Rialto City Council
December 13, 2022

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Operations and Maintenance Agreement

THIS OPERATIONS AND MAINTENANCE AGREEMENT (this “Agreement”) is entered into this _____ day of __________________2022 (the “Effective Date”), among the City of Rialto, a California municipal corporation (“City”), the Rialto Utility Authority, a California joint powers authority (“RUA”), and Veolia Water West Operating Services, Inc., a Delaware corporation (“Veolia” and, together with the City and RUA, each a “Party” and, collectively, the “Parties”).

RECITALS

A. The City and RUA entered into that certain Lease Agreement (“Water Enterprise”) dated as of May 1, 2001, and that certain Water Enterprise Management Agreement dated as of May 1, 2001 (the “Water Enterprise Management Agreement”). Pursuant to the terms and provisions of the Water Enterprise Management Agreement, City is responsible for the operation and maintenance of various wells, reservoirs, booster stations, and distribution pipelines (the “Rialto Water System”). As a result of perchlorate contamination in the Rialto- Colton Groundwater Basin, certain wells have been equipped with treatment systems and appurtenances thereto (collectively, the “Rialto Wells”). The Rialto Wells are situated on certain real property located in the City of Rialto, California and legally described and/or depicted on Appendix B attached hereto and by this reference incorporated herein (the “Rialto Owned Property”). The Rialto Wells shall be referred to herein individually as “Chino No. 2,” “Miro 2,” “Miro 3,” and “Rialto No. 3.”
B. In addition to the Rialto Wells, another well in the Rialto-Colton Groundwater Basin on real property of Emhart Industries, Inc. (“Emhart”), referred to as “EW-1,” is contaminated with perchlorate and is connected to the Rialto Wells. EW-1 is situated on certain real property legally described and/or depicted on Appendix C attached hereto and by the reference incorporated herein.

C. Emhart, City, RUA, the City of Colton, California (“Colton”), and the County of San Bernardino, California (the “County”) are parties to that certain Implementation Agreement, with an effective date of September 1, 2015 (the “Implementation Agreement”). The Implementation Agreement provides, among other things, for the construction of a combined remedy project that would include a Combined Capture System (the “Combined Capture System”) and Combined Treatment Plant (the “Combined Treatment Plant” and, together with the Combined Capture System, the “Combined Remedies”) to treat perchlorate contamination in Miro-2, Miro-3, Rialto No. 3, and EW-1. The Implementation Agreement further provided that City was to operate the Combined Remedies. Combined Remedies are generally described on Appendix D attached hereto and by this reference incorporated herein.

D. The Combined Capture System includes an interconnection vault known as the “Randall Vault” that connects the City of Rialto’s distribution system to the City of Colton’s distribution system.

E. City, RUA, and Rialto Water Services, L.P., a Delaware limited partnership (“RWS”) executed that certain Concession Agreement: Service Contract for the Design, Veolia Draft 12/1/22
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Construction and Financing of Upgrades and for the Operation of the Rialto Utility Authority Wastewater Facility and Water Facility, which was executed on or about March 27, 2012 (the “Concession Agreement”).

F. The Concession Agreement provides, in part, that RWS shall operate and maintain the Rialto Water System, with the exception of the treatment of perchlorate and other contaminants not complying with certain drinking water standards (the “Exception”). Pursuant to the Concession Agreement, the City or RUA is responsible for equipping groundwater wells with well head treatment for purposes of addressing the perchlorate and other contaminants, (the “Groundwater Contaminants”), not complying with drinking water standards, such that, following treatment, the water drawn from contaminated wells is compliant with drinking water standards and suitable for distribution through the Rialto Water System by RWS.

G. On November 29, 2012, RWS and Veolia executed that certain Operations and Maintenance Subcontract (“O&M Subcontract”). The O&M Subcontract provides, in part, that Veolia shall provide, on behalf of RWS, the operation and maintenance of the Rialto Water System, subject to the Exception.

H. In connection with the Groundwater Contaminants, City/RUA has fitted Chino No. 2 with a Treatment System (the “Chino No. 2 Treatment System”). The Chino No. 2 Treatment System is generally described on Appendix D attached hereto and by this reference incorporated herein. Pursuant to the Exception, the City and RUA retain responsibility for the maintenance and operation of the Chino No. 2 Treatment System and the Combined Remedy, and require a third party to operate and maintain the Chino No. 2 Treatment System and the Combined Remedy.

I. On or about January 8, 1971, the California Department of Public Health (“DPH”) now operating as the State Water Resources Control Board Division of Drinking Water (“DDW”), issued to City a Domestic Water Supply Permit (“Permit”).

J. On or about September 23, 2003, City submitted an application to DPH for an amendment to the Permit. The purpose of the amendment was to allow the City to include wellhead ion exchange treatment systems for perchlorate removal at Chino No. 2. On or about September 24, 2003, DPH/DDW approved the application for a Permit amendment subject to the conditions set forth therein.

K. On or about December 15, 2005, City submitted an application to DPH for an amendment to the Permit. The purpose of the amendment was to allow the City to include wellhead ion exchange treatment systems for perchlorate removal at Rialto No. 3. On or about May 8, 2006, DPH/DDW approved the application for a Permit amendment subject to the conditions set forth therein.

L. On or about January 15, 2008, City submitted an application to DPH for an amendment to the Permit. The purpose of the amendment was to allow the City to include ultraviolet as a pretreatment for bacterial removal at Rialto No. 3. On or about July 23, 2008, DPH approved the application for a Permit amendment subject to the conditions set forth therein.

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M. On or about July 22, 2009, City submitted an application to DPH for an amendment to the Permit. Part of the purpose of the amendment was to add granular activated carbon units as an approved treatment process to remove volatile organic contamination at the Rialto No. 3 Groundwater Treatment System. On or about January 4, 2010, DPH approved the application for a Permit amendment subject to the conditions set forth therein.

N. On or about September 18, 2019, City submitted an application to DDW for an amendment to the Permit. Part of the purpose of the amendment was to add EW-1 as a groundwater source and add the expansion of an ion exchange and granular activated carbon treatment units at the combined groundwater wellhead treatment system as an approved treatment to treat EW-1, Rialto No. 3, and Miro 3. On or about September 15, 2022, DDW approved the application for a Permit amendment subject to the conditions set forth therein.

O. City and RUA desire that Veolia operate and maintain the Chino No. 2 Treatment System and the Combined Remedy (the “Remedy Assets”), and Veolia is willing to operate and maintain the Remedy Assets, all in accordance with and subject to the terms and conditions of this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth, the Parties agree as follows:

1. General

1.1 Definitions of words and phrases used in this Agreement and the attachments that are not otherwise defined in this Agreement or the attachment, are contained in Appendix A.

1.2 All land, buildings, facilities, easements, licenses, and rights-of-way presently or hereinafter acquired or owned by City shall remain the exclusive property of City unless specifically provided for otherwise in this Agreement.

1.3 This Agreement shall be governed by and interpreted in accordance with the laws of the State of California.

1.4 It is understood that the relationship of Veolia to City and RUA is that of independent contractor. The services provided under this Agreement are of a professional nature and shall be performed in accordance with good and accepted industry practices for contract operators similarly situated. However, such services shall not be considered engineering services and nothing herein is intended to imply that Veolia is to supply professional engineering services to City or RUA unless specifically stated in this Agreement to the contrary.

1.5 This Agreement, including Appendices A through G, is the entire Agreement between the parties. This Agreement may be modified only by written agreement signed by all parties. Wherever used, the terms “City,” “RUA,” and “Veolia” shall include the respective officers, agents, directors, elected or appointed officials and employees and, where appropriate, subcontractors or anyone acting on their behalf.

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1.6 If any term, provision, covenant or condition of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions shall remain in full force and effect and shall in no way be affected, impaired or invalidated.

1.7 If any litigation is necessary to enforce the terms of this Agreement, the prevailing party shall be entitled to reasonable attorney’s fees which are directly attributed to such litigation in addition to any other relief to which it may be entitled.

1.8 Nothing in this Agreement shall be construed to create in any third party or in favor of any third party any right(s), license(s), power(s) or privilege(s).

1.9 Each party shall designate in writing an employee or other representative of the designating party who shall have authority to approve changes in the Scope of Work and compensation therefore, execute written Change Orders reflecting such changes, render decisions promptly, and furnish information expeditiously to the other party when necessary. For Veolia, the designee shall be its Rialto General Manager and for the City and RUA, the designee shall be the RUA Executive Director. Each Party may change its designee by written notice to the other Parties.

1.10 This Agreement shall be interpreted in accordance with its plain meaning and not strictly for or against any party hereto.

1.11 This Agreement shall be binding upon the successors and assigns of each of the Parties, but no Party shall assign this Agreement without the prior written consent of the other Parties; provided, however, Veolia may assign this Agreement, without the other Parties’ consent, to (i) an Affiliate, (ii) in conjunction with a merger, consolidation, or sale of all or substantially all of the assets of Veolia, or, (iii) in conjunction with any assignment of the O&M Subcontract, to the assignee of the O&M Subcontract.

1.12 This Agreement may be executed and delivered (including by facsimile transmission, pdf or other means of electronic signature) in any number of counterparts, each of which will be deemed an original, but all of which together will constitute but one and the same instrument.

2. Veolia’s Services

2.1 Veolia shall provide a sufficient number of certified and qualified personnel, including management, administrative, operational, technical, laboratory and clerical, who meet relevant State of California requirements and certifications regarding operations and Maintenance Remedy Assets and are capable and demonstrate experience necessary to operate the Remedy Assets in accordance with the Permit.

2.2 Veolia will operate and perform Maintenance for the Remedy Assets within the design capacities and capabilities of the respective Remedy Assets, as set forth Veolia Draft 12/1/22
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more specifically in Appendix E (the “Scope of Work”); provided that Veolia shall not be responsible for Repairs or Capital Expenditures with respect to the Remedy Assets except as set forth in Section 2.4.

2.3 On an annual basis, Veolia shall prepare and submit to RUA and the City, at least ninety (90) days prior to the end of the then-current fiscal year ending June 30 (such fiscal year, the “Fiscal Year”), a budget for work to be undertaken by Veolia pursuant to this Agreement. The budget for the Fiscal Year ending June 30, 2023, is attached hereto as Appendix F and by this reference incorporated herein. On an annual basis, at least forty-five (45) days prior to the next Fiscal Year, the Parties shall agree to a budget for the upcoming Fiscal Year for the work to be provided hereunder, and if the Parties cannot agree to such a budget by such date, then the previous Fiscal Year’s budget shall apply, with the following adjustments: (a) the labor costs will be multiplied by the percentage increase in the Consumer Price Index, All Urban Consumers (all items), for the Riverside- San Bernardino-Ontario area (or its successor index if discontinued or substantially modified), as published by the U. S. Department of Labor Statistics for the most recent twelve (12) months then-available, and (b) the Reimbursement Budget will be increased for any documented cost increases in the listed items, plus overhead in the amount of eighteen percent (18%). Once updated, and approved by the City of Rialto City Council, such budget shall be appended to this Agreement as Appendix F, replacing the prior Appendix F.

2.4 If any work is listed on a budget, Veolia may complete the work listed thereon without obtaining the prior written consent of the City, provided that the anticipated cost of such work is no greater than the amount set forth on such budget. The Parties recognize and agree that additional costs may be warranted for a variety of reasons, including, but not limited to, unforeseen circumstances or a need for work not contemplated in a budget. The Parties shall work in good faith to amend the budget if circumstances so require upon written notice from Veolia.

City shall have five (5) business days after receipt of a written notice to approve or disapprove of such cost, except in the case of an emergency, in which case, City shall have twenty-four (24) hours to approve or disapprove of such cost unless Veolia reasonably believes that emergency conditions present a danger to health and safety such that the emergency work cannot be delayed. Failure of City to approve or disapprove of such cost within the foregoing time period shall be deemed approval thereof by City. In addition thereto, Veolia may cause a Repair or Capital Expenditure with respect to the Remedy Assets if Veolia reasonably believes the cost shall not exceed Five Thousand Dollars ($5,000.00), including Veolia’s overhead of eighteen percent (18%), provided Veolia shall give City prior notice of the same. Veolia shall have no responsibility or liability whatsoever in the event City elects not to make a Repair or Capital Expenditure hereunder or for any other recommendation made by Veolia, and City shall hold Veolia harmless from the same. All work done by a third party contractors for Veolia pursuant to this Section 2.4 will be subject to Veolia’s overhead of eighteen percent (18%).

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2.5 Veolia agrees that Veolia shall reasonably cooperate, coordinate and communicate with City, County, and RWS so that such parties may carry out their respective duties set forth in the Concession Agreement and O&M Subcontract.

2.6 Veolia shall provide monthly progress reports to City and RUA with respect to the operation and Maintenance of the Remedy Assets and any other duties required hereunder. Veolia, City, and RUA shall meet and confer on the required content and format of monthly progress reports, as is reasonably necessary to document the City’s compliance with its Permit, as amended, and the Implementation Agreement.

2.7 As a material inducement for City to enter into this Agreement, Veolia represents and warrants that it has the qualifications and experience necessary to perform the services required under this Agreement in a thorough, competent, and professional manner, and it is experienced in performing the work and services contemplated herein. Veolia shall follow Prudent Industry Practices in performing the work and services required hereunder.

2.8 Veolia shall maintain in effect all necessary licenses be required under Applicable Law to perform the services required by this Agreement. Veolia may engage other properly licensed contractors to perform Repairs, Capital Expenditures, and other services, subject to the limitations set forth in Section 2.4; provided that Veolia may not contract with any other Person to perform any services set forth in the Scope of Work without the express written approval of RUA.

2.9 Veolia shall keep, and require subcontractors to keep, records of operations, Maintenance, Repairs, laboratory analysis, personnel, training, safety, process control, inspections, materials, and alarms. Such records shall be maintained in accordance with Prudent Industry Practices and this Agreement. Veolia will timely provide the City with electronic and hard copy reports of such records, and the City, at its cost, shall have the right to inspect and copy such records at a reasonable time and during normal business hours. Veolia shall maintain all records associated with this agreement for not less than four years after the termination of this Agreement.

2.9.1 Accounting of Hours. Veolia and its subcontractors shall keep and maintain records of hours spent on the services provided pursuant to this Agreement in a form substantially similar to the example attached hereto as Appendix H.

2.9.2 Records of Costs. Veolia and its subcontractors shall keep and maintain records related to requests for reimbursement of costs for services provided pursuant to this Agreement. Records of costs may include, but will not be limited to, invoices, receipts, proofs of payment, and contracts for services.

3. City and RUA Duties
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3.1 RUA shall reimburse Veolia for all costs and expenses for the work authorized by RUA (or emergency work pursuant to Section 2.4) and undertaken by Veolia pursuant to this Agreement; provided that nothing in this Agreement is intended to impair or otherwise limit City’s or RUA’s rights it currently has or may have to recover such cost and expense from third parties.

3.2 City and RUA shall keep in force all warranties, guarantees, easements, and licenses that have been granted to City or RUA with respect to the Remedy Assets and are not transferred to Veolia under this Agreement.

3.3 Veolia shall not be responsible for sales, excise, ad valorem, property, franchise, occupational and disposal taxes, or other taxes associated with the Remedy Assets other than taxes imposed upon Veolia’s net income and/or payroll taxes for Veolia employees. In the event Veolia is required to pay any sales tax or use taxes on the value of the services provided by Veolia hereunder or the services provided by any subcontractor of Veolia, such payments shall be reimbursed by RUA unless RUA furnishes a valid and properly executed exemption certificate relieving City, RUA, and Veolia of the obligation for such taxes. In the event City or RUA furnishes an exemption certificate that is invalid or not applicable to services by Veolia, City and RUA shall indemnify Veolia for any taxes, interest, penalties, and increment costs, expenses or fees which it may incur as a result of Veolia’s reliance on such certificate.

3.4 City and RUA shall instruct County, RWS, Veolia (through RWS), and Emhart to reasonably cooperate, coordinate and communicate with Veolia so that Veolia may carry out the duties and obligations set forth herein.

3.5 City and RUA previously granted RWS a “Water Facility Site Easement” pursuant to the Concession Agreement. City and RUA hereby grant to Veolia a non-exclusive easement in and over the Rialto Owned Property for the purpose of exercising the rights and obligations of Veolia pursuant to this Agreement. Such non-exclusive easement is subject to the conditions set forth in Appendix G attached hereto.

3.6 City and RUA shall obtain any easements, licenses, or other rights of entry required for Veolia to operate and maintain the Remedy Assets.

3.7 City and RUA shall reasonably cooperate with Veolia and any subcontractors, consultants, or representatives of Veolia in the operation and Maintenance of the Remedy Assets.

3.8 Except as otherwise explicitly set forth in this Agreement, City and RUA shall continue to own the Remedy Assets.

3.9 City and RUA shall provide the Remedy Assets with appropriate security personnel and/or devices to protect against any losses resulting from the theft, damage, or unauthorized use of the Remedy Assets, and City and RUA shall Veolia Draft 12/1/22
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accept liability for such losses except to the extent such losses are directly caused by the negligent acts or omissions of Veolia.

4. Compensation

4.1 Subject to any limitations set forth in this Agreement, RUA agrees to pay Veolia the amounts specified in Appendix F. The amount payable to Veolia may also be increased for additional services pursuant to Section 2.4.

4.2 One-twelfth (1/12) of the labor costs for the current year set forth in Appendix F shall be due and payable in accordance with Section 4.3.

4.3 On a monthly basis, Veolia shall submit invoices for the amounts authorized in accordance with Sections 4.1and 4.2, and any reimbursable costs and work authorized in accordance with Section 2.4, with such documentation as RUA shall reasonably require. Payment of such invoice shall be due on the thirtieth (30th) day after receipt of the invoice by RUA (the “Due Date”). Payment of the amount required shall be delinquent if not made by or on behalf of RUA before the close of crediting activity on the Due Date. In the event that RUA is delinquent in the payment of any amount required, RUA shall pay an additional charge equal to one percent (1%) of the delinquent payment for each month or portion thereof that such payment remains delinquent.

4.4 Review and payment of any invoice for work performed by Veolia pursuant to this Agreement shall not be deemed a waiver of any defects in work performed by Veolia or of any rights or remedies provided herein or any Applicable Law.

5. Scope Changes

5.1 A “Change in Scope” of work shall occur when and as Veolia’s Costs of providing services under this Agreement change as a result of:

5.1.1 any change in Remedy Asset operations, personnel qualifications or staffing or other cost which is a result of an Unforeseen Circumstance;

5.1.2 City or RUA’s request of Veolia and Veolia’s consent to provide additional services.

5.2 For Changes in Scope described in Section 5.1, the compensation payable to Veolia shall be increased by an amount equal to Veolia’s additional Cost associated with the Change in Scope plus fifteen percent (15%).

6. Indemnity, Liability, and Insurance

6.1 Veolia Indemnity. Veolia shall assume the defense of, indemnify, and hold harmless City, RUA, and their respective officers, directors, administrators, representatives, consultants, engineers, employees and agents, and their respective successors and assigns (collectively, “City Indemnitees”) and each and every one Veolia Draft 12/1/22
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of them, from and against all third party claims, actions, causes of action, damages, demands, liabilities, costs (including, but not limited to reasonable, documented attorneys’ fees), claims, losses and expenses of every type and description (collectively, “Liabilities”) to which City Indemnitees may be subjected or put, by reason of, or resulting from the performance of or failure to perform, the work covered by this Agreement to the extent caused or occasioned by any wrongful act or negligence on the part of Veolia or its Representatives (as defined below). The foregoing indemnity shall not apply to the extent any such Liabilities are ultimately established by a court of competent jurisdiction to have been caused by the negligence or willful misconduct of the City Indemnitees or any of them, and Veolia shall be liable only for that percentage of total damages that corresponds to its percentage of total negligence or fault. City shall make all decisions with respect to its representation in any legal proceeding concerning this Section. If Veolia fails to do so, City and RUA shall have the right, but not the obligation, to defend the same and charge all of the direct or incidental costs of such defense, including fees and costs, to Veolia and to recover the same from Veolia. The term “Representatives” shall mean employees, representatives, agents, contractors, subcontractors or any other persons directly or indirectly employed by any of the foregoing or reasonably under the control of any of the foregoing or for whose acts any of the foregoing may be liable.

6.2 City and RUA Indemnity

6.2.1 City and RUA shall assume the defense of, indemnify and hold harmless Veolia and its parents, subsidiaries, and affiliates and their respective officers, directors, administrators, representatives, consultants, engineers, employees and agents, and their respective successors and assigns (collectively, “Veolia Indemnitees”) and each and every one of them, from and against all Liabilities to which they may be subjected or put, by reason of, or resulting from the performance of or failure to perform, the work covered by this Agreement to the extent caused or occasioned by any wrongful act or negligence on the part of City, RUA or their Representatives. The foregoing indemnity shall not apply to the extent any such Liabilities are ultimately established by a court of competent jurisdiction to have been caused by the negligence or willful misconduct of the Veolia Indemnitees or any of them, and City and RUA shall be liable only for that percentage of total damages that corresponds to their percentage of total negligence or fault. Veolia shall make all decisions with respect to its representation in any legal proceeding concerning this Section. If City and RUA fail to do so, Veolia shall have the right, but not the obligation, to defend the same and charge all of the direct or incidental costs of such defense, including fees and costs, to City and RUA and to recover the same from City and RUA.

6.2.2 City and RUA shall defend, indemnify and hold harmless Veolia Indemnitees from and against any Liabilities arising out of or related to:
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conditions that are exacerbated by a third party other than a person for which Veolia is responsible for under this Agreement in its operation of the Remedy Assets, whether disclosed or undisclosed, known or unknown, foreseen or unforeseen, patent or latent, suspected or unsuspected on, in, under, across or at the Rialto Wells, the Rialto Owned Property, EW-1, or on any real property adjacent to or nearby any of the foregoing; (b) any release or threatened releases of regulated substances, whether disclosed or undisclosed, known or unknown, foreseen or unforeseen, patent or latent, suspected or unsuspected, from any of the Rialto Wells, Rialto Owned Property, or EW-1; (c) any third party violations of environmental laws, whether disclosed or undisclosed, known or unknown, foreseen or unforeseen, patent or latent, suspected or unsuspected, related to operation or maintenance of the Remedy Assets, except to the extent that such losses are caused by the negligence or willful acts or omission of Veolia; or (d) any liability arising out of or related to the disposal of hazardous wastes or substances, resulting from the operation and Maintenance of any of the Remedy Assets or related operations, to any landfill or disposal facility, by Veolia as the agent for City and RUA; provided that nothing in this Agreement is intended to impair or otherwise limit City’s or RUA’s rights to recover any such Liabilities arising from or related to actions of third parties.

6.3 City and RUA shall be liable for those fines or civil penalties imposed by any regulatory or enforcement agencies on City, RUA and/or Veolia that are not a result of Veolia’s negligence or willful misconduct or are otherwise directly related to the ownership, operation, or Maintenance of the Remedy Assets, and City shall indemnify and hold Veolia harmless from the payment of any such fines and/or penalties.

6.4 Under no circumstances shall any Party be liable to the others for any special, incidental, consequential, or punitive damages regardless of whether such damages arose under breach of contract, tort, strict liability, or any other theory of law or equity.

6.5 To the fullest extent permitted by law and notwithstanding any other provision of this Agreement, Veolia’s liability for performance or non-performance of any obligation arising under the Agreement (whether arising under breach of contract, tort, strict liability, or any other theory of law or equity) including, but not limited to its indemnity obligations specified in Section 6.1 of the Agreement, shall not exceed $500,000 cumulatively for the duration of the Agreement, provided that the foregoing limitation shall not apply to any losses resulting from the gross negligence or willful misconduct of Veolia or Veolia’s subcontractors, employees or agents in breach of Veolia’s obligations under this Agreement.

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7. Insurance

7.1 Insurance Coverages. Veolia shall procure and maintain, at its sole cost and expense, in a form and content required under this section, during the entire term of this Agreement including any extension thereof, the following policies of insurance:

7.1.1 Commercial General Liability Insurance (Occurrence Form CG0001 or equivalent). A policy of commercial general liability insurance written on a per occurrence basis for bodily injury, personal injury, and property damage. The policy of insurance shall be in an amount of $1,000,000.00 per occurrence or if a general aggregate limit is used, then the general aggregate limit shall be twice the occurrence limit.

7.1.2 Worker’s Compensation Insurance. A policy of worker’s compensation insurance in such amount as will fully comply with the laws of the State of California and which shall indemnify, insure, and provide legal defense for Veolia against injuries or occupational diseases occurring to any worker employed by or any persons retained by the Veolia in the course of carrying out the work or services contemplated in this Agreement.

7.1.3 Automotive Insurance (Most recent version of Form CA 0001 including “any auto” and endorsement CA 0025 or equivalent). A policy of commercial automobile liability insurance written on a per occurrence for bodily injury and property damage in an amount of $1,000,000.

7.1.4 Subcontractors. Veolia shall include all subcontractors as insureds under its policies or shall obtain separate certificates and certified endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein.

7.2 General Insurance Requirements.

7.2.1 All of the above policies of insurance shall be primary insurance and shall include the City, its elected and appointed officers, employees, and agents as additional insureds (except workers compensation), and any insurance maintained by City or its officers, employees, or agents shall apply in excess of, and not contribute with, Veolia’s insurance. All of said policies of insurance shall provide that said insurance may not be cancelled by the insurer or any Party hereto without providing thirty (30) days prior written notice. In the event any of said policies of insurance are cancelled, Veolia shall, prior to the cancellation date, submit new evidence of insurance in conformance with Section 7.1 to the City. No work or services under this Agreement shall commence until the Veolia has provided the City with Certificates of Insurance or appropriate insurance binders evidencing the above insurance coverages and said Certificates of Insurance or binders are approved by the City. Any failure to comply with Veolia Draft 12/1/22
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the reporting or other provisions of the policies including breaches or warranties shall not affect coverage provided to City.

Veolia agrees that the requirement to provide insurance shall not be construed as limiting in any way the extent to which Veolia may be held responsible for the payment of damages to any persons or property resulting from Veolia’s activities or the activities of any person or persons for which Veolia is otherwise responsible nor shall it limit Veolia’s indemnification liabilities as provided herein.

In the event Veolia subcontracts any portion of the work as called for under this this Agreement, the contract between Veolia and such subcontractor shall require the subcontractor to maintain the same policies of insurance that Veolia is required to maintain pursuant this Agreement, and such certificates and endorsements shall be provided to City upon request of the City.

7.3 Sufficiency of Insurer or Surety. Insurance required by this Agreement shall be satisfactory only if issued by companies qualified to do business in California, rated “A-” or better in the most recent edition of Best Rating Guide, The Key Rating Guide or in the Federal Register, and only if they are of a financial category Class VII or better, unless such requirements are waived by the Risk Manager of the City due to unique circumstances.

7.4 City Insurance. City shall obtain and maintain at all times during the term of this Agreement “insurance in compliance with the Implementation Agreement. The City will cause Veolia to be added as additional insured on said insurance policies related to the Remedy Assets owned by the City, will provide Veolia with satisfactory proof of insurance, and will require its insurance carrier to provide the other Party at least thirty (30) days’ notice of the cancellation of such policies.

Each policy shall provide a waiver of subrogation in favor of Veolia.

8. Term, Termination and Default

8.1 The term of this Agreement shall commence on the Effective Date and shall end on the same date as the O&M Subcontract. If the O&M Subcontract is terminated for any reason, this Agreement will also terminate at the same time as the O&M Subcontract.

8.2 Each Party may terminate this Agreement at any time, with or without cause, upon ninety (90) days’ written notice to the other Party, except that where termination is due to an Event of Default by a Party, the period of notice may be such shorter time as may be determined by the non-defaulting Party, provided that the defaulting Party will have reasonable opportunity to cure such default. Upon termination, Veolia shall be entitled to compensation for all services rendered in accordance with this Agreement prior to the effective date of termination.

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8.3 If termination is due to an Event of Default on the part of Veolia, the City and RUA may take over the work and prosecute the same to completion by contract or otherwise, and Veolia shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated (provided that the City and RUA shall use reasonable efforts to mitigate such damages), and the City and RUA may withhold any payments to Veolia for the purpose of set-off or partial payment of the amounts owed the City and RUA as previously stated.

8.4 Each of the following shall constitute an “Event of Default” under this Agreement:

8.4.1 Failure to make a payment when due under this Agreement; and

8.4.2 Failure to perform or observe any term, covenant or understanding that is to be performed or observed, and such default continues for thirty (30) days from a notice of default being sent in the manner provided in Section 9; provided that if such default is of a nature which cannot be cured within the thirty (30)-day period, no default shall exist if the Party initiates cure within the thirty (30)-day period and diligently and continuously prosecutes the cure to completion; provided, further, that if such default is of a nature requiring more immediate action to protect the health and safety of the City’s residents, businesses, or other users of the Remedy Assets, the City and RUA may require such shorter time as is appropriate to protect such health and safety impacts.

8.5 Upon notice of termination by the City and RUA for any reason other than an Event of Default, Veolia shall assist City and RUA in assuming operation of the Remedy Assets. If additional cost is incurred by Veolia at request of City or RUA, City or RUA shall pay Veolia such cost within fourteen (14) days of receipt of an invoice from Veolia.

8.6 The provisions of Sections 1, 6, 7, 8, and 10 shall survive the termination of the Agreement.

9. Notices

9.1 All notices, demands, correspondence, and communications (“Notices”) shall be in writing and transmitted to the party’s address stated below. All Notices shall be deemed given when delivered, if delivered electronically or by facsimile (with receipt confirmed), personally, or by courier mail service, i.e., FedEx or UPS, delivered after such Notice has been deposited in the United States mail postage prepaid, if mailed certified or registered U.S. mail, return receipt requested; or received by the party for which Notice is intended if given in any other manner.

Such written Notices may be sent in the same manner to such other persons and addresses as any Party may from time to time designate in writing as provided in this Section.

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9.2 Notices shall be addressed as follows:

9.2.1 If to Rialto Utility Authority:

Rialto Utility Authority
150 S. Palm Ave.

Rialto, CA 92376
Attn: Marcus Fuller, RUA Executive Director
Tel: (909) 820-2525
Fax: (909) 820-2527
Email: [email protected]
With a copy to:

Burke, Williams & Sorensen, LLP
1770 Iowa Avenue, Suite 240
Riverside, CA 92507
Attn: Eric S. Vail, RUA Attorney
Tel: (951) 788-0100
Fax: (951) 788-5785

9.2.2 If to City:

City of Rialto
150 S. Palm Ave.

Rialto, CA 92376
Attn: Marcus Fuller, City Manager
Tel: (909) 820-2525
Fax: (909) 820-2527
Email: [email protected]
With a copy to:

Burke, Williams & Sorensen, LLP
1770 Iowa Avenue, Suite 240
Riverside, CA 92507
Attn: Eric S. Vail, City Attorney
Tel: (951) 788-0100
Fax: (951) 788-5785

9.2.3 If to Veolia
Veolia Water West Operating Services, Inc.
437 N. Riverside Avenue
Rialto, CA 92376
Attn: Project Manager
Email: [email protected]
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With a copy to:

Veolia Water West Operating Services, Inc.
53 State Street, 14th Floor
Boston, MA 02109
Attn: General Counsel
Email: [email protected]

10. Disputes and Force Majeure

10.1 Legal actions concerning any dispute, claim, or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of San Bernardino, State of California, or any other appropriate court in such county, and the Parties covenant and agree to submit to the personal jurisdiction of such court in the event of such action. In the event of litigation in a U.S. District Court, venue shall lie exclusively in the Central District of California, Eastern Division.

Notwithstanding the foregoing, within thirty (30) days of a Party identifying the existence of a dispute under this Agreement, the General Manager for Veolia and Utilities Manager of the City shall meet and attempt to resolve such dispute to their mutual satisfaction.

10.2 In the event activities by employee groups or unions cause a disruption in Veolia’s ability to perform at Remedy Assets, City and RUA, with Veolia’s assistance or Veolia at its own option, may seek appropriate injunctive court orders. During any such disruption, Veolia shall operate the facilities on a commercially reasonable best-efforts basis until any such disruptions cease.

10.3 No Party shall be liable for its failure to perform its obligations under this Agreement if such failure is due to any Unforeseen Circumstances or force majeure, provided that this Section 10.3 may not be used by any Party to avoid, delay, or otherwise affect any payments due to another Party. If Unforeseen Circumstances or force majeure cause a material change to the scope of the work under this Agreement, the compensation payable to Veolia and the time for performance of the work under this Agreement shall be subject to equitable adjustment.

11. RUA and City Officers and Employees; Non-Discrimination

11.1 Non-liability of RUA or City Officers and Employees. No officer or employee of the RUA or City shall be personally liable to Veolia, or any successor in interest, in the event of any default or breach by the RUA or City or for any amount which may become due to Veolia or to its successor, or for breach of any obligation of the terms of this Agreement.

11.2 Conflict of Interest.

11.2.1 Veolia covenants that neither it, nor any officer or principal of its firm, has or shall acquire any interest, directly or indirectly, that would conflict in Veolia Draft 12/1/22
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any material manner with the interests of the RUA or City or that would in any way hinder Veolia’s performance of work under this Agreement.

Veolia further covenants that in the performance of this Agreement, no person having any such interest shall be employed by it as an officer, employee, agent or subcontractor without the express written consent of the City. Veolia agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of RUA or the City in the performance of this Agreement.

11.2.2 No officer or employee of the RUA or City shall have any financial interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to the Agreement that effects his or her financial interest or the financial interest of any corporation, partnership, or association in which he or she is, directly or indirectly, interested, in violation of any applicable statute or regulation. Veolia represents that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement.

11.2.3 Pursuant to Rialto Municipal Code section 2.48.510, Veolia represents that it has disclosed whether it or its officers or employees is related to any officer or employee of the RUA or City by blood or marriage within the third degree that would subject such officer or employee to the prohibition of California Government Sections 87100 et. seq., Fair Political Practices Commission Regulation Section 18702, or Government Code Section 1090. To this end, by approving this Agreement, Veolia represents that it, as well its officers, representatives, has no relationship, as described above, or financial interests, as such term is defined in California Government Section 87100 et. seq., Fair Political Practices Commission Regulation Section 18702, or Government Code Section 1090, with any RUA or City elected or appointed official or employee, except as specifically disclosed to the RUA and City in writing.

11.3 Covenant Against Discrimination. Veolia covenants that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, gender, sexual orientation, gender identity, marital status, national origin, ancestry, or other protected class in the performance of this Agreement. Veolia shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, sexual orientation, gender, gender identity, marital status, national origin, ancestry, or other protected class.

11.4 Unauthorized Aliens. Veolia shall comply with all of the provisions of the Federal Immigration and Nationality Act, 8 U.S.C.A. §§ 1101, et seq., as amended, and in connection therewith, shall not employ unauthorized aliens as defined therein. Should Veolia so employ such unauthorized aliens for the performance of work and/or services covered by this Agreement, and should any liability or sanctions be imposed against RUA or City for such use of Veolia Draft 12/1/22
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unauthorized aliens, Veolia hereby agrees to and shall reimburse RUA and City for the cost of all such liabilities or sanctions imposed, together with any and all costs, including reasonable attorney’s fees, incurred by RUA and City.

12. Confidential Information

12.1 Confidential and Proprietary Information. The Parties acknowledge that Veolia has valuable confidential and proprietary information relating to the processing of water and the services to be provided under this Agreement; and that disclosure of such information to the City, RUA, or their respective representatives is solely for the purposes of facilitating the transactions and work contemplated by this Agreement, and is made solely under the terms and conditions of this Section 12.

Veolia agrees that the City and RUA may share Veolia’s confidential and proprietary information with Emhart, Environmental Protection Agency, the County of San Bernardino, Santa Ana Regional Water Quality Control Board (Division of Drinking Water), and Colton for the purpose of performing their obligations under the Implementation Agreement, subject to the provisions of this Section 12. Without limiting City’s or RUA’s rights under Section 2.9, City and RUA shall not retain or be deemed to possess any ownership right, title or interest in and to any of Veolia’s confidential and proprietary information.

12.2 Identification of Confidential Information. The Parties shall designate in writing any confidential or proprietary information that it respectively seeks to protect from disclosure contained in any documents submitted to each other under this Agreement (“Confidential Information”) by marking any such documents that contain Confidential Information with a legend “CONFIDENTIAL,” “PROPRIETARY,” or the like. Each Party shall, at the request of any other Party, provide an explanation as to why said protection is required.

12.3 Non-Disclosure of Confidential Information. Except for such disclosures as permitted under Section 12.4 or under Section 12.5 (after notice as provided in Section 12.5), no Confidential Information provided by a Party shall be disclosed by the other Party to any other Person without the express written consent of the Party claiming the confidentiality, in its sole discretion, and no such Confidential Information shall be used by receiving Party or its respective agents or representatives for any other than such purposes as are expressly authorized under this Agreement. Each Party and its respective agents and representatives shall take all precautions reasonably necessary to preserve the confidentiality of the other Parties’ Confidential Information and to protect such Confidential Information from disclosure to third parties, including, in the case of the Concessionaire, by cooperating with Contractor to enforce the confidentiality obligations of the City and Authority under the Concession Agreement, except in each case as permitted under Section 12.4 or as required by Applicable Law.

12.4 Permitted Disclosure. Confidential Information received by a Party may be disclosed to such Party’s employees, auditors, accountants, legal counsel, engineers, financial advisors, and insurers if and to the extent that access to such Veolia Draft 12/1/22
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Confidential Information is necessary for such Party’s employees, auditors, accountants, legal counsel, engineers, financial advisors, and insurers to perform their respective responsibilities in performing, reviewing, administering, or enforcing this Agreement. Any such disclosure shall be limited to the amount of Confidential Information that is necessary for each of the above referenced parties to perform their respective responsibilities in administering or enforcing this Agreement. Each Party shall require any such employees, auditors, accountants, legal counsel, engineers, financial advisors, and insurers to execute a confidentiality agreement acknowledging and agreeing to abide by the terms of this Section 12, and the other Parties shall be a third-party beneficiary to each such confidentiality agreement, or otherwise be subject to an equivalent confidentiality undertaking that relates to such Confidential Information. In addition, Confidential Information may be disclosed or provided by any Party to the extent that (i) the disclosing Party confirms in writing that such Confidential Information is not required to be treated as confidential; (ii) such Confidential Information is or comes into the public domain otherwise than through any disclosure prohibited by this Agreement or wrongful act of the receiving Party; (iii) the receiving Party can show that such Confidential Information was lawfully in its possession prior to the receipt thereof from the disclosing Party through no breach of any confidentiality obligation to the disclosing Party; (iv) such Confidential Information was received by the disclosing Party from a third party having no obligation of confidentiality with respect thereto; or (v) such Confidential Information was at any time developed independently by the disclosing Party provided it is not developed from otherwise Confidential Information.

12.5 Demands for Confidential Information.

12.5.1 Public Records Act. Within five (5) days of receipt of a request for any Confidential Information under the Public Records Act (California Government Code Section 6250 et seq.) that requires disclosure of Veolia’s Confidential Information, City and RUA shall jointly determine whether the requested Confidential Information meets any of the exceptions in the Public Records Act that will exempt it from disclosure.

If the Confidential Information meets any applicable exemption, it shall not be disclosed. If, in the opinion of City and RUA (subject to consultation with Veolia), the Confidential Information does not meet any applicable exemption under the Public Records Act, Veolia acknowledges that City and/or RUA have the right to disclose the Confidential Information. City and RUA will notify Veolia of City’s and RUA’s decision to disclose the requested information under the Public Records Act and Veolia will have a reasonable opportunity to seek the issuance of a protective order or decree precluding the disclosure of Veolia’s Confidential Information, or other remedy available under Applicable Law. In the event a protective order, decree or other available remedy precluding the disclosure of the Confidential Information is not obtained by Veolia, or Veolia waives compliance with the provisions of this Section Veolia Draft 12/1/22
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12.5.1, RUA or City shall furnish only that portion of the Confidential Information that RUA or City is legally required to disclose under the Public Records Act. If, at the request of Veolia, any Confidential Information is not disclosed in response to a request under the Public Records Act and RUA or City is sued over the failure to disclose such Confidential Information, Veolia shall indemnify and hold RUA and City harmless against any cost or award of attorneys’ fees imposed against RUA or City and shall reimburse any attorneys’ fees and costs incurred by RUA or City in connection with actions taken by RUA or City to protect Veolia’s Confidential Information, including lawsuits under the California Public Records Act.

12.5.2 Other Demands for Confidential Information. In the event a Party in receipt of Confidential Information (a “Receiving Party”) receives a legal demand from any Governmental Agency or any other party in connection with a legal action (including a demand by oral questions, interrogatories, requests for information or documents, subpoena, civil investigative demand, or similar process) to disclose any Party’s Confidential Information (such Party, a “Disclosing Party”), the Receiving Party shall provide the Disclosing Party with prompt written notice of the request. If the Disclosing Party believes that the requested Confidential Information should not be disclosed, the Disclosing Party shall provide written notice to the Receiving Party providing the legal bases for such belief. If the Parties agree that the requested Confidential Information should not be disclosed, then the Disclosing Party shall provide the Receiving Party with the appropriate objections and all necessary efforts to protect the Confidential Information, including but not limited to filing or defending, as necessary, motions to quash subpoenas, motions to compel discovery, etc. If any such actions are made necessary by the decision not to disclose the requested Confidential Information, the Disclosing Party shall indemnify and hold the Receiving Party (or Receiving Parties) harmless against any cost or award of attorney’s fees imposed against RUA or City and shall reimburse any attorneys’ fees and costs incurred by the Receiving Party in connection with actions taken by the Disclosing Party to protect the Disclosing Party’s Confidential Information. If the Receiving Party disagrees with the Disclosing Party’s determination that the information is exempt from disclosure, then the Receiving Party shall provide written notice of the decision and provide the Disclosing Party with a reasonable opportunity to seek the issuance of a protective order or decree precluding the disclosure of the Disclosing Party’s Confidential Information, or other remedy available under Applicable Law. In the event a protective order, decree or other available remedy precluding the disclosure of the Confidential Information is not obtained by the Disclosing Party, or the Disclosing Party waives compliance with the provisions of this Section 12.5.2, the Receiving Party shall furnish only that portion of the Confidential Information that the Receiving Party is legally required to disclose under Applicable Law.

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12.6 Limitation On Use. Each Party and its employees, auditors, accountants, legal counsel, engineers, financial advisors, and insurers will not be allowed to use the other Party’s Confidential Information for any purpose other than to monitor the performance of the other Parties’ obligations under this Agreement or to administer and enforce this Agreement.

12.7 Survival. The terms of this Section 12 shall survive termination of this Agreement for a period of three (3) years.

[Signature Page Follows]
Veolia Draft 12/1/22

[O&M Agreement Signature Page]
The Parties indicate their approval of this Agreement by their signatures below, and each Party warrants that all corporate or governmental action necessary to bind the parties to the terms of this Agreement has been and will be taken.

CITY OF RIALTO

By:________________________________

Name:_____________________________

Title:______________________________

VEOLIA WATER WEST OPERATING
SERVICES, INC.

By:_________________________________

Name:
______________________________

Title: _______________________________

RIALTO UTILITY AUTHORITY

By:________________________________

Name:_____________________________

Title:______________________________

APPROVED AS TO FORM:

Burke, Williams & Sorensen, LLP, Counsel for City and RUA

By:________________________________
Name: Eric S. Vail

APPENDIX A

DEFINITIONS

A.1. “Affiliate” means, for any Person, any corporation, limited liability company, partnership, joint venture, or other entity that directly or indirectly Controls, is Controlled by, or is under common Control with such Person or its parent corporations.

A.2. “Applicable Law” means any federal, state, local (or other political subdivision) constitution, statute, law, rule, code, regulation, consent decree, consent order, consent agreement, permit, Governmental Approval, any determination or order entered, promulgated or approved by any Governmental Agency having jurisdiction, any common law or principle of common law applicable to, as the case may be, any of the services, Remedy Assets, Parties, activities, requirements or obligations of the Parties under this Agreement.

A.3. “Capital Expenditures” means any expenditures for the purchase of new equipment or facility items or major Repairs that significantly extend equipment or facility service life.

A.4. “Control” means (including with correlative meaning the terms “Controlled,” “Controls,” and “Controlled by”), as used with respect to any Person, the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, whether through the ownership of voting securities, by contract, or otherwise.

A.5. “Cost” means all Direct Cost and indirect cost determined on an accrual basis in accordance with generally accepted accounting principles.

A.6. “Direct Cost” means the actual cost incurred for the direct benefit of the Remedy Assets including, but not limited to, expenditures for project management and labor, employee benefits, chemicals, lab supplies, repairs, repair parts, maintenance parts, safety supplies, gasoline, oil, equipment rental, legal and professional services, quality assurance, travel, office supplies, other supplies, uniforms, telephone, postage, utilities, tools, memberships and training supplies.

A.7. “Governmental Agency” means any legislative, executive, judicial, or administrative department, board, commission, court, agency or other instrumentality of the federal, state or local government, including a joint powers agency formed by two (2) or more of the foregoing.

A.8. “Governmental Approval” means any permit, license, approval, consent or other authorization which is required under Applicable Law for the design, construction, operation and maintenance of the Remedy Assets, or for the performance of any of the obligations under this Agreement.

A.9. “Maintenance” means those routine and/or repetitive activities required or recommended by the equipment or facility manufacturer or by Veolia to maximize the service life of the equipment and facilities related to the Remedy Assets.

A.10. “Person” means any natural person, corporation, limited liability company, partnership, firm, association, Governmental Agency, or any other entity whether acting in an individual, fiduciary or other capacity.

A.11. “Prudent Industry Practices” means those methods, techniques, standards and practices that, at the time they are employed and in light of the circumstances at the time, are generally accepted as reasonably prudent in the water treatment industry as practiced in the Western United States for facilities of a similar nature and in a similar location as the Remedy Assets. Prudent Industry Practices is not necessarily defined as the optimal methods, techniques, standards or practices to the exclusion of others, but rather to refer to a range of methods, techniques, standards and practices that are reasonable under the circumstances.

A.12. “Repairs” means those non-routine/non-repetitive activities required for operational continuity, safety and performance generally due to failure or to avert a failure of the equipment or facilities or some component thereof.

A.13. “Unforeseen Circumstances” shall mean any event or condition that has an effect on the rights or obligations of the parties under this Agreement, or upon the Remedy Assets, that is beyond the reasonable control of the party relying thereon, including but not limited to (i) an act of God, epidemic (including COVID-19), landslide, lightning, earthquake, tornado, fire, explosion, flood, failure to possess sufficient property rights, acts of the public enemy, war, blockade, sabotage, insurrection, riot or civil disturbance, (ii) preliminary or final order of any administrative agency or governmental body of competent jurisdiction, (iii) any change in law, regulation, rule, requirement, interpretation or statute adopted, promulgated, issued or otherwise specifically modified or changed by any administrative agency or governmental body, (iv) labor disputes, strikes, work slowdowns or work stoppages; and (v) loss of or inability to obtain service from a utility necessary to perform the work.

APPENDIX B

DESCRIPTION OF RIALTO OWNED PROPERTY

Chino No. 2

A parcel of land identified by Assessor’s Parcel Numbers 0131-161-12, 0131-161-13, and 0131- 161-14, located at 225 Bloomington Ave., Rialto, CA 92376, more particularly described as follows: Lots 2, 3, and 4 of the Manning Tract No. 3070, recorded in Map Book 41, Page 80, records of San Bernardino County, California.

Rialto No. 3

A parcel of land identified by Assessor's Parcel Number 0264-211-22, located at 1457 N. Linden Ave., Rialto, CA 92376, more particularly described as a portion of Lots 19 and 20 of the Palmer Subdivision, recorded in Map Book 18, Page 72, records of San Bernardino County, California.

Miro No. 3

A parcel of land identified by Assessor’s Parcel Number 0240-251-52 located at 1538 Miro Way, Rialto, CA 92376, more particularly described as a portion of land in the City of Rialto located in Section 33, Township 1 North, Range 5 West, S.B.M., in the City of Rialto, County of San Bernardino, California.

APPENDIX C

DESCRIPTION OF EW-1

A portion of a parcel of land identified by Assessor's Parcel Number 0264-213-49, located at 1485 N. Ayala Ave., Rialto, CA 92376, more particularly described as a portion of the Southeast Quarter of Section 34, Township 1 North, Range 5 West, San Bernardino Base and Meridian, in the City of Rialto, County of San Bernadino, California.

APPENDIX D

DESCRIPTION OF TREATMENT SYSTEMS

Combined Remedy

The Combined Remedy consists of a new extraction well EW-1 located at Jerry Eves Park connected by a waterline to the Combined Remedy Treatment Facility at 1457 N. Linden Ave., Rialto, CA. The Combined Remedy Treatment Facility consist of two ion exchange treatment trains with a lead, mid, and lag configuration, six vessels in all for the removal of perchlorate.

Followed by four granular activated carbon treatment trains with a lead and lag configuration, eight vessels in all for the removal of TCE/PCE. The water from the treatment facility will enter the City’s Zone 1 pressure zone. As part of the remedy, City of Rialto is required to deliver to the City of Colton their water rights pumped from EW-1 well through an inter-tie. There are two other wells that supply water to the treatment facility, Rialto No. 3 and Miro No. 3. Prior to the source water entering the combined reservoir upstream of the treatment facilities, water passes through filters to eliminate the sediment from entering into the treatment vessels.

Chino No. 2 Treatment System

The Chino No. 2 Treatment System consists of an Ion Exchange System, lead and lag configuration, two vessels in all for removal of perchlorate.

APPENDIX E

SCOPE OF WORK

The scope of work is presented in several spreadsheets broken down by the different facilities, which are attached as Exhibit 1 to this Appendix E. The Combined Remedy and Chino No. 2 Treatment System facilities consist of:
 Chino No. 2 Treatment System
 Combined Remedy Treatment Facility
 EW-1
 Miro 3
 Randall Vault

FACILITY D/W/M/A and NR Labor Cost Total Labor Cost
Chino 2 Treatment System $63,673.93 $63,673.93
EXHIBIT 1
SUMMARY OF LABOR COSTS FOR CHINO 2 TREATMENT SYSTEM
Performed by City Operator,
RWS Third Party Services Estimated Hrs Comments Annual Hrs Labor Costs Notes D1 Check operational status Operator to perform work. None 0.25 travel time to and from site 91.25 $5,744.19 D2
Check pressure readings; influent
lead and lag vessel and system
effluent
Operator to perform work. None 0.25 Field verification 91.25 $5,744.19 D3
Should a pre-filter system be
installed, check pressure readings at
inlet and outlet of filter
Operator to perform work. Replacement filters at City cost 0.25 maintenance 91.25 $5,744.19 D4 Production totals and current
flow rate Operator to perform work. None 0.25 Field verification 91.25 $5,744.19 D5 Field nitrate readings Operator to perform work. Reagents and supplies at City cost 0.25 PERMIT COMPLIANCE 91.25 $5,744.19 D6 Visual inspection of equipment Operator to perform work. None 0.25 Field verification 91.25 $5,744.19 547.5 $34,465.13
Performed by City Operator,
RWS Third Party Services Estimated Hrs Comments Annual Hrs Labor Costs Notes W1
Weekly sampling of perchlorate,
nitrate, and bacteria and any other
requirements per DPH permit
Operator to perform work. None 1 PERMIT COMPLIANCE 52 $3,273.40 W2
Delivery of lab samples to a
designated qualified lab service
provider
drive time to and from lab None 1.5 drive time to and from lab 78 $4,910.10 W3 Administrative tasks and
responsibilities
reporting, recordkeeping, AGAM,
CMMS, permit compliance None 2 Contract and Permit compliance 104 $6,546.80 W4 Weekly PMs Operator to perform work. None 2 Contract and Permit compliance 104 $6,546.80 338 $21,277.10
Performed by City Operator
VEOLIA Third Party Services Estimated Hrs Comments Annual Hrs Notes M1 Bi-weekly sampling of sulfate
and chloride Operator to perform work. None 0.25 PERMIT COMPLIANCE 6 $377.70 M2 Prepare monthly report per
CDPH permit requirement Operator to perform work. None 4 PERMIT COMPLIANCE 48 $3,021.60 54 $3,399.30
939.5 $59,141.53
Performed by City Operator
VEOLIA Third Party Services Estimated Hrs Comments Annual Hrs Notes Chino 2 Treatment System
Description; Daily Operations
Description; Monthly Operations
Description; Weekly Operations
Total Annual Hours and Cost for Weekly Tasks
Total Annual Hours and Cost for Daily Tasks
Total Annual Hours and Cost for Monthly Tasks
Description; Non-Routine
Operations
Total Annual Hours and Cost for D/W/M/A Tasks
NR1
Arrange for and supervise media
replacement when lead vessel IX
"break-through" occurs
Operator handles logistical issues of
identifying problem and overseeing
work and confirming work completed
successfully.

None 20 Field verification 20 $1,259.00
NR2
Following any resin replacement,
conduct sampling protocol per CDPH
permit requirement and submit to
CDPH
Operator to perform work. Sampling at City cost 8 PERMIT COMPLIANCE 8 $503.60 NR3
Based upon the pressure readings,
maintain and replace pre-filters as
needed
Operator to perform work. Replacement filters at City cost 4 Field verification 4 $251.80 NR4 Coordinate all maintenance, repair or
replacement activities
Operator to perform work or
coordinate with third party if needed.

The operator shall be responsible for
logistical and oversight work. The City
will pay only for necessary third party
vendors.
20 Estimated time 20 $1,259.00
NR5 Quarterly PMs Operator to perform work. None 3 Contract and Permit compliance 12 $755.40 3 hours/ 4x's per year NR6 Annual PMs, both preventative and
predictive Operator to perform work. None 8 Contract and Permit compliance 8 $503.60 72 $4,532.40
1011.5 $63,673.93Total Annual Hours and Cost Chino 2 Treatment System Total Annual Hours and Cost for Non Routine Tasks
FACILITY D/W/M/A and PM Labor Cost NR Labor Cost Total Labor Cost Combined Treatment Plant $126,319.58 $25,431.80 $151,751.38 EW-1 $30,124.34 $1,888.50 $32,012.84
Miro 3 $29,683.69 $1,762.60 $31,446.29
Randall Valut $21,180.57 $188.85 $21,369.42
Total Combined Remedy $207,308.18 $29,271.75 $236,579.93 $236,579.93

SUMMARY OF LABOR COSTS FOR COMBINED REMEDY
EXHIBIT 1
Performed by City Operator,
RWS Third Party Service. Estimated Hrs Comments Annual Hrs Labor Cost Notes D1 Check operational status. Operator to perform work None 0.2 Travel time to and from site 73 $4,595.35 D2 Visually inspect, record and verify level. Operator to perform work None 0.2 SCADA and field verification 73 $4,595.35 D3 Check control panel for any alarms. Operator to perform work None 0.2 SCADA and field verification 73 $4,595.35 D4
Visually inspect booster pumps status
and record totalized flow immediately
downstream.

Operator to perform work None 0.2 Field verification 73 $4,595.35 D5
Visually inspect ion-exchange (IX)
vessels and verify absence of leaks.

Verify proper valve alignment. Record
pressure drop across each vessel.

Record totalized flow immediately
downstream of IX vessels.

Operator to perform work None 0.2 Field verification 73 $4,595.35 D6
Visually inspect granular activated-
carbon (GAC) vessels and verify
absence of leaks. Verify proper valve
alignment. Record pressure drop across
each vessel. Record totalized flow
immediately downstream of each GAC
vessel.

Operator to perform work None 0.2 Field verification 73 $4,595.35 D7 Check high pressure blow-off and record
pressure. Operator to perform work None 0.2 Field verification 73 $4,595.35 D8
Inspect and record pressure reads at
booster effluent bag filters.

Note: treatment system has two bag
filters post areation tank and pre
treatment system.

Operator to perform work None 0.2 Field verification 73 $4,595.35 D9 Check PRV valves for leaks and
functionality. Operator to perform work None 0.2 Field verification 73 $4,595.35 D10 Inspect and record totalized reads from
effluent meters. Operator to perform work None 0.2 Field verification 73 $4,595.35 D11 Inspect all booster pump electrical drive
panels/cabinets for proper operation.Operator to perform work None 0.2 Field verification 73 $4,595.35 D12 Check UV system for operation. Operator to perform work None 0.2 Manually performed 73 $4,595.35 D13 Check bag filter system and record
pressure. Operator to perform work None 0.2 Manually performed 73 $4,595.35 D14 After Hours Plant Monitorg Operator to perform work none 1 365 $34,465.13 Rate to be 1.5 times the regular rate. 1314 $94,204.68
Performed by City Operator,
RWS Third Party Service. Estimated Hrs Comments Annual Hrs Labor Cost Notes W1 Treatment System sampling and
analyses to comply with DDW permit.

Operator should collect samples and
manage logistics of sampling and
reporting.

None 2.5 Permit Compliance 130 $8,183.50
W2 Delivery of lab samples to approved
designated laboratory. Drive time to and from lab None 1.5 Drive time to and from lab 78 $4,910.10 W3 Adminstrative tasks and responsibilities.

Reporting, recordkeeping, AGAM,
CMMS, permit compliance, checking
sample results, data gathering and
verification
None 2 Contract and permit compliance 104 $9,200.88 Operations Supervisor 312 $22,294.48
Performed by City Operator,
RWS Third Party Service. Estimated Hrs Comments Annual Hrs Labor Cost Notes

COMBINED TREATMENT SYSTEM
Total Annual Hours and Cost for Daily Tasks
Total Annual Hours and Cost for Weekly Tasks
Description: Daily Operations
Desription: Monthly Operations
Desription: Weekly Operations
M1 Treatment System sampling and
analyses to comply with DDW permit.

Operator should collect samples and
manage logistics of sampling and
reporting.

None 1 Permit Compliance 12 $755.40
M2 Delivery of lab samples to approved
designated laboratory. Drive time to and from lab None 0.5 Drive time to and from lab 6 $377.70 M3.1Administrative tasks and responsibilities.

Reporting, recordkeeping, AGAM,
CMMS, permit compliance, checking
sample results
None 1 Contract and permit compliance 12 $1,061.64 Operations Supervisor M3.2Administrative tasks and responsibilities.

Reporting, recordkeeping, AGAM,
CMMS, permit compliance, checking
sample results
None 1 Contract and permit compliance 12 $1,020.36 Field Operations Supervisor M3.3Administrative tasks and responsibilities.

Reporting, recordkeeping, AGAM,
CMMS, permit compliance, checking
sample results
None 0.5 Contract and permit compliance 6 $688.02 Project Manager 48 $3,903.12
1674 $120,402.28
Performed by City Operator,
RWS Third Party Service. Estimated Hrs Comments Annual Hrs Labor Cost Notes NR1 Trouble-shooting when operational
status is inconsistent with expectations.

Operator to perform initial
troubleshooting to determine appropriate
action. Oversee logistics of hiring third
party experts as needed and overseeing
work as it is completed.

Third party experts as needed (e.g.

Programmer, Electrician, Manufacturer's
Rep). Operator to be responsible for all
Planning & Scheduling .
1 Manually performed 1 $62.95
NR2 Trouble-shooting when reservoir levels
are inconsistent with programming.

Operator to perform initial
troubleshooting to determine appropriate
action. Oversee logistics of hiring third
party experts as needed and overseeing
work as it is completed.

Third party experts as needed (e.g.

Programmer, Electrician, Manufacturer's
Rep). Operator to be responsible for all
Planning & Scheduling .
1 Manually performed 1 $62.95
NR3 Trouble-shooting to determine cause of
control panel alarms.

Operator to perform initial
troubleshooting to determine appropriate
action. Oversee logistics of hiring third
party experts as needed and overseeing
work as it is completed.

Third party experts as needed (e.g.

Programmer, Electrician, Manufacturer's
Rep). Operator to be responsible for all
Planning & Scheduling .
1 Manually performed 1 $62.95
NR4 Trouble-shooting to determine cause for
non-operational Pump Motors.

Operator to perform initial
troubleshooting to determine appropriate
action. Oversee logistics of hiring third
party experts as needed and overseeing
work as it is completed.

Third party experts as needed (e.g.

Programmer, Electrician, Manufacturer's
Rep). Operator to be responsible for all
Planning & Scheduling .
1 Manually performed 1 $62.95
NR5
Trouble-shooting to determine cause for
malfunctioning flow totalizer and
motorized valves.

Operator to perform initial
troubleshooting to determine appropriate
action. Oversee logistics of hiring third
party experts as needed and overseeing
work as it is completed.

Third party experts as needed (e.g.

Programmer, Electrician, Manufacturer's
Rep). Operator to be responsible for all
Planning & Scheduling .
1 Manually performed 1 $62.95
NR6
Bag Filter change-outs when pressure is
equal to or greater than 5psi, arrange for
bag filter change-out.

Operators to perform work. Third party
not needed.

The operator shall be responsible for
logistical and oversight work. Operator
to be responsible for all Planning &
Scheduling .
3 Manually performed 36 $2,266.20
Bag filter change outs accur when the
DP pressure exceeds 10 psi, on average
4 change outs a year, there is 3 Bag
filter systems.

Description: Non-Routine Operations
Total Annual Hours and Cost for Monthly Tasks
Total Annual Hours and Cost for D/W/M/A Tasks
NR7
Arrange for IX and GAC vessel seal
repair/replacement when leaks are
observed.

Operator handles logistical issues of
identifying problem, developing and
processing RFP, selecting contractor
overseeing work and confirming work
completed successful.

The operator shall be responsible for
logisticaI and oversight work. Operator to
be responsible for all Planning &
Scheduling .
1 Manually performed 1 $62.95
NR8
Arrange for and supervise media
replacement when lead GAC vessel
"break-through" occurs.

Operator handles logistical issues of
identifying problem, developing and
processing RFP, selecting contractor
overseeing work and confirming work
completed successful.

The operator shall be responsible for
logisticaI and oversight work. Operator to
be responsible for all Planning &
Scheduling .
16 Manually performed 64 $4,028.80
Each GAC system has 2 change outs a
year, we will be operating 2 systems,
we are estimating a grand total of 4
single vessel change outs per year.

NR9
Arrange for and supervise media
replacement when lead vessel IX vessel
"break-through" occurs.

Operator handles logistical issues of
identifying problem, developing and
processing RFP, selecting contractor
overseeing work and confirming work
completed successful.

The operator shall be responsible for
logisticaI and oversight work. Operator
to be responsible for all Planning &
Scheduling .
10 Manually performed 200 $12,590.00
Each IX system, Is etimated to have 10
change outs a year, we will be operating
2 systems, we are estimating a grand
total of 20 single vessel change outs
combined a year.

NR10
Adjust control panel settings when
problematic differential pressure
conditions are identified at the treatment
vessels.

Operator handles logistical issues of
identifying problem, developing and
processing RFP, selecting contractor,
overseeing work and confirming work
completed successfully.

The operator shall be responsible for
logisticaI and oversight work. Operator to
be responsible for all Planning &
Scheduling .
2 Manually performed 2 $125.90
NR11 Pump motor removal, service and re-
installation when required.

Operator handles logistical issues of
identifying problem, hiring experts as
needed, and overseeing work and
confirming work completed successfully.

The operator shall be responsible for
logisticaI and oversight work. Operator to
be responsible for all Planning &
Scheduling .
24 Manually performed 24 $1,510.80
NR12 Operator on Call Pay 24 48 $4,532.40 24 call outs. 2 hour minimum. Rate to be 1.5 times the regular rate.
380 $25,431.80
2054 $145,834.08Total Annual Hours and Cost Combined Treatment System Total Annual Hours and Cost for Non Routine Tasks
Performed by City Operator,
RWS Third Party Service. Estimated Hrs Comments Annual Hrs Labor Costs Notes D1 Check operational status. Operator to perform work. None 0.2 Travel time to and from site 73 $4,595.35 D2 Check operation of water flush system. Operator to perform work. None 0.2 Manually performed 73 $4,595.35 D3 Record totalized flow. Operator to perform work. None 0.2 Manually performed 73 $4,595.35 D4 Check for Vibration. Operator to perform work None 0.2 Manually performed 73 $4,595.35 292 $18,381.40
Performed by City Operator,
RWS Third Party Service. Estimated Hrs Comments Annual Hrs Labor Costs Notes W1 Perform sampling and analyses to
comply with DDW permit.

Operator should collect samples and
manage logistics of sampling and
reporting.

None 1 Permit Compliance 52 $3,273.40
W2 Administrative tasks and responsibilities.

Reporting, recordkeeping, AGAM,
CMMS, permit compliance, checking
sample results.

None 0.5 Contract and permit compliance 26 $2,300.22 Operations Supervisor 78 $5,573.62
Performed by City Operator,
RWS Third Party Service. Estimated Hrs Comments Annual Hrs Labor Costs Notes M1 Perform sampling and analyses to
comply with DDW permit.

Operator should collect samples and
manage logistics of sampling and
reporting.

None 1 Permit Compliance 12 $755.40
M2.1Administrative tasks and responsibilities.

Reporting, recordkeeping, AGAM,
CMMS, permit compliance, checking
sample results
None 1 Contract and permit compliance 12 $1,061.64 Operations Supervisor M2.2Administrative tasks and responsibilities.

Reporting, recordkeeping, AGAM,
CMMS, permit compliance, checking
sample results
None 1 Contract and permit compliance 12 $1,020.36 Field Operations Supervisor M2.3Administrative tasks and responsibilities.

Reporting, recordkeeping, AGAM,
CMMS, permit compliance, checking
sample results
None 0.5 Contract and permit compliance 6 $688.02 Project Manager 42 $3,525.42
412 $27,480.44
Performed by City Operator,
RWS Third Party Service. Estimated Hrs Comments Annual Hrs Labor Costs Notes NR1 Troubleshooting when operational status
is inconsistent with expectations.

Operator to perform initial
troubleshooting to determine appropriate
action. Oversee logistics of hiring third
party experts as needed and overseeing
work as it is completed.

Third party experts as needed (e.g.

Programmer, Electrician, Manufacturer's
Rep). Operator to be responsible for all
scheduling .
1 Manually performed 1 $62.95
NR2 Trouble-shooting to determine cause of
control panel alarms.

Operator to perform initial
troubleshooting to determine appropriate
action. Oversee logistics of hiring third
party experts as needed and overseeing
work as it is completed.

Third party experts as needed (e.g.

Programmer, Electrician, Manufacturer's
Rep). Operator to be responsible for all
scheduling .
1 Manually performed 1 $62.95
EW-1
Description: Daily Operations
Description: Weekly Operations
Desription: Monthly Operations
Description: Non-Routine Operations
Total Annual Hours and Cost for Monthly Tasks
Total Annual Hours and Cost for Daily Tasks
Total Annual Hours and Cost for Weekly Tasks
Total Annual Hours and Cost for D/W/M/A Tasks
NR3 Trouble-shooting to determine cause of
non-operational pump motors.

Operator to perform initial
troubleshooting to determine appropriate
action. Oversee logistics of hiring third
party experts as needed and overseeing
work as it is completed.

Third party experts as needed (e.g.

Programmer, Electrician, Manufacturer's
Rep). Operator to be responsible for all
scheduling .
1 Manually performed 1 $62.95
NR4
Trouble-shooting to determine cause of
malfunctioning flow totalizer and
motorized valves.

Operator to perform initial
troubleshooting to determine appropriate
action. Oversee logistics of hiring third
party experts as needed and overseeing
work as it is completed.

Third party experts as needed (e.g.

Programmer, Electrician, Manufacturer's
Rep). Operator to be responsible for all
scheduling .
1 Manually performed 1 $62.95
NR5
Adjust control panel settings when
problematic differential pressure
conditions are identified at the treatment
vessels.

Operator handles logistical issues of
identifying problem(s), developing and
processing RFP, selecting contractor,
overseeing work and confirming work
completed successfully.

The operator shall be responsible for
logisticaI and oversight work. 2 Manually performed 2 $125.90 NR6 Pump motor removal, service and re-
installation when required.

Operator handles logistical issues of
identifying problem(s), hiring experts as
needed, and overseeing work and
confirming work completed successfully.

The operator shall be responsible for
logisticaI and oversight work. 24 Manually performed 24 $1,510.80 30 $1,888.50
442 $29,368.94Total Annual Hours and Cost for EW-1 Well Total Annual Hours and Cost for Non Routine Tasks
Performed by City
Operator, RWS Third Party Service. Estimated Hrs Comments Annual Hrs Labor Costs Notes D1 Check operational status. Operator to perform work. None 0.2 Travel time to and from site 73 $4,595.35 D2 Check operation of water flush
system. Operator to perform work. None 0.2 Manually performed 73 $4,595.35 D3 Record Totalized Flow. Operator to perform work. None 0.2 Manually performed 73 $4,595.35 D4 Check for Vibration. Operator to perform work None 0.2 Manually performed 73 $4,595.35 292 $18,381.40
Performed by City
Operator, RWS Third Party Service. Estimated Hrs Comments Annual Hrs Labor Costs Notes W1 Perform sampling and analyses to
comply with DDW permit.

Operator should collect samples
and manage logistics of sampling
and reporting.

None 1 Permit Compliance 52 $3,273.40
W2 Administrative tasks and
responsibilities.

Reporting, recordkeeping, AGAM,
CMMS, permit compliance,
checking sample results.

None 0.5 Contract and permit compliance 26 $2,300.22 Operations Supervisor 78 $5,573.62
Performed by City
Operator, RWS Third Party Service. Estimated Hrs Comments Annual Hrs Labor Costs Notes M1 Perform sampling and analyses to
comply with DDW permit.

Operator should collect samples
and manage logistics of sampling
and reporting.

None 1 Permit Compliance 12 $755.40
M2.1 Administrative tasks and
responsibilities.

Reporting, recordkeeping, AGAM,
CMMS, permit compliance,
checking sample results
None 1 Contract and permit compliance 12 $1,061.64 Operations Supervisor M2.2 Administrative tasks and
responsibilities.

Reporting, recordkeeping, AGAM,
CMMS, permit compliance,
checking sample results
None 1 Contract and permit compliance 12 $1,020.36 Field Operations Supervisor M2.3 Administrative tasks and
responsibilities.

Reporting, recordkeeping, AGAM,
CMMS, permit compliance,
checking sample results
None 0.5 Contract and permit compliance 6 $688.02 Project Manager 42 $3,525.42
412 $27,480.44
Performed by City
Operator, RWS Third Party Service. Estimated Hrs Comments Annual Hrs Labor Costs Notes MIRO 3
Description: Daily Operations
Description: Weekly Operations
Desription: Monthly Operations
Description: Non-Routine
Operations
Total Annual Hours and Cost for Monthly Tasks
Total Annual Hours and Cost for Weekly Tasks
Total Annual Hours and Cost for Daily Tasks
Total Annual Hours and Cost for D/W/M/A Tasks
NR1
Trouble-shooting when operational
status is inconsistent with
expectations.

Operator to perform initial
troubleshooting to determine
appropriate action. Oversee
logistics of hiring third party
experts as needed and overseeing
work as it is completed.

Third party experts as needed
(e.g. Programmer, Electrician,
Manufacturer's Rep). Operator to
be responsible for all scheduling .
1 Manually performed 1 $62.95
NR2 Trouble-shooting to determine
cause of control panel alarms.

Operator to perform initial
troubleshooting to determine
appropriate action. Oversee
logistics of hiring third party
experts as needed and overseeing
work as it is completed.

Third party experts as needed
(e.g. Programmer, Electrician,
Manufacturer's Rep). Operator to
be responsible for all scheduling .
1 Manually performed 1 $62.95
NR3
Trouble-shooting to determine
cause of non-operational pump
motors.

Operator to perform initial
troubleshooting to determine
appropriate action. Oversee
logistics of hiring third party
experts as needed and overseeing
work as it is completed.

Third party experts as needed
(e.g. Programmer, Electrician,
Manufacturer's Rep). Operator to
be responsible for all scheduling .
1 Manually performed 1 $62.95
NR4
Trouble-shooting to determine
cause of malfunctioning flow
totalizer and motorized valves.

Operator to perform initial
troubleshooting to determine
appropriate action. Oversee
logistics of hiring third party
experts as needed and overseeing
work as it is completed.

Third party experts as needed
(e.g. Programmer, Electrician,
Manufacturer's Rep). Operator to
be responsible for all scheduling .
1 Manually performed 1 $62.95
NR5 Pump motor removal, service and
re-installation when required.

Operator handles logistical issues
of identifying problem(s), hiring
experts as needed, and
overseeing work and confirming
work completed successfully.

The operator shall be responsible
for logisticaI and oversight work.

Operator to be responsible for all
scheduling .
24 Manually performed 24 $1,510.80
28 $1,762.60
440 $29,243.04Total Annual Hours and Cost for Miro 3 Well Total Annual Hours and Cost for Non Routine Tasks
Performed by City Operator,
RWS Third Party Service. Estimated Hrs Comments Annual Hrs Labor Costs Notes D1 Check operational status. Operator to perform work None 0.2 Travel time to and from site 73 $4,595.35 D2 Visually inspect and record flow totals. Operator to perform work None 0.2 SCADA and field verification 73 $4,595.35 D3 Check control panel for any alarms. Operator to perform work None 0.2 SCADA and field verification 73 $4,595.35 D4 Take Field Chlorine Residual test,
record results. Operator to perform work None 0.2 SCADA and field verification 73 $4,595.35 292 $18,381.40
Performed by City Operator,
RWS Third Party Service. Estimated Hrs Comments Annual Hrs Labor Costs Notes M1.1Administrative tasks and responsibilities.Reporting, recordkeeping, AGAM, CMMS, permit compliance. None 0.5 Contract and permit compliance 6 $530.82 Operations Supervisor M1.2Administrative tasks and responsibilities.Reporting, recordkeeping, AGAM, CMMS, permit compliance. None 0.5 Contract and permit compliance 6 $510.18 Field Operations Supervisor M1.3Administrative tasks and responsibilities.Reporting, recordkeeping, AGAM, CMMS, permit compliance. None 0.5 Contract and permit compliance 6 $688.02 Project Manager 18 $1,729.02
310 $20,110.42
Performed by City Operator,
RWS Third Party Service. Estimated Hrs Comments Annual Hrs Labor Costs Notes NR1 Trouble-shooting when operational
status is inconsistent with expectations.

Operator to perform initial
troubleshooting to determine appropriate
action. Oversee logistics of hiring third
party experts as needed and overseeing
work as it is completed.

Third party experts as needed
(e.g.,Programmer, Electrician,
Manufacturer's Rep). Operator to be
responsible for all scheduling.
1 Manually performed 1 $62.95
NR2 Trouble-shooting to determine cause of
control panel alarms.

Operator to perform initial
troubleshooting to determine appropriate
action. Oversee logistics of hiring third
party experts as needed and overseeing
work as it is completed.

Third party experts as needed
(e.g.,Programmer, Electrician,
Manufacturer's Rep). Operator to be
responsible for all scheduling .
1 Manually performed 1 $62.95
NR3
Trouble-shooting to determine cause for
malfunctioning flow totalizer and
motorized valves.

Operator to perform initial
troubleshooting to determine appropriate
action. Oversee logistics of hiringthird
party experts as needed and overseeing
work as it is completed.

Third party experts as needed
(e.g.,Programmer, Electrician,
Manufacturer's Rep). Operator to be
responsible for all scheduling.
1 Manually performed 1 $62.95
3 $188.85
313 $20,299.27Total Annual Hours and Cost Randall Vault Description: Non Routine Operations
Description: Daily Operations
Description: Weekly Operations

RANDALL VAULT
Total Annual Hours and Cost for Daily Tasks
Total Annual Hours and Cost for Weekly Tasks
Total Annual Hours and Cost for Non Routine Tasks
Total Annual Hours and for D/W/M/A Tasks
Performed by City Operator,
RWS Third Party Service. Estimated Hrs Comments Annual Hrs Labor Costs Notes M1 Visual Inspection of perimeter fencing
Operator to perform initial
troubleshooting to determine appropriate
action. Oversee logistics of hiring third
party experts as needed and overseeing
work as it is completed.

The operator shall be responsible for
logistical and oversight work. operator
will obtain quotes

0.25 Manually performed 3 $188.85
M2 Visual Inspection for apparent leaks
Operator to perform initial
troubleshooting to determine appropriate
action. Oversee logistics of hiring third
party experts as needed and overseeing
work as it is completed.

The operator shall be responsible for
logistical and oversight work. operator
will obtain quotes

0.25 Manually performed 3 $188.85
M3 Visual inspection of sample ports.Operators to perform work. Third party not needed.

The operator shall be responsible for
logistical and oversight work. operator
will obtain quotes

0.25 Manually performed 3 $188.85
M4 Visual inspection of bag filters.Operators to perform work. Third party not needed.

The operator shall be responsible for
logistical and oversight work. operator
will obtain quotes

0.25 Bag filters are replaced when differential
pressure is greater than 15 psi. 3 $188.85
M5 Booster motor oil top off / inspection Operators to perform work. Third party not needed.

The operator shall be responsible for
logistical and oversight work. operator
will obtain quotes

0.25 Manually performed 3 $188.85
M6 Areation tank condition assessment
Operator to perform initial
troubleshooting to determine appropriate
action. Oversee logistics of hiring third
party experts as needed and overseeing
work as it is completed.

The operator shall be responsible for
logistical and oversight work. operator
will obtain quotes

0.25 Manually performed 3 $188.85
M7 Lighting condition assessment
Operator to perform initial
troubleshooting to determine appropriate
action. Oversee logistics of hiring third
party experts as needed and overseeing
work as it is completed.

The operator shall be responsible for
logistical and oversight work. operator
will obtain quotes

0.25 Operator will perform test under night
time conditions. 3 $188.85
M8 Visual piping and connections.

Operator to perform initial
troubleshooting to determine appropriate
action. Oversee logistics of hiring third
party experts as needed and overseeing
work as it is completed.

The operator shall be responsible for
logistical and oversight work. operator
will obtain quotes

0.25 Manually performed 3 $188.85
M9 MCC Air filter inspection
Operator to perform initial
troubleshooting to determine appropriate
action. Oversee logistics of hiring third
party experts as needed and overseeing
work as it is completed.

The operator shall be responsible for
logistical and oversight work. operator
will obtain quotes

0.25 Replace filters and minor cleaning
around enclosure. 3 $188.85
M10 Weed abatement / Site Clean up.

Operator to perform initial
troubleshooting to determine appropriate
action. Oversee logistics of hiring third
party experts as needed and overseeing
work as it is completed.

The operator shall be responsible for
logistical and oversight work. operator
will obtain quotes
2 Operator will perform task under normal
conditions. Third party may be needed at
times in which the operator will obtain
quotes prior to third party work.
24 $1,510.80
Q1 Quarterly sensor calibration
Operator to clean and calibrate sensor
for equalization tank. O&M manual is to
be used for proper calibration.

The operator shall be responsible for
logistical and oversight work. operator
will obtain quotes
2 Manually performed 8 $503.60
PREVENTATIVE MAINTENANCE (PMs)
Description: Combined Treatment PMs
Q2 Bag filter replacement
Operator to perform internal assesment
of bag filter quality and replace filters
that do not meet water quality standards.
* Bag filter changout dependant on
differential pressure of filter tanks*
The operator shall be responsible for
logistical and oversight work. operator
will obtain quotes
2 Manually performed 8 $503.60
SA1 Structure inspection Operators to perform work. Third party not needed.

The operator shall be responsible for
logistical and oversight work. operator
will obtain quotes
1 Manually performed 2 $125.90
SA2 MCC control systems Inspection
Operator to perform initial
troubleshooting to determine appropriate
action. Oversee logistics of hiring third
party experts as needed and overseeing
work as it is completed & cleaning
The operator shall be responsible for
logistical and oversight work. operator
will obtain quotes
1 cleaning inside enclosure. 2 $125.90
SA3 Visual inspection of rupture disc.

Operator to perform initial
troubleshooting to determine appropriate
action. Oversee logistics of hiring third
party experts as needed and overseeing
work as it is completed.

The operator shall be responsible for
logistical and oversight work. operator
will obtain quotes
1 Operator recommends rupture disc
replacement every 5 years or upon
failure.
2 $125.90
A1 Annual CLA- Valve inspection
Operator will inspect the flanges for any
missing or loose hardware. Inspect for
any leaks coming from the valve or any
fittings. Inspect the screens to ensure
they are clean and free of debris.

The operator shall be responsible for
logistical and oversight work. operator
will obtain quotes
2 Manually performed 2 $125.90
A2 Annual electrical panel inspection
Third party contractor to de-energize
electrical cabinet, lock out power source
going to cabinet. Inspect cabinet for
signs of moisture, dampness or dripping.

Check wires and cables for signs of
overheating and discoloration, Check for
loose connections and inspect motor
starter contacts for signs of wear.

Third Party Specialist services,. Operator
to be responsible for all scheduling 2 Third party contractor to perform task.

Operator will oversee 2 $125.90
A3 Annual flow meter inspection
Third Party will calibrate flow meter
onsite. Inspect the housing of the flow
meter for corrosion, mositure or loose
wires, inspect rotating element of the
flow meter to ensure it is still moving
freely.

Third Party Specialist services. Operator
to be responsible for all scheduling 2 Third party contractor to perform task.

Operator will oversee 2 $125.90
A4 Annual pump efficiency testing
Third Party will perform pump efficiency
two point test onsite. Valve isolation will
be performed to provide accurate
efficiency test on well and booster pump.

Third Party Specialist services. Operator
to be responsible for all scheduling 2 Third party contractor to perform task.

Operator will oversee 2 $125.90
A5 Annual electrical/MCE testing
(Motor Circuit Evaluation)
Third Party will perform and inspect the
voltage, amp draw, and megger the
motor on phase A, B , C volts including
all motor leads
Third Party Specialist services. Operator
to be responsible for all scheduling 2 Third party contractor to perform task.

Operator will oversee 2 $125.90
A6 Annual thermographic analysis
Third party will perform thermographic
analysis with unit powered up. All drives,
motor junction box, motor and MCC
cabinet to be checked thoroughly.

Third Party Specialist services. Operator
to be responsible for all scheduling 2 Third party contractor to perform task.

Operator will oversee 2 $125.90
A7 Annual vibration analysis
Third Party will perform vibration
analysis, analyze spectrum of motor
inboard/outboard bearing, pump
inboard/outboard bearings.

Third Party Specialist services. Operator
to be responsible for all scheduling 1 Third party contractor to perform task.

Operator will oversee 1 $62.95
A8 Annual motor lubrication testing &
Changing / Greasing
Grab sample will be taken from oil
reservoir, and sent to be analyzed by a
third party lab. Change Oil / And repack
bearings with new Grease
Third Party Specialist services. Operator
to be responsible for all scheduling 4 Manually performed 4 $251.80 A9 Valve exsercising treatment system only
Operator to perform initial
troubleshooting to determine appropriate
action. Oversee logistics of hiring third
party experts as needed and overseeing
work as it is completed.

The operator shall be responsible for
logistical and oversight work. operator
will obtain quotes
2 Manually performed 2 $125.90
A10 Annual AC inspection & maintenanceThird party will perform testing and maintenance to the AC unit.

Third Party Specialist services. Operator
to be responsible for all scheduling 2 Third party contractor to perform task.

Operator will oversee 2 $125.90
94 $5,917.30
Performed by City Operator,
RWS Third Party Service. Estimated Hrs Comments Annual Hrs Labor Costs Notes M1 Visually inspect well & motor condition
Operator to perform initial
troubleshooting to determine appropriate
action. Oversee logistics of hiring third
party experts as needed and overseeing
work as it is completed.

The operator shall be responsible for
logistical and oversight work. operator
will obtain quotes

0.25 Check for vibration and excessive heat. 3 $188.85
M2 Well building & Preimeter fenceing
Operator to perform initial
troubleshooting to determine appropriate
action. Oversee logistics of hiring third
party experts as needed and overseeing
work as it is completed.

The operator shall be responsible for
logistical and oversight work. operator
will obtain quotes

0.25 Manually performed 3 $188.85
M3 Water flush system for operation
Operator to perform initial
troubleshooting to determine appropriate
action. Oversee logistics of hiring third
party experts as needed and overseeing
work as it is completed.

The operator shall be responsible for
logistical and oversight work. operator
will obtain quotes

0.25 Water flush filter to be cleaned if needed. 3 $188.85 M4 Well building AC unit
Operator to perform initial
troubleshooting to determine appropriate
action. Oversee logistics of hiring third
party experts as needed and overseeing
work as it is completed.

The operator shall be responsible for
logistical and oversight work. operator
will obtain quotes

0.25 AC filter replaced as needed. 3 $188.85
M5 Sample ports Operators to perform work. Third party
not needed.

The operator shall be responsible for
logistical and oversight work. operator
will obtain quotes

0.25 Manually performed 3 $188.85
M6 MCC control systems
Operator to perform initial
troubleshooting to determine appropriate
action. Oversee logistics of hiring third
party experts as needed and overseeing
work as it is completed.

The operator shall be responsible for
logistical and oversight work. operator
will obtain quotes.

0.25 Replace filtes and minor cleaning around
enclosure. 3 $188.85
M7 Weed abatement / Site Clean up.

Operator to perform initial
troubleshooting to determine appropriate
action. Oversee logistics of hiring third
party experts as needed and overseeing
work as it is completed.

The operator shall be responsible for
logistical and oversight work. operator
will obtain quotes

0.5 Operator will perform task under normal
conditions. Third party may be needed at
times in which the operator will obtain
quotes prior to third party work.
6 $377.70
M8 Infiltration wells / sand separator
Inspection
Operator to perform initial
troubleshooting to determine appropriate
action. Oversee logistics of hiring third
party experts as needed and overseeing
work as it is completed.

The operator shall be responsible for
logistical and oversight work. operator
will obtain quotes

0.5 Operator will perform task under normal
conditions. Third party may be needed at
times in which the operator will obtain
quotes prior to third party work.
6 $377.70
Description: EW-1 PMs
Total Annual Hours and Cost for PMs Tasks Combined Treatment A1 Annual electrical panel inspection
Third party contractor to de-energize
electrical cabinet, lock out power source
going to cabinet. Inspect cabinet for
signs of moisture, dampness or dripping.

Check wires and cables for signs of
overheating and discoloration, check for
loose connections and inspect motor
starter contacts for signs of wear.

Third Party Specialist services. Operator
to be responsible for all scheduling 1 Third party contractor to perform task.

Operator will oversee 1 $62.95
A2 Annual CLA- Valve inspection
Operator will inspect the flanges for any
missing or loose hardware. Inspect for
any leaks coming from the valve or any
fittings. Inspect the screens to ensure
they are clean and free of debris.

The operator shall be responsible for
logistical and oversight work. operator
will obtain quotes
1 Manually performed 1 $62.95
A3 Annual flow meter inspection
Third Party will calibrate flow meter
onsite. Inspect the housing of the flow
meter for corrosion, mositure or loose
wires, inspect rotating element of the
flow meter to ensure it is still moving
freely.

Third Party Specialist services. Operator
to be responsible for all scheduling 1 Third party contractor to perform task.

Operator will oversee 1 $62.95
A4 Annual pump efficiency testing
Third Party will perform Pump efficiency
two point test onsite. Valve isolation will
be performed to provide accurate
efficiancy test on well and booster pump.

Third Party Specialist services. Operator
to be responsible for all scheduling 1 Third party contractor to perform task.

Operator will oversee 1 $62.95
A5 Annual electrical/MCE testing
(Motor circuit evaluation)
Third Party will perform and inspect the
voltage, amp draw, and megger the
motor on phase A, B , C volts including
all motor leads
Third Party Specialist services. Operator
to be responsible for all scheduling 2 Third party contractor to perform task.

Operator will oversee 2 $125.90
A6 Annual thermographic analysis
Thrid party will perform thermographic
analysis with unit powered up. All drives,
motor junction box, motor and MCC
cabinet to be checked thoroughly
Third Party Specialist services. Operator
to be responsible for all scheduling 2 Third party contractor to perform task.

Operator will oversee 2 $125.90
A7 Annual vibration analysis
Third Party will perform vibration
analysis, analyze spectrum of motor
inboard/outboard bearing, pump
inboard/outboard bearings.

Third Party Specialist services. Operator
to be responsible for all scheduling 1 Third party contractor to perform task.

Operator will oversee 1 $62.95
A8 Annual motor lubrication
testing & Changing / Greasing
Grab sample will be taken from oil
reservoir, and sent to be analyzed by a
third party lab. Change Oil / And repack
bearings with new Grease
Third Party Specialist services. Operator
to be responsible for all scheduling 2 Manually performed 2 $125.90 A9 Annual AC inspection & maintenanceThird party will perform testing and maintenance to the AC unit.

Third Party Specialist services. Operator
to be responsible for all scheduling 1 Third party contractor to perform task.

Operator will oversee 1 $62.95
42 $2,643.90
Performed by City Operator,
RWS Third Party Service. Estimated Hrs Comments Annual Hrs Labor Costs Notes M1 Visually inspect well & motor condition
Operator to perform initial
troubleshooting to determine appropriate
action. Oversee logistics of hiring third
party experts as needed and overseeing
work as it is completed.

The operator shall be responsible for
logistical and oversight work. operator
will obtain quotes.

0.25 Manually performed 3 $188.85
Desription: Miro 3 PMs
Total Annual Hours and Costs for PMs Tasks EW-1
M2 Well building & perimeter fencing
Operator to perform initial
troubleshooting to determine appropriate
action. Oversee logistics of hiring third
party experts as needed and overseeing
work as it is completed.

The operator shall be responsible for
logistical and oversight work. operator
will obtain quotes

0.25 Manually performed 3 $188.85
M3 Water flush system for operation
Operator to perform initial
troubleshooting to determine appropriate
action. Oversee logistics of hiring third
party experts as needed and overseeing
work as it is completed.

The operator shall be responsible for
logistical and oversight work. operator
will obtain quotes

0.25 Manually performed 3 $188.85
M4 Well building AC unit
Operator to perform initial
troubleshooting to determine appropriate
action. Oversee logistics of hiring third
party experts as needed and overseeing
work as it is completed.

The operator shall be responsible for
logistical and oversight work. operator
will obtain quotes

0.25 Manually performed 3 $188.85
M5 Sample ports Operators to perform work. Third party
not needed.

The operator shall be responsible for
logistical and oversight work. operator
will obtain quotes

0.25 Manually performed 3 $188.85
M6 MCC control systems
Operator to perform initial
troubleshooting to determine appropriate
action. Oversee logistics of hiring third
party experts as needed and overseeing
work as it is completed.

The operator shall be responsible for
logistical and oversight work. operator
will obtain quotes

0.25 Manually performed 3 $188.85
M7 Weed abatement / Site Clean up.

Operator to perform initial
troubleshooting to determine appropriate
action. Oversee logistics of hiring third
party experts as needed and overseeing
work as it is completed.

The operator shall be responsible for
logistical and oversight work. operator
will obtain quotes

0.5 Operator will perform task under normal
conditions. Third party may be needed at
times in which the operator will obtain
quotes prior to third party work.
6 $377.70
A1 Annual electrical panel inspection
Third party contractor to de-energize
electrical cabinet, lock out power source
going to cabinet.Inspect cabinet for signs
of moisture, dampness or dripping.

Check wires and cables for signs of
overheating and discoloration, check for
loose connections and inspect motor
starter contacts for signs of wear.

Third Party Specialist services. Operator
to be responsible for all scheduling 1 Third party contractor to perform task.

Operator will oversee 1 $62.95
A2 Annual flow meter inspection
Third Party will Calibrate flow meter
onsite. Inspect the housing of the flow
meter for corrosion, mositure or loose
wires, Inspect rotating element of the
flow meter, is still moving freely.

Third Party Specialist services. Operator
to be responsible for all scheduling 1 Third party contractor to perform task.

Operator will oversee 1 $62.95
A3 Annual pump efficiency testing
Third Party will perform Pump efficiency
two point test onsite. Valve isolation will
be performed to provide accurate
efficiancy test on Well and Booster
pump.

Third Party Specialist services. Operator
to be responsible for all scheduling 1 Third party contractor to perform task.

Operator will oversee 1 $62.95
A4 Annual electrical/MCE testing
(Motor Circuit Evaluation)
Third Party will perform and inspect the
Voltage, amp draw, and megger the
motor on phase A, B , C volts including
all motor leads
Third Party Specialist services. Operator
to be responsible for all scheduling 2 Third party contractor to perform task.

Operator will oversee 2 $125.90
A5 Annual thermographic analysis
Thrid party will perform thermographic
analysis with unit powered up. All drives,
motor junction box, motor and MCC
cabinet to be checked thoroughly
Third Party Specialist services. Operator
to be responsible for all scheduling 2 Third party contractor to perform task.

Operator will oversee 2 $125.90
A6 Annual vibration analysis
Third Party will perform vibration
analysis, analyze spectrum of motor
inboard/outboard bearing, pump
inboard/outboard bearings.

Third Party Specialist services. Operator
to be responsible for all scheduling 1 Third party contractor to perform task.

Operator will oversee 1 $62.95
A7 Annual motor lubrication testing &
Changing / Greasing
Grab sample will be taken from oil
reservoir, and sent to be Analyzeby a
third party lab. Change Oil / And repack
bearings with new Grease
Third Party Specialist services. Operator
to be responsible for all scheduling 2 Manually performed 2 $125.90 A8 Annual AC inspection & maintenanceThird party will perform testing and maintenance to the AC unit.

Third Party Specialist services. Operator
to be responsible for all scheduling 1 Third party contractor to perform task.

Operator will oversee 1 $62.95
35 $2,203.25
Performed by City Operator,
RWS Third Party Service. Estimated Hrs Comments Annual Hrs Labor Costs Notes M1 Monthly Inspection of Vault and Panels Operators to perform work. Third party not needed.

The operator shall be responsible for
logistical and oversight work. operator
will obtain quotes cost.

0.25 Manually performed 3 $188.85
M2 Monthly Inspect sample ports Operators to perform work. Third party not needed.

The operator shall be responsible for
logistical and oversight work. operator
will obtain quotes.

0.25 Manually performed 3 $188.85
M3 Monthly Cla - Valve Visiol inspection Operators to perform work. Third party not needed.

The operator shall be responsible for
logistical and oversight work. operator
will obtain quotes.

0.25 Manually performed 3 $188.85
M4 Site cleaning & weed abaitment Operators to perform work. Third party not needed.

The operator shall be responsible for
logistical and oversight work. operator
will obtain quotes.

0.25 Manually performed 3 $188.85
A1 Annual Electrical Panel inspection
Third Party will Calibrate flow meter
onsite. Inspect the housing of the flow
meter for corrosion, mositure or loose
wires, inspect rotating element of the
flow meter to ensure it is still moving
freely.

The operator shall be responsible for
logistical and oversight work. operator
will obtain quotes
1 Third party contractor to perform task.

Operator will oversee 1 $62.95
A2 Annual flow meter inspection and
Calibration inspection
Third Party will Calibrate flow meter
onsite. Inspect the housing of the flow
meter for corrosion, mositure or loose
wires, inspect rotating element of the
flow meter to ensure it is still moving
freely.

The operator shall be responsible for
logistical and oversight work. operator
will obtain quotes
1 Third party contractor to perform task.

Operator will oversee 1 $62.95
A3 Annual Electrical and Cellular testing
Third Party will Calibrate flow meter
onsite. Inspect the housing of the flow
meter for corrosion, mositure or loose
wires, inspect rotating element of the
flow meter to ensure it is still moving
freely.

The operator shall be responsible for
logistical and oversight work. operator
will obtain quotes
1 Third party contractor to perform task.

Operator will oversee 1 $62.95
A4 Annual exercise valves
Third Party will Calibrate flow meter
onsite. Inspect the housing of the flow
meter for corrosion, mositure or loose
wires, inspect rotating element of the
flow meter to ensure it is still moving
freely.

The operator shall be responsible for
logistical and oversight work. operator
will obtain quotes
1 Third party contractor to perform task.

Operator will oversee 1 $62.95
A5 Annual Cla - Valve Maintenance
Third Party will Calibrate flow meter
onsite. Inspect the housing of the flow
meter for corrosion, mositure or loose
wires, inspect rotating element of the
flow meter to ensure it is still moving
freely.

The operator shall be responsible for
logistical and oversight work. operator
will obtain quotes
1 Third party contractor to perform task.

Operator will oversee 1 $62.95
17 $1,070.15Total Annual Hours and Cost for PMs Tasks Randall Vault Description: Randall Vault PMs
Total Annual Hours and Costs for PMs Tasks Miro 3
188 $11,834.60Total Annual Hours and Cost for PMs Tasks Combined Remedy

APPENDIX F

BUDGET

The budget is made up of two components Labor and Reimbursable Expenses.

Chino No. 2 Treatment System –
Annual labor budget is $63,673.93. Below is the amount to be billed on a monthly basis for labor for the first budget period December 2022 through September 2023.

 December 2022 $5,306.16
 January 2023 $5,306.16
 February 2023 $5,306.16
 March 2023 $5,306.16
 April 2023 $5,306.16
 May 2023 $5,306.16
 June 2023 $5,306.16
 July 2023 $5,306.16
 August 2023 $5,306.16
 September 2023 $5,306.16

In addition, Veolia will invoice reimbursable expenses at cost plus 18%. See table below.

Combined Remedy - Annual labor budget is $207,308.18. Below is the amount to be billed on a monthly basis for labor for the first budget period December 2022 through September 2023.

 December 2022 $17,275.68
 January 2023 $17,275.68
 February 2023 $17,275.68
 March 2023 $17,275.68

 April 2023 $17,275.68
 May 2023 $17,275.68
 June 2023 $17,275.68
 July 2023 $17,275.68
 August 2023 $17,275.68
 September 2023 $17,275.68

The labor budget this period for non-routine activities $29,271.75. Such non-routine will be billed on an as needed basis in accordance with Section 4.3.

In addition, Veolia will invoice reimbursable expenses at cost plus 18%, except for the vehicle and administrative expenses listed below, which will be billed monthly at one twelfth of the listed amount plus 18% per month. See table below.

APPENDIX G

CONDITIONS TO WHICH VEOLIA EASEMENT IS SUBJECT
The following are the conditions to the easement to Veolia:
(a) Veolia shall not unreasonably interfere with RWS’s free and complete use and enjoyment of the Rialto Water System; and
(b) City satisfies the requirements of the Concession Agreement with respect to granting the non-exclusive easement to Veolia prior to execution of this Agreement by City.

APPENDIX H

SAMPLE ACCOUNTING OF HOURS