Attachment 2_2025 RUWMP_Part 3 - Regional Supporting Information_Public Draft — Water Subcommittee, April 30, 2026 (part 1 of 2)

2020 IRUWMP EXECUTIVE SUMMARY
3 PART 3: REGIONAL

SUPPORTING INFORMATION
2025

SAN BERNARDINO VALLEY

REGIONAL URBAN WATER

MANAGEMENT PLAN
Photo Credit: San Bernardino Valley Water Conservation District

TABLE OF CONTENTS
Appendices
A: Notices
B: Agreements
Notices

2025 RUWMP
San Bernardino Valley | A

Appendix A Notices

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

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

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

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

Jonathon Schoenen
[email protected]
San Bernardino
Valley
Municipal
Water District
www.sbvmwd.com
Adekunle Ojo
[email protected]
South Mesa
Water
Company
https://southmesawater.com

Brittany Lim
[email protected]
West Valley
Water District www.wvwd.org
Rocky Welborn
[email protected]

If you have any questions or input regarding these documents, please contact me by email or reach out to the agency direct contact.

Sincerely,

Adekunle Ojo
Manager of Integrative Planning

Phone: 909-387-9231
Mobile: 909-435-1526
Email: [email protected]

San Bernardino Valley
Municipal Water District

380 East Vanderbilt Way
San Bernardino, CA 92408

Agreements

2025 RUWMP
San Bernardino Valley | B

Appendix B Agreements

B-1
Appendix B - Agreements

1. Orange County Judgment

2. Western Judgment

3. 1961 Rialto Basin Decree

4. Rialto Basin Groundwater Council Agreement

5. Seven Oaks Accord

6. Lytle Creek Judgement

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

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

9. Four Party Implementation Agreement and Amendments

10. Agreement Between OCWD City of Riverside Concerning Water Rights

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

12. San Bernardino Basin Groundwater Council Framework

13. MOU Between and SBCFCD and SBVWCD

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

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

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

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

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

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

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

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

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

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

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

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

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

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01180.0023/614491.1

RIALTO

BASIN

GROUNDWATER COUNCIL

FRAMEWORK

AGREEMENT

This
RIALTO

BASIN

GROUNDWATER COUNCIL

FRAMEWORK

AGREEMENT

(“
Agreement
”) is entered into and effective this ___ day of ____________, 20 20

by and among the City of Colton (“
Colton
”), the City of
Rialto

(“
Rialto
”), Fontana

Union

Water Company (“
F
U
WC
”)

and

West Valley Water District (“
WVWD
”), each of which is
referred to as a “
Party
,”
for the purpose of
coordinating
, developing, and implementing

groundwater management activities that

individually or cumulatively address groundwater
management in
, and groundwater sustainability throughout,

the
Rialto Basin

as defined in
Section 1.1.8 below.

RECITALS

WHEREAS
,

o
n
and after
September 12, 2018, in an effort to commit to
sustainable
ground
water

management principles,
the Parties,
San Bernardino
Valley Municipal Water
District,

San Gabriel Valley Water Company, Fontana Water Company and Cucamonga Valley Water District (“Cucamonga”) entered into a Settlement Agreement

as def
ined in Section 1.1.
9 below
;

WHEREAS
,
t
he Settlement Agreement
re
quires completion of this Framework
Agreement within one year of the final Settlement Agreement amendments executed in February
2019
;

WHEREAS
,

t
h
e

Settlement Agreement contained Condition
3, titled “Cooperative and
Sustainable Groundwater Management of the Rialto
-
Colton Basin
;
”

WHEREAS
, Condition 3 (1.) of the Settlement Agreement requires the parties to develop, adopt and implement a sustainable groundwater management plan.

WHEREAS
, Condi
tion 3 (l.) of the Settlement Agreement states that if the Parties agree, the sustainable groundwater management plan is to include a new index well regime,

the
possibility of establishing an operating safe yield,

and/or other groundwater management tools.

WHEREAS
,
b
y joining the Settlement Agreement, the Parties to th
is

A
greement
accepted and agreed to the Recitals, Definitions, Principles and Agreements set forth in the Settlement Agreement, including Condition 3 (l.).

WHEREAS
, the Parties to this
Agreement all overlie, produce water from, or are
otherwise in
vested

in the management and long
-
term sustainability of the groundwater
of the
Rialto

Basin

a
s

identified on the Map attached
hereto
as Exhibit A
;

WHEREAS
,
The Rialto
Basin
is part of the Rial
to
Subbasin

which
underlies a portion of
the upper Santa Ana Valley in southwestern San Bernardino County and northwestern Riverside County. This
S
ubbasin is bounded by the San Gabriel Mountains on the north, the San Jacinto

-
2 -

01180.0023/614491.1

fault on the east, the
Rialto
Basin boundary
on the south, and the Rialto fault on the west. Lytle
Creek
flows

through

this part of the valley southeastward to its confluence with the Santa Ana River in the southern part of the
S
ubbasin
;

WHEREAS
,
t
he groundwater supplies of the
Rialt
o
Basin are governed by
a
court decree
dated December 22, 1961 (the “1961 Decree”) in the case styled The Lytle Creek Water and
Improvement Company v. Fontana Ranchos Water Company, et al. , San Bernardino County
Superior Court, Case No. 81264. A copy of the 1961 Decree is attached
hereto as

Exhibit
D
;

WHEREAS,

p
ursuant to the Settlement Agreement
,

FUWCs

No Man’s Land production

of 5,014 acre feet/year
will
be counted as
part of the

Rialto
Basin
production
limits in the 1961
decree, and it is the intention of the Parties in forming the Rialto Basin Groundwater Council to apply, administer, and conform to the requirements and provisions of the 1961 Decree.

WHEREAS
, Water Code
Section

10720.8(
a) identifies the
Rialto

Basin
as

an
adjudicated
groundwater basin
. As such,
the Rialto Basin

is exempt from the Sustainable
Groundwater Management Act (SGMA) passed by the California Legislature in September 2014, other than providing certain kinds of da
ta to
the Department of Water Resources per Water Code
Section

10720.8(f)
;

WHEREAS
, notwithstanding that the Rialto Basin is not required to comply with SGMA, the Parties to this Agreement wish to c
oordinate

their efforts to identify their respective
access to
,

and application of
,

water supplies, and to harmonize use of such supplies with available groundwater in the Rialto Basin. Working to ensure that the water imported into the Rialto Basin and the facili
ties used to apply both imported and native water supplies to productive beneficial use
s
for groundwater replenishment
, will

allow the Rialto Basin to

be
maintained and m
anaged in a sustainable manner
over the long
-
term. The Parties recognize that
the key

to success in this effort
is

a coordinated effort with other groundwater management
entities as well as the development of a strategy for coordination of recharge activities throughout the Rialto Basin
;

WHEREAS
, ensuring water supply reliability and long
-
term effectiveness and viability
of recharge facilities has become

increasingly important, and proactive efforts
are needed
to
improve and mitigate low groundwater levels in the Rialto Basin through the spreading of imported water supplies, which at times

are limited in availability, due to drought,
environmental, and other restrictions. One purpose of this Agreement is to facilitate the cooperation of the Parties which is essential to prevent overdraft or other negative impacts during an extended drought
, and for the foreseeable future
;

WHEREAS,
the

Parties, individually and collectively, are committed to cost effective and cooperative groundwater management that respects the interests and concerns of all of the parties and the communities that they serve

and
which
rely on the Rialto Basin for their water
supply;.

WHEREAS
,

t
he
Parties

hereby enter into this Agreement
for the purpose of establishing

the
Rialto
Basin Groundwater Council (“
RB
GC
”)
to take the preliminary steps nec
essary to
prepare for and
coordinate

the

management of groundwater
supply
resources

throughout

the

-
3 -

01180.0023/614491.1

Rialto
Basin
,
coordinate maintenance of conveyance and recharge facilities ,

and coordinate with
existing groundwater agencies in the Rialto Basin to expedite such management

strategie
s
. The
RBGC will ensure overall coordination and sustainable
management of the Rialto Basin;

and,

WHEREAS
, the Parties have agreed that the preliminary steps for establishing RBGC will include preparation of formation documents and procedures, the engag ement of necessary
experts, and the development of a budget and funding procedure for the RBGC as memorialized in this Agreement.

AGREEMENT

NOW THEREFORE,
in consideration of the matters recited and the mutual promises, covenants, and conditions set forth
in this Agreement, the
Parties

hereby agree as follows
:

1. DEFINITIONS

1.1 Definitions
. In addition to the terms that may be defi
ned elsewhere in this
Agreement,

the following terms when used in this Agreement shall be defined as follows:

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

1.1.2 “
Annual
Rialto
Basin
Groundwater Report
” shall mean the
annual report prepared by the

RBGC
, to cover
topics including
,

but not limited to
,

the following:
annual production, recharge, environmental issues, exchanges, and all other actions and topics material to groundwater conditions in the
Rialto
Basin. In preparing such report, the
RBGC

may
consult wit
h, and draw from, data and information provided by
Santa Ana River and

Western
/
San Bernardino

Watermaster
s

and
/or
other reliable sources

regarding annual groundwater
conditions.

1.1.3 “
BTAC
” shall mean the
Basin Technical Advisory Committee
, as
originally crea
ted under the auspices of the
Upper Santa Ana River Watershed

Integrated
Regional Water Management Plan
, as such Committee may be modified from time to

time to

allow for the additional participation of one or more Parties to this Agreement. The RBGC may
request
BTAC to undertake specified actions in support of the
RB
GC
’s efforts
.

1.1.4 “
Cost
S
hare
”

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

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

this Agreement.

1.1.6 “
Equitable Allocation
”
shall mean the manner of determining the
fac
ilities’ operations

and maintenance (“O&M”) costs

and
supplemental water c
ost
,
for each
P
arty based on
an

annual approved budget. This allocation will be

shared equally by

the
Part
ies

for the applicable
RB
GC budget year.

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01180.0023/614491.1

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

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

1.1.9 “
Settlement Agree
ment”
shall mean the settlement agreement

dated September 12, 2018, as amended,

that concluded the litigation styled
San Bernardino
Municipal Water District et al v. San Gabriel Water Company et al, a copy of which is attached
as Exhibit C to
this A
greemen
t.

2. TERM

This
A
greement shall become operative on the Effective Date
.

