton’s WSCP at the front desk of the City’s office, and by posting the plans on the City’s website for public viewing.

City of Colton
2025 Urban Water Management Plan Public Draft 2-38

2.9.5 Amending an Adopted UWMP or Water Shortage Contingency Plan
If the adopted 2025 RUWMP or Colton’s WSCP is amended, each of the steps for notification, public hearing, adoption, and submittal will also be followed for the amended plan.

2020 IRUWMP EXECUTIVE SUMMARY 3
PA R T 3 : R E G I O N A L 2025 SUPPORTING INFORMATION

SAN BERNARDINO VALLEY

REGIONAL URBAN WATER

MANAGEMENT PLAN
Photo Credit: San Bernardino Valley Water Conservation District

TABLE OF CONTENTS
Appendices
A: Notices
B: Agreements

Notices
2025 RUWMP
San Bernardino Valley | A
Appendix A Notices

1 From: Adekunle Ojo <[email protected]>
Sent: Wednesday, March 4, 2026 12:11 PM
Subject: Notice of Preparation of the 2025 San Bernardino Valley Regional Urban Water Management Plan and Water Shortage Contingency Plan
Dear Regional Stakeholder,
San Bernardino Valley Municipal Water District and its partners (Participating Agencies) are in the process of preparing the 2025 San Bernardino Valley Regional Urban Water Management Plan (RUWMP) and Water Shortage Contingency Plan (WSCP) in compliance with the Urban Water Management Planning Act. An update of the San Bernardino Valley Municipal Water District and its Participating Agencies’ UWMP is required every five (5) years.

Water Code section 10621(b) requires an urban water supplier updating its UWMP and WSCP to notify cities and counties within its service area of the update at least sixty (60) days prior to holding a public hearing thereby encouraging public involvement and agency coordination. This letter serves as notice that the Participating Agencies that are using the 2025 RUWMP, plan to adopt and submit the 2025 RUMWP by July 1st, 2026. The Participating Agencies will also be adopting their respective updated WSCPs as part of the 2025 RUWMP.

A copy of the 2025 RUWMP, which will include the WSCPs for each of the Participating Agencies, will be available for review prior to the public hearing and adoption meeting on the Participating Agencies’ websites. Each Participating Agency will hold an individual public hearing on their respective chapters of the 2025 RUWMP and WSCP. The public hearings will be noticed and announced by each Participating Agencies’ public meeting agenda; each agency’s website address is shown in the table below.

Participating
Agency
Agency Website Agency Direct Contact
City of Colton www.ci.colton.ca.us
Cecilia Griego
[email protected]
City of Loma
Linda www.lomalinda-ca.gov
Jarb Thaipejr
[email protected]
City of
Redlands www.cityofredlands.org
Paul Mariscal
[email protected]
City of Rialto www.rialtoca.gov
Toyasha Sebbag
[email protected]
Riverside
Highland Water
Company
www.rhwco.com
Don Hough
[email protected]

2 San Bernardino
Municipal
Water
Department
www.sbmwd.org
Jonathon Schoenen
[email protected]
San Bernardino
Valley
Municipal
Water District
www.sbvmwd.com
Adekunle Ojo
[email protected]
South Mesa
Water
Company
https://southmesawater.com
Brittany Lim
[email protected]
West Valley
Water District www.wvwd.org
Rocky Welborn
[email protected]
If you have any questions or input regarding these documents, please contact me by email or reach out to the agency direct contact.

Sincerely,
Adekunle Ojo
Manager of Integrative Planning
Phone: 909-387-9231
Mobile: 909-435-1526
Email: [email protected]
San Bernardino Valley
Municipal Water District
380 East Vanderbilt Way
San Bernardino, CA 92408

Agreements
2025 RUWMP
San Bernardino Valley | B
Appendix B Agreements

B-1
Appendix B - Agreements

1. Orange County Judgment

2. Western Judgment

3. 1961 Rialto Basin Decree

4. Rialto Basin Groundwater Council Agreement

5. Seven Oaks Accord

6. Lytle Creek Judgement

7. 1996 In-Lieu Agreement Valley District and Big Bear Municipal Water District

8. Surplus Water Sale Agreement – Valley District and SGPWA 2018

9. Four Party Implementation Agreement and Amendments

10. Agreement Between OCWD City of Riverside Concerning Water Rights

11. Cooperative Agreement to Protect Water Quality and Encourage the Conjunctive Uses of Imported Water in the Santa Ana River Basin (Exchange Plan)

12. San Bernardino Basin Groundwater Council Framework

13. MOU Between and SBCFCD and SBVWCD

14. Fully Executed Settlement Agreement and Amendments with Quick Guide (Rialto Basin Settlement agreement)

15. Agreement Relating to the Diversion of Water from the Santa Ana River System Among Western Municipal Water District of Riverside County, Valley District and City of Riverside (LF 2151)

16. Cooperative Agreement to Protect Water Quality and Encourage the Conjunctive Uses of Imported Water in the Santa Ana River Basin– January 2008 (LF2181)

17. San Bernardino Valley Municipal Water District and Crestline-Lake Arrowhead Water Agency Demonstration Project Water Exchange Agreement-November 2008 (LF 2206)

18. Understanding Agreement Regarding the Contribution to Replenishment and Deliveries– September 2009 (LF2255)

19. Permit for Diversion and Use of Water – Valley District and Western (LF 2276)

20. Agreement between Kern Delta Water District and the San Bernardino Valley Municipal Water District for a Water Management Program-October 2011 (LF 2327)

21. Agreement to Develop and Operate Enhanced Recharge Facilities between the Conservation District, Valley District and Western -October 2012 (LF 2382)

22. Agreement for the Cooperative Use of Unused Well Capacity, the Texas Grove Reservoir and the Central Feeder-April 2013 (LF 2392)

23. Agreement Regarding Additional Extractions of New Conservation Water from the San Bernardino Basin Area-July 2013 (LF 2402)

24. Planning Memorandum of Understanding between the San Bernardino County Flood Control District and the San Bernardino Valley Municipal Water District-July 2013 (LF 2404)

25. Amendment to Agreement to Form the Upper Santa Ana River Wash Land Management and Habitat Conservation Plan Task Force-September 2013 (LF 2407)

26. Coordinated Operations Agreement between the San Bernardino Municipal Water Department and San Bernardino Valley Municipal Water District -September 2013 (LF 2415)

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RIALTO BASIN GROUNDWATER COUNCIL

FRAMEWORK AGREEMENT
This RIALTO BASIN GROUNDWATER COUNCIL FRAMEWORK
AGREEMENT (“Agreement”) is entered into and effective this ___ day of ____________, 2020 by and among the City of Colton (“Colton”), the City of Rialto (“Rialto”), Fontana Union Water Company (“FUWC”) and West Valley Water District (“WVWD”), each of which is referred to as a “Party,” for the purpose of coordinating, developing, and implementing groundwater management activities that individually or cumulatively address groundwater management in, and groundwater sustainability throughout, the Rialto Basin as defined in Section 1.1.8 below.

RECITALS
WHEREAS, on and after September 12, 2018, in an effort to commit to sustainable groundwater management principles, the Parties, San Bernardino Valley Municipal Water District, San Gabriel Valley Water Company, Fontana Water Company and Cucamonga Valley Water District (“Cucamonga”) entered into a Settlement Agreement as defined in Section 1.1.9 below;
WHEREAS, the Settlement Agreement requires completion of this Framework Agreement within one year of the final Settlement Agreement amendments executed in February 2019;
WHEREAS, the Settlement Agreement contained Condition 3, titled “Cooperative and Sustainable Groundwater Management of the Rialto-Colton Basin;” WHEREAS, Condition 3 (1.) of the Settlement Agreement requires the parties to develop, adopt and implement a sustainable groundwater management plan.

WHEREAS, Condition 3 (l.) of the Settlement Agreement states that if the Parties agree, the sustainable groundwater management plan is to include a new index well regime, the possibility of establishing an operating safe yield, and/or other groundwater management tools.

WHEREAS, by joining the Settlement Agreement, the Parties to this Agreement accepted and agreed to the Recitals, Definitions, Principles and Agreements set forth in the Settlement Agreement, including Condition 3 (l.).

WHEREAS, the Parties to this Agreement all overlie, produce water from, or are otherwise invested in the management and long-term sustainability of the groundwater of the Rialto Basin as identified on the Map attached hereto as Exhibit A; WHEREAS, The Rialto Basin is part of the Rialto Subbasin which underlies a portion of the upper Santa Ana Valley in southwestern San Bernardino County and northwestern Riverside County. This Subbasin is bounded by the San Gabriel Mountains on the north, the San Jacinto

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fault on the east, the Rialto Basin boundary on the south, and the Rialto fault on the west. Lytle Creek flows through this part of the valley southeastward to its confluence with the Santa Ana River in the southern part of the Subbasin;
WHEREAS, the groundwater supplies of the Rialto Basin are governed by a court decree dated December 22, 1961 (the “1961 Decree”) in the case styled The Lytle Creek Water and Improvement Company v. Fontana Ranchos Water Company, et al., San Bernardino County Superior Court, Case No. 81264. A copy of the 1961 Decree is attached hereto as Exhibit D; WHEREAS, pursuant to the Settlement Agreement, FUWCs No Man’s Land production of 5,014 acre feet/year will be counted as part of the Rialto Basin production limits in the 1961 decree, and it is the intention of the Parties in forming the Rialto Basin Groundwater Council to apply, administer, and conform to the requirements and provisions of the 1961 Decree.

WHEREAS, Water Code Section 10720.8(a) identifies the Rialto Basin as an adjudicated groundwater basin. As such, the Rialto Basin is exempt from the Sustainable Groundwater Management Act (SGMA) passed by the California Legislature in September 2014, other than providing certain kinds of data to the Department of Water Resources per Water Code Section 10720.8(f);
WHEREAS, notwithstanding that the Rialto Basin is not required to comply with SGMA, the Parties to this Agreement wish to coordinate their efforts to identify their respective access to, and application of, water supplies, and to harmonize use of such supplies with available groundwater in the Rialto Basin. Working to ensure that the water imported into the Rialto Basin and the facilities used to apply both imported and native water supplies to productive beneficial uses for groundwater replenishment, will allow the Rialto Basin to be maintained and managed in a sustainable manner over the long-term. The Parties recognize that the key to success in this effort is a coordinated effort with other groundwater management entities as well as the development of a strategy for coordination of recharge activities throughout the Rialto Basin;
WHEREAS, ensuring water supply reliability and long-term effectiveness and viability of recharge facilities has become increasingly important, and proactive efforts are needed to improve and mitigate low groundwater levels in the Rialto Basin through the spreading of imported water supplies, which at times are limited in availability, due to drought, environmental, and other restrictions. One purpose of this Agreement is to facilitate the cooperation of the Parties which is essential to prevent overdraft or other negative impacts during an extended drought, and for the foreseeable future;
WHEREAS, the Parties, individually and collectively, are committed to cost effective and cooperative groundwater management that respects the interests and concerns of all of the parties and the communities that they serve and which rely on the Rialto Basin for their water supply;.

WHEREAS, the Parties hereby enter into this Agreement for the purpose of establishing the Rialto Basin Groundwater Council (“RBGC”) to take the preliminary steps necessary to prepare for and coordinate the management of groundwater supply resources throughout the

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Rialto Basin, coordinate maintenance of conveyance and recharge facilities, and coordinate with existing groundwater agencies in the Rialto Basin to expedite such management strategies. The RBGC will ensure overall coordination and sustainable management of the Rialto Basin; and, WHEREAS, the Parties have agreed that the preliminary steps for establishing RBGC will include preparation of formation documents and procedures, the engagement of necessary experts, and the development of a budget and funding procedure for the RBGC as memorialized in this Agreement.

AGREEMENT
NOW THEREFORE, in consideration of the matters recited and the mutual promises, covenants, and conditions set forth in this Agreement, the Parties hereby agree as follows:

1. DEFINITIONS

1.1 Definitions. In addition to the terms that may be defined elsewhere in this Agreement, the following terms when used in this Agreement shall be defined as follows:

1.1.1 “Agreement” means this Rialto Basin Groundwater Council Agreement.

1.1.2 “Annual Rialto Basin Groundwater Report” shall mean the annual report prepared by the RBGC, to cover topics including, but not limited to, the following:
annual production, recharge, environmental issues, exchanges, and all other actions and topics material to groundwater conditions in the Rialto Basin. In preparing such report, the RBGC may consult with, and draw from, data and information provided by Santa Ana River and Western/ San Bernardino Watermasters and/or other reliable sources regarding annual groundwater conditions.

1.1.3 “BTAC” shall mean the Basin Technical Advisory Committee, as originally created under the auspices of the Upper Santa Ana River Watershed Integrated Regional Water Management Plan, as such Committee may be modified from time to time to allow for the additional participation of one or more Parties to this Agreement. The RBGC may request BTAC to undertake specified actions in support of the RBGC’s efforts.

1.1.4 “Cost Share” shall mean that portion of the overall annual operating costs of the RBGC assigned to a Party pursuant to the Equitable Allocation, as based on the annual budget of the RBGC.

1.1.5 “Effective Date” shall mean the date that the last Party executes this Agreement.

1.1.6 “Equitable Allocation” shall mean the manner of determining the facilities’ operations and maintenance (“O&M”) costs and supplemental water cost, for each Party based on an annual approved budget. This allocation will be shared equally by the Parties for the applicable RBGC budget year.

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1.1.7 No Man’s Land” shall mean that portion of the Rialto-Colton Basin that is outside the Rialto Basin as shown on the maps attached as Exhibit A to the Settlement Agreement.

1.1.8 “Rialto Basin” shall mean that portion of the Rialto-Colton Basin defined in the 1961 Decree.

1.1.9 “Settlement Agreement” shall mean the settlement agreement dated September 12, 2018, as amended, that concluded the litigation styled San Bernardino Municipal Water District et al v. San Gabriel Water Company et al, a copy of which is attached as Exhibit C to this Agreement.

2. TERM
This Agreement shall become operative on the Effective Date.

3. COUNCIL CREATION AND PURPOSE

3.1 Creation of the RBGC. There is hereby created the Rialto Basin Groundwater Council. The RBGC shall be, to the extent permitted by law, the forum within which the Parties shall coordinate the access to and utilization of native and imported water supplies for application to the recharge and replenishment of the Rialto Basin, and for the maintenance, and repair of recharge and conveyance facilities for both native and imported supplies to replenish the Rialto Basin, consistent with applicable law and judicial decrees. The RBGC is not a public agency subject to Government Code Sections 54950 et seq.,nor is it a joint exercise of powers agreement as defined by Government Code sections 6300 et seq.

3.2 Purpose of the Agreement. The purpose of this Agreement, and the creation of the RBGC, is to provide for the funding, integration, and coordination of the management of native and imported water and associated groundwater replenishment facilities within the Rialto Basin. The purpose is also the facilitation of implementation of policies and initiatives through the legal authorities of one or more Parties for the purpose of cooperatively managing certain aspects of the Rialto Basin including, but not limited to, accessing and applying imported water supplies to augment and complement native water supplies toward the goal of maintaining the long-term yield of the Rialto Basin, ensuring that overdraft or other negative impacts are prevented in the future and eliminated over time, and undertaking supply reliability activities that are approved by the RBGC and included in the annual approved budget.

3.3 Membership of the RBGC. The RBGC shall consist of one representative and one alternate from each Party. RBGC members shall be appointed in the manner set forth in Section 3.4 of this Agreement.

3.4 Appointment of Members to the RBGC. For Colton, Rialto and WVWD, the representative member of the RGBC shall be a publicly elected official of the Party and for FUWC the representative shall be a member of its Board of Directors. Each Party shall also appoint one alternate representative who shall be a publicly elected official of the Party or a member of its Board of Directors or senior management level employee of the Party.

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Members of the RBGC shall serve throughout the term of this Agreement, provided that such members may be subject to removal and replacement by the appointing Party.

4. COUNCIL MEETINGS AND ACTIONS

4.1 Initial Meeting. The initial meeting of the RBGC shall be held at a location overlying the Rialto Basin. The RBGC shall select a President to chair its meetings, a Vice President to serve if the President is unavailable, a Secretary to record RBGC proceedings and actions, and any other officers it deems appropriate for the successful and efficient conduct of its business.

4.2 Regular Meeting Schedule and Rules of Proceeding. The RBGC shall establish a regular meeting time and place. The RBGC may vote to change the regular meeting time and place, provided that the new location remains at a place overlying the Rialto Basin.

The RBGC may adopt, promulgate, repeal, or revise further rules of debate, presentation of motions, voting and proxies, process, or proceedings, as it may deem appropriate. The Parties agree that the RBGC and its Board of Directors is and shall be subject to the Ralph M. Brown Act (Cal. Government Code section 54953 et seq.,) (“Brown Act”) and that meetings and other applicable operations of the RBGC will be undertaken in compliance with the Brown Act..

4.3 Quorum. A quorum of the RBGC shall consist of three members. In the absence of a quorum, no business may be transacted beyond the adjournment of a meeting by the remaining members. For efficiency, business may be discussed and action recommended for the consent calendar ratification at the next regular meeting. A member shall be deemed present for the determination of a quorum if the member is present at the meeting in person, or if the member participates in the meeting telephonically upon such rules and procedures as the RBGC may promulgate.

4.4 RBGC Voting Rights. Each member of the RBGC shall have an equal voting right and three votes are required to pass any proposals for organizational, procedural, and administrative purposes only.

4.4.1 Fiscal items, including but not limited to, approval of the annual budget of the RBGC and any expenditures for O& M expenses related to groundwater recharge and replenishment activities, costs of such facilities, and the cost of purchasing, transporting, and delivering supplemental water for groundwater recharge shall require the unanimous vote of the members and the subsequent approval by their respective governing boards or councils.

4.4.2 Subject to the Equitable Allocation and Cost Share requirements, any change in annual assessments necessary to support the work of the RBGC shall require the unanimous vote of the members and the subsequent approval by their respective governing boards or councils.

4.5 Minutes. The RBGC shall cause minutes to be kept of all meetings of the RBGC and any appointed Ad Hoc or Standing Committees. The RBGC shall further cause a copy of draft minutes to be forwarded to each member of the RBGC and to each Party, which may be done electronically, or by way of posting to a commonly available website or digital portal.

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5. ANNUAL BUDGETING AND EXPENDITURE APPROVAL

5.1 The fiscal year of the RBGC shall be July 1 through June 30. The RBGC shall develop, circulate, and approve an annual budget for the funding of native supply capture and bringing water supply to the Rialto Basin, and for the maintenance and repair of groundwater recharge or water conveyance facilities serving replenishment of the Rialto Basin. The RBGC shall coordinate with BTAC to determine the likely allocation of available State Water Project imported water supplies, and other available non-native sources of water, the likely unit cost of such water, and the recharge needs of the Rialto Basin, in terms of quantities of water, locations where Rialto Basin conditions would most benefit from recharge, condition and availability of facilities to accomplish such recharge, and cost. From these sources, the RBGC shall prepare a budget that recommends all of the following:
(a) the amount of water supplies available to be purchased or otherwise acquired by RBGC members in the coming year;
(b) the recommended application or distribution of such water supplies to various parts of the Rialto Basin as recharge or as in-lieu supplies; (c) the estimated cost of all ongoing maintenance, repair, and operation costs for then-existing and future groundwater recharge and conveyance facilities serving to replenish the Rialto Basin;
(d) any capital improvement projects approved by the RBGC (e) any administrative costs of the RBGC; and
(f) proposed allocation of all expenditures in the budget among RBGC members as their portion of the Cost Share based upon the Equitable Allocation and Cost Share Requirements in this Agreement.

5.1.2 No later than March 1 prior to the beginning of the year for which the budget is to operate, the proposed budget shall be presented and circulated to all RBGC members for review and analysis. The circulated budget shall include the underlying presumptions and worksheets upon which it is based.

5.1.3 No later than sixty (60) days after each member agency’s budget has been approved by their respective governing bodies, the RBGC shall meet to deliberate and pass upon the budget. The RBGC may accept, reject, or modify in any way the budget as proposed. Adoption of the budget shall require unanimous approval by the members and the subsequent approval by their respective governing boards or councils.

5.2 The RBGC shall appoint an entity that is responsible for the accounting and revenue collection functions of the RBGC by tracking and securing the funding from the RBGC members pursuant to the approved annual budget, and consistent with the approved cost allocations among the RBGC members therein, for all imported water supplies. The appointed

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entity shall perform the accounting and revenue collection functions of the RBGC in tracking and securing the funding from its members pursuant to the approved annual budget, and consistent with the approved cost allocations among the RBGC members therein, for all facilities costs. In the event of any delinquency, the approved entity may request the RBGC to appoint it, or any other RBGC member or group of members, to represent the RBGC in securing collection of unpaid and owing amounts from any delinquent member or members. The reasonably incurred costs of such collection efforts may be reimbursed to the agent the RBGC authorized to go forward with them, and may be added as an administrative cost to other members, or as a credit against future amounts owing to the RBGC from such authorized agent.

5.3 No later than six (6) months into the budget year for which any budget is adopted by the RBGC, the RBGC shall prepare a year-in-process budget review, to assess the validity and accuracy of the presumptions upon which the budget was based, identify any budget savings or additional expenditures, assess any additional opportunities for groundwater replenishment that may have come available since the passing of the budget, and otherwise assess and recommend to the RBGC any potential amendment to the existing year budget, or suggestions for the following year’s budget, as changing conditions may warrant.

6. COUNCIL POWERS AND DUTIES

6.1 The RBGC shall exercise the following powers:

6.1.1 To adopt rules, regulations, policies, bylaws and procedures governing the operation of the RBGC.

6.1.2 To produce an Annual Rialto Basin Groundwater Report, using as may be appropriate data regarding groundwater conditions available from Western Municipal Watermaster, or other sources. The Annual Report shall include data showing each Party’s production from the Rialto Basin and recharge or replenishment, if any, to the Rialto Basin.

6.1.3 To monitor groundwater production and extractions in coordination with BTAC.

6.1.4 To make, after consultation with BTAC, annual recommendations for the amount of additional artificial recharge for the Rialto Basin from imported sources as a complement to native sources, and to plan for the development and application of such additional sources of recharge.

6.1.5 To establish as-needed Ad Hoc and Standing Committees for the purpose of making recommendations to the RBGC. Committees shall exist for the term specified in the action creating the committee, and the RBGC may dissolve a committee at any time through a majority vote of three voting members.

6.1.6 To contract, on behalf of the RBGC, for the services of engineers, attorneys, planners, financial consultants, and separate and apart therefrom, to appoint agents and representatives to employ such other staff persons as necessary. The BTAC will provide technical support for the RBGC, upon such terms as the RBGC and BTAC shall agree in writing.

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6.1.7 To collect and monitor all data related and beneficial to the development, adoption and implementation of appropriate groundwater level management for the Rialto Basin.

6.1.8 To collect assessments from RBGC members as authorized in the approved budget.

6.1.9 To cooperate, act in conjunction, and contract with the United States, the State of California, or any agency thereof, counties, municipalities, public and private corporations of any kind (including without limitation, investor-owned utilities), and individuals, or any of them, for any and all purposes necessary or convenient for the purposes of this Agreement.

6.1.10 To accumulate operating and reserve funds and invest the same as allowed by law for the purposes of the RBGC.

6.1.11 As may be permitted by law, to apply for and accept grants, contributions, donations and loans, including under any federal, state or local programs for assistance in developing or implementing any of its projects or programs in connection with any project untaken in the RBGC’s name.

6.1.12 To implement the Cost Share in a manner that qualifies as a pass through charge under the Constitutional requirements of Proposition 218, California Public Utilities Commission ratemaking policies and procedures, and similar revenue-raising requirements.

6.1.13 To exercise any power necessary or incidental to the foregoing powers in the manner and according to the procedures provided for under the law applicable to the Parties to this Agreement.

7. FUNDING RBGC ACTIVITIES

7.1 Funding for RBGC activities shall be as provided in Section 1.1.6. This mechanism is based in part on a regional sharing of Operation and Maintenance costs for Rialto Basin recharge activities, as those Operation and Maintenance costs shall be determined by the RBGC in its annual budgeting, in conjunction with BTAC. All Parties shall share in the Operation and Maintenance cost components in accordance with the provisions in Section 1.1.6 of this Agreement.

8. DISPUTE RESOLUTION

8.1 The Parties recognize that there may be disputes regarding the obligations of the Parties or the interpretation of this Agreement. The Parties agree that they may attempt to resolve disputes as follows:

8.2 Statement Describing Alleged Violation of Agreement. A Party or Parties alleging a violation of this Agreement (the “Initiating Party(ies)”) shall provide a written

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statement describing all facts that it believes constitute a violation of this Agreement to the Party(ies) alleged to have violated the terms of this Agreement (the “Responding Party(ies)”).

8.3 Response to Statement of Alleged Violation. The Responding Party(ies) shall have sixty (60) days from the date of the written statement to prepare a written response to the allegation of a violation of this Agreement and serve that response on the Initiating Party(ies) or to cure the alleged violation to the reasonable satisfaction of the Initiating Party(ies). The Initiating Party(ies) and the Responding Party(ies) shall then meet within thirty (30) days of the date of the response to attempt to resolve the dispute amicably.

8.4 Mediation of Dispute. If the Initiating Party(ies) and the Responding Party(ies) cannot resolve the dispute within ninety (90) days of the date of the written response, they shall engage a mediator, experienced in water-related disputes, to attempt to resolve the dispute. Each Party shall ensure that it is represented at the mediation by a representative with authority to settle. These representatives of the Initiating Party(ies) and the Responding Party(ies) may consult with staff and/or technical consultants during the mediation and such staff and/or technical consultants may be present during the mediation. The costs of the mediator shall be divided evenly between the Initiating Party(ies) and the Responding Party(ies). The decision of the mediator shall be non-binding.

8.5 Reservation of Rights. Subject to the above requirements, in the event that mediation fails, each Party retains and may exercise all legal and equitable rights and remedies it may have to enforce the terms of this Agreement; provided, that prior to commencing litigation, a Party shall provide at least five (5) calendar days’ written notice of its intent to sue to all Parties.
9 RELATIONSHIP TO WATER RIGHTS AND PRIOR AGREEMENTS

9.1 Water Rights and Existing Agreements. Nothing in this Agreement is intended to modify the water rights of the Parties, whether existing under a judgment, proceedings of the State Water Resources Control Board, or the common law, other than incorporating production right from No Man’s Land Basin into the Rialto Basin. Nothing in this Agreement is intended to modify any existing agreements between and among the Parties, unless expressly stated herein.

9.2 Agreements Among Water Users. Nothing in this Agreement is intended to modify the rights of the signatories of this Agreement among themselves.

9.3 Judgments. Nothing in this Agreement is intended to modify the rights of the Parties under the terms of the 1961 Decree.. However, FUWC’s production capacities of 5,014 acre-feet/year from No Man’s Land shall be acknowledged and incorporated into the Rialto Basin production capacity limits in the 1961 decree.. It is the intention of the Parties in forming the RBGC to apply, administer, and conform to the requirements and provisions of the 1961 Decree. In the event of any conflict, except for incorporating FUWC’s production in No Man’s Land into the Rialto Basin production capacity limits in the 1961 decree, between the actions of the RBGC and the requirements and provisions of the 1961 Decree, the latter shall control.

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9.4 No Admissions. Nothing in this Agreement shall be construed as an admission by any Party regarding any subject matter of this Agreement, including but not limited to the water rights or priorities of the Parties.

9.5 Preservation of Rights. The Parties agree that this Agreement, to the extent allowed by law, preserves all rights of the Parties as they may exist as of the Effective Date of this Agreement. Except as provided in Section 9.3, nothing in this Agreement is to be construed as altering the priorities or entitlements of water right holders among themselves to water from the Santa Ana River or the Rialto Basin.

10. MISCELLANEOUS

10.1 Authority. Each signatory of this Agreement represents that s/he is authorized to execute this Agreement on behalf of the Party for which s/he signs. Each Party represents that it has legal authority to enter into this Agreement and to perform all obligations under this Agreement, and that by doing so, such Party is not in breach or violation of any other agreement or contract.

10.2 Amendment. This Agreement may be amended or modified only by a written instrument approved by all voting members.

10.3 Jurisdiction and Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any suit, action, or proceeding brought under the scope of this Agreement shall be brought and maintained to the extent allowed by law in the Superior Court, County of San Bernardino, California and shall be deemed related to the 1961 Rialto Basin Decree, San Bernardino County Superior Court Action No. 81264 and to San Bernardino Valley Municipal Water District et al. v. San Gabriel Water Company et al..

10.4 Headings. The paragraph headings used in this Agreement are intended for convenience only and shall not be used in interpreting this Agreement or in determining any of the rights or obligations of the Parties to this Agreement.

10.5 Construction and Interpretation. This Agreement has been arrived at through negotiations, and each Party has had a full and fair opportunity to revise the terms of this Agreement. As a result, the normal rule of construction that any ambiguities are to be resolved against the drafting Party shall not apply in the construction or interpretation of this Agreement.

10.6 Entire Agreement. This Agreement constitutes the entire agreement of the Parties with respect to its subject matter, and supersedes any prior oral or written agreement, understanding, or representation relating to the subject matter of this Agreement.

10.7 Partial Invalidity. If, after the date of execution of this Agreement, any provision of this Agreement is held to be illegal, invalid, or unenforceable under present or future laws or adjudicatory decisions effective during the term of this Agreement, such provision shall be fully severable. However, in lieu thereof; there shall be added a provision as similar in terms to such illegal, invalid or unenforceable provision as may be possible and be legal, valid and enforceable.

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10.8 Successors and Assigns. To the extent authorized by law, this Agreement shall be binding on and inure to the benefit of the successors and assigns of the respective Parties to this Agreement. No Party may assign its interests in or obligations under this Agreement without the written consent of the other Parties, which consent shall not be unreasonably withheld or delayed.

10.9 Waivers. Waiver of any breach or default hereunder shall not constitute a continuing waiver or a waiver of any subsequent breach either of the same or of another provision of this Agreement, and forbearance to enforce one or more of the remedies provided in this Agreement shall not be deemed to be a waiver of that remedy.

10.10 Necessary Actions. Each Party agrees to execute and deliver additional documents and instruments and to take any additional actions as may be reasonably required to carry out the purposes of this Agreement.

10.11 Compliance with Law. In performing their respective obligations under this Agreement, the Parties shall comply with and conform to all applicable laws, rules, regulations and ordinances.

10.12 Third Party Beneficiaries. This Agreement shall not create any right or interest in any non-Party or in any member of the public as a third party beneficiary.

10.13 Notices. All notices, requests, demands or other communications required or permitted under this Agreement shall be in writing unless provided otherwise in this Agreement and shall be deemed to have been duly given and received on: (i) the date of service if served personally or served by facsimile transmission on the Party by delivery to the person(s) at the address(es) designated below, which designation may be changed from time to time by a Party in writing; (ii) on the first day after mailing, if mailed by Federal Express, U.S. Express Mail, or other similar overnight courier service, postage prepaid, and addressed as provided below, or (iii) on the third day after mailing if mailed to the Party to whom notice is to be given by first class mail, registered or certified, postage prepaid, addressed as follows:

To CITY OF COLTON: CITY OF COLTON
Attn: Utilities Director
650 N. La Cadena Drive
Colton, CA 92324
To CITY OF RIALTO:

To WEST VALLEY WATER
DISTRICT:

CITY OF RIALTO
Attn: Utilities Manager
150 S. Palm Avenue
Rialto, CA 92376

WEST VALLEY WATER DISTRICT
Attn: General Manager
855 W. Baseline Road
Rialto, CA 92376

FONTANA UNION WATER COMPNY

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To FONTANA UNION WATER
COMPANY:

Attn: President
15966 Arrow Route
Fontana, CA 92335
With Copy to: FONTANA UNION WATER COMPANY
Attn: Director of Operations 15966 Arrow
Route
Fontana, CA 92335

10.14 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which together shall constitute but one and the same instrument.

DATED: ____________________, 2020

CITY OF COLTON,
a California general law city and
municipal corporation
By:__________________________________
William R. Smith, City Manager
[Signatures continued on next page]

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- 01180.0023/614491.1

-14- 01180.0023/614491.1
DATED: ____________________, 2020

CITY OF RIALTO
a California general law city and
municipal corporation
By:__________________________________
Sean Grayson, Acting City Manager
[Signatures continued on next page]

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DATED: ____________________, 2020

WEST VALLEY WATER DISTRICT
By:__________________________________
Clarence Mansell,
General Manager
[Signatures continued on next page]

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DATED: ____________________, 2020

FONTANA UNION WATER COMPANY
By:__________________________________
John Bosler, President

01180.0023/614491.1

EXHIBIT A
Map of Rialto Basin

01180.0023/614491.1
Exhibit B

WATER RIGHTS SUMMARY
The Parties to this agreement have agreed to the following water rights allocation:

Member
Adjustable
Rights
Fixed
Rights
No Man’s
Land
Adjustable
Rights
Total
Rights
Water Rights
Allocation
Percentage
Colton 3,010 890 0 3,900 19%
Rialto 2,846 1,520 0 4,366 22%
WVWD 5,594 510 0 6,104 30%
FUWC 550 370 5,014 5,934 29%

1 FOUR PARTY IMPLEMENTATION AGREEMENT
This Implementation Agreement (“Agreement”) is made and entered into on the Effective Date (as defined herein) by and between Emhart Industries, Inc. (“Emhart”), the City of Rialto and the Rialto Utility Authority (collectively, “Rialto”), the City of Colton, (“Colton”), and the County of San Bernardino (“County”).  Emhart, Rialto, Colton and the County are referred to individually herein as a “Party” and collectively as the “Parties.”

RECITALS
The Purpose of this Agreement
A. This Agreement facilitates implementation of the interim remedial action required by the Consent Decree (Dkt. No. 1820) entered on July 2, 2013, by the United States District Court for the Central District of California (the “District Court”), in City of Colton v. American Promotional Events, Inc.‐West, et al., Case No. ED CV 09‐01864 PSG (SSx), and related consolidated actions (the “Work Consent Decree”).

B. The remedial action required by the Work Consent Decree was selected and approved, and will be overseen, by the United States Environmental Protection Agency (“USEPA” or “EPA”) pursuant to its authority under the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”), 42 U.S.C. § 9601, et seq. (the “EPA Remedy,” as defined below).  The EPA Remedy is designed to capture and remove perchlorate and trichloroethylene (“TCE”) in groundwater in the Rialto‐Colton Groundwater Basin (“Basin”) emanating from a 160‐acre parcel located in Rialto, California (the “160‐Acre Parcel”).

C. As set forth herein and in the County/Emhart Implementation Agreement, the EPA Remedy will be combined with an existing groundwater extraction and treatment remedy designed and constructed by the County to capture and remove perchlorate and TCE in the Basin as required by the California Regional Water Quality Control Board, Santa Ana Region (the “Regional Board Remedy,” as defined below).

D. Upon Emhart’s completion of construction and permitting necessary to combine the EPA Remedy and the Regional Board Remedy (“Combined

2 Remedies,” as defined below), Rialto will operate the Combined Remedies to provide potable drinking water to Rialto’s and, if necessary, Colton’s municipal water supply systems.

The Regional Board Remedy
E. In January 2003, the Regional Water Quality Control Board, Santa Ana Region (“Regional Board”) adopted Cleanup and Abatement Order No. R8‐ 2003‐0013, which required the County to develop and implement a remedial action to abate perchlorate in groundwater in the Basin allegedly migrating from County property (“Cleanup Order”).  In September 2004, the Regional Board adopted Order No. R8‐2004‐0072, amending the Cleanup Order to require the County to provide Rialto with replacement water for City of Rialto Well No. 3 (“CR‐3”) (“Water Replacement Order”).  The Cleanup Order and the Water Replacement Order are collectively referred to herein as the “Regional Board Order.”
F. In 2005, pursuant to the Regional Board Order, the County completed a remedial investigation and feasibility study (“RI/FS”) which identified a former bunker area where munitions had been stored during the Second World War (“Bunker Area”) and the Stonehurst Property (which is not owned or operated by the County) as potential source areas of perchlorate subject to the Regional Board Order.  The RI/FS and subsequent studies by the County concluded that current and past disposal units of the Mid‐Valley Sanitary Landfill (“MVSL”) were not sources of perchlorate contamination.  The RI/FS concluded that perchlorate and VOC impacts to groundwater near CR‐3 likely originated in source areas located in the vicinity of Unit 5 of the MVSL and/or the Stonehurst Property.

G. In 2005, the County and Rialto entered into an agreement titled “Water Replacement Order Implementation Agreement and Water Rights Lease,” effective April 1, 2005 (“County/Rialto Implementation Agreement”), which, among other things, facilitates the County’s compliance with the Regional Board Order.

H. In 2006, the County commenced operation of the Regional Board Remedy under the oversight of the Regional Board pursuant to the Regional Board Order.  In December 2007, the County issued an updated design report that proposed to install two additional groundwater extraction wells, now known as

3 Miro‐2 and Miro‐3, to be connected to the treatment plant at CR‐3.  In February 2008, the Regional Board approved this plan as proposed by the County.  In July 2011, the County submitted to the Regional Board an Operations, Monitoring and Maintenance Plan (“OMMP”), which among other things, proposed to vary the production rate from the Regional Board Remedy by season, to enable the output from the County’s groundwater treatment plant to better match the Rialto seasonal water demand (compared to operating at a fixed rate 24 hours a day, 365 days a year).  In February 2012, the Regional Board approved the OMMP pumping schedule as proposed by the County.  As the permitee under its Domestic Water Supply Permit No. 71‐009, Rialto operates the County’s groundwater treatment plant located on Linden Avenue adjacent to CR‐3 as set forth in the County/Rialto Implementation Agreement.

I. In August 2010, the County, Colton, and Rialto entered into a Standby Agreement whereby the County leased certain water rights from Colton (“County/Colton/Rialto Standby Agreement”), which, among other things, further facilitates the County’s compliance with the Regional Board Order.

The EPA Remedy
J. In January 2009, USEPA commenced its RI/FS process for the 160‐ Acre Parcel, which is located immediately north and east of the County’s MVSL.

In September 2009, USEPA listed the 160‐Acre Parcel on the National Priorities List (“NPL”) as the B.F. Goodrich Superfund Site.  By placing the B.F. Goodrich Superfund Site on the NPL, USEPA assumed jurisdiction and control over its cleanup. On December 11, 2013, USEPA changed the name of the B.F. Goodrich Superfund Site to the Rockets, Fireworks, and Flares Superfund Site.

K. In September 2010, the USEPA issued the Interim Action Record of Decision for the Source Area Operable Unit (“SAOU”) of the B.F. Goodrich Superfund Site (“2010 ROD”), requiring the installation, operation, and maintenance of a groundwater pump‐and‐treat system to intercept and control the spread of contaminated groundwater from the 160‐Acre Parcel.

Federal Court Actions
L. In 2004, Rialto filed an action in the District Court, known as City of Rialto v. United States Department of Defense et al., Civil Action No. ED CV 04‐ 00079‐PSG‐SSx.  In early 2005, Colton filed a similar action in the District Court,

4 known as City of Colton v. American Promotional Events, Inc.‐West, et al., Civil Action No. ED CV 05‐01479 PSG (SSx).  Rialto and Colton brought their respective actions against a number of defendants, including the County and Emhart, seeking response costs and injunctive relief to, among other things, ensure that perchlorate and TCE in the Basin would be cleaned up.

M. In February 2010, the United States, on behalf of USEPA, filed an action in the District Court under CERCLA and the Resource Conservation and Recovery Act (“RCRA”), 42 U.S.C. § 6901, et seq., known as United States of America v. Goodrich Corporation et al., CV 10‐8245 PSG (SSx), seeking, among other things, from a number of defendants, including Emhart but not the County, response costs and performance of the necessary response actions at the B.F.

Goodrich Superfund Site (the “United States Action”).  Emhart and other defendants sued by the United States then filed Third‐Party Complaints and Cross‐Claims against the County and others.

N. In June 2010, the District Court consolidated the United States Action with actions which had been re‐filed by:  Rialto, Case No. 09‐07501 PSG (SSx) in October 2009; Colton, Case No. CV 09‐01864 PSG (SSx) in October 2009; Emhart, Case No. 09‐07508 PSG (SSx) in October 2009, the County, Case No. 09‐06632 PSG (SSx) in September 2009, and two additional cases related to groundwater contamination in the Basin, also re‐filed in late 2009, as City of Colton v. American Promotional Events, Inc.‐West, et al., Case No. 09‐01864 (SSx) (the “Consolidated Actions”).

O. Between 2011 and 2014, the claims, which had been brought by and against the United States, the County, Rialto, Colton, Emhart, and most other parties in the Consolidated Actions, were resolved by settlements memorialized in the Work Consent Decree, the County Consent Decree entered in January 2012, the PSI Consent Decree entered in March 2013, the Goodrich/UTC Consent Decree entered in July 2013, and other settlements.

The Combined Remedies
P. In June 2013, the USEPA approved Emhart’s proposal for a Combined Capture System.  In May 2014, the USEPA approved the final design of the Combined Remedies including a Combined Treatment Plant.

5 Q. In accordance with Paragraphs 10 and 12 of the Work Consent Decree, this Agreement sets forth the Parties’ respective rights and obligations regarding implementation of the Combined Remedies.  The Parties have separately entered into additional agreements (e.g., the County/Rialto Implementation Agreement, the County/Colton/Rialto Standby Agreement, the County/Emhart Implementation Agreement, and the County Consent Decree) which address, among other things, certain rights and obligations among the parties to those agreements related to the Regional Board Remedy, the EPA Remedy, and/or the Combined Remedies.

Recitals A through Q, above, are not intended to and do not create any rights or obligations among the Parties to this Agreement.

AGREEMENT
NOW, THEREFORE, the Parties agree as follows:

I. Definitions
A. “1961 Decree” means the Decree entered on December 22, 1961, in The Lytle Creek Water and Improvement Co. v. Fontana Ranchos Water Co. et al., San Bernardino County Superior Court Case No. 81264, as it may be modified.

B. “Basin” means the Rialto‐Colton Groundwater Basin.

C. “Claims” means any third‐party claim for losses, damages, actions or liability.

D. “Closure” means, for Emhart, EPA’s determination that the Performance Standards set forth in the Work Consent Decree have been met so that Emhart has no further obligation to operate any portion of the Combined Remedies; and, for the County, the Regional Board’s determination that the County has met its remedial obligations so that the County has no further obligation to operate any portion of the Combined Remedies.

E. “Colton Water Budget” means a document, detailing Colton’s anticipated month‐by‐month minimum needs and maximum capacity to accept water generated by the Combined Remedies for the upcoming Water Year, subject to the Colton Water Rights, that Colton will provide annually to Rialto, the

6 County, and Emhart to assist the Parties in their development of the annual Water Management Plan for the Combined Remedies.

F. “Colton’s DDW Permit” means domestic water supply Permit No. 03‐ 13‐96P‐001 issued to Colton by DDW on June 28, 1996, as it has been and may be amended in the future.

G. “Colton Water Rights” means Colton’s water rights in the Basin under the 1961 Decree.

H. “Combined Capture System” means the extraction wells and associated conveyance piping connected to the Combined Treatment Plant necessary for operation of the Combined Remedies.  There are currently three existing extraction wells (Miro‐2, Miro‐3, and CR‐3) and one planned extraction well (EW‐1) that will be connected to the Combined Treatment Plant; the locations of these wells and associated piping are shown on Exhibit C (Conceptual Diagram of Combined Capture System).  This definition includes any additional extraction wells and associated piping that may be added in the future, as necessary or appropriate to comply with the Work Consent Decree or Regional Board Order.

I. “Combined Remedies” means the Combined Capture System and the Combined Treatment Plant, but does not include groundwater monitoring wells.

J. “Combined Treatment Plant” or “CTP” means a system of groundwater treatment components, consisting of (1) the County treatment plant at CR‐3, in place as of the Effective Date, constructed by the County to comply with the Regional Board Order; (2) the expansion of the County treatment plant constructed by Emhart, after the Effective Date, to comply with the Work Consent Decree (as described in detail in the final design approved by EPA on May 19, 2014); and (3) any future expansion of such treatment plant as necessary or appropriate to comply with the Work Consent Decree or the Regional Board Order.

K. “Combined Treatment Plant Lease Area” means the Combined Treatment Plant Lease Area as defined in Exhibit J hereto.

L. “County Consent Decree” means the Consent Order and Judgment entered by the United States District Court for the Central District of California on

7 January 31, 2012 in City of Colton v. American Promotional Events, Inc‐West et al., Case No. 09‐1864 PSG (SSx) (Dkt. No. 1258).

M. “County/Emhart Implementation Agreement” means the separate Implementation Agreement entered into between the County and Emhart in accordance with Paragraph 12 of the Work Consent Decree concurrently with this Agreement.

N. “County/Rialto Implementation Agreement” means the agreement titled “Water Replacement Order Implementation Agreement and Water Rights Lease,” entered by Rialto, the Rialto Utility Authority, and the County, effective April 1, 2005.

O. “CR‐3” means City of Rialto well No. 3.

P. “DDW” means the California State Water Resources Control Board Division of Drinking Water, formerly, the California Department of Public Health Division of Drinking Water.

Q. “Effective Date” means the date the last Party executes this Agreement.

R. “EPA” or “USEPA” means the United States Environmental Protection Agency.

S. “EPA Remedy” means the system of extraction wells, conveyance pipelines, and the expansion of the County’s groundwater treatment plant to be constructed by Emhart required by the Work Consent Decree.

T. “Regional Board Order” means Cleanup and Abatement Order No. R8‐2003‐0013, adopted by the Regional Water Quality Control Board, Santa Ana Region (“Regional Board”), on January 17, 2003, as amended by Order No. R8‐2004‐0072, adopted by the Regional Board, on September 17, 2004, and as Order No. R8‐2003‐0013 may be amended in the future.

U. “Regional Board Remedy” means the system of extraction wells, conveyance pipelines, and groundwater treatment plant operated by the County in compliance with the Regional Board Order.

8 V. “Replacement Water” means potable water acquired from a water purveyor other than Rialto holding a DDW domestic water supply permit and delivered to Rialto, or the acquisition of additional water rights in the Basin, by the County for use by Rialto.

W. “Rialto Water Budget” means a document, detailing Rialto’s anticipated month‐by‐month minimum needs and maximum capacity to accept water generated by the Combined Remedies for the upcoming Water Year, subject to the Rialto Water Rights, that Rialto will provide annually to Colton, the County, and Emhart to assist the Parties in their development of the annual Water Management Plan for the Combined Remedies.

X. “Rialto Water Rights” means certain water rights in the Basin that Rialto has leased to the County as set forth in the County/Rialto Implementation Agreement.

Y. “Rialto’s DDW Permit” means domestic water supply Permit No. 71‐ 009 issued to Rialto by DDW on January 8, 1971, as amended by Permit Amendment No. 05‐13‐06PA‐005 issued on May 8, 2006, Permit Amendment No. 05‐13‐09PA‐042 issued on January 4, 2010, and as permit No. 71‐009 may be amended in the future.

Z. “SOW” means the Statement of Work attached as Appendix F to the Work Consent Decree.

AA. “Summer Months” means May through September, inclusive.

BB. “Water Year” means October 1 through the following September 30.

CC. “Winter Months” means October through the following April, inclusive.

DD. “Work” means all activities and obligations Emhart is required to perform under the Work Consent Decree, except the activities required under Section XXIII (Retention of Records) of the Work Consent Decree.

EE. “Work Consent Decree” means the Consent Decree entered by the United States District Court for the Central District of California on July 2, 2013 in City of Colton v. American Promotional Events, Inc‐West et al., Case No. 09‐1864 PSG (SSx) (Dkt. No. 1820) as it may be amended in the future.

9 II. The Remedial Objectives of the Combined Remedies
A. Emhart is responsible for meeting the remedial action objectives set forth in the Work Consent Decree.

B. The County is responsible for complying with the Regional Board Order, including meeting the remedial action objectives developed pursuant thereto.

C. If, in the future, in connection with their respective responsibilities to meet the remedial action objectives the Regional Board Order or the Work Consent Decree, the County or Emhart needs to modify or expand the Combined Remedies, associated conveyance pipelines, monitoring wells, or any part thereof, the Parties shall meet and confer in good faith to discuss any such necessary expansion or modification in accordance with their obligations under the Work Consent Decree, the County Consent Decree and the County/Rialto Implementation Agreement.  Nothing in this Paragraph limits or expands the rights and obligations of the Parties under such agreements.

III. The Design, Permitting, Installation, and Construction of the Work A. Emhart’s Responsibilities

1. Emhart shall ensure that knowledgeable representatives are available, as reasonably necessary, to consult with Rialto, Colton, and the County during the design, permitting, installation, and construction phases of the Work.

2. Subject to the terms of the Work Consent Decree, Emhart is responsible for the cost of the design, permitting, installation, and/or construction of:
a. the new extraction well(s) necessary to perform the
Work;
b. the expansion of the County’s groundwater treatment
plant at CR‐3 necessary to perform the Work;
c. the additional piping and infrastructure necessary to:
i. connect the new extraction well(s) to the
Combined Treatment Plant;

10 ii. connect the Combined Treatment Plant to the
existing Rialto municipal water supply system;
iii. deliver water to the Colton municipal water
supply system pursuant to Emhart's lease of Colton Water Rights either through the existing Rialto municipal water supply system or by some other means agreed to by the Parties in writing; and
iv. deliver water to a water purveyor (other than
Colton) which is to receive water pursuant to a lease of water rights to Emhart, either through the existing Rialto municipal water supply system or by some other means agreed to by the Parties;
d. obtaining modification of Colton and Rialto’s DDW
Permits as necessary for operation of the Combined Remedies to satisfy Emhart’s obligations under the Work Consent Decree; and
e. any expansion or modification of the Combined
Remedies required to satisfy Emhart’s obligations under the Work Consent Decree.

3. During the design, permitting, installation, construction, startup and shakedown phases of the Work, and prior to obtaining modification of Colton and Rialto’s DDW Permits as necessary for operation of the Combined Remedies, Emhart shall not interfere with the County’s ability to operate the Regional Board Remedy in a manner consistent with and without degradation to the County’s obligations under the Regional Board Order and the County/Rialto Implementation Agreement.

4. During the design, permitting, installation, and construction phases of the Work within the jurisdiction of Rialto or Colton, Emhart shall comply with the applicable permitting and approval processes required by the Rialto or Colton municipal codes, as applicable, as set forth in Paragraphs VII. A and B, below.

B. Colton’s Responsibilities

1. During the design, permitting, installation, and construction phases of the Work, Colton shall (a) ensure that knowledgeable representatives

11 are available, as reasonably necessary, to work with Emhart, Rialto, and the County; and (b) provide Emhart access as set forth in Paragraph VII.A, below.

C. Rialto’s Responsibilities

1. During the design, permitting, installation, and construction phases of the Work, Rialto shall ensure that knowledgeable representatives are available, as reasonably necessary, to work with Colton and the County.

2. During the design, permitting, installation, and construction phases of the Work, Rialto shall ensure that knowledgeable representatives are available, as reasonably necessary, to work with Emhart, provided that Emhart reimburses Rialto for:
a. the cost of time incurred by Rialto’s consultant Peter Fox (or Rialto’s designated alternate consultant, West Yost Associates) reasonably required to provide information, evaluate information provided, or attend meetings, as needed, during the design, permitting and construction phases of the Work, except for the first 10 hours of the consultant’s time, on a “time and materials” basis (the procedure for reimbursement of these costs is set forth in Exhibit A); and
b. any other Rialto personnel or consultant costs, including, but not limited to, costs to conduct any required plan checks, engineering checks, and/or reviews associated with permits issued by Rialto which are necessary during the design, permitting, and construction phases of the Work, up to a total amount not to exceed $20,000, which, as of the Effective Date, Emhart has paid to Rialto.

3. During the design, permitting, installation and construction phase of the Work, Rialto shall provide Emhart access as set forth in Paragraph VII.B, below.

D. County Responsibilities
During the design, permitting, installation, and construction phases of the Work, the County shall:  (a) not unreasonably deny the availability of knowledgeable representatives to work with Rialto, Colton, and Emhart; and (b) provide Emhart with access to the County’s groundwater treatment plant at CR‐3 as necessary to expand the treatment plant consistent with the

12 County/Emhart Implementation Agreement.  Upon the effective date of the lease attached hereto as Exhibit J, Rialto consents to the County’s grant of such access to Emhart in accordance with Paragraph 10.a.v of the County/Rialto Implementation Agreement and Paragraph 36 of Exhibit K thereto.

IV. Operation and Maintenance of the Combined Remedies
A. Commencement of Rights and Obligations in Paragraph IV

1. The Parties’ rights and obligations in this Paragraph IV shall be effective upon approval by DDW of the amendment of Colton and Rialto’s DDW Permits necessary to allow water generated by the Combined Remedies to be delivered to Rialto and Colton customers.

2. Prior to issuance of the amendment of Rialto’s DDW Permit to operate the Combined Remedies, Emhart is required by DDW to demonstrate effective operation of the new treatment components of the Combined Treatment Plant.  Emhart shall be responsible for all costs of energy used by Emhart as a result of that demonstration.  Following completion of the demonstration period, Emhart, the County and Rialto shall meet and confer to determine the costs of energy, for which Emhart and the County shall reimburse Rialto consistent with the cost allocation methodology set forth in Paragraphs IV.F.2.d.ii and iii.

B. Party Coordination During the Operation and Maintenance of the Combined Remedies
Emhart, the County, Rialto, and Colton shall not unreasonably deny the availability of knowledgeable representatives to consult with each other during the operation and maintenance of the Combined Remedies.

C. Operation and Maintenance of the Combined Treatment Plant

1. Rialto, as the operator of the Combined Treatment Plant and permitee under Rialto’s DDW Permit, shall, in its sole discretion, operate and maintain the Combined Treatment Plant.

2. Rialto shall employ or contract with a qualified person or persons who is/are authorized by law to operate the Combined Treatment Plant.

13 3. The Anticipated Combined Remedies Operation and
Maintenance Activities are set forth in Exhibit B, hereto.

4. As set forth in Paragraph IV.F, below, Emhart and the County shall pay to Rialto the cost to operate and maintain the Combined Treatment Plant.

D. Operation, Maintenance, and Management of the Combined Capture System

1. Rialto shall, in its sole discretion, operate and maintain the Combined Capture System, except that Emhart and the County shall determine the pump rates for each extraction well necessary to achieve the remedial objectives of the Combined Remedies.

2. As set forth in Paragraph IV.F, below, Emhart and the County shall pay to Rialto the cost to operate and maintain the Combined Capture System.

3. Unless otherwise agreed to in writing between Rialto, the County and Emhart (at the sole discretion of each), Rialto shall be responsible for collecting and analyzing all groundwater samples as required under Rialto’s DDW Permit; provided, however, as of the Effective Date (and until otherwise agreed in writing by Rialto and the County), the County shall be responsible for collecting and analyzing groundwater samples from County‐installed monitoring wells, as required by Rialto’s DDW Permit, and providing that data to Rialto.

4. As between Rialto and the County, this Paragraph IV and Exhibits B (Anticipated Combined Remedies Operation and Maintenance Activities) and H (Annual Allocation of CR‐3/CTP Energy Costs and Reconciliation of Combined Remedies Energy Costs) supersede and supplant Paragraphs 4, 5.a.i and 5.b and Exhibit I of the County/Rialto Implementation Agreement.

E. Transport and Distribution of Water

1. The treated water generated by the Combined Remedies shall be delivered to the Rialto municipal water supply system.  Rialto shall transport water through its existing municipal water supply system: (a) for distribution to Rialto’s customers pursuant to County's lease of Rialto Water Rights; (b) to Colton's municipal water supply system pursuant to Emhart and the County's

14 leases of Colton Water Rights (to the extent the piping and infrastructure for such transport exist or are constructed by Emhart pursuant to Paragraph IV.E.2); and (c), if necessary, to a water purveyor other than Colton, if the piping and infrastructure exists for such transport and if such water purveyor agrees to accept such water at no increased cost to Rialto.  Nothing in this Paragraph precludes the Parties from arranging, by written agreement, for the transportation of water to Colton or any other water purveyor by other means, in accordance with the requirements in Paragraph V.B.1.a.

2. To the extent that Rialto’s existing piping and infrastructure are insufficient to allow transport of the volume of water necessary to meet Emhart’s remedial obligations under the Work Consent Decree to the Colton municipal water supply system, or, if necessary, the municipal water supply system of a water purveyor other than Colton, and the Parties do not otherwise arrange for delivery of water to Colton or another water purveyor by other means, Emhart shall install reasonably necessary additional piping and infrastructure to allow such transport (between Rialto and Colton or between Rialto and another water purveyor, at locations within the jurisdictional boundaries of Rialto approved by Rialto in its sole discretion).

3. Nothing in this Agreement alters, limits, or otherwise affects Rialto’s authority to properly and safely operate and maintain, in its sole discretion, the Rialto municipal water supply system.  Nothing in this Agreement, including the preceding sentence, alters, limits, or otherwise affects Rialto's obligation to deliver water as set forth in the Work Consent Decree.

4. Water Quality Requirements
a. Rialto Resolution No. 5248 (June, 21, 2005), attached as Exhibit E, requires Rialto groundwater production wells to be shut down and prohibits water from entering Rialto’s municipal water supply system when standard water testing techniques show any detectable levels of perchlorate in such water.
b. Treated water generated by the Combined Remedies:
(i) shall meet all federal and state statutory and regulatory requirements governing municipal drinking water; (ii) shall be non‐detect for perchlorate under the California state detection limit for purposes of reporting (“DLR”) set forth in Title 17 of the California Code of Regulations, Section 64432(d), Table 64432‐A,

15 which is currently 0.004 mg/L; and (iii) shall not be blended with any water in which perchlorate was detected in a test using the DLR. c. The Parties recognize that the DLR for perchlorate may change.  If such a change occurs and the treated water from the Combined Remedies is unable to satisfy the requirements of Paragraph IV.E.4.b.ii, above, the Parties shall meet and confer in good faith to discuss whether any potential modification to the Combined Treatment Plant is feasible in order to meet the requirements in Paragraph IV.E.4.b.ii, above and, if not, whether any potential modification to Paragraph IV.E.4.b.ii, above, is appropriate.  Nothing in this Paragraph IV.E.4.c affects Paragraph IV.E.4.f., below.
d. If the Parties are unable to reach an agreement on any dispute arising under Paragraph IV.E.4.c, above, that dispute shall be resolved in accordance with the dispute resolution provisions set forth in Paragraph 10.2 of the County Consent Decree.  While Emhart is not a party to the County Consent Decree, it hereby agrees, with regard to disputes arising under Paragraph IV.E.4.c, above, to be bound by the dispute resolution process set forth in Paragraph 10.2 of the County Consent Decree.
e. Notwithstanding the requirements of
Paragraph IV.E.4.b.ii, or the outcomes of the processes described in Paragraphs IV.E.4.c or d, above, the water generated by the Combined Remedies shall be treated to obtain a water quality consistent with (but not greater than) the level of the water quality obtained by other treatment systems used by Rialto to treat water produced from its other groundwater production wells impacted by perchlorate.
f. Nothing in this Paragraph IV.E.4 modifies the rights of the County, Rialto, or Colton in Paragraphs 4.2 and 10.2 of the County Consent Decree.

F. Cost of Operating and Maintaining the Combined Remedies

1. Governing Principles
a. As provided for in Paragraphs IV.C.1 and IV.D.1, above, Rialto shall operate and maintain the Combined Remedies as described in Exhibit B, hereto, subject to Emhart’s and the County’s responsibility for the actual costs of such operation and maintenance as set forth in this Paragraph IV.F.

16 Exhibit B describes the anticipated activities for operation and maintenance of the Combined Remedies and is for illustration and budgeting purposes only and does not create any legal rights, obligations, responsibilities or duties, contractual or otherwise, among the Parties or any third party.
b. Emhart is responsible, as set forth in the Work Consent Decree, for the costs to operate and maintain the Combined Remedies to meet the remedial action objectives described in Paragraph 3.1 of the SOW. c. The County is responsible, as set forth in the Regional Board Order, for the costs to operate and maintain the Combined Remedies to meet the remedial action objectives set forth in the Regional Board Order. d. The County and Emhart have agreed to allocate the
costs of operation and maintenance of the Combined Remedies as set forth in the County/Emhart Implementation Agreement.  Nothing in the County/Emhart Implementation Agreement supersedes, abrogates or modifies Emhart’s or the County’s responsibility for the costs to operate and maintain the Combined Remedies as set forth herein.

2. Billing and Payment of Operation and Maintenance Costs a. Administrative Costs:  Following the submission of an invoice by Rialto, Emhart and the County shall pay Rialto for its annual administrative staff costs on the first business day following October 1 of each year, or within sixty days of receipt of the invoice from Rialto, whichever occurs later.  This payment is to compensate Rialto for its annual administrative staff costs incurred in implementing this Agreement.
i. For the first five years of operation of the
Combined Remedies, the amount of the administrative cost shall be $25,000. ii. The administrative cost shall be adjusted annually
by the percentage change, if any, in the fully burdened rate for Rialto’s Director of Public Works/City Engineer.
iii. After the first five years of operation of the
Combined Remedies, and every five years thereafter, the County, Emhart, and Rialto shall meet and confer in good faith to determine whether the administrative cost shall be modified to more accurately reflect actual annual

17 administrative staff costs incurred by Rialto in implementing this Agreement.  If the County, Emhart, and Rialto are unable to agree, the payment for Rialto’s administrative staff costs set forth in Paragraphs IV.f.2.a.i. and ii shall not change. iv. Upon termination of participation in the
Combined Remedies by either the County or Emhart pursuant to Paragraph XIII.

A., the non‐terminating Party and Rialto shall meet and confer to determine an appropriate administrative cost to accurately reflect Rialto’s administrative staff costs to implement this Agreement thereafter.  If Rialto and the non‐terminating Party are unable to agree, the dispute shall be resolved pursuant to the Dispute Resolution provisions of Paragraph XII.
b. Operation and Maintenance Costs:  Emhart and the
County shall pay Rialto the cost to operate and maintain the Combined Remedies, as follows:
i. By August 1 of each year, Rialto (or its third party contractor) shall prepare and submit to Emhart and the County a budget for the work necessary to operate and maintain the Combined Remedies in a cost‐ effective manner (“Annual O&M Budget”).  The form to be used for the Annual O&M Budget is attached hereto as Exhibit F.
ii. If no changes are proposed, the Annual O&M
Budget for the prior year shall continue in effect for the coming year. iii. Within 10 business days of Emhart’s and the
County’s receipt of the Annual O&M Budget from Rialto, the County and Emhart shall submit their joint comments on the Annual O&M Budget in good faith, which Rialto shall review and consider in good faith.  Within 10 business days of submission of the joint comments, Emhart, the County, and Rialto shall, if necessary, meet and confer to discuss those comments.  Any disputes regarding the appropriateness of the Annual O&M Budget shall be raised within 10 business days of that meeting and shall be subject to the Dispute Resolution provisions of Paragraph XII.
iv. Upon resolution of the Annual O&M Budget,
Rialto shall send a single invoice to both Emhart and the County for 50% of the total budgeted amount set forth therein.  Within 60 days of receipt of Rialto’s invoice, Emhart and the County shall pay Rialto that invoiced amount.  On or after

18 February 1 of the following year, Rialto shall invoice Emhart and the County for the balance of the total budgeted amount set forth in the Annual O&M Budget.

Within 60 days of Rialto’s invoice, Emhart and the County shall pay Rialto that invoiced amount.  Rialto shall deposit and maintain the monies paid in these installments in a separate restricted fund that is committed to be used only for the purpose of paying for items set forth in the Annual O&M Budget. v. Rialto shall timely pay invoices for the costs of
operation and maintenance of the Combined Remedies.
vi. For purposes of tracking the monthly costs
incurred pursuant to the Annual O&M Budget, Rialto shall submit to the County and Emhart, on or before the fifth day of each month, copies of invoices for the costs of work paid in the preceding month in accordance with the Annual O&M Budget, along with any supporting documentation reasonably requested by Emhart and/or the County.
vii. On or before October 1 of each year, Rialto, the
County, and Emhart shall meet and confer to reconcile any variance between actual costs of operation and maintenance of the Combined Remedies incurred and paid by Rialto and the Annual O&M Budget and corresponding payments made by Emhart and the County for the preceding year.

1. If, pursuant to Paragraph IV.F.2.b.vii, Rialto,
the County, and Emhart agree that the actual costs of operation and maintenance of the Combined Remedies incurred and paid by Rialto were greater than the Annual O&M Budget and corresponding payments made by Emhart and the County, Emhart and the County shall, within 45 days of such determination, make an additional payment equal to the amount by which the actual costs incurred and paid by Rialto exceeded the Annual O&M Budget.

2. If, pursuant to Paragraph IV.F.2.b.vii, Rialto,
the County, and Emhart agree that the actual costs of operation and maintenance of the Combined Remedies incurred and paid by Rialto were less than the Annual O&M Budget and corresponding payments made by Emhart and the County, Emhart and the County shall reduce the next installment payment due under Paragraph IV.F.2.b.iv by an amount equal to the amount by which the actual costs incurred and paid by Rialto were less than the Annual O&M Budget.

19 3. To the extent Rialto, the County, and
Emhart are unable to agree as provided for in Paragraph IV.F.2.b.vii.1 and 2, above, any undisputed amount shall be paid as provided above, and the disputed amount shall be resolved pursuant to Paragraph XII, below.  If, upon resolution of the dispute, a payment is due to Rialto, the County and Emhart shall pay Rialto the amount due within 45 days.  If, upon resolution of the dispute, a credit is due to the County and Emhart, that credit shall be applied against the next installment payment due under Paragraph IV.F.2.b.iv.
c. Vendor Costs:  Operation and maintenance of the
Combined Remedies will require, from time to time, materials, services, and equipment repair or replacement provided by third‐party vendors (“Vendor Services”).  Rialto, or its third party contractor, as operator of the Combined Remedies, shall have authority to approve or reject any contracted Vendor Services in its sole discretion.  Prior to DDW’s issuance of the amendments to Rialto and Colton’s DDW Permits necessary for operation of the Combined Remedies and Rialto’s commencement of such operation, the County and Emhart shall contract (either together or separately) with Rialto, Rialto’s third party contractor, or another third‐party contractor to obtain, pay for, and bill the County and Emhart directly for such Vendor Services.
d. Energy Costs:  The Parties shall allocate the energy costs to operate the Combined Remedies as set forth in this Paragraph IV.F.2.d, as follows:
i. Combined Capture System Lifting Costs

1. Colton shall reimburse Emhart for the lifting
cost of each acre foot of water delivered to Colton (pursuant to Emhart’s lease of Colton Water Rights under Paragraph V.B) at the rate of the electrical costs that Colton would otherwise incur to lift an acre foot of water when operating its extraction wells in the Basin (“Colton’s Baseline Lifting Cost”).  The procedure for determining Colton’s Baseline Lifting Cost is set forth in Exhibit G.

2. Colton shall reimburse the County for the
lifting cost of each acre foot of water delivered to Colton (pursuant to the County’s lease of Colton Water Rights under Paragraph V.A) at the rate of Colton’s Baseline Lifting Cost.

20 3. Because Rialto pays the energy costs
metered at CR‐3, the County shall reimburse Rialto for all costs to lift water pumped at CR‐3 and delivered to Colton for compliance with the Regional Board Order.

4. Because Rialto pays the energy costs
metered at CR‐3, Emhart shall reimburse Rialto for all costs to lift water pumped at CR‐3 and delivered to Colton for compliance with the Work Consent Decree.

5. Emhart shall reimburse the County for the
cost of lifting water pumped at Miro‐2 and/or Miro‐3 and delivered to Colton for compliance with the Work Consent Decree, if any, equal to the actual lifting costs for such water.

6. The County shall reimburse Rialto for the
net incremental cost of lifting water pumped at CR‐3 for compliance with the Regional Board Order and delivered to Rialto, which is intended to represent  the additional cost of lifting groundwater at CR‐3 for compliance with the Regional Board Order during Southern California Edison’s peak demand period when Rialto would not normally operate, as partially offset by the reduced electrical costs that are related to pumping groundwater from CR‐3 to an open reservoir rather than to Rialto’s pressurized pipeline.

7. Rialto shall reimburse the County for the
cost of lifting water that Rialto receives for its use from wells for which the County initially pays the lifting costs (i.e., Miro‐2 and Miro‐3) pursuant to the County’s lease of Rialto Water Rights equal to (a) the cost Rialto would otherwise incur to lift such water at CR‐3 absent the Combined Remedies, or (b) the actual costs to the County, whichever is less.
ii. Combined Treatment Plant Energy Costs:

Because Rialto initially pays the energy costs metered at CR‐3, which include both energy used to operate the Combined Treatment Plant components and energy used to pump groundwater at CR‐3, the County and Emhart shall reimburse Rialto for all energy costs to operate the Combined Treatment Plant. iii. Procedures for Reimbursement of Energy Costs

21 1. Exhibit H sets forth the procedures for
reimbursement of the energy costs identified in Paragraphs IV.F.2.d.i. and ii, above.

2. The energy cost allocations in this
Paragraph VI.F.2.d and Exhibit H are not intended to affect or impair the ability of the County and Emhart to agree on a different allocation between themselves. e. Dispute Resolution Regarding Costs of Operation and
Maintenance of the Combined Remedies:  If the County and/or Emhart believe that any cost of operation and/or maintenance of the Combined Remedies as provided in this Paragraph IV.F incurred by Rialto is unnecessary, the County, Emhart, and Rialto shall meet and confer in good faith to resolve the dispute.  If the Parties are unable to agree, Emhart and the County shall nevertheless pay the disputed amount, subject to any reimbursement or credit from Rialto upon a determination, pursuant to the Dispute Resolution provisions in Paragraph XII, that such work was unnecessary.

V. The Lease of Colton and Rialto Water Rights Necessary for the Combined Remedies
A. Rialto and Colton Water Rights Leased to the County

1. Rialto has leased its water rights in the Basin to the County to the extent set forth in the County/Rialto Implementation Agreement.

2. Colton has leased 200 acre‐feet (AF) per Water Year of its water rights in the Basin to the County as set forth in the County/Colton/Rialto Standby Agreement.

3. To the extent Emhart does not use all Colton Water Rights leased to Emhart as described below, in a given Water Year, the County may, in that Water Year, utilize such rights on the same terms that Colton leases those rights to Emhart as set forth in this Paragraph V so long as an equivalent volume of water is delivered to Colton in that Water Year consistent with the WMP.

B. Colton Water Rights Leased to Emhart

1. Colton hereby leases to Emhart its water rights in the Basin necessary to perform the Work to the maximum extent Colton has such rights

22 under the 1961 Decree, less the 200 AF leased to the County in the County/Colton/Rialto Standby Agreement, as follows:
a. In each Water Year, Colton shall receive an amount of potable water, either from the Rialto municipal water supply system or by some other means agreed to by the Parties in writing, equal to the amount of water rights utilized by Emhart in that Water Year as provided in this Paragraph V. b. Colton shall, at Emhart’s request, take all reasonable actions to manage its municipal water supply system, including, if necessary, curtailing production at other Colton‐owned water production wells in the Basin, to ensure that its water rights leased to Emhart as provided in this Paragraph V can be utilized for the Work.
c. To the extent that the County does not use all of the 200 AF of Colton Water Rights leased to the County in a given Water Year, Emhart may utilize the remainder to pump and treat water for compliance with the Work Consent Decree so long as an equivalent volume of water is delivered to Colton in that Water Year consistent with the WMP.

C. General Terms Related to County and Emhart Leases of Colton Water Rights

1. In any given Water Year, Emhart and the County may deliver water to Colton, pursuant to their respective water rights leases on a schedule designed to maximize the efficiency and minimize the cost of the operation of the Combined Remedies subject to Colton’s seasonal water demands and the WMP in accordance with Paragraph VI.

2. In any given Water Year, to the extent that Emhart and the County do not utilize all of Colton’s available water rights in the Basin pursuant to their respective water rights leases and this Agreement, Colton shall have the right to use or sell any of its remaining water rights in the Basin as it sees fit.

3. If Emhart terminates its participation in this Agreement pursuant to Paragraph XIII and the County continues to operate the Combined Remedies, or any portion thereof, the County shall, at its option, succeed to Emhart’s lease of Colton water rights.

23 VI. Management and Distribution of Treated Water
A. Recitals

1. This Paragraph VI.A provides background to guide the Parties’ in their development of an ongoing water management plan that balances the extraction requirements of the Combined Remedies, the Rialto and Colton  Water Rights, and the water supply needs of Colton and Rialto (“Water Management Plan” or “WMP”).

2. The County believes that delivery of water leased by the County and Emhart from Rialto and Colton on a coordinated schedule may reduce the need for the County to provide Replacement Water to Rialto as provided in the County/Rialto Implementation Agreement while meeting Rialto’s water demands as set forth in the Rialto Water Budget.

3. The County desires to minimize the use of Rialto Water Rights in the low demand Winter Months by prioritizing distribution of the Combined Treatment Plant output to Colton during the Winter Months, thereby maximizing the availability of Rialto Water Rights in the Summer Months.

4. Emhart, Colton, and Rialto support including the County’s desired prioritized distribution of water in the WMP, as set forth in this Paragraph VI. A and subject to the provisions in this Paragraph VI.

5. Nothing in this Paragraph VI. A. creates any rights or obligations among the Parties.

B. The Water Management Plan
The Water Management Plan (WMP) is the Microsoft Excel file contained in the compact disc (CD) attached as Exhibit I.  To assist and guide the Parties in their annual preparation of the WMP, Exhibit I also includes a paper copy of a WMP with sample inputs and a paper copy of the WMP displaying the spreadsheet formulas used in the file.

1. Information Exchange
a. On or about April 15 of each year, Colton, Rialto, the County, and Emhart shall meet and confer to develop the WMP for the upcoming

24 Water Year.  At least one week prior to this meeting, the Parties shall exchange the following information for input into the WMP (Exhibit I) as follows:
i. Step 1:  the County and Emhart shall provide the
Parties with their planned month‐by‐month water output from the Combined Remedies (i) by well and (ii) allocated between the volume of water required to achieve the remedial obligations of Emhart and the County, respectively, as provided in the County/Emhart Implementation Agreement. ii. Step 2:  Colton shall provide the Parties with the
Colton Water Rights that Colton anticipates will be available.  Rialto shall provide the Parties with the Rialto Water Rights that Rialto anticipates will be available. iii. Step 3:  Colton shall provide the Parties with its anticipated month‐by‐month minimum needs for water generated by the Combined Remedies during the Summer Months and maximum ability to accept water from the Combined Remedies during the Winter Months (“Colton Water Budget”) as follows:

1. In determining its minimum needs for water
generated by the Combined Remedies during the Summer Months, Colton shall consider the availability and cost of utilizing its out‐of‐Basin resources during the Summer Months.  To the extent such utilization does not, in a material way, increase costs or administrative burdens, or otherwise restrict Colton’s ability to manage its water resources, Colton will endeavor to utilize those resources during the Summer Months.

2. If Colton determines that its use of out‐of‐
Basin resources would result in such material costs, burdens, or restrictions, Colton and the County shall meet and confer, if the County so requests, to provide the County with the opportunity to compensate Colton for such costs, burdens, and/or restrictions in exchange for Colton’s use of those resources to facilitate the County’s desired water distribution schedule.  If the County elects not to so compensate Colton, Colton shall have no obligation to use its out‐of‐ Basin resources pursuant to this Paragraph.
iv. Step 4:  Rialto shall provide the Parties with the
(1) the monthly maximum volume of water deliverable to the Rialto municipal water supply system from the Combined Remedies; and (2) the maximum

25 monthly operational flow rate for delivery of water to Colton through the Rialto municipal water supply system unless the Parties agree in writing for delivery of water to Colton by some other means.  If the Parties agree in writing for delivery of water to Colton by some other means, the Parties shall provide the maximum monthly operational flow rate for delivery of water to Colton by those means. v. Step 5:  Rialto shall provide the Parties with its
anticipated month‐by‐month minimum needs for water generated by the Combined Remedies, subject to the Rialto Water Rights that Rialto anticipates will be available (“Rialto Water Budget”).
b. During the period of demonstration required for
amendment of Rialto’s DDW Permit necessary for operation of the Combined Remedies, the Parties shall meet and confer to discuss initiation of the WMP commencing with the issuance of such amendment.

2. Prioritization of Water Production and Distribution
a. Step 6:  Emhart and the County shall seek to prioritize production of water in the Summer Months over production in the Winter Months, and the Parties shall seek to prioritize distribution of that produced water to Colton during the Winter Months, to the extent that such prioritization:
i. does not exceed the total necessary annual
output of the Combined Remedies for the Water Year as determined in Step 1 of the WMP;
ii. meets Colton’s minimum water needs as set forth
in Step 3 of the WMP;
iii. does not exceed Colton’s maximum water needs
during the Winter Months as set forth in Step 3 of the WMP; iv. does not exceed the  maximum operational flow
rates set forth in Step 4 of the WMP;
v. meets Rialto’s minimum water needs during the
Winter Months, as set forth in Step 5 of the WMP;

26 vi. does not require Emhart, Colton, or Rialto to incur additional material costs it would not otherwise incur; vii. does not impair Emhart’s ability to comply with
the terms of the Work Consent Decree; and
viii. provides that Emhart has priority to deliver water associated with its pumping to Colton, up to the maximum operational flow rate for delivery of water to Colton as set forth in Step 4 of the WMP to the extent such operational flow rate exists as a result of infrastructure improvements funded by Emhart.
ix. provides that, in any month, to the extent that
water pumped by Emhart does not meet Colton’s minimum water needs as set forth in Step 3 of the WMP, the County shall preferentially utilize the Colton Water Rights it has leased from Colton and an equivalent amount of water shall be delivered to Colton, provided such a shift does not require the County to incur additional material costs it would not otherwise incur. b. Step 7:  The Parties shall make any necessary
modifications to the WMP as required by the limitations of Paragraph VI.B.2.a. c. If the Parties agree upon a prioritized production and distribution schedule for the WMP, that plan shall be memorialized in Table 1 of Exhibit I and water shall be produced and distributed as set forth therein, subject to any modifications made pursuant to the Parties’ monthly review described in Paragraph VI.C.

3. Default Distribution and Production of Water
a. If, after completing the process described in
Paragraph VI.B.2, the Parties are unable to agree upon a prioritized distribution and production schedule for the WMP for the upcoming Water Year, the WMP shall default to the schedule provided in Table 2 of Exhibit I (Default Water Delivery Schedule), as follows:
i. During the Winter Months, Colton shall receive, in
each month:  (a) a volume of water equivalent to that pumped by Emhart to achieve its remedial obligations during that month as set forth in Step 1 of the WMP, subject to Colton’s seasonal water needs; and (b) 28.6 AF (200 AF divided

27 by seven Winter Months) of Colton Water Rights leased to the County, as pumped to achieve the County’s remedial obligations, subject to the limitations in Paragraph VI.B.3.b.  To the extent that such 28.6 AF cannot be delivered in a Winter Month, the balance of such water shall be distributed to Colton in Summer Months, subject to the limitations in Paragraph VI.B.3.b; ii. During the Winter Months, Rialto shall receive, in
each month, a volume of water equivalent to that pumped by the County to achieve its remedial obligations during that month as set forth in Step 1 of the WMP, minus the amount delivered to Colton for the County as set forth in Paragraph VI.B.3.a.i;
iii. During the Summer Months, Colton shall receive,
in each month, a volume of water equivalent to that pumped by Emhart to achieve its remedial obligations during that month as set forth in Step 1 of the WMP;
iv. During the Summer Months, Rialto shall receive,
in each month, a volume of water equivalent to that pumped by the County to achieve its remedial obligations during that month; and v. If Emhart does not use all of the Colton Water
Rights in a Water Year, the County may pump and treat that unused water for delivery to Colton if needed for the County remedial obligations or negotiate with Colton regarding other use of such water.
b. Any default WMP shall:
i. not exceed the total necessary annual output of
the Combined Remedies for the Water Year as determined in Step 1 of the WMP; ii. meet Colton’s minimum water needs as set forth
in Step 3 of the WMP;
iii. not exceed Colton’s maximum water needs during
the Winter Months as set forth in the Colton Water Budget; iv. not exceed the maximum operational flow rates
set forth in Step 4 of the WMP;

28 v. meet Rialto’s minimum water needs during the
Winter Months, as set forth in the Rialto Water Budget; and vi. provide that Emhart has priority to deliver water
associated with its pumping to Colton, up to the maximum operational flow rate for delivery of water to Colton set forth in Step 4 of the WMP to the extent such operational flow rate exists as a result of infrastructure improvements funded by Emhart.
c. For Step 7 of the WMP, the Parties shall make any
necessary modifications to the WMP as required by the limitations of Paragraph VI.B.3.b.
d. If the Parties have not agreed upon a production and distribution schedule, the default production and distribution schedule for the WMP shall be memorialized in Table 2 of Exhibit I and water shall be produced and delivered according to that schedule for that Water Year until an alternative schedule is agreed upon by the Parties.

4. Other Limitations Applicable to All WMPs
a. The Combined Remedies shall not produce more water
than is required to meet the County’s and Emhart’s respective remedial obligations, absent an agreement of the Parties to do so. b. The amount of water delivered to Rialto for use by and distribution to Rialto customers from the Combined Remedy in each Winter Month shall not exceed the volume of water pumped for compliance with the Regional Board Order in that month.

5. Effect of Rialto Water Budget on Replacement Water
Obligations Under County/Rialto Implementation Agreement a. As between Rialto and County:  If the Rialto Water
Budget, subject to Rialto Water Rights, in a given Water Year will not be satisfied by treated water from the Combined Remedies on a per month basis, then the requirements and procedures relating to Replacement Water as set forth in the County/Rialto Implementation Agreement shall apply as between the County and Rialto to the extent those provisions require the County to provide Replacement Water to Rialto.  In the event Rialto’s Water Budget requires more than 100 AF

29 per month in the Winter Months, then the County will not have a Replacement Water obligation for the water Rialto receives pursuant to Rialto’s Water Budget in excess of 100 AF per month in the Winter Months.  In the event that Rialto receives 100 AF per month or less in a Winter Month consistent with the Rialto Water Budget, the County shall not have a Replacement Water obligation to Rialto associated with those water rights.
b. As between Rialto and the County:  The annual planning meeting required pursuant to Paragraph VI.B.1.a of this Agreement shall occur in conjunction with the annual planning meeting required pursuant to Paragraph 2.a of the County/Rialto Implementation Agreement and that all references to “annual planning meeting” in the County/Rialto Implementation Agreement shall mean the annual planning meeting required pursuant to Paragraph VI.B.1.a.  This Agreement hereby supersedes subparts (a), (b), and (c) of the first sentence of Paragraph 2.a, at page 9, of the County/Rialto Implementation Agreement.

C. Monthly Review of WMP

1. On or about the fifth day of each month (other than the one in which the annual planning meeting occurs), the Parties shall meet and confer in good faith to review the WMP for the balance of the Water Year and determine whether any adjustments to the WMP are needed based on any changes in (a) anticipated output from the Combined Remedies; (b) the Rialto Water Budget; (c) the Colton Water Budget; (d) available Rialto Water Rights; or (e) available Colton Water Rights.

2. In the event that a change in the anticipated output of the Combined Remedies would result in the Combined Remedies not meeting Colton’s minimum water needs, Emhart and the County shall provide Colton with at least four (4) months’ notice prior to implementing such change in output.

3. If pursuant to Paragraph VI.C.1.  the Parties determine that adjustments to the WMP, consistent with Paragraphs VI.B.2.a. (for prioritized delivery) or VI.B.3.a. (for default delivery), are necessary, the Parties shall modify the WMP for that Water Year accordingly.

4. If the Parties are unable to agree upon a requested
modification to the WMP for that Water Year under this Paragraph VI.C, such dispute shall be resolved pursuant to the dispute resolution provisions of

30 Paragraph XII.  Until any such dispute is resolved, water shall be delivered, to the extent feasible, pursuant to the most recently agreed upon WMP.

5. As between Rialto and the County, the monthly planning meeting required pursuant to Paragraph 2.c of the County/Rialto Implementation Agreement shall occur in conjunction with the monthly meeting required pursuant to Paragraph VI.C.1 of this Agreement.  This Paragraph IV.C.5 does not otherwise modify Paragraph 2.c of the County/Rialto Implementation Agreement.

D. Delivery and Acceptance of Treated Water

1. The water generated by the Combined Remedies shall be delivered to the Rialto municipal water supply system in volumes and at times in accordance with the WMP.  Rialto shall meter and record the volume of water extracted from the Combined Capture System in accordance with the WMP and report those metered totals to the Parties at the monthly meetings described in Paragraph VI.C.1.

2. If its municipal water supply system has sufficient capacity, Rialto shall accept the total output delivered from the Combined Remedies to the Rialto municipal water supply system in volumes and at times in accordance with the WMP.

3. Subject to Paragraph IV.E, Rialto shall deliver water from its municipal water supply system to the Colton municipal water supply system in volumes and at times in accordance with the WMP, provided that Rialto receives the necessary volume of water from the Combined Remedies as provided for in the WMP.  Rialto shall meter and record the volume of water delivered to Colton and report those metered totals to the Parties at the monthly meetings described in Paragraph VI.C.1.  Alternatively, the Parties may agree in writing for some other means of delivering some or all of such water to Colton.

4. Colton shall accept, in each Water Year, water delivered from the Rialto municipal water supply system to the Colton municipal water supply system, or by some other means agreed to by the Parties in writing, in volumes and at times in accordance with the WMP.

5. Rialto shall receive, in each Water Year, a volume of water from the Combined Remedies equivalent to the Rialto Water Rights utilized by the County for the Combined Remedies in accordance with the WMP.  If, in any Water

31 Year, Rialto receives less water from the Combined Remedies than the Rialto Water Rights, the County shall notify Rialto that it may pump a volume of water equivalent to those remaining Rialto Water Rights from its other wells in the Basin.

6. Colton shall receive, in each Water Year, a volume of water from the Combined Remedies equivalent to the Colton Water Rights utilized by the County and Emhart for the Combined Remedies in accordance with the WMP.

If, in any Water Year, Colton receives less water from the Combined Remedies than the Colton Water Rights, the County and Emhart shall notify Colton that it may pump a volume of water equivalent to those remaining Colton Water Rights from its other wells in the Basin.

7. Nothing in this Agreement supersedes, abrogates or modifies the County’s obligation to provide Replacement Water to Rialto as provided in the County/Rialto Implementation Agreement, except as provided in Paragraph VI.B.5.

8. As between the County and Rialto, water delivered to Colton pursuant to this Agreement is not subject to Paragraph 3.c of the County/Rialto Implementation Agreement.

VII. Access to Colton and Rialto Property
A. Emhart Access to Colton Property

1. Colton shall provide Emhart with access to and use of Colton real property and/or public rights of way for construction (at Emhart’s cost) of the piping and infrastructure necessary to provide for delivery of water to the Colton municipal water supply system as set forth in Paragraph VI.  This access shall be provided in the form of a Right‐of‐Way Permit issued by Colton in accordance with Chapter 12.12 of the Colton Municipal Code.

2. As provided for in Paragraph 10. a. 1) of the Work Consent Decree, Colton shall provide Emhart access to the Colton real property and/or rights‐of‐way as described in Paragraph VII. A. 1. for no fee, cost, or charge of any kind that would otherwise be required by the Colton Municipal Code.

32 B. Emhart Access to Rialto Property; Rialto Permitting, Review and Approvals

1. Rialto shall provide Emhart with access to certain real property and public rights of way owned and/or controlled by Rialto to be used for the following:
a. Up to two groundwater extraction wells (EW‐1 and
EW‐2) to be reviewed and approved pursuant to Rialto’s “Conditional Development Permit” in accordance with Chapter 18.66 of the Rialto Municipal Code and “Precise Plan of Design” approval process as provided in Rialto City Council Resolution No. 2507, dated April 5, 1983.  This access shall be documented in an encroachment permit issued by Rialto in accordance with Chapter 11.04 of the Rialto Municipal Code and a lease agreement to be executed following the foregoing approval in the form attached hereto as Exhibit J. b. Conveyance piping connecting the extraction well(s) to the Combined Treatment Plant, to be reviewed and approved pursuant to Rialto’s “Conditional Development Permit” in accordance with Chapter 18.66 of the Rialto Municipal Code and “Precise Plan of Design” approval process as provided in Rialto City Council Resolution No. 2507, dated April 5, 1983.  Upon such approval, this access shall be documented in an Encroachment License Agreement in accordance with Chapter 11.05 of the City of Rialto Municipal Code.  The conveyance piping connecting EW‐1 to the Combined Treatment Plant shall be installed (i) prior to, or (ii) at the same time and in coordination with Rialto’s project to widen Ayala Drive from Baseline Road to Renaissance Parkway. c. Development and/or future modification of the
Combined Treatment Plant, within the footprint depicted in Exhibit K, to be reviewed and approved pursuant to Rialto’s “Conditional Development Permit” in accordance with Chapter 18.66 of the Rialto Municipal Code and “Precise Plan of Design” approval process as provided in Rialto City Council Resolution No. 2507, dated April 5, 1983.  This access shall be documented in a lease agreement to be executed following the foregoing approval in the form attached hereto as Exhibit J.
d. Distribution piping and any necessary valves connecting the Combined Treatment Plant to Rialto’s municipal water supply system, to be reviewed and approved pursuant to Rialto’s “Conditional Development Permit” in

33 accordance with Chapter 18.66 of the Rialto Municipal Code and “Precise Plan of Design” approval process as provided in Rialto City Council Resolution No. 2507, dated April 5, 1983.  Upon such approval, this access shall be documented in an Encroachment Permit issued by Rialto in accordance with Chapter 11.04 of the City of Rialto Municipal Code.  The location of the currently anticipated new pipeline needed to connect the Combined Treatment Plant to Rialto's municipal water supply system shall be consistent with the location/alignment of the piping depicted in the conceptual diagram included as Exhibit D. e. If needed, distribution piping (including sampling
station) and infrastructure necessary for the delivery of water to Colton’s municipal water supply system to be reviewed and approved pursuant to Rialto’s “Conditional Development Permit” in accordance with Chapter 18.66 of the Rialto Municipal Code and “Precise Plan of Design” approval process as provided in Rialto City Council Resolution No. 2507, dated April 5, 1983.  Upon such approval, this access shall be documented in an Encroachment Permit issued by Rialto in accordance with Chapter 11.04 of the City of Rialto Municipal Code. f. If needed, and as reasonably necessary, distribution piping and infrastructure necessary for the delivery of water to a water purveyor other than Colton, to be reviewed and approved pursuant to Rialto’s “Conditional Development Permit” in accordance with Chapter 18.66 of the Rialto Municipal Code and “Precise Plan of Design” approval process as provided in Rialto City Council Resolution No. 2507, dated April 5, 1983.  Upon such approval, this access shall be documented in an Encroachment Permit issued by Rialto in accordance with Chapter 11.04 of the City of Rialto Municipal Code. g. Up to seven monitoring wells, two piezometers required by DDW for EW‐1, one piezometer required by DDW for CR‐3, and additional piezometers as may be required by DDW upon installation of EW‐2; installation of these wells and piezometers shall be reviewed and approved pursuant to encroachment permits issued by Rialto in accordance with Chapter 11.04 of the City of Rialto Municipal Code.

2. All wells, pipelines, and other facilities described above and within the jurisdictional boundaries of Rialto, shall:  (a) be located, to the maximum extent feasible, in public rights of way; (b) be consistent with Rialto’s land use and development plans and entitlements for such properties; and (c) be in locations approved by Rialto in its sole discretion.

34 3. Costs of Access, Permitting, Review, and Approvals:
a. Because Emhart has paid Rialto $20,000 as described in Paragraph III.C.2.b., Rialto shall not charge Emhart any additional fee or cost in providing the access, review, and approvals described in Paragraph VII.B.1. b. Access for monitoring and sampling of wells and
piezometers located on Rialto real property or rights of way shall be documented in an Encroachment License Agreement in accordance with Chapter 11.05 of the City of Rialto Municipal Code; provided that Rialto shall not charge Emhart any fee or cost associated with such agreement or sampling.
c. Nothing in this Agreement modifies Rialto’s and
Emhart’s rights and obligations under the Work Consent Decree regarding access, permitting, review, and approvals necessary to perform the Work beyond that identified in Paragraph VII.B.1.

4. Emhart shall pay Rialto, within 60 days of the Effective Date, $50,000 to (a) un‐encumber the land within the Combined Treatment Plant Lease Area that is subject to Rialto’s agreements with Lewis‐Hillwood Rialto Company, LLC (“LHR”); and (b) satisfy all aesthetic requirements of Rialto and/or LHR (or any subsequent developer) for the Combined Treatment Plant Lease Area.

C. County Access to Rialto Property

1. Rialto shall provide the County access to certain Rialto property as set forth in the County/Rialto Implementation Agreement, the lease executed pursuant to that agreement, and any amendment to that lease.

2. The County shall pay Rialto, within 60 days of the Effective Date of the Agreement, $50,000 to (a) un‐encumber the land within the Combined Treatment Plant Lease Area that is subject to Rialto’s agreements with LHR; and (b) satisfy all aesthetic requirements of Rialto and/or LHR (or any subsequent developer) for the Combined Treatment Plant Lease Area.

VIII. Ownership of Combined Remedies Components
A. Ownership of the components of the Regional Board Remedy by Rialto and the County is controlled by the County/Rialto Implementation Agreement.

35 B. Upon DDW issuance of the amendment to Rialto’s DDW Permit required by this Agreement:

1. Rialto shall own (i) the conveyance pipelines connecting the Combined Treatment Plant to the Rialto municipal water supply system; and (ii) that portion of any conveyance pipeline and infrastructure, constructed by Emhart within the jurisdictional boundaries of Rialto, connecting the Rialto and Colton municipal water supply systems.  By owning such components, Rialto does not assume any of Emhart’s obligations under this Agreement for the costs to operate and maintain such components.

2. Colton shall own that portion of any conveyance pipeline and infrastructure, constructed by Emhart within the jurisdictional boundaries of Colton, connecting the Rialto and Colton municipal water supply systems.  By owning such components, Colton does not assume any of Emhart’s obligations under this Agreement for the costs to operate and maintain such components.

3. In the event the Parties agree in writing to deliver water to Colton by means other than a connection between the Rialto and Colton municipal water supply systems, that agreement shall control ownership of any pipelines, valves or other components constructed pursuant thereto.

4. All other components of the Combined Remedies installed and/or constructed by Emhart, including but not limited to extraction well EW‐1, the conveyance pipeline from EW‐1 to the Combined Treatment Plant, and the Combined Treatment Plant expansion components, shall be owned by Emhart.

IX. Indemnification
A. Emhart’s Indemnification Obligations

1. Emhart shall indemnify, defend, and hold harmless Rialto, Colton, and the County, and their officials, agents, employees, contractors, subcontractors, and representatives from any and all Claims arising out of any negligent or wrongful acts or omissions of Emhart and its officers, agents, employees, consultants, contractors, subcontractors, and representatives in performing any activities under this Agreement.

2. Emhart shall indemnify, defend, and hold harmless Rialto and its officials, agents, employees, contractors, subcontractors, and representatives,

36 from any Claims against Rialto, based solely on Rialto’s status as an owner of real property or its status as an operator of the Combined Treatment Plant or the Combined Capture System, arising out of the release of a hazardous substance caused by Emhart or its officers, agents, employees, consultants, contractors, subcontractors, and representatives in performing any activities under this Agreement, after the Effective Date of this Agreement, brought under any federal or state environmental law.

3. Emhart shall indemnify, defend, and hold harmless Rialto, Colton, and the County from mechanics’ liens and other liens levied against property owned by Rialto, Colton, or the County for any labor or material furnished to Emhart, its agents, or contractors in connection with Emhart’s performance of any activities under this Agreement.  In the event any such liens are recorded, then upon written demand by Rialto, Colton, or the County, Emhart shall promptly obtain and record releases of any such liens.

4. Emhart shall indemnify, defend, and hold harmless the County, Colton, and Rialto, and their elected officials, employees, and agents, from any Claims arising out of the failure of Emhart, its agents, or contractors to comply with any federal or state prevailing wage law in performing any activities under this Agreement.  For purposes of this Paragraph, Colton, Rialto, and the County are not contractors or agents of Emhart.

B. The County’s Indemnification Obligations

1. The County shall indemnify, defend, and hold harmless Rialto, Colton, and Emhart, and their officials or officers, agents, employees, contractors, subcontractors, and representatives from any and all Claims arising out of any negligent or wrongful acts or omissions of the County and its officials, agents, employees, consultants, contractors, subcontractors, and representatives in performing any activities under this Agreement.

2. The County shall indemnify, defend, and hold harmless Rialto, Colton, and Emhart from mechanics’ liens and other liens levied against property owned by Rialto, Colton, or Emhart for any labor or material furnished to the County, its agents, or contractors in connection with the County’s performance of any activities under this Agreement.  In the event any such liens are recorded, then upon written demand by Rialto, Colton, or Emhart, the County shall promptly obtain and record releases of any such liens.

37 3. The County shall indemnify, defend, and hold harmless Colton, Rialto, and Emhart, and their elected officials or officers, employees, and agents, from any Claims arising out of the failure of the County, its agents, or contractors to comply with any federal or state prevailing wage law in performing any activities under this Agreement.  For purposes of this Paragraph, Colton, Rialto, and Emhart are not contractors or agents of the County.

4. Paragraph 11 of the County/Rialto Implementation Agreement sets forth existing defense and indemnification obligations of the County to Rialto.

Nothing in this Agreement supersedes, abrogates, or modifies those obligations as to activities covered therein.

C. Rialto’s Indemnification Obligations

1. Rialto shall indemnify, defend, and hold harmless Colton and Emhart and their officials or officers, agents, employees, contractors, subcontractors, and representatives from any and all Claims arising out of any negligent or wrongful acts or omissions of Rialto and its officers, agents, employees, consultants, contractors, subcontractors, and representatives in performing any activities under this Agreement.

2. Rialto shall indemnify, defend, and hold harmless the County, and its officials, agents, employees, contractors, subcontractors, and representatives, from any and all Claims arising out of any negligent or wrongful acts or omissions of Rialto and its officials, agents, employees, consultants, contractors, subcontractors, and representatives in performing any activities under this Agreement not covered by the defense and indemnity obligations in Paragraph 11 of the County/Rialto Implementation Agreement.

3. Rialto shall indemnify, defend, and hold harmless Colton, the County, and Emhart from mechanics’ liens and other liens levied against property owned by Colton, the County, or Emhart for any labor or material furnished to Rialto, its agents, or contractors in connection with the Rialto’s performance of any activities under this Agreement.  In the event any such liens are recorded, then upon written demand by Colton, the County, or Emhart, Rialto shall promptly obtain and record releases of any such liens.

4. Rialto shall indemnify, defend, and hold harmless Colton, the County, and Emhart and their elected officials or officers, employees, and agents,

38 from any Claims arising out of the failure of Rialto, its agents, or contractors to comply with any federal or state prevailing wage law in performing any activities under this Agreement.  For purposes of this Paragraph, Colton, the County, and Emhart are not contractors or agents of Rialto.

5. Paragraph 11 of the County/Rialto Implementation Agreement sets forth existing indemnification obligations of the County to Rialto.  Nothing in this Agreement supersedes, abrogates, or modifies those obligations as to activities covered therein.

D. Colton’s Indemnification Obligations
Colton shall indemnify, defend, and hold harmless Rialto, Emhart, and the County, and their officials, agents, employees, contractors, subcontractors, and representatives, from any and all Claims arising out of any negligent or wrongful acts or omissions of Colton and its officials, agents, employees, consultants, contractors, subcontractors, and representatives in performing any activities under this Agreement.

E. Defense of Claims

1. Any Party seeking to enforce any indemnification right or obligation under Paragraph IX (the “Indemnified Party”) shall give prompt written notice of the Claim to the Party against which it seeks to enforce such rights (the “Indemnifying Party”).

2. Upon receipt of such notice, the Indemnifying Party shall, within 30 days, provide written notice of its acceptance or rejection of the tendered defense.  If the Indemnifying Party rejects the tendered defense, it shall provide a detailed explanation for the rejection.  If the tendered defense is accepted, the Indemnifying Party shall defend the Claim.

3. The Indemnified Party shall be entitled, at its own expense, to participate in the defense of the Claim.

4. The Indemnifying Party shall obtain written approval from the Indemnified Party prior to entering into any settlement agreement regarding the Claim that imposes any obligation, duty, limitation or restriction of any kind on the Indemnified Party.

39 5. An Indemnified Party will not admit any liability or agree to settle or compromise any Claim without the written consent of the Indemnifying Party.

6. In the event an Indemnifying Party rejects or fails to act upon a tendered defense as provided for in Paragraph IX, the dispute shall be resolved pursuant to the Dispute Resolution provisions in Paragraph XII without any obligation to comply with any governmental tort claim procedure.

F. Released Claims
The indemnification rights and obligations of the Parties under Paragraph IX do not extend to any Claims released or the subject of a covenant not to sue in the Work Consent Decree or the County Consent Decree.

X. Insurance Requirements
A. Emhart’s Insurance Obligations
Emhart shall secure insurance coverage, to the extent comparable insurance is not already in place, as follows:

1. Occurrence‐based Commercial General Liability insurance coverage:
a. to be secured no later than 15 days following the
Effective Date and maintained until the first anniversary of Emhart’s termination of its participation in this Agreement;
b. with limits of $5,000,000 in the aggregate;
c. that includes each other Party as an additional insured (including coverage within the products‐completed operations hazard); d. under which the insurer waives any right to subrogation as to claims against each other Party; and
e. which applies on a primary and non‐contributory basis.

2. Occurrence‐based Automobile Liability insurance coverage:

40 a. to be secured no later than 15 days following the Effective Date and maintained until the first anniversary of Emhart’s termination of its participation in this Agreement;
b. with a per occurrence combined single limit of
$2,000,000;
c. with each other Party included as an additional insured; d. under which the insurer waives any right to subrogation as to claims against each other Party; and
e. which applies on a primary and non‐contributory basis.

3. Worker’s Compensation insurance:  To be secured and
maintained as required by all applicable laws and regulations.

4. Occurrence‐Based Contractor’s Pollution Liability insurance:
a. to be secured at least 15 days prior to the
commencement, by Emhart, of construction, operation, and/or maintenance activities on any portion of the Combined Remedies, and maintained until the completion of such activities; and
b. with a per‐occurrence combined single limit of
$1,000,000.

5. Professional Liability insurance.  In the event Emhart or its agents uses professional engineering or land surveyor services in connection with the design, permitting, construction, and physical modification of the Combined Remedies, Emhart or its agents shall require the providers of such services to secure and maintain professional liability insurance with limits of $1,000,000 per claim covering negligent acts, errors, or omissions in the performance of such services.  For a period of three years after the completion of its services, the professional engineering or land surveying contractor shall either maintain coverage or purchase an extended reporting period on the policy required by this Paragraph.

6. First‐Party Property insurance:

41 a. to be secured upon EPA’s Certification of Completion of Construction as provided in the Work Consent Decree and maintained until the first anniversary of the Emhart’s termination of its participation in this Agreement;
b. covering equipment and facilities owned by Emhart (as set forth in Paragraph VIII) in sufficient amounts to cover replacement value of the property involved.

B. County’s Insurance Obligations
The County shall secure insurance coverage, to the extent comparable insurance not already in place, as follows:

1. Occurrence‐based Commercial General Liability insurance coverage:
a. to be secured no later than 15 days following the
Effective Date and maintained until the first anniversary of the County’s termination of its participation in this Agreement
b. with limits of $5,000,000 in the aggregate;
c. that includes each other Party as an additional insured (including coverage within the products‐completed operations hazard); d. under which the insurer waives any right to subrogation as to claims against each other Party; and
e. which applies on a primary and non‐contributory basis.

2. Occurrence‐based Automobile Liability insurance coverage:
a. to be secured no later than 15 days following the
Effective Date and maintained until the first anniversary of the County’s termination of its participation in this Agreement;
b. with a per occurrence combined single limit of
$2,000,000;
c. with each other Party included as an additional insured;

42 d. under which the insurer waives any right to subrogation as to claims against each other Party; and
e. which applies on a primary and non‐contributory basis.

3. Worker’s Compensation insurance:

To be secured and maintained as required by all applicable laws and regulations.

4. Occurrence‐Based Contractor’s Pollution Liability insurance:
a. to be secured, in the event that the County performs construction, operation, and/or maintenance activities on any portion of the Combined Remedies, at least 15 days prior to the commencement of such activities, and maintained until the completion of such activities; and b. with a per‐occurrence combined single limit of
$1,000,000.

5. Professional Liability insurance:  In the event the County or its agents uses professional engineering or land surveyor services in connection with the design, permitting, construction, and physical modification of the Combined Remedies, the County or its agents shall require the providers of such services to secure and maintain professional liability insurance with limits of $1,000,000 per claim covering negligent acts, errors, or omissions in the performance of such services.  For a period of three years after the completion of its services, the professional engineering or land surveying contractor shall either maintain coverage or purchase an extended reporting period on the policy required by this Paragraph.

6. First‐Party Property insurance:
a. to be secured no later than 15 days following the
Effective Date and maintained until the first anniversary of the County’s termination of its participation in this Agreement;
b. covering equipment and facilities owned by the County (as set forth in Paragraph VIII) in sufficient amounts to cover replacement value of the property involved.

43 C. Rialto’s Insurance Obligations
Rialto shall secure insurance coverage, to the extent comparable insurance is not already in place, as follows:

1. Occurrence‐based Commercial General Liability insurance coverage:
a. to be secured, at least 15 days prior to commencement of Rialto’s operation of the Combined Treatment Plant and Combined Capture System, and maintained until the first anniversary of Rialto’s termination of its participation in this Agreement;
b. with limits of  $5,000,000 in the aggregate;
c. that includes each other Party as an additional insured (including coverage within the products‐completed operations hazard); d. under which the insurer waives any right to subrogation as to claims against each other Party; and
e. which applies on a primary and non‐contributory basis.

2. Occurrence‐based Automobile Liability insurance coverage:
a. to be secured, prior to commencement of Rialto’s
operation of the Combined Treatment Plant and Combined Capture System, and maintained until the first anniversary of Rialto’s termination of its participation in this Agreement;
b. with a per occurrence combined single limit of
$2,000,000;
c. with each other Party included as an additional insured; d. under which the insurer waives any right to subrogation as to claims against each other Party; and
e. which applies on a primary and non‐contributory basis.

3. Worker’s Compensation insurance:  To be secured and
maintained as required by all applicable laws and regulations.

44 4. Occurrence‐Based Pollution Liability insurance:
a. to be secured, at least 15 days prior to commencement of Rialto’s operation of the Combined Treatment Plant and Combined Capture System and maintained until Rialto’s termination of its participation in this Agreement; and
b. with a per‐occurrence combined single limit of
$1,000,000.

5. Professional Liability insurance.  In the event Rialto or its agents uses professional engineering, consulting or land surveyor services in connection with Rialto’s operation and maintenance of the Combined Remedies, Rialto or its agents shall require the providers of such services to secure and maintain professional liability insurance with limits of $1,000,000 per claim covering negligent acts, errors, or omissions in the performance of such services.

For a period of three years after the completion of its services, the professional engineering or land surveying contractor shall either maintain coverage or purchase an extended reporting period on the policy required by this Paragraph.

6. First‐Party Property insurance:
a. to be secured upon EPA’s Certification of Completion of Construction as provided in the Work Consent Decree and maintained until the first anniversary of the termination of this Agreement; b. covering equipment and facilities owned by Rialto (as set forth in Paragraph VIII) in sufficient amounts to cover replacement value of the property involved.

D. Colton’s Insurance Obligations
Colton shall secure insurance coverage, to the extent comparable insurance is not already in place, as follows:

1. Professional Liability insurance.  In the event Colton or its agents uses professional engineering, or land surveyor services in connection with the design, permitting, construction, and physical modification of the Combined Remedies, Colton or its agents shall require the providers of such services to secure and maintain professional liability insurance with limits of $1,000,000 per

45 claim covering negligent acts, errors, or omissions in the performance of such services.  For a period of three years after the completion of its services, the professional engineering or land surveying contractor shall either maintain coverage or purchase an extended reporting period on the policy required by this Paragraph.

2. First‐Party Property insurance:
a. to be secured upon EPA’s Certification of Completion of Construction as provided in the Work Consent Decree and maintained until the first anniversary of the termination of this Agreement; b. covering equipment and facilities owned by Colton (as set forth in Paragraph VIII) in sufficient amounts to cover replacement value of the property involved.

E. General Terms Applicable to Insurance as Required by this Agreement

1. The insurance company or companies with which the Parties contract (either directly or, for governmental entities, indirectly through a joint powers authority) for insurance as required by this Paragraph X shall:  (1) be legally authorized to engage in the business of furnishing insurance in the State of California; and (2) have a current A.M. Best Rating not less than “A‐VIII” and “BBB” in Standard & Poor’s.

2. In the event that a Party concludes the limits or terms of the coverage identified above are no longer adequate or the policies as described herein are no longer available under then‐existing market conditions or, for government entities, no longer available through a joint powers insurance authority, that Party shall so notify the other Parties and the Parties shall meet and confer to discuss the need to adjust such insurance coverage requirements.

In the event the Parties are unable to agree, the dispute shall be resolved pursuant to the Dispute Resolution provisions of Paragraph XII.

3. Each Party may satisfy its obligations in Paragraph X by demonstrating that any contractor or subcontractor it engages to perform the activities for which it is responsible under this Agreement maintains the appropriate types and amounts of required insurance coverage for those activities including, if required above, additional insured certificates.

46 4. Upon request, each Party shall provide any other Party with certificates of insurance, or other documentation, necessary to evidence the existence and maintenance of the insurance coverage required in this Agreement.

The responding Party shall include information regarding deductibles and self‐ insurance, if any.  If a Party is satisfying an insurance coverage obligation in this Agreement using (1) a self‐insured retention (“SIR”) of $500,000 or greater or (2) a deductible of $500,000 or greater, any other Party may request documentation that the insured Party has dedicated funds or another financial assurance that demonstrates the ability of such Party to pay such deductible or SIR. Unless agreed to in writing by the other Parties, which agreement shall not be unreasonably withheld, a Party may not satisfy an insurance coverage requirement of this Agreement solely through self‐insurance without an excess insurance policy in place over the self‐insurance.  Disputes arising under this Paragraph shall be subject to the Dispute Resolution provisions of Paragraph XII.

XI. Record Retention
A. Emhart shall reimburse Rialto for costs it incurs for record retention relating to the Work, and the copying or production of such records to EPA as may be required from time to time under the Work Consent Decree.  To the extent it incurs such costs, Rialto shall annually submit an invoice for such costs to Emhart.

Emhart shall pay such invoices within 30 days of receipt.

XII. Dispute Resolution
A. Except as provided in Paragraph B, below, any dispute arising under this Agreement shall be resolved pursuant to Paragraph 86 of the Work Consent Decree, which provides:

86.   Dispute Resolution By or Between Settling Work
Defendant [Emhart], Rialto, Colton, and or the County of San Bernardino Regarding Implementation Agreements
Entered Pursuant to Paragraphs 10 and 12.
a.   Informal Dispute Resolution.  Any dispute
regarding the implementation agreements entered into
by and between Rialto, Colton, the County of San
Bernardino, and Settling Work Defendant as provided
for in Paragraphs 10 and 12 initially shall be the subject

47 of informal negotiations between the parties to the
dispute.  The period for informal negotiations shall not exceed twenty (20) Days from the time the dispute
arises, unless it is modified by written agreement of the parties to the dispute.  The dispute shall be considered to have arisen when one party send the other parties a
written Notice of Dispute, a copy of which shall be
provided to EPA, Rialto, Colton, the County of San
Bernardino, the Settling Federal Agencies, and the
Settling Work Defendant.
b.   Resolution by this Court.  If the parties are unable to resolve their dispute through informal dispute
resolution, any party to the dispute may commence a
proceeding in this action [the Consolidated Federal
Actions] before this Court [the United States District
Court for the Central District of California] by motion as provided for in the Local Rules of the Central District of California.
c.   Standard for Dispute Resolution.  This Court shall resolve any dispute brought before it under this
Paragraph under California contract law.

B. As set forth in Paragraph IV.E.4.d, disputes regarding application of Rialto’s water quality standards arising under Paragraph IV.E.4.c shall be resolved pursuant to the dispute resolution provisions set forth in Paragraph 10.2 of the County Consent Decree.

XIII. Termination
A. Duration of the Agreement

1. This Agreement will continue in effect until both the County and Emhart have terminated their participation in this Agreement under this Paragraph XIII.

2. If the County believes it has met the requirements for Closure, it shall, at least 60 days prior to seeking Regional Board approval of such Closure, provide written notice to Emhart, Rialto, and Colton of its intention to do so.

48 Within 30 days after such notice, the Parties shall meet and confer to discuss the steps, following the Regional Board’s approval of the County’s request for Closure, to be taken to effectuate the County’s termination of participation in this Agreement, including, but not limited to, the requirements of Paragraph XIII.B.1 and B.2, and, as necessary, what, if any, provisions of this Agreement should continue in effect to address any ongoing post‐Closure requirements (e.g., groundwater monitoring).  If the Parties are unable to so agree, the dispute shall be resolved pursuant to the Dispute Resolution provisions of Paragraph XII.

3. If Emhart believes it has met the requirements for Closure, it shall, at least 60 days prior to seeking EPA approval of such Closure, provide written notice to the County, Rialto, and Colton of its intention to do so.  Within 30 days after such notice, the Parties shall meet and confer to discuss the steps, following EPA’s approval of Emhart’s request for Closure, to be taken to effectuate Emhart’s termination of participation in this Agreement, including, but not limited to, the requirements of Paragraph XIII.B.1 and B.3. and, as necessary, what, if any, provisions of this Agreement should continue in effect to address any ongoing post‐Closure requirements (e.g., groundwater monitoring).  If the Parties are unable to so agree, the dispute shall be resolved pursuant to the Dispute Resolution provisions of Paragraph XII.

4. If either the County or Emhart obtains approval for Closure, provided that it has notified the Parties as set forth above, all of its obligations under this Agreement shall terminate 30 days after receipt of such approval, except its obligations set forth in Paragraphs IX (Indemnification), X (Insurance) XIII.A.2. and 3. (ongoing post‐closure requirements), XIII.B. (termination by either Emhart or the County), and XIII.C (termination by both Emhart and the County).  Unless otherwise agreed, the meet and confer process referenced in Paragraphs XIII.A.2. and 3. shall conclude by this date.

5. Nothing in this Agreement supersedes, modifies, or abrogates the rights and obligations of the County and Emhart to each other set forth in the termination provisions of the County/Emhart Implementation Agreement.

6. As between the County and Rialto, this Paragraph XIII supersedes Paragraph 7.b of County/Rialto Implementation Agreement and Paragraph 11.b of Exhibit K of the County/Rialto Implementation Agreement.

49 B. Effect of Termination by Either Emhart or the County

1. Termination by the County or Emhart:  From the date either the County or Emhart terminates its participation in this Agreement as provided in Paragraph XIII.A.3, while the other (the “Non‐Terminating Party”) continues to participate:
a. The Non‐Terminating Party shall have the right to
continue to use the Combined Remedies and any distribution piping and infrastructure constructed to allow delivery of water to Colton’s municipal water supply system, as necessary; and
b. The Non‐Terminating Party shall assume all rights,
responsibilities, and obligations under this Agreement associated with the operation and maintenance of the Combined Remedies, including the costs to operate and maintain the Combined Remedies as provided in Paragraph IV.F.

2. County Termination Before Emhart:  If the County terminates its participation in this Agreement before Emhart terminates its participation:
a. Disposition and/or use of components of the Combined Remedies owned by the County that are located on real property owned by Rialto shall be addressed as follows:
i. Emhart may, at its option, assume ownership of
some or all of such components.
ii. To the extent Emhart does not elect to assume
ownership of some or all of such components, the County shall have the right to remove such components.  If the County so elects, the County shall remove at its expense such components of the Combined Remedies and restore such ground surface to pre‐construction conditions.
iii. To the extent that Emhart does not elect to
assume such ownership and the County does not elect to remove such components, Rialto, at its option, may elect to assume ownership of such components.  Upon transfer of ownership, Rialto shall be responsible for the use, costs, operation, maintenance, and/or subsequent abandonment of all such components for which it has assumed ownership.

50 iv. To the extent that Emhart and Rialto do not elect to assume such ownership pursuant to Paragraphs XIII.B.2.a.i and XIII.B.2.a.iii, the County shall remove such components at the County’s expense, and restore the ground surface to pre‐construction conditions.
v. As part of the meet and confer pursuant to
Paragraph XIII.A.1, the Parties shall discuss any transfer of ownership provided for in this Paragraph XIII.B.2, and execute any documents necessary to effectuate such transfer.  Unless otherwise agreed, any removal of components and restoration shall be completed within one year of the County’s termination.  In connection with the removal and restoration required by this paragraph, the Parties shall cooperate in good faith to minimize the impact on the Combined Remedies and the components to be left in place.
b. Disposition and/or use of components of the Combined Remedies owned by the County that are located on real property owned by the County shall be addressed as follows:
i. Emhart may, at its option, elect to use some or all
of such components. This election shall be made during the meet and confer process provided for in Paragraph XIII.A.1.  The County and Emhart shall thereafter negotiate appropriate terms for access to County‐owned land to permit Emhart to use such components, including standard terms for security, insurance, maintenance, repair, termination and other reasonable terms.  Such access shall be provided without the need for payment of rent or other similar monetary consideration.
ii. If Emhart does not elect to use some or all of such components, the County shall have the right to use, or grant the right to use, such components at its discretion.
c. Emhart shall not succeed to the County’s lease of Rialto Water Rights.

3. Emhart Termination Before County:  If Emhart terminates its participation in this Agreement before the County terminates its participation:
a. The County may, at its option, succeed to Emhart’s lease of Colton Water Rights.  Such election shall be discussed as part of the meet and confer pursuant to Paragraph XIII.A.2; and

51 b. The County may, at its option, assume ownership of some or all of the components of the Combined Remedies owned by Emhart.  To the extent the County does not elect to assume such ownership, Rialto may, at its option, elect to assume ownership of remaining components of the Combined Remedies previously owned by Emhart, and shall thereafter be responsible for the use, operation, maintenance, and/or subsequent abandonment of such components for which it has assumed ownership.  To the extent neither the County nor Rialto elects to assume such ownership, Emhart shall remove such components, at its expense, and restore the ground surface to pre‐construction conditions.
c. As part of the meet and confer pursuant to
Paragraph XIII.A.2, the Parties shall discuss any transfer of ownership provided for in this Paragraph XIII.B.3., and execute any documents necessary to effectuate such transfer.  Unless otherwise agreed, any removal of components and restoration shall be completed within one year of the Emhart’s termination.  In connection with the removal and restoration required by this paragraph, the Parties shall cooperate in good faith to minimize the impact on the Combined Remedies and the components to be left in place.

C. Ownership/Removal of Infrastructure Upon Termination by Both County and Emhart

1. Once both the County and Emhart have terminated their respective participation in this Agreement, the owner of any portion of the Combined Remedies (i.e., Emhart and/or the County), at its sole expense as provided in the County/Emhart Implementation Agreement and the County/Rialto Implementation Agreement, shall have the right to remove any and all components of the Combined Remedies within one year and to restore the ground surface to pre‐construction conditions.

2. To the extent that the County and/or Emhart do not elect to exercise such right to remove any component of the Combined Remedies as provided in Paragraph XIII.C.1, Rialto shall either (a) require Emhart, at Emhart’s sole expense, to remove any remaining component of the Combined Remedies and restore the ground surface to pre‐construction conditions, or (b) elect to take possession of all such remaining components of the Combined Remedies which shall thereupon become the property of Rialto.  Thereafter, Rialto shall be

52 responsible for the use, operation, maintenance, and/or subsequent abandonment of such components for which it has assumed ownership.

3. In removing components of the Combined Remedies, Emhart and the County shall comply with all applicable provisions of the Rialto Municipal Code.

XIV. Notice
Whenever, under the terms of this Agreement, written notice is required to be given or a document is required to be sent by one Party to another, it shall be directed to the individuals at the addresses specified below, unless those individuals or their successors give notice of a change to the other Parties in writing.  All notices and submissions shall be considered effective upon receipt, unless otherwise provided.

As to Colton: City Manager
Attn:  Bill Smith
City of Colton
650 North LaCadena Dr.

Colton, CA  92324
‐and‐
City Attorney
Attn:  Carlos Campos
Best Best & Krieger LLP
74760 Highway 111, Suite 200
Indian Wells, CA  92210
As to the County: Director, Department of Public Works
825 East Third Street
San Bernardino, CA  92415‐0835
‐and‐
County of San Bernardino
Office of County Counsel
385 North Arrowhead Avenue, 4th Floor
San Bernardino, CA  92415‐0140

53 ‐and‐
The Gallagher Law Group, a Professional
Corporation (for notice only, not for service
of process)
1875 Century Park East, Suite 1550
Los Angeles, CA  90067
Attn:  Timothy V.P. Gallagher
As to Emhart: Joseph W. Hovermill, Esq.

Miles & Stokbridge PC
100 Light Street
Baltimore, MD  21202
As to Rialto: City Attorney for City of Rialto
Attn:  Fred Galante
Aleshire & Wynder, LLP
3880 Lemon St., Suite 520
Riverside, CA  92501
‐and‐
Paul Hastings LLP (for notice only, not for
service of process)
55 Second Street
Twenty‐Fourth Floor
San Francisco, CA  94105
Attn:  Peter H. Weiner
XV. Miscellaneous Terms
A. Headings.

All paragraph headings in this Agreement are for convenience of reference only and shall have no effect on the interpretation of any paragraph or provision of this Agreement.

54 B. Exhibits.

All exhibits to in this Agreement are incorporated as binding parts of this Agreement unless otherwise stated in the exhibit.  The documents labeled “example” in Exhibits F, H, and I are for illustration purposes only and are not binding parts of this Agreement.  The notes in italic and underline format in the spreadsheets attached as parts of Exhibits H and I are for guidance only and are not intended to be binding parts of this Agreement.  To the extent any notes in those spreadsheets conflict with the terms of the body of this Agreement, the terms of the body of this Agreement shall control.  The formulas in those spreadsheets are intended to be binding parts of this Agreement.

C. Construction.

This Agreement shall be interpreted and construed as drafted by all Parties with equal participation in its drafting.

D. Force Majeure.

1. For purposes of this Agreement, “Force Majeure” means any event arising from causes beyond the control of a Party or its contractors that delays or prevents the performance of any obligation under this Agreement despite that Party’s best efforts to fulfill the obligation or avoid the event.  Force Majeure includes, but is not limited to:  acts of God; fire, flood, windstorm, or earthquake; explosion, riot, or sabotage; war, terrorism, threat of terrorism, or any resulting security measures; strikes, lockouts, or other concerted work stoppages; injunctions; inability to obtain raw material, supplies, or energy; or unscheduled outages, shutdowns, or other loss of any necessary utility.

2. The Party whose performance is delayed or prevented by Force Majeure shall inform the other Parties:  (1) orally as soon as possible but no later than 48 hours of learning of the possible delay; and (2) in writing no more than five working days from the commencement of the Force Majeure.

3. The Party whose performance is delayed or prevented by Force Majeure shall use best efforts to minimize the effect and duration of such Force Majeure.

55 4. Any delay in or failure to perform any obligation under this Agreement by a Party caused by Force Majeure shall not constitute a breach of this Agreement or give rise to any claim for damages.

E. Assumption of Certain Emhart Obligations by Black & Decker Inc.

Black & Decker Inc. agrees to assume Emhart’s obligations set forth in Paragraphs IV.F, IX.A, X.A. and XIII of this Agreement in the event Emhart defaults on those responsibilities or obligations.

F. Good Faith and Fair Dealing.

The Parties shall deal with each other in good faith and fairly in all matters arising under this Agreement.  The presence or absence of a specific reference to good faith in any paragraph of this Agreement does not affect the obligation of the Parties to deal with each other in good faith and fairly in all matters arising under this Agreement.

G. Governing Law.

This Agreement should be construed in accordance with the laws of the State of California.

H. Signatories.

Each signatory of this Agreement represents that s/he is authorized to execute this Agreement on behalf of the Party for which s/he executes this Agreement. Each Party represents that it has the legal authority to enter into this Agreement.

I. Multiple Counterparts.

This Agreement may be executed in counterparts, each of which shall be deemed an original.

J. Effect of this Agreement on Other Existing Agreements Among the Parties.

1. Nothing in this Agreement supersedes, abrogates, amends, or modifies the provisions of the County/Rialto Implementation Agreement, the terms of which are preserved, except as expressly set forth herein.

56 2. As between Rialto and the County, Rialto and the County agree that execution of this Agreement does not implicate Paragraph 10.a.vi of the County/Rialto Implementation Agreement.

3. Rialto and Colton are not parties to, nor are they bound in any way by, the County/Emhart Implementation Agreement.

4. To the extent that this Agreement conflicts with the Rialto/Emhart Cost Agreement dated October 4, 2013, this Agreement shall control.

K. Amendment.

This Agreement may be amended at any time, but only by written agreement executed by all Parties then participating in the Agreement.

Exhibit A
Procedure for Reimbursement of Rialto Consultant Costs
Under Paragraph III.C.2.a
The procedure for Rialto to submit requests for reimbursement of Rialto consultant costs as provided for in Paragraph III.C.2.a incurred during the design, permitting, and construction phases of the Work, (“Reimbursement Request”) shall be as follows:

1. Peter Fox and West Yost Associates Costs:  No more frequently than once per quarter, Rialto shall submit its Reimbursement Request to Emhart for costs of time incurred by Peter Fox or West Yost Associates as reasonably required to provide information, evaluate information provided, or attend meetings, as needed, during the design, permitting, and construction phases of the Work, at the ordinary and customary hourly rates charged by Peter Fox and West Yost Associates to perform other such work for Rialto, and supporting documentation.  The Reimbursement Request shall include:
a. A written summary of the tasks performed, the time and costs associated with each task, and supporting documentation; b. Confirmation of Rialto’s payment of the invoices described in Paragraph 1, above; and
c. But, in no event, shall Rialto seek payment for (i) the cost of the first 10 hours of time incurred by Peter Fox or West Yost Associates; (ii) the next $8,057.20 of such costs beyond those addressed in Paragraph 1.c.(i); or (iii) costs resolved by the Agreement for Resolution of Emhart/Rialto Cost Issues entered on October 4, 2013, by Emhart and Rialto.

2. Within 30 days after Emhart’s receipt of a Reimbursement Request, Emhart shall pay the appropriate reimbursement amount to Rialto.

Exhibit B
Anticipated Combined Remedies Operation and Maintenance Activities San Bernardino County, California
I. Introduction
This document describes the anticipated activities for operation and maintenance of the Combined Remedies.  This document is for illustration and budgeting purposes only and does not create any legal rights, obligations, responsibilities or duties, contractual or otherwise, among the Parties to the Four Party Implementation Agreement or any third party.  To assist in preparation of an Annual O&M Budget for the Combined Remedies, this document will be evaluated annually and updated as necessary.

The design and operation of the Combined Remedies merge the existing Regional Board Remedy with the planned groundwater extraction well and treatment plant expansion.  Emhart Industries, Inc. (“Emhart”) and the County of San Bernardino (the “County”) anticipate that the operation and maintenance of the Combined Remedies will achieve the remedial objectives of:  (1) the Work Consent Decree, which Emhart is required to meet; and (2) the Regional Board Order, which the County is required to meet.

The activities to operate and maintain the Combined Remedies as described herein, are:  (1) operation and maintenance of the Combined Capture System; (2) operation and maintenance of the Combined Treatment Plant; (3) assisting the Parties in implementation of the Water Management Plan; (4) compliance with Rialto’s DDW Permit (including compliance sampling monitoring and compilation and distribution of monthly reports in accordance with the DDW permit); and (5) overall project management and oversight of all of the above.

II. Definitions
A. “Annual O&M Budget” means the budget prepared Rialto (or its third party contractor) and submitted to Emhart and the County by August 1 of each year shall for the work necessary to operate and maintain the Combined Remedies in a cost‐effective manner.

B. “Combined Capture System” means the extraction wells and associated conveyance piping connected to the Combined Treatment Plant necessary for operation of the Combined Remedies.  There are currently three existing extraction wells (Miro‐2, Miro‐3, and Rialto‐3) and one planned extraction well (EW‐1) that will be connected to the Combined Treatment Plant; the locations of these wells and associated piping are shown on Attachment B‐1 (Locations of Combined Treatment Plant and Combined Capture System).  This definition includes any additional extraction wells and associated piping that may be added in the future, as needed.

C. “Combined Remedies” means the Combined Capture System and the Combined Treatment Plant, but does not include groundwater monitoring wells.

D. “Combined Treatment Plant” means a system of groundwater treatment components, consisting of (1) the County treatment plant at CR‐3, in place as of the Effective Date, constructed by the County to comply with the Regional Board Order; (2) the expansion of the County treatment plant constructed by Emhart, after the Effective Date, to comply with the Work Consent Decree (as described in detail in the final design approved by EPA on May 19, 2014); and (3) any future expansion of such treatment plant as necessary or appropriate to comply with the Work Consent Decree or the Regional Board Order.

E. “DDW” means the California State Water Resources Control Board Division of Drinking Water, formerly, the California Department of Public Health Division of Drinking Water.

F. “Parties” means the County, Rialto, Colton, and Emhart.

G. “Rialto‐3” means City of Rialto Well No. 3, also referred to as “CR‐3.” H. “Rialto’s DDW Permit” means domestic water supply Permit No. 71‐ 009 issued to Rialto by DDW on January 8, 1971, as amended by Permit Amendment No. 05‐13‐06PA‐005 issued on May 8, 2006, Permit Amendment No. 05‐13‐09PA‐042 issued on January 4, 2010, and as Permit No. 71‐009 may be amended in the future.

I. “Water Management Plan” or “WMP” means the water management plan developed by the Parties pursuant to Paragraph VI of the Four Party Implementation Agreement.

III. Background Information
A. Site Setting
The locations of the Combined Remedies facilities are displayed in Attachment B‐1.  A Process Flow Diagram is included as Attachment B‐2.

B. Combined Treatment Plant Operational Information
As designed, the Combined Remedies will consist of the following equipment:
 Four groundwater extraction well pumps with variable frequency drives (at extraction wells Rialto‐3, Miro‐2, Miro‐3, and EW‐1);  100,000‐gallon steel bolted reservoir (equalization tank);  Desander unit (for Rialto‐3);
 Six bag filter units (for all influent water);
 An ultraviolet (UV) system (for Rialto‐3);
 Two booster pumps – 250 horsepower (hp), 150 pounds per square inch (psi) rated at 2,250 gpm each;
 Sulfuric acid injection unit (pH adjustment) – this unit is not operational at this time and there is no requirement to resume its operation;
 Six ion exchange resin (IX) vessels;
 Eight granular activated carbon (GAC) vessels; and
 Hypochlorination injection system.

C. Untreated Groundwater Constituents of Concern
The Combined Treatment Plant is designed to remove the following constituents of concern from extracted groundwater:
 Perchlorate; and

 VOCs, including trichloroethene (TCE)
The influent stream of the Combined Treatment Plant is expected to contain VOCs and perchlorate.  The influent from CR‐3 may also contain coliform bacteria on an intermittent basis, which if present is treated prior to the water entering the equalization tank to protect the downstream treatment vessels.

IV. Anticipated Operation and Maintenance Activities
A. Combined Capture System
Operation of the Combined Capture System includes, but is not limited to, regulating extraction rates as directed by Emhart and the County to (1) achieve Emhart’s and the County’s respective remedial requirements; and (2) ensure that the volume of water extracted does not exceed the water rights leased to the County by Rialto and Colton, and to Emhart by Colton.  Attachment B‐3 identifies routine (daily) and non‐routine (periodic) operation, maintenance, and monitoring activities.

B. Combined Treatment Plant
Operation of the Combined Treatment Plant includes, but is not limited to, those routine (daily) and non‐routine (periodic) activities identified in Attachment B‐3.

C. DDW Permit Compliance
Operation of the Combined Remedies shall, at all times, be in compliance with Rialto’s DDW Permit (including compliance sampling monitoring and compilation and distribution of monthly reports in accordance with Rialto’s DDW Permit).  Compliance with Rialto’s DDW Permit is anticipated to include, at a minimum, compliance monitoring and sampling at the following locations:
 The influent stream from operating extraction wells
(Attachment B‐2);
o Rialto‐3 – Location 1A;
o Miro‐2 – Location 1B;
o Miro‐3 – Location 1C; and

o EW‐1 ‐ Location 1D.
 The effluent point of the UV system (Attachment B‐2, Location 2);  The effluent point of each of the two lead perchlorate removal (IX) vessels (Attachment B‐2, Location 4) (two sample locations);  The effluent point of each of the first lag IX vessels (Attachment B‐2, Location 5) (two sample locations);
 The effluent point of each of the second lag IX vessels (Attachment B‐2, Location 6) (two sample locations);
 The midpoint between each of the four pairs of GAC vessels (Attachment B‐2, Location 7) (four sample locations);
 The post‐treatment effluent stream (Attachment B‐2, Location 9) (two sample locations); and
 Near‐field monitoring wells (as identified by Rialto to be sampled by the Operator upon issuance of the amendment to Rialto’s DDW Permit).

D. Assisting in Implementation of the Water Management Plan During operation of the Combined Remedies, the operator will attend meetings to assist in the development and documentation of the WMP as directed by the Parties and to thereafter implement the WMP.

E. Overall Management and Oversight
Operation of the Combined Remedies includes overall management and oversight of the activities described in Paragraphs IV.A through D, above.

F. Excluded Activities
The following activities are excluded from operation and maintenance of the Combined Remedies:
 Determination of extraction well pump rates required for the County and Emhart to meet their respective remedial objectives of the

Regional Board Order (for the County) and the Work Consent Decree (for Emhart) and the corresponding interaction with the Regional Board and USEPA;
 Collection of groundwater monitoring data from County‐installed monitoring wells and piezometers pursuant to Paragraph IV.D.3 of the Four Party Implementation Agreement;
 Collection of groundwater monitoring data from Emhart‐installed monitoring wells and piezometers that Emhart may, in the future, elect to collect itself as provided for in Paragraph IV.D.3 of the Four Party Implementation Agreement;
 Preparation of quarterly monitoring reports to the Regional Board on behalf of the County;
 Preparation of compliance reporting to USEPA on behalf of Emhart; and
 Major equipment replacement and/or capital improvements.

G. Contractor Qualifications
It is anticipated that the Combined Treatment Plant will be classified as a T3 or T4 treatment facility.  The operator must be authorized by law to operate and maintain the Combined Remedies including all operator and shift operator qualification requirements set forth in Rialto’s DDW Permit.  The operator also must be 40‐Hour HAZWOPER‐trained, excluding subcontractors, and all operator personnel must possess valid drivers’ licenses at the appropriate levels as necessary to perform essential job functions.

V. Attached Support Documents and Reports
The following are attached as referenced herein:
 Attachment B‐1 – Locations of Combined Treatment Plant and Combined Capture System
 Attachment B‐2 – Process Flow Diagram

 Attachment B‐3 Combined Remedies Operation and Maintenance Activities

ATTACHMENT B‐1

²A
²A
A²
DE
Combined
TreatmentPlant
North Ayala Drive
WestLeiskeDrive
North Fitzgerald Drive
North Linden Avenue
Rialto
MunicipalAirport
MIRO-2
MIRO-3
EW-1
RIALTO3
¯
0400
ScaleinFeet

SOURCEAREAOPERABLEUNIT

ROCKETS,FIREWORKS,ANDFLARESSITE
PREPAREDBY:

AJP(ERM)
JOBNO.0179962
FILE:AttachmentB1.mxd
M:\Projects\Emhart_Rialto\Portland\GIS\IA\Attachment B1.mxd AJP 5/6/2015 AttachmentB-1

LOCATIONSOFCOMBINED

TREATMENTPLANTAND

COMBINEDCAPTURESYSTEM
Source:ImagecourtesyofUSGS©2013
MicrosoftCorporation.

Legend
A²
ProposedExtractionWellLocation
DE
CityofRialtoProductionWell
²A
MiroWells
PipelineConnectingEW-1to
CombinedTreatmentPlant
PipelineConnecting
Miro-2andMiro-3tothe
CombinedTreatmentPlant