3. COUNCIL CREATION AND PURPOSE

3.1 Creation of the
RB
GC
. There is hereby created the
Rialto

Basin
Groundwater Council. The
RB
GC shall be, to the extent permitted by law, the forum within wh
ich the Parties shall coordinate the access to and utilization of

native and

imported water
supplies for application to the recharge and replenishment of the Rialto
Basin, and for the
maintenance, and repair of recharge and conveyance facilities for both native and imported
supplies to replenish the

Rialto

Basin, consistent with applicable law and judicial decrees.

The
RBGC is not a public agency
subject to Government Code Sections 54950 et seq.,
nor is it a joint
exercise of powers agreement as define
d by Government Code sections 6300 et seq.

3.2 Purpose of the Agreement
.

The purpose of this Agreement, and the
creation of the
RB
GC,
is to provide for

the funding, integration, and coordination of the
management of

native and

imported water and
associated
gr
oundwater replenishment facilities
within the Rialto

Basin. The purpose is also the facilitation of implementation of policies and initiatives through the legal authorities of one or more Parties for the purpose of cooperatively
managing certain aspects o
f the
Rialto
Basin including
,

but not limited to
,

a
ccessing and
applying imported water supplies to augment and complement native water supplies toward the goal of maintaining the long
-
term yield of the

Rialto

Basin
,

ensuring that overdraft or other
negati
ve impacts are prevented in the future and eliminated over time ,

and
u
ndertaking

supply
reliability

activities

that are

approved by the
RB
GC and included in the annual approved budget.

3.3 Membership of the
RB
GC
. The
RB
GC shall consist of
one

representative
and one alternate
from each Party
.

RB
GC
m
embers shall be appointed in the manner set forth
in Section
3 .4 of this Agreement.

3.4 Appointment of Members to the
RB
GC
.

For Colton, Rialto and WVWD,
the representative member of the RGBC shall b
e a publicly elected official of the Party and
for FUWC the representative shall be a member of its Board of Directors. Each Party shall also appoint one alternate representative who shall be a

publicly elected official of the Party or
a member of its Boa
rd of Directors or

senior management level employee of the Party.

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5 -

01180.0023/614491.1

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

4. COUNCIL MEETINGS AND AC
TIONS

4.1 Initial Meeting
.

The initial meeting of the
RB
GC

shall be held at a
location overlying the
Rialto
Basin
.

T
he
RB
GC shall select a President to chair its meetings, a
Vice President to serve if the President is unavailable, a Secretary to record RB
GC p
roceedings
and actions, and any other officers it deems appropriate for

the successful and efficient conduct
of its business.

4.2 Regular Meeting Schedule and Rules of Proceeding
.

The
RB
GC
shall
establish a regular meeting time and place
.

The
RB
GC
may
vote to change the regular meeting
time and place
,

provided that the new location remains at a place overlying the

Rialto
Basin.

The
RB
GC
may adopt
,

promulgate, repeal, or revise further rules of debate, presentation of motions, voting and proxies, proces
s, or proceedings, as it may deem appropriate.

The Parties
agree that the RBGC and its Board of Directors is and shall be subject to the Ralph M. Brown Act (Cal. Government Code section 54953 et seq.,) (“Brown Act”) and that meetings and other applicable

operations of the RBGC will be undertaken in compliance with the Brown Act. .

4.3 Quorum
.

A quorum of the
RB
GC

shall consist of
three members
.

In the
absence of a quorum, no business may be transacted beyond the adjournment of a meeting by the remaining
mem
bers. For efficiency, business may be discussed and action recommended for the consent calendar ratification at the next regular meeting.

A
member

shall be deemed present for
the determination of a quorum if the
member

is present at the meeting in person
,

or if the

member

participate
s

in the meeting telephonically

upon such rules and procedures as the
RB
GC
may promulgate.

4.4 RB
GC Voting Rights
. Each member of the
RB
GC
shall have an equal
voting right and three votes are required to pass any
proposals

for organizational, procedural, and
administrative purposes only
.

4.4.1 Fiscal items, including but not limited to, approval of the annual budget of the
RB
GC and any expenditures
for O& M expenses related to groundwater recharge
and replenishment acti
vities, costs of such facilities, and the cost of purchasing, transporting, and delivering supplemental water for groundwater recharge
shall require
the unanimous

vote
of the

members

and the subsequent approval by their respective governing boards or coun cils.

4.4.2 Sub
ject

to the Equitable Allocation and Cost Share requirements, a
ny change in annual
assessment
s

necessary to support the work of the
RB
GC shall require

the
unanimous

vote
of the

members

and the subsequent approval by their respective governing bo
ards or councils
.

4.5 Minutes
.

The
RB
GC

shall cause minutes to be kept of all meetings of the
RB
GC
and any
appointed
Ad Hoc

or
Standing
Committees.

The
RB
GC
shall further cause a
copy of draft minutes to be forwarded to each
member of the
RB
GC
and to each
Party, which
may be done electronically, or by way of posting to a commonly available website or digital portal.

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01180.0023/614491.1

5. A
NNUAL

UDGETING

AND

E
XPEND
I
TURE

PPROVAL

5 .1

The fiscal year of the
RB
GC shall be July 1 through June 30. The
RB
GC
shall develop, circulate, and approve an annual budget for the funding of

native supply capture
and

bringing water supply to the

Rialto

Basin, and for the maintenance and

repair of groundwater
recharge or water conveyance facilities serving replenishment of the Rialto
Basin
.

The
RBGC

shall coordinate with BTAC to determine the likely allocation of available State Water Project imported water supplies, and other available
non
-
native sources of water, the likely unit cost of
such water, and the recharge needs of the
Rialto
Basin, in terms of quantities of water, locations
where
Rialto
Basin conditions would most benefit from recharge, condition and availability of facilities to accomplish such recharge, and cost. From these sources, the RBGC

shall prepare a
budget that recommends all of the following:

(a)

the amount of water supplies
available
to be purchased

or
otherwise acquired by
RB
GC members in the coming year;

(b)

the recommended application or distribution of such water supplies to various parts of the
Rialto
Basin

as recharge

in
-
lieu

supplies
;

(c)

the

estimated cost of all ongoing maintenance, repair, and
operation costs for then
-
existing
and future
groundwater recharge and conveyance facilities
serving to replenish the
Rialto
Basin;

(d)

any capital improvement project
s

approved by the RBGC

(e)

any administrat
ive costs of the
RB
GC; and

(f)

proposed allocation of all expenditures in the
b
udget among
RB
GC
members as their portion of the Cost Share based upon the Equitable Allocation and Cost Share
Requirements in this Agreement.

5.1.2 No later than March 1 prior to the beg
inning of the year for which
the budget is to operate, the

proposed

b
udget shall

present
ed

and circulate
d

to all
RB
GC
members for review and analysis. The circulated budget shall include the underlying presumptions and works
heets upon which it is based
.

5.1.3 No later
than
sixty (60)

days after

each member agency’s budget
has been approved by their respective governing bodies,

the
RB
GC shall meet to deliberate and
pass upon the budget. The
RB
GC may accept, reject, or modify in any way the budget as propose
d. Adoption of the budget shall require

unanimous

approval
by the

members

and the
subsequent approval by their respective governing boards or councils .

5.2 The RBGC

shall
appoint an entity that is responsible for
the accounting
and revenue collection functions of the
RB
GC
by

tracking and securing the funding from the
RB
GC members pursuant to the approved annual budget, and consistent with the approved cost allocations among the
RB
GC members therein, for all importe
d water supplies.

The appointed

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01180.0023/614491.1

entity

shall perform the accounting and revenue collection functions of the RB
GC in tracking
and securing the funding from
its

members pursuant to the approved annual budget, and
consistent with the approved cost allocation
s among the
RB
GC members therein, for all facilities
costs. In the event of any delinquency,
the approved entity

may request the
RB
GC to appoint it,
or any other
RB
GC member or group of members, to represent the
RB
GC in securing collection
of unpaid and o
wing amounts from any delinquent member or members. The reasonably incurred costs of such collection efforts may be reimbursed to the agent the RB
GC authorize
d

to
go forward with them, and may be added as an administrative cost to other members, or as a c
redit against future amounts owing to the
RB
GC from such authorized agent.

5.3 No later than six (6) months into the budget year for which any budget is adopted by the
RB
GC, the
RBGC

shall prepare a year
-
in
-
process budget review, to assess the
validity and ac
curacy of the presumptions upon which the budget was based, identify any budget savings or additional expenditures, assess any additional opportunities for groundwater replenishment that may have come available since the passing of the budget, and otherwis e
assess and recommend to the
RB
GC any potential amendment to the existing year budget, or suggestions for the following year’s budget, as changing conditions may warrant.

6. COUNCIL POWERS AND DUTIES

6.1 The
RB
GC shall exercise the following powers:

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

6.1.2 To produce an Annual
Rialto
Basin Groundwater Report, using as
may be appropriate data regarding groundwater conditions available from Western Municipal
Water
master, or other sources.

The Annual Report shall include data showing each Party’s production from the Rialto Basin and recharge or replenishment, if any, to the Rialto Basin.

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

6.1.4 T
o make, after consultation with BTAC, annual recommendations for the amount of additional artificial recharge for the

Rialto

Basin from imported sources as a
complement to native sources, and to plan for the development and application of such additional s
ources of recharge.

6.1.5 To
establish as
-
needed Ad Hoc and
S
tanding C
ommittees for the
purpose of making recommendations to the
RB
GC. Committees shall exist for the term
specified in the action creating the committee, and the RB
GC may dissolve a committee at

any
time through a majority vote of
three voting members
.

6.1.6 To contract
, on behalf of the RBGC,

for the services of engineers,
attorneys, planners, financial consultants, and separate and apart therefrom, to appoint agents and representatives to employ su
ch other staff persons as necessary. The BTAC will provide technical support for the
RB
GC, upon such terms as the
RB
GC an
d BTAC shall agree in writing
.

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01180.0023/614491.1

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

Rialto

Basin.

6.1.8 To collect
assessments

from
RB
GC members as authorized in the
approved budget.

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

6.1.10 To

accumulate operating and reserve funds and invest the same as allowed by law for the purposes of the
RB
GC.

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

untaken in the
RB
GC’s name.

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

and similar revenue
-
raising
requirements.

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

7. FUNDING
RB

GC ACTIVITIES

7.1 F
unding for
RB
GC activities shall be
as provided in Section 1.1.6
. This
mechanism is based in part on a regional sharing of Operation and Maintenance costs for Rialto

Basin

recharge activities, as those Operation and Maintenance costs shall be determined b y the
RB
GC in its annual budgeting, in conjunction with BTAC. All Parties shall share in the Operation and Maintenance cost components

in accordance with the
provisions in Section 1.1.6

of this Agreement
.

8 .

DISPUTE RESOLUTION

8 .1

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

8 .2

Statement Describing Alleged Violation of Agreement
.

A Party or Par
ties
alleging a violation of this Agreement (the
“
Initiating Party(ies)
”)

shall provide
a written

-
9 -

01180.0023/614491.1

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

8 .3

Response to Statement of Alleged Violation
.

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

the
date of the response to attempt to resolve the dispute amicably.

8 .4

Mediation of Dispute
.

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

Party(ies) and the Responding Party(ies).

The
decision of the mediator shall be non
-
binding.

8 .5

Reservation of Rights
.

Subject to the above requirements, in the event that
mediation fails, e
ach Party retains and may exercise all legal and equitable rig hts and remedies it
may have to enforce the te
rms
of this Agreement; provided, that prior to commencing litigation, a Party shall provide at least five
(5)
calendar

days’ written notice of its intent to sue to all
Parties.

9 RELATIONSHIP

TO WATER RIGHTS AN

D PRIOR AGREEMENTS

9.1 Water
Rights and Existing Agreements
.

Nothing in this Agreement is
intended to modify the

water

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

9.2 Agreements Among Water U
sers
.

Nothing in this Agreement is intended
to modify the rights of
the signatories of this Agreement

among themselves.

9.3 Judgments
.

Nothing in this Agreement is intended to modify the rights of the Parties under the terms of the

1961 Decree
.
.

However,

FUWC’s
production
capacities
of
5,014 acre
-
feet/year
from No Man’s Land

shall be

acknowledged and

incorporated

into the
Rialto Basin

production capacity limits in the 1961 decree.
.

is the intention of

the Parties in
forming the
RB
GC

to apply, admin
ister, and con
form to the requirements and pro
visions of
the
1961 Decree
.

In the event of any conflict
,
except for incorporating FUWC’s production
in

No
Man’s Land into

the

Rialto

Basin

production capacity limits in the

1961 decree,
between the
actions of the
RB
GC

and
the
requirements and pro
visions
of
the 1961 Decree
, the latter
shall
control
.

-
10 -

01180.0023/614491.1

9.4 No Admissions
.

Nothing in this Agreement shall be construed as an
admission by any Party regarding any subject matter of this Agreement,

including but not limited
to the water rig
hts or priorities of the Parties.

9.5 Preservation of Rights
.

The Parties agree that this Agreement
, to the
extent allowed by law,
preserves all rights of the Parties as they may exist as of the Effective Date o
f this Agreement.

Except as provided in Section 9.3, n
othing in this Agreement is to be
construed as altering the priorities or entitlements of water right holders

among themselves to
water from

the Santa Ana River or the
Rialto
Basin.

10. MISCELLANEOUS

1 0
.1

Authority
.

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

10.2 Amendment
.

T
his
Agreement may be amended or modified only by a
written instrument
approved by
all

voting members.

1 0.3

Jurisdiction

and Venue
.

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

Any suit, action, or proceeding
brought under the scope of this Agreement shall be brought and maintai ned to the extent allowed
by law in the
Superior Court,
County of San Bernardino, California

and shall be
deemed
related
to the 1961 Rialto Basin Decree, San Bernardino County Superior Court Action No. 81264 and to
San Bernardino Valley Municipal Water Dis
trict et al. v. San Gabriel Water Company et al
..

1 0.4

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

Parties to this Agreement.

10.5 Construction and Interpretation
.

This Agreement has been arrived at
through negotiations
,

and each Party has had a full and fair opportunity to revise the terms of this Agreement. As a result, the normal rule of construct
ion that any ambiguities are to be resolved
against the drafting Party shall not apply in the construction or interpretation of this Agreement.

10.6 Entire Agreement
.

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

10.7 Partial Invalidity
.

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

-
11 -

01180.0023/614491.1

10.8 Successors and Assigns
.

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

10.9 Wai
vers
.

Waiver of any breach or default hereunder shall not constitute a continuing waiver or a waiver of any subsequent breach either of the same or of another provision of this Agreement
,

and forbearance to enforce one or more of the remedies provided in this Agreement shall not be deemed to be a waiver of that remedy.

10.1 0

Necessary Actions
.

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

10.11 Compliance with Law
.

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

10.12 Third Party Beneficiaries
.

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

10.13 Notices
.

All notices, requests, demands or other communications required or permitted under this Agreement shall be i
n writing unless provided otherwise in this
Agreement and shall be deemed to have been duly given and received on :
(i) the date of service
if served personally or served by facsimile transmission on the Party by delivery to the person(s)
at the address(es
) designated below, which designation may be changed from time to time by a Party in writing;
(ii) on the first day after mailing, if mailed by Federal Express, U.S.

Express
Mail, or other similar overnight courier service, postage prepaid, and addressed a s provided
below, or (iii) on the third day after mailing if mailed to the Party to whom notice is to be given by first class mail, registered or certified, postage

prepaid, addressed as follows:

To CITY OF COLTON:

CITY OF COLTON

Attn:

Utilities Director

650 N. La Cadena Drive

Colton, CA 92324

To CITY OF RIALTO:

To WEST VALLEY WATER

DISTRICT:

CITY OF RIALTO

Attn:

Utilities Manager

150 S. Palm Avenue

Rialto, CA 92376

WEST VALLEY WATER

DISTRICT

Attn: General Manager

855 W. Baseline Road

Rialto, CA 92376

FONTANA UNION WATER COMPNY

-
12 -

01180.0023/614491.1

To FONTANA UNION WATER

COMPANY:

Attn: President

15966 Arrow Route

Fontana, CA 9233
5 With Copy to:

FONTANA UNION WATER COMPANY

A
ttn: Director of Operations

15966 Arrow
Route

Fontana, CA 9233
5 10.14

Counterparts
.

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

DATED:
____________________, 2020

CITY OF COLTON
,

a California
general law

city and

municipal corporation

By:__________________________________

William R. Smith, City Manager

[Signatures continued on next page]

-
13 -

01180.0023/614491.1

-
14 -

01180.0023/614491.1

D
ATED: ____________________, 2020

CITY OF RIALTO

a California general law city and

municipal corporation

By:__________________________________

Sean Grayson
,
Acting
City
Manager

[Signatures continued on next page]

-
15 -

01180.0023/614491.1

D
ATED: ____________________, 2020

WEST VALLEY WATER DISTRICT

By:_
_________________________________

Clarence Mansell,

General Manager

[Signatures continued on next page]

-
16 -

01180.0023/614491.1

D
ATED: ____________________, 2020

FONTANA
UNION

WATER COMPANY

By:__________________________________

John Bosler, President

01180.0023/614491.1

EXHIBIT
A

Map of
Rialto

Basin

01180.0023/614491.1

Exhibit B

WATER RIGHTS SUMMARY

The Parties to this
agreement have a
greed to
the following water rights allocation:

Member

Adjustable

Rights

Fixed

Rights

No Man
’s
Land

Adjust
able

Rights

Total

Rights

Water Rights

Allocation

Percentage

Colton

3,010

890

0 3,900

19%

Rialto

2,846

1,520

0 4,366

22%

WVWD

5,594

510

0 6,104

30%

FUWC

550

370

5,014

5,934

29%

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

AGREEMENT
NOW, THEREFORE, the Parties agree as follows:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

B. Colton’s Responsibilities

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

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

C. Rialto’s Responsibilities

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

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

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

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

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

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

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

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

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

C. Operation and Maintenance of the Combined Treatment Plant

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

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

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

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

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

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

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

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

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

E. Transport and Distribution of Water

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

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

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

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

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

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

F. Cost of Operating and Maintaining the Combined Remedies

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

B. Colton Water Rights Leased to Emhart

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

C. Monthly Review of WMP

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

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

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

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

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

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

D. Delivery and Acceptance of Treated Water

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

C. County Access to Rialto Property

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

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

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

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

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

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

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

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

IX. Indemnification
A. Emhart’s Indemnification Obligations

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

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

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

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

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

B. The County’s Indemnification Obligations

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

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

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

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

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

C. Rialto’s Indemnification Obligations

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

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

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

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

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

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

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

E. Defense of Claims

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

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

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

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

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

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

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

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

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

2. Occurrence‐based Automobile Liability insurance coverage:

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

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

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

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

6. First‐Party Property insurance:

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

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

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

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

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

3. Worker’s Compensation insurance:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Emhart shall pay such invoices within 30 days of receipt.

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

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

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

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

XIII. Termination
A. Duration of the Agreement

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

54 B. Exhibits.

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

C. Construction.

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

D. Force Majeure.

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

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

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

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

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

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

F. Good Faith and Fair Dealing.

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

G. Governing Law.

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

H. Signatories.

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

I. Multiple Counterparts.

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

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

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

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

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

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

K. Amendment.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 Attachment B‐3 Combined Remedies Operation and Maintenance Activities

ATTACHMENT B‐1
A²
A²
A²
ED
Combined
Treatment Plant
North Ayala Drive
West Leiske Drive
North Fitzgerald Drive
North Linden Avenue
Rialto
Municipal Airport
MIRO-2
MIRO-3
EW-1
RIALTO3
¯
0 400
Scale in Feet

SOURCE AREA OPERABLE UNIT

ROCKETS, FIREWORKS, AND FLARES SITE
PREPARED BY:

AJP (ERM)
JOB NO. 0179962
FILE: Attachment B1.mxd
M:\Projects\Emhart_Rialto\Portland\GIS\IA\Attachment B1.mxd AJP 5/6/2015 Attachment B-1

LOCATIONS OF COMBINED

TREATMENT PLANT AND

COMBINED CAPTURE SYSTEM
Source: Image courtesy of USGS © 2013
Microsoft Corporation.

Legend
A² Proposed Extraction Well Location
ED City of Rialto Production Well
A² Miro Wells
Pipeline Connecting EW-1 to
Combined Treatment Plant
Pipeline Connecting
Miro-2 and Miro-3 to the
Combined Treatment Plant

ATTACHMENT B‐2
SOURCE AREA OPERABLE UNITRockets, Fireworks, and Flares Superfund SiteATTACHMENT B-2PROCESS FLOW DIAGRAMPREPARED BY:B.SWENSON (ERM)JOB NO. 0179962FILE: Rialto 0x Process Flow.dwg PREPARED BY:

B.SWENSON (ERM)
JOB NO. 0179962
FILE: Rialto 0x Process Flow.dwg

SOURCE AREA OPERABLE UNIT
Rockets, Fireworks, and Flares Superfund Site
ATTACHMENT B-2

PROCESS FLOW DIAGRAM

ATTACHMENT B‐3
COMBINED REMEDIES OPERATION AND MAINTENANCE ACTIVITIES
Daily Activities
Description
Standard in‐house
operations to be
performed by Operator
Per Fixed Price Contract
Third Party
Contractor Cost to
be reimbursed as
Needed Notes
D1 Check operational status. Operator to perform
work. Third party not
needed.

None
D2 Visually inspect and record
reservoir level and verify
that level does not exceed
high‐high or low‐low levels.

Operator to perform
work. Third party not
needed.

None
D3 Check control panel for any
alarms.

Operator to perform
work. Third party not
needed.

None
D4 Verify that pump motors in
Rialto 3, EW‐1, Miro‐2 and
Miro‐3 are or have recently
been operating (to the
extent such wells are being
utilized for the Combined
Remedies).

Operator to perform
work. Third party not
needed.

None
D5 Visually inspect and record
totalized flow immediately
downstream of all
operating wells.

Operator to perform
work. Third party not
needed.

None
D6 Meter and record the
volume of water delivered
to Colton.

D7 Visually inspect and record
pressure drop across the
Krebbs Desander. Verify
that Krebbs Desander is
functioning and that water
is not overflowing its waste
pit. (if Rialto‐3 is operating)
Operator to perform
work. Third party not
needed.

None
D8 Visually inspect and record
pressure readings on either
side of the six bag filters. If
pressure is equal to or
greater than allowable
pressure rating for the filter
Operator to perform
work. Third party not
needed.

None

Description
Standard in‐house
operations to be
performed by Operator
Per Fixed Price Contract
Third Party
Contractor Cost to
be reimbursed as
Needed Notes
bags, arrange for bag filter
change‐out.

D9 Visually inspect and record
lamp status for the Ultra‐
Violet (UV) system(s).

Operator to perform
work. Third party not
needed.

None
D10 Visually inspect Booster
Pumps (BP‐1 and BP‐2)
status and record totalized
flow immediately
downstream
Operator to perform
work. Third party not
needed.

None
D11 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. Third party not
needed.

None
D12 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. Third party not
needed.

None
D13 Visually inspect and verify
proper operation of
Chlorination Systems.

Operator to perform
work. Third party not
needed.

None
D14 Combined Treatment Plant
monitoring to comply with
DDW permit.

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

Third party
laboratory charges
to be reimbursed.

Non‐Daily Duties
ND1 Monthly reporting to DDW
and other appropriate
agencies regarding
treatment plant operations,
throughput, contaminant
mass removal, daily amount
of water treated, water
Operator should prepare
and submit monthly
reports in accordance
with Rialto’s DDW
permit.

None.

Description
Standard in‐house
operations to be
performed by Operator
Per Fixed Price Contract
Third Party
Contractor Cost to
be reimbursed as
Needed Notes
quality monitoring results,
and a summary of alarms
and shutdowns experienced
at the treatment plant and
any corrective actions
taken.

ND2 Combined Treatment Plant
and near‐field monitoring
well (identified by Rialto)
sampling and analyses to
comply with DDW permit.

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

Third party
laboratory charges
to be reimbursed.

ND3 Monthly shaft rotation for
all inactive pump motor
equipment (e.g., Miro‐2
and Miro‐3)
Operator to perform
work. Third party not
needed.

None
ND4 Assure proper lubrication of
operating pumps and
motors (e.g., Rialto‐3,
EW‐1, BP‐1, and BP‐2).

Operator to perform
work. Third party not
needed.

None.

ND5 Assure proper lubrication of
inactive pumps and motors
(e.g., Miro‐2 and Miro‐3).

Operator to perform
work. Third party not
needed.

None
ND6 Trouble‐shooting when
operational status is
inconsistent with
expectations.

Operator to (1) perform
initial troubleshooting to
determine appropriate
action; (2) oversee
logistics of hiring third
party contractors as
needed; and (3) oversee
work as it is completed.

Third party
contractors as
needed (e.g.,
programmer,
electrician,
manufacturer’s rep)
to be reimbursed.

ND7 Trouble‐shooting when
reservoir levels are
inconsistent with
programming.

Operator to (1) perform
initial troubleshooting to
determine appropriate
action; (2) oversee
logistics of hiring third
party contractors as
needed; and (3) oversee
work as it is completed.

Third party
contractors as
needed (e.g.,
programmer,
electrician,
manufacturer’s rep)
to be reimbursed.

ND8 Trouble‐shooting to
determine cause of control
panel alarms.

Operator to (1) perform
initial troubleshooting to
determine appropriate
action; (2) oversee
logistics of hiring third
party contractors as
Third party
contractors as
needed (e.g.,
programmer,
electrician,
manufacturer’s rep)
to be reimbursed..

Description
Standard in‐house
operations to be
performed by Operator
Per Fixed Price Contract
Third Party
Contractor Cost to
be reimbursed as
Needed Notes
needed; and (3) oversee
work as it is completed.

ND9 Trouble‐shooting to
determine cause for non‐
operational pump motors.

Operator to (1) perform
initial troubleshooting to
determine appropriate
action; (2) oversee
logistics of hiring third
party contractors as
needed; and (3) oversee
work as it is completed.

Third party
contractors as
needed (e.g.,
programmer,
electrician,
manufacturer’s rep)
to be reimbursed.

ND10 Trouble‐shooting to
determine cause for
malfunctioning flow
totalizers and motorized
valves (including valves on
conveyance lines).

Operator to (1) perform
initial troubleshooting to
determine appropriate
action; (2) oversee
logistics of hiring third
party contractors as
needed; and (3) oversee
work as it is completed.

Third party
contractors as
needed (e.g.,
programmer,
electrician,
manufacturer’s rep)
to be reimbursed.

ND11 Trouble‐shooting to
determine cause of excess
pressure across the Krebbs
Desander or for excess
water overflowing its waste
pit.

Operator to perform
work. Third party not
needed.

None
ND12 Bag filter change‐outs when
pressure is equal to or
greater than allowable bag
pressure rating, arrange for
bag filter change‐out.

Operator to perform
work. Third party not
needed.

Cost of replacement
bag filters to be
reimbursed.

ND13 Manual and/or chemical
cleaning of quartz sleeves in
the UV unit when coliform
is detected downstream of
the UV unit. Bulb
replacement may also be
required.

Operator handles
logistical issues of
identifying problem,
hiring third party
contractors to repair as
needed, overseeing
repairs and confirming
repairs were successful.

Costs of third party
experts on UV
systems or other
third party
contractors as
needed to be
reimbursed.

ND14 Manual cleaning and/or
chemical cleaning of quartz
sleeves in the UV unit when
UV bulb intensity is less
than 400 J/m2. Bulb
replacement may also be
required.

Operator handles
logistical issues of
identifying problem,
hiring third party
contractors to repair,
overseeing repairs and
confirming repairs were
successful.

Costs of third party
experts on UV
systems or other
third party
contractors as
needed to be
reimbursed.

Description
Standard in‐house
operations to be
performed by Operator
Per Fixed Price Contract
Third Party
Contractor Cost to
be reimbursed as
Needed Notes
ND15 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
successfully.

Costs of third party
contractors to be
reimbursed.

ND16 Arrange for and supervise
media replacement when
lead vessel IX or GAC
“break‐through” occurs.

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

Costs of third party
contractors to be
reimbursed.

ND17 Arrange for media
inspection/replacement if
problematic differential
pressure conditions are
identified at the treatment
vessels.

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

Costs of third party
contractors to be
reimbursed.

ND18 Trouble‐shooting to resolve
problematic conditions at
the chlorination system.

Operator to perform
work. Third party not
needed.

None
ND19 Reprogramming the control
panel to adjust for seasonal
pumping rates or
otherwise.

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

Costs of third party
programmer to be
reimbursed.

ND20 Pump and/or 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.

Costs of third party
contractors to be
reimbursed.

ND21 Housekeeping, weed
abatement in and around
Operator to perform
work. Third party not
needed.

None.

Description
Standard in‐house
operations to be
performed by Operator
Per Fixed Price Contract
Third Party
Contractor Cost to
be reimbursed as
Needed Notes
treatment system and
wells.

Exhibit C
Conceptual Diagram of Combined Capture System
A²
A²
A²
ED
Combined
Treatment Plant
North Ayala Drive
West Leiske Drive
North Fitzgerald Drive
North Linden Avenue
Rialto
Municipal Airport
MIRO-2
MIRO-3
EW-1
RIALTO3
¯
0 400
Scale in Feet

SOURCE AREA OPERABLE UNIT

ROCKETS, FIREWORKS, AND FLARES SITE
PREPARED BY:

AJP (ERM)
JOB NO. 0179962
FILE: Exhibit C.mxd
M:\Projects\Emhart_Rialto\Portland\GIS\IA\Exhibit C.mxd AJP 5/6/2015

EXHIBIT C

CONCEPTUAL DIAGRAM OF

COMBINED CAPTURE SYSTEM
Source: Image courtesy of USGS © 2013
Microsoft Corporation.

Exhibit D
Conceptual Diagram of Distribution Piping

SOURCE AREA OPERABLE UNIT

ROCKETS, FIREWORKS, AND FLARES SITE
PREPARED BY:

AJP (ERM)
JOB NO. 0179962.08.B1
FILE: ExhibitD_ConceptualDiagram_ConveyancePipelinesRev1.mxd

EXHIBIT D

CONEPTUAL DIAGRAM OF

DISTRIBUTION PIPING
Source: ESRI Aerial Imagery Webservice,
USDA, June 3, 2014.

ED
A²
A²
A²
M:\Projects\Emhart_Rialto\Portland\GIS\Maps\Implementation Agreement\ExhibitD_ConceptualDiagram_ConveyancePipelinesRev1.mxd AJP 7/31/2015 Jerry
Eaves
Park
¯
0 1,400
Feet
Legend
A² Miro Wells
A² Proposed Extraction Well Location
ED City of Rialto Production Well
Conveyance Pipeline
Baseline Connector
Combined
Treatment Plant
W Base Line Rd
N Ayala Dr
Miro Way
Locust Ave
N Maple Ave
N Cactus Ave
N Linden Ave

Exhibit E
Rialto Resolution 5248

Exhibit F
Combined Remedies Annual O&M Budget Form
(Example)
Task No. Description
Annual
Hours Hourly Rate Total Comments
D1‐D14 Daily Observation
and Recordings
___ hours per day
ND1 Monthly Reporting   ___ hours per month
ND2 DDW WQ Sampling   ___ hours per month
ND3 Shaft Rotation   ___ hours per month
ND4‐ND5 Well Lubrication   ___ hours per month
ND6‐ND11 Trouble‐shooting   ___ hours per month
ND12 Bag Filter Change‐
out
___ hours per quarter
ND13‐ND14 UV Maintenance   ___ hours per month
ND15 Coordinate the
Repair and
Maintenance of IX
and GAC
___ hours per month
ND16‐ND17 Coordinate the
change‐out of resin
or GAC
___ hours per quarter
ND18 Chlorine System
Maintenance
___ hours per week
ND19 Adjust Control Panel
and Programming
___ hours per year
ND20 Pump Motor Service   ___ hours per year
ND21 House Keeping
Weed Abatement
___ hours per month

ANNUAL LABOR SUBTOTAL   __________
ADMINISTRATIVE FEE   __________
ANNUAL LABOR TOTAL   __________

MATERIALS/EXPENSES
Materials, expenses and supplies to be billed at cost.

Exhibit G
‐1‐

Exhibit G
Procedure for Calculating Colton’s Baseline Lifting Cost As set forth in Paragraph V of this Agreement, Colton has leased certain of its water rights in the Basin to Emhart and the County to be utilized to meet the objectives of the Combined Remedies. Colton, Emhart, and the County shall use the following procedure set forth this Exhibit G to calculate the baseline electrical costs that Colton would incur to lift an acre foot of water when operating its extraction wells in the Basin (“Colton’s Baseline Lifting Cost”).

The Colton Baseline Lifting Cost is used to calculate the amount Colton shall reimburse Emhart and the County for water pumped by Emhart and the County and delivered to the Colton municipal water supply system pursuant to Emhart and the County’s respective leases of Colton Water Rights.

1. Within 30 days following DDW issuance of the amendment of Colton and Rialto’s DDW Permits necessary for operation of the Combined Remedies, Emhart, the County, and Colton shall meet and confer to calculate Colton’s Baseline Lifting Cost using the following formula: Colton’s Baseline Lifting Cost = (the total electrical costs ($) incurred to lift water at Colton wells C‐15 and C‐17 to the surface in the three years immediately prior to the calculation) ÷ (the total volume of water pumped at C‐15 and C‐17 (AF) in that same three year period). Colton’s Baseline Lifting Cost shall be stated in dollars per acre foot of water ($/AF).

2. If: (1) a change in groundwater levels materially impacts lifting costs in the Basin; or (2) a change in electrical energy costs materially impacts lifting costs in the Basin; Colton, the County, and Emhart shall meet and confer to re‐assess whether Colton’s Baseline Lifting Cost fairly and adequately represents the cost Colton would otherwise incur to lift an acre foot of water at its extraction wells in the Basin.

Exhibit H
‐1‐

Exhibit H
Annual Allocation of CR‐3/CTP Energy Costs and Reconciliation of Combined Remedies Energy Costs
This Exhibit H sets forth the procedures for annually (1) allocating the energy costs to operate CR‐3 and the CTP (“CR‐3/CTP Energy Costs”); and (2) allocating and reconciling all energy costs to operate the Combined Remedies.

Attached hereto is a compact disc (CD) containing a Microsoft Excel Workbook titled “Tables H‐1 and H‐2.XLSX.” That file contains monthly spreadsheets for allocation of CR‐3/CTP Energy Costs (Table H‐1) and an annual reconciliation spreadsheet (Table H‐2). To assist in the preparation of the annual allocation of CR‐3/CTP Energy Costs and reconciliation of Combined Remedies energy costs, attached are paper copies of Tables H‐1 and H‐2 with sample inputs and Tables H‐1 and H‐2 displaying the spreadsheet formulas used in the file.

I. Allocation of CR‐3/CTP Energy Costs (Table H‐1)
CR‐3/CTP Energy Costs include (1) the cost of energy used to operate the Combined Treatment Plant; and (2) the cost of energy used to extract groundwater at CR‐3. Southern California Edison (“SCE”) bills Rialto for CR‐3/CTP Energy Costs. CR‐3/CTP Energy Costs shall be allocated annually using the following procedure:

1. As the service customer on the monthly invoices from SCE for CR‐3/CTP Energy Costs, Rialto shall pay those invoices, subject to reimbursement as set in Paragraph II, below.

2. To facilitate allocation of CR‐3/CTP Energy Costs, the County and Emhart shall annually request that SCE perform the following energy efficiency tests:
a. A test to determine the energy required to pump an acre foot of groundwater at CR‐3 to the 100,000‐gallon equalization tank at the Combined Treatment Plant which shall be reported as “EQ Tank kWh/AF”;
b. A test to determine the energy that Rialto would otherwise use, absent the Combined Remedies, to pump an acre foot of

Exhibit H
‐2‐

groundwater from the groundwater table to its municipal water supply system which shall be reported as “Rialto Baseline kWh/AF”.

To perform this test, groundwater shall be pumped from CR‐3 to the infiltration pond at the Combined Treatment Plant through conveyance piping which shall be partially closed to simulate the pressure conditions in adjacent pipelines in Rialto’s domestic water supply system.

3. Following the end of the Water Year, Rialto shall prepare the initial draft of Table H‐1 for each monthly invoice paid by Rialto. Table H‐1 is used to allocate CR‐3/CTP Energy Costs on each monthly SCE invoice for reimbursement of Rialto by the County and Emhart in accordance with Paragraph IV.F.2.d of the Agreement. Table H‐1 contains the following five data entry steps:

STEP 1: Enter the EQ Tank kWh/AF value determined under Paragraph 2.a, above.

STEP 2: Enter the Rialto Baseline kWh/AF value determined under Paragraph 2.b, above.

STEP 3: Enter the metered volume of water pumped from CR‐3 during the monthly billing period (“CR‐3 AF”).

STEP 4: Enter the energy use values from the monthly SCE invoice.

STEP 5: Based on the numbers entered in Steps 1 through 4, Table H‐1 automatically calculates the allocation of CR‐3/CTP Energy Costs for each monthly SCE invoice.

II. Reconciliation of Paid and Projected Combined Remedies Energy Costs (Table H‐2)

1. In conjunction with the annual preparation of Table H‐1, Rialto shall collect and input the data necessary to complete Table H‐2. Table H‐2 is used to reconcile the previous Water Year’s payments for energy costs associated with operation and maintenance of the Combined Remedies, on an annual basis and set the projected quarterly payments for the next Water Year, as follows:

Exhibit H
‐3‐

STEP 1: Input monthly water production for each well.

STEP 2: Input monthly delivery of water to Rialto and Colton.

STEP 3: Table H‐2 automatically calculates the annualized allocation of CR‐3/CTP Energy Costs among the Parties based on the data in Table H‐1.

STEP 4: Input percent of pumping at CR‐3, Miro‐2 and Miro‐3 pumped for compliance with the Work Consent Decree and delivery to Colton (to be supplied by County/Emhart).

STEP 5: Input Colton’s Baseline Lifting Cost ($/AF) as determined pursuant to Exhibit G; Actual Miro‐2 and Miro‐3 Lifting Costs ($/AF) as provided by County; and Actual EW‐1 Lifting Cost ($/AF) as provided by Emhart.

STEP 6: Input allocation between Emhart and County of Regional Board Remedy Driven Incremental Lifting Costs (CR‐3)1 as provided by County and Emhart.

STEP 7: Input Quarterly Payments made for past Water Year (i.e. the year for which energy costs are being reconciled). In the first Water Year, or any portion thereof, during which the
Combined Remedies operate, the Parties shall use available information to estimate the projected quarterly payments.

2. Rialto shall circulate the draft Tables H‐1 and H‐2 to Emhart, County and Colton, along with the monthly energy bills used to generate the tables, for review by the Parties at the next monthly meeting.

3. The Parties shall meet and confer at the monthly meeting following distribution of the draft Tables H‐1 and H‐2, and review the documents.

Once Tables H‐1 and H‐2 are finalized and agreed to by the Parties , Rialto shall circulate the approved tables to the Parties, and each Party shall use

1 Regional Board Remedy Driven Incremental Lifting Costs (CR‐3) represent the incremental costs that SCE bills Rialto for energy used to extract groundwater at CR‐3 for the County to meet the remedial action objectives of the Regional Board Order. Emhart and the County allocate such costs between them pursuant to the County/Emhart Implementation Agreement.

Exhibit H
‐4‐

the tables to invoice other Parties for net amounts estimated to be paid during the next Water Year in quarterly payments, as set forth in Table H‐2, with the first payment reflecting a “true‐up” credit or debit for the prior year per Exhibit H‐2.

4. Payments shall be made quarterly on November 1, February 1, May 1, and August 1, or 60 days from receipt of an invoice for the amount due, whichever is later.

Table H‐1
‐1‐

Table H‐1
Allocation of CR‐3/CTP Energy Costs
(Example)
STEP 1 Enter EQ Tank kWh/AF based on SCE
testing 878 This value changes annually based on SCE testing Annual Input
STEP 2 Enter Rialto Baseline kWh/AF 945 This value changes annually based on SCE testing Annual Input
STEP 3 Enter CR‐3 AF 89.8
Monthly Input
STEP 4 Enter energy use from monthly SCE bill Changes monthly based on SCE bill kWh
Energy delivery
charges Generation Charges Notes
Charges Based on kWh
Delivery
On peak 8,945 $0.02188 $0.09335
Off peak 46,761 $0.02188 $0.06078
Super Off Peak 18,452 $0.02188 $0.01768
Off peak 39,827 $0.02188 $0.06085
Super Off Peak 13,812 $0.02188 $0.02812
Total 127,797
DWR Bond $0.00513 Based on SCE metered total kWh
Customer Charge 193.26 $
Power factor Adj 73.44 $
Taxes 0.0003 $ Based on SCE metered total kWh Energery Credit (0.00037) $ Based on SCE metered total kWh Charges Based on kW
kW
Facilities Demand 259 7.86 $ kW Based on SCE monthly metering On Peak 258 27.31 $
Ratio of peak days to billing cycle days 0.5625
From SCE invoice showing count of peak
demand days
STEP 5
Rialto Baseline energy use 84,861
Rialto Baseline energy use as percentage
of total Metered Energy (Rialto %) 66.4%
kWh for CR‐3 pumping (to EQ Tank) 78,844
CR‐3 pumping as percentage of total
Metered Energy 61.7%
CTP operation as percentage of total
Metered Energy (CTP %) 38.3%
Rialto Baseline kWh/AF (from Step 2) X CR‐3 AF (from Step 3) Table H‐1
(Example)
Based on SCE August 14 ‐ September 1, 2014 Bill to Rialto This value changes monthly based on CR‐3 metered water flow measurements Spreadsheet Calculation of Rialto Baseline energy use as percentage of total metered energy for billling period Allocation of CR‐3/CTP Energy Costs
Rialto Baseline energy use/Total kWh for billing period (from Step 4) Spreadsheet Calculation of relative energy use by CR‐3 pumping and CTP operation EQ Tank kWh/AF (from Step 1) X CR‐3 AF (from Step 3)
kWh for CR‐3 pumping/Total kWh for billing period (from Step 4) 1 minus CR‐3 pumping percentage

EXAMPLE
Allocation
CTP% (see step 5)
Rialto% (see step 5)
Balance (may be negative)
CTP% (see step 5)
Zero percent
Balance of Peak kWh usage charges
CTP% (see step 5)
Balance
Principles for allocation of CR‐3/CTP Energy Costs (non‐peak, peak and kW‐based charges) Non‐peak kWh Usage Charges (excludes charges above mid‐peak rate) Principle Notes
County/Emhart are responsible for the non‐peak kWh attributable to the CTP CTP% is percent of electricity used by CTP in that month (as a share of total kWh)
The formulas in this Table H‐1 are based on the following principles. To the extent that these principles conflict with the provisions of Paragraph IV.F.2.d of the Agreement, the langage of the Agreement shall control.

Charges Based on kW of equipment onsite (size of equipment at site) County/Emhart are responsible for electrical delivery charges for the electrical equipment associated with the CTP
Percent of power used by CTP is a proxy for delivery charges Rialto is responsible for electrical delivery charges for the CR3 pump The amount of charges based on kW of equipment onsite remaining to be paid once CTP% is paid
Peak charges remaining after CTP% is paid represent peak charges of lifting water at CR3
Rialto is responsible for the kWh attributable to lifting CR3 Water (using the non‐peak rates) to pipeline pressure
Represents percent of electricity used that month (as a share of the total kWh) to lift water to the surface at CR3 to pipeline pressure County/Emhart are responsible for incremental lifting costs at CR3 at non‐peak rates (which due to pumping into a reservoir rather than to pipeline pressure should be a credit) The amount of non‐peak kWh charges remaining to be paid once CTP% and Rialto% are paid (non‐peak charges)
Peak kWh Usage Charges (charges above mid‐peak rates)
County/Emhart are responsbile for the peak kWh (above mid‐peak rates) attributable to the CTP
CTP% is percent of electricity used by CTP in that month (as a share of total kWh)
Rialto not responsible for costs above mid‐peak
County/Emhart responsible for incremental lifting costs at CR3 (due to charges above mid‐ peak)

EXAMPLE
CTP Operation (based on reservior test)
(County/Emhart pay)
Baseline Lifting Costs
(based on pipeline
pressure test) (Rialto
pays)
Incremental Lifting
Costs
(County/Emhart pay)
Notes
Source DELIVERY CHARGES kW Rate Charge 38.3% 66%
Does not add to 100%
becauase pumping to
reservoir is more efficient
SCE Bill Facilites rel Demand 259 $7.86 $2,035.74 $779.79 $1,255.95 $0.00 Allocate to treatment plant and Rialto only
kWh Rate
SCE Bill On Peak 8945 $0.02188 $195.72 $74.97 $129.96 ‐$9.21 Standard Split SCE Bill Mid Peak 46761 $0.02188 $1,023.13 $391.91 $679.39 ‐$48.17 Standard Split SCE Bill Off Peak 18452 $0.02188 $403.73 $154.65 $268.09 ‐$19.01 Standard Split SCE Bill On Peak 39827 $0.02188 $871.41 $333.80 $578.65 ‐$41.03 Standard Split SCE Bill Mid Peak 13812 $0.02188 $302.21 $115.76 $200.67 ‐$14.23 Standard Split SCE Bill DWR BOND 127797 $0.00513 $655.60 $251.13 $435.34 ‐$30.87 Standard Split SCE Bill Customer Charge   $193.26 $193.26 $74.03 $128.33 ‐$9.10 Standard Split SCE Bill Power factor Adj   $73.44 $73.44 $28.13 $48.77 ‐$3.46 Standard Split GENERATION CHARGES
SERVICE DEMAND kW Rate
SCE Bill On Peak 258 $27.31 $3,963.36 $1,518.17 $0 $2,445.20 No peak charges to Rialto ENERGY DEMAND CHARGES kWh Rate
SCE Bill Peak kWh at peak rate (from SCE bill) 8,945 $0. 09335 $835.02 Calculation Peak kWh at mid‐peak rate
(breakdown of SCE Bill Value) 8,945            $0.06078 $543.68 $208.26 $361.02 ‐$25.60 Standard Split Calculation Peak costs chageable to remedy (both
CR‐3 lifting and treatment plant) 8,945            $0.03257 $291.34 $111.60 $0.00 $179.74 Allocate to combined remedy ‐‐ none to Rialto
SCE Bill Off Peak 46,761 $0.06078 $2,842.13 $1,088.68 $1,887.26 ‐$133.81 Standard Split SCE Bill Super Off Peak 18,452 $0.01768 $326.23 $124.96 $216.63 ‐$15.36 Standard Split SCE Bill Off Peak 39,827 $0.06085 $2,423.47 $928.31 $1,609.26 ‐$114.10 Standard Split SCE Bill Super Off Peak 13,812 $0.02812 $388.39 $148.77 $257.90 ‐$18.29 Standard Split OTHER kWh Rate
SCE Bill Taxes 127797 $0.00029 $37.06 $14.20 $24.61 ‐$1.74 Standard Split SCE Bill Energy Credit 127797 ‐$0.00037 ‐$47.28 ‐$18.11 ‐$31.40 $2.23 Standard Split $16,522.62 $6,328.99 $8,050.42 $2,143.22
100% 38.3% 48.7% 13.0%
SPREADSHEET ALLOCATION OF CR‐3/CTP Energy Costs
CR‐3/CTP Energy Costs (populate automatically from Step 4 above) TOTAL

EXAMPLE

Table H‐1
‐1‐

Table H‐1
Allocation of CR‐3/CTP Energy Costs
(Excel Spreadsheet Formulas)
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
29 30
34 35
36 37
38 39
40 41
42 43
44 AB C D E F G
STEP 1 Enter EQ Tank kWh/AF based on SCE
testing This value changes annually based on SCE testing Annual Input
STEP 2 Enter Rialto Baseline kWh/AF This value changes annually based on SCE testing Annual Input
STEP 3 Enter CR‐3 AF
Monthly Input
STEP 4 Enter energy use from monthly SCE bill Changes monthly based on SCE bill kWh
Energy delivery
charges Generation Charges Notes
Charges Based on kWh
Delivery
On peak
Off peak
Super Off Peak
Off peak
Super Off Peak
Total
=SUM(C15:C19)
DWR Bond Based on SCE metered total kWh
Customer Charge
Power factor Adj
Taxes Based on SCE metered total kWh
Energery Credit Based on SCE metered total kWh
Charges Based on kW
kW
Facilities Demand kW Based on SCE monthly metering
On Peak
Ratio of peak days to billing cycle days
From SCE invoice showing count of peak
demand days
STEP 5
Rialto Baseline energy use =C7*C9
Rialto Baseline energy use as percentage
of total Metered Energy (Rialto %) =C37/C20
kWh for CR‐3 pumping (to EQ Tank) =C5*C9
CR‐3 pumping as percentage of total
Metered Energy =C41/C20
CTP operation as percentage of total
Metered Energy (CTP %) =1‐C42
Rialto Baseline energy use/Total kWh for billing period (from Step 4) Spreadsheet Calculation of relative energy use by CR‐3 pumping and CTP operation EQ Tank kWh/AF (from Step 1) X CR‐3 AF (from Step 3)
kWh for CR‐3 pumping/Total kWh for billing period (from Step 4) 1 minus CR‐3 pumping percentage
Rialto Baseline kWh/AF (from Step 2) X CR‐3 AF (from Step 3) Table H‐1
(Excel Spreadshet Formulas)
Based on SCE August 14 ‐ September 1, 2014 Bill to Rialto This value changes monthly based on CR‐3 metered water flow measurements Spreadsheet Calculation of Rialto Baseline energy use as percentage of total metered energy for billling period Allocation of CR‐3/CTP Energy Costs
45 46
47 48
49 50
51 52
53 54
55 56
57 58
59 60
61 AB C D E F G H I
Allocation
CTP% (see step 5)
Rialto% (see step 5)
Balance (may be negative)
CTP% (see step 5)
Zero percent
Balance of Peak kWh usage charges
CTP% (see step 5)
Balance
Peak charges remaining after CTP% is paid represent peak charges of lifting water at CR3
Rialto is responsible for the kWh attributable to lifting CR3 Water (using the non‐peak rates) to pipeline pressure
Represents percent of electricity used that month (as a share of the total kWh) to lift water to the surface at CR3 to pipeline pressure County/Emhart are responsible for incremental lifting costs at CR3 at non‐peak rates (which due to pumping into a reservoir rather than to pipeline pressure should be a credit) The amount of non‐peak kWh charges remaining to be paid once CTP% and Rialto% are paid (non‐peak charges)
Peak kWh Usage Charges (charges above mid‐peak rates)
County/Emhart are responsbile for the peak kWh (above mid‐peak rates) attributable to the CTP CTP% is percent of electricity used by CTP in that month (as a share of total kWh)
Rialto not responsible for costs above mid‐peak
County/Emhart responsible for incremental lifting costs at CR3 (due to charges above mid‐peak) Charges Based on kW of equipment onsite (size of equipment at site) County/Emhart are responsible for electrical delivery charges for the electrical equipment associated with the CTP
Percent of power used by CTP is a proxy for delivery charges Rialto is responsible for electrical delivery charges for the CR3 pump The amount of charges based on kW of equipment onsite remaining to be paid once CTP% is paid
Principles for allocation of CR‐3/CTP Energy Costs (non‐peak, peak and kW‐based charges) Non‐peak kWh Usage Charges (excludes charges above mid‐peak rate) Principle Notes
County/Emhart are responsible for the non‐peak kWh attributable to the CTP CTP% is percent of electricity used by CTP in that month (as a share of total kWh)
The formulas in this Table H‐1 are based on the following principles. To the extent that these principles conflict with the provisions of Paragraph IV.F.2.d of the Agreement, the langage of the Agreement shall control. 62 63
64 65
66 67
68 69
70 71
72 73
74 75
76 77
81 82
83 84
85 86
87 88
89 90
91 92
93 94

AB C D E F G H I
CTP Operation (based on reservior test)
(County/Emhart pay)
Baseline Lifting Costs
(based on pipeline
pressure test) (Rialto
pays)
Incremental Lifting
Costs
(County/Emhart pay)
Notes
Source DELIVERY CHARGES kW Rate Charge =C43 =C38
Does not add to 100%
becauase pumping to
reservoir is more efficient
SCE Bill Facilites rel Demand =C28 =D28 =D64*C64 =E64*F63 =E64 ‐F64 =E64 ‐(F64+G64) Allocate to treatment plant and Rialto only
kWh Rate
SCE Bill On Peak =C15 =D15 =D66*C66 =E66*F$63 =E66*G$63 =E66 ‐G66‐F66 Standard Split SCE Bill Mid Peak =C16 =D16 =D67*C67 =E67*F$63 =E67*G$63 =E67 ‐G67‐F67 Standard Split SCE Bill Off Peak =C17 =D17 =D68*C68 =E68*F$63 =E68*G$63 =E68 ‐G68‐F68 Standard Split SCE Bill On Peak =C18 =D18 =D69*C69 =E69*F$63 =E69*G$63 =E69 ‐G69‐F69 Standard Split SCE Bill Mid Peak =C19 =D19 =D70*C70 =E70*F$63 =E70*G$63 =E70 ‐G70‐F70 Standard Split SCE Bill DWR BOND =C20 =$D$21 =D71*C71 =E71*F$63 =E71*G$63 =E71 ‐G71‐F71 Standard Split SCE Bill Customer Charge =$D$22 =D72 =E72*F$63 =E72*G$63 =E72 ‐G72‐F72 Standard Split SCE Bill Power factor Adj =$D$23 =D73 =E73*F$63 =E73*G$63 =E73 ‐G73‐F73 Standard Split GENERATION CHARGES
SERVICE DEMAND kW Rate
SCE Bill On Peak =C29 =D29 =D76*C76*(D33) =E76*F$63 $0 =E76 ‐F76 No peak charges to Rialto ENERGY DEMAND CHARGES kWh Rate
SCE Bill Peak kWh at peak rate (from SCE bill) =C15 =E15 =D81*C81 Calculation Peak kWh at mid‐peak rate
(breakdown of SCE Bill Value) =C15 =E16 =D82*C82 =E82*F$63 =E82*G$63 =E82 ‐G82‐F82 Standard Split Calculation Peak costs chageable to remedy (both
CR‐3 lifting and treatment plant) =C82 =D81 ‐D82 =D83*C83 =E83*F$63 $0.00 =E83 ‐F83 Allocate to combined remedy ‐‐ none to Rialto
SCE Bill Off Peak =C16 =E16 =C84*D84 =E84*F$63 =E84*G$63 =E84 ‐G84‐F84 Standard Split SCE Bill Super Off Peak =C17 =E17 =C85*D85 =E85*F$63 =E85*G$63 =E85 ‐G85‐F85 Standard Split SCE Bill Off Peak =C18 =E18 =C86*D86 =E86*F$63 =E86*G$63 =E86 ‐G86‐F86 Standard Split SCE Bill Super Off Peak =C19 =E19 =C87*D87 =E87*F$63 =E87*G$63 =E87 ‐G87‐F87 Standard Split OTHER kWh Rate
SCE Bill Taxes =C20 =D24 =C90*D90 =E90*F$63 =E90*G$63 =E90 ‐G90‐F90 Standard Split SCE Bill Energy Credit =C20 =D25 =C91*D91 =E91*F$63 =E91*G$63 =E91 ‐G91‐F91 Standard Split =SUM(E64:E90)‐
E81+E91 =SUM(F64:F91) =SUM(G64:G91) =SUM(H64:H91)
=E92/$E92 =F92/E92 =G92/E92 =H92/E92
SPREADSHEET ALLOCATION OF CR‐3/CTP Energy Costs
CR‐3/CTP Energy Costs (populate automatically from Step 4 above) TOTAL

Table H‐2
‐1‐

Table H‐2
Reconciliation of Paid and Projected Combined Remedies Energy Costs (Example)

EXAMPLE
Step 1: Input monthly water production (acre feet) for each well (from Operator/Rialto water flow meter readings) Production Well October November December January February March April May June July August September Total (AF) $ Per AF Total Cost of
Pumping
Water (by
well)
Source of $
per AF value Initial Payee
CR‐3 102 102 102 102 102 101 101 100 100 100 100 100 1212 $101 $122,324 Exhibit H Rialto Miro 2 0000000 1 5 1 5 1 5 1 5 1 5 7 5 $105 $7,875 From County County Miro 3 0000000 1 0 0 1 0 0 1 0 0 1 0 0 1 0 0 5 0 0 $105 $52,500 From County County EW‐1 220 220 220 220 220 220 220 220 220 220 220 220 2640 $150 $396,000 From Emhart Emhart Total 322 322 322 322 322 321 321 435 435 435 435 435 4427 Step 2: Input monthly water delivery (acre feet) to Rialto and Colton (from Operator/Rialto water flow meter readings) October November December January February March April May June July August September Total (AF) Delivery to Rialto 56 56 56 56 56 55 55 240 240 240 240 240 1590 Delivery to Colton 266 266 266 266 266 266 266 195 195 195 195 195 2837 Total 322 322 322 322 322 321 321 435 435 435 435 435 4427 Blue Italic Text means that delivery to Cities does not match output from CTP Step 3: Monthly allocation of CR‐3 Lifting Costs and Combined Treatment Plant Energy Costs (from Exhibit H‐1 output) October November December January February March April May June July August September Total ($) Per AF Rialto base lifting costs
(CR‐3) $8,050 $8,050 $8,050 $8,050 $8,050 $8,050 $8,050 $8,050 $8,050 $8,050 $8,050 $8,050 $96,605 $80 Remedy‐driven
incremental lifting costs
(CR‐3)
$2,143 $2,143 $2,143 $2,143 $2,143 $2,143 $2,143 $2,143 $2,143 $2,143 $2,143 $2,143 $25,719 $21 CTP energy costs $6,329 $6,329 $6,329 $6,329 $6,329 $6,329 $6,329 $6,329 $6,329 $6,329 $6,329 $6,329 $75,948 $17 Red value for AF cost of Incremental CR‐3 means no CR‐3 lifting occurred so value should be entered manually.

Table H‐2
Reconciliation of Paid and Projected Combined Remedies Energy Costs (Example)

EXAMPLE
Step 4: Input Pumping at County Wells Required By EPA Remedy Delivered to Colton (%) (based County/Emhart IA) CR‐30 %
Miro‐20 %
Miro‐30 %
Step 5: Input Lifing Costs ($/AF)
Colton's Baseline Lifting
Cost $125
Exhibit G
(should not
change too
often)
This is made
up for this
example.

Rialto's Baseline Lifting
Cost (CR‐3) $80 Calculated in
Step 3
This is made
up for this
example.

Actual Miro‐2 Lifting
Cost $105
Actual Miro‐3 Lifting
Cost $105
Actual EW‐1 Lifting Cost $150
Emhart to
provide
annual
averages
This is made
up for this
example.

Step 6: Input allocation of Regional Board Remedy‐Driven Icremental Lifting Costs (CR‐3) (from County/Emhart IA) County Share of
Regional Board Remedy
CR‐3 Pumping
80%
Emhart Share of
Regional Board Remedy
CR‐3 Pumping
20%
Not important
unless Emhart
is using part
of Miro wells
for its
remedy.

County to
provide
annual
averages.

Lifting Cost Notes

EXAMPLE
EW1 (AF) CR ‐3 (AF) Miro 2 (AF) Miro 3 (AF) Total (AF) For Colton (AF)
Percent to
Colton For Rialto (AF) Percent to
Rialto
Pumping for Emhart
Remedy 2640 0 0 0 2640 2640 100% 0 0%
Pumping for County
Remedy 0 1212 75 500 1787 197 11% 1590 89%
Total 2640 1212 75 500 4427 2837 64% 1590 36%
Description Cash flow AF Base Cost Total Cost To Rialto To County To Emhart to Colton Total Emhart Remedy
Pumping (delivered to
Colton)
Colton pays
Emhart 2640 $125 $330,000 $330,000 ($330,000)
Total County Remedy
Pumping that was
Delivered to Colton
Colton pays
County 197 $125 $24,625 $24,625 ($24,625)
County Remedy
Pumping at CR‐3 that
was Delivered to Colton
County pays
Rialto 134 $80 $10,650 $10,650 ($10,650)
Emhart Remedy
Pumping at CR‐3 that
was delievered to Colton
Emhart pays
Rialto 0 $101 $0 $0 $0
County Remedy
Pumping at Miro 2 and
Miro 3 that was
delivered to Rialto
Rialto Pays
County 512 $80 $40,779 ($40,779) $40,779
County share of
Regional Board Remedy‐
driven Incremental
Lifting Costs (CR‐3)
County pays
Rialto 1212 $17 $20,575 $20,575 ($20,575)
Emhart Share of
Regional Boad Remedy‐
driven Incremental
Lifting Costs (CR‐3)
Emhart pays
Rialto 1212 $4 $5,144 $5,144 ($5,144)
Emhart Remedy
Pumping at Miro 2 and
Miro 3 (delivered to
Colton)
Emhart to
County 0 $105 $0 $0 $0
TABLE 1:  ANNUALIZED WATER ALLOCATION
TABLE 2:  CALCULATION OF LIFTING COST ALLOCATION  (excludes electrical from Treatment Plant, addressed separately below)
Colton gets from County the delta between water delivered Colton minus what Emhart pumped that water year.  Rialto gets all water not delivered to Colton.

Notes
Colton gets all water pumped for Emhart remedy on an annual basis 80% of Remedy‐driven
incremental (per
County/Emhart Agreement;
Exhibit H)
20% of Remedy‐driven
incremental (per
County/Emhart Agreement;
Exhibit H)
Actual lifting costs at Miro
2/3 (County to provide if
needed)
From Exhibit H ‐‐ Rialto Base
CR‐3 Lifting Costs (annual
average)
Cost note
Colton Base Lifting Costs

EXAMPLE
Percent Annual
Amount Notes To Rialto County Share Emhart Share
County Share of CTP
Energy Costs 35% $26,499
Per County Emhart
Allocation Agreement
(County share is 80%
of CR‐3 flow+ 100% of
Miro 2 and Miro 3)
(first 2 years)
Remedy‐drive
Incremental
lifting at CR‐3
$25,719 $20,575 $5,144
Emhart Share of CTP
Energy Costs 65% $49,449
Per County Emhart
Allocation Agreement
(Emhart share is 20%
of CR‐3 flow plus 100%
of EW1 Share)(first 2
years)
CTP energy
costs $75,948 $26,499 $49,449
Total $75,948 Total $101,666 $47,073 $54,593
To Rialto To Emhart To County
County Owes $57,723 NA NA
Colton Owes NA $330,000 $24,625
Rialto Owes NA NA $40,779
Emhart Owes $54,593 NA $0
TABLE 3:  ALLOCATION OF TREATMENT PLANT ELECTRICAL
COSTS
County pays to Rialto its share of CTP Energy, its share of remedy‐driven incremental at CR‐3, and for CR‐3 water delivered  to Colton
Colton pays its base lifting costs * AF of water received (to Emhart or County) Rialto pays its lifting costs for water it receives from Miro 2 and Miro 3 TABLE 5:  END OF YEAR WATER SUMMARY  (Annual Total Based on Water and Treatment Plant Use) Notes
Emhart pays to Rialto, its share of CTP Energy, its share of remedy‐driven incremental at CR‐3, its share of CR‐3 pumped for Emhart remedy; Emhart pays to County for Miro 2 and Miro 3 water Emhart delivers to Colton (if any)
TABLE 4:  COMBINED REMEDY SHARE OF
ELECTRICAL AT CR‐3 METER (CR‐3
INCREMENTAL PLUS CTP)

EXAMPLE
Step 7: Annual Energy Cost Reconciliation
First Quarter Second
Quarter Third Quarter Fourth Quarter
Total Previous
Water Year
Payments
Actual Allocated Cost Balance Due
Estimated
Quarterly
Payments for Next
Water Year
County to Rialto $9,500 $9,500 $9,500 $9,500 $38,000 $16,944 ($21,056) $4,236 Colton to Emhart $84,200 $84,200 $84,200 $84,200 $336,800 $330,000 ($6,800) $82,500 Colton to County $4,200 $4,200 $4,200 $4,200 $16,800 $24,625 $7,825 $6,156 Emhart to Rialto $29,000 $29,000 $29,000 $29,000 $116,000 $54,593 ($61,407) $13,648 Emhart to County $0 $0 $0 $0 $0 $0 $0 $0
Explanatory Notes
Use this Column to
determine Annual
Payments for next Water
Year
Negative value means
payee writes a check to
payor. Can handle as
credit on first quarterly
payment
Current Year
Actual divided by 4
Previous Water Year Payments Reconciliation and Estimated Next Water Year Payments

Table H‐2
‐1‐

Table H‐2
Reconciliation of Paid and Projected Combined Remedies Energy Costs (Excel Spreadsheet Formulas)
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 AB C D E F G H I J K L M N O P Q R
Step 1: Input monthly water production (acre feet) for each well (from Operator/Rialto water flow meter readings) Production Well October November December January February March April May June July August September Total (AF) $ Per AF Total Cost of
Pumping
Water (by
well)
Source of $
per AF value Initial Payee
CR‐3 =SUM(B7:M7) =O23+O22 =O7*N7 Exhibit H Rialto
Miro 2 =SUM(B8:M8) =B35 =O8*N8 From County County
Miro 3 =SUM(B9:M9) =B36 =O9*N9 From County County
EW‐1 =SUM(B10:M10) =B37 =O10*N10 From Emhart Emhart
Total =SUM(B7:B10) =SUM(C7:C10) =SUM(D7:D10) =SUM(E7:E10) =SUM(F7:F10) =SUM(G7:G10) =SUM(H7:H10) =SUM(I7:I10) =SUM(J7:J10) =SUM(K7:K10) =S UM(L7:L10) =SUM(M7:M10) =SUM(N7:N10) October November December January February March April May June July August September Total (AF) Delivery to Rialto =SUM(B15:M15)
Delivery to Colton =SUM(B16:M16)
Total =SUM(B15:B16) =SUM(C15:C16) =SUM(D15:D16) =SUM(E15:E16) =SUM(F15:F16) =SUM(G15:G16) =SUM(H15:H16) =SUM(I15:I16) =SUM(J15:J16) =SUM( K15:K16) =SUM(L15:L16) =SUM(M15:M16) =SUM(N15:N16) Blue Italic Text means that delivery to Cities does not match output from CTP Step 3: Monthly allocation of CR‐3 Lifting Costs and Combined Treatment Plant Energy Costs (from Exhibit H‐1 output) October November December January February March April May June July August September Total ($) Per AF Rialto base lifting costs
(CR‐3)
='Table H‐1
OCT'!$G$92
='Table H‐1
NOV'!$G$92
='Table H‐1
DEC'!$G$92
='Table H‐1
JAN'!$G$92
='Table H‐1
FEB'!$G$92
='Table H‐1
MAR'!$G$92
='Table H‐1
APR'!$G$92
='Table H‐1
MAY'!$G$92
='Table H‐1
JUN'!$G$92
='Table H‐1
JUL'!$G$92
='Table H‐1
AUG'!$G$92
='Table H‐1
SEP'!$G$92 =SUM(B22:M22) =IF(N7'=0,O8,
N22/N7)
Remedy‐driven
incremental lifting costs
(CR‐3)
='Table H‐1
OCT'!$H$92
='Table H‐1
NOV'!$H$92
='Table H‐1
DEC'!$H$92
='Table H‐1
JAN'!$H$92
='Table H‐1
FEB'!$H$92
='Table H‐1
MAR'!$H$92
='Table H‐1
APR'!$H$92
='Table H‐1
MAY'!$H$92
='Table H‐1
JUN'!$H$92
='Table H‐1
JUL'!$H$92
='Table H‐1
AUG'!$H$92
='Table H‐1
SEP'!$H$92 =SUM(B23:M23) =IF(N7'=0,0,N2
3/N7)
CTP energy costs ='Table H‐1
OCT'!$F$92
='Table H‐1
NOV'!$F$92
='Table H‐1
DEC'!$F$92
='Table H‐1
JAN'!$F$92
='Table H‐1
FEB'!$F$92
='Table H‐1
MAR'!$F$92
='Table H‐1
APR'!$F$92
='Table H‐1
MAY'!$F$92
='Table H‐1
JUN'!$F$92
='Table H‐1
JUL'!$F$92
='Table H‐1
AUG'!$F$92
='Table H‐1
SEP'!$F$92 =SUM(B24:M24) =N24/N11
Red value for AF cost of Incremental CR‐3 means no CR‐3 lifting occurred so value should be entered manually.

Table H‐2
Reconciliation of Paid and Projected Combined Remedies Energy Costs (Excel Spreadsheet Formulas)
Step 2: Input monthly water delivery (acre feet) to Rialto and Colton (from Operator/Rialto water flow meter readings) 26 27
28 29
30 31
32 33
34 35
36 37
38 39
40 41

AB C D E F G H
Step 4: Input Pumping at County Wells Required By EPA Remedy Delivered to Colton (%) (based County/Emhart IA) CR‐3
Miro‐2
Miro‐3
Step 5: Input Lifing Costs ($/AF)
Colton's Baseline Lifting
Cost
Exhibit G (should
not change too
often)
This is made up for
this example.

Rialto's Baseline Lifting
Cost (CR‐3) =O22 Calculated in Step
3 This is made up for
this example.

Actual Miro‐2 Lifting Cost
Actual Miro‐3 Lifting Cost
Actual EW‐1 Lifting Cost Emhart to provide
annual averages
This is made up for
this example.

Step 6: Input allocation of Regional Board Remedy‐Driven Icremental Lifting Costs (CR‐3) (from County/Emhart IA) County Share of Regional
Board Remedy CR‐3
Pumping

Emhart Share of Regional
Board Remedy CR‐3
Pumping
=1‐B40
Not important
unless Emhart is
using part of Miro
wells for its
remedy.

County to provide
annual averages.

Lifting Cost Notes
42 43
44 45
46 47
48 49
50 51
52 53
54 55
56 57
58 AB C D E F G H I J K L M N O
EW1 (AF) CR ‐3 (AF) Miro 2 (AF) Miro 3 (AF) Total (AF) For Colton (AF) Percent to Colton For Rialto (AF) Percent to Rialto Pumping for Emhart
Remedy =N10 =N7*B27 =N8*B28 =N9*B29 =SUM(B44:E44) =F44 =G44/F44 0 =I44/H44 Pumping for County
Remedy 0 =N7 ‐C44 =N8 ‐D44 =N9 ‐E44 =SUM(B45:E45) =N16 ‐G44 =G45/F45 =F45 ‐G45 =I45/F45 Total =SUM(B44:B45) =SUM(C44:C45) =SUM(D44:D45) =SUM(E44:E45) =SUM(F44:F45) =SUM(G44:G45) =G46/F46 =SUM(I44:I45) =I46/F46 Description Cash flow AF Base Cost Total Cost To Rialto To County To Emhart to Colton Total Emhart Remedy
Pumping (delivered to
Colton)
Colton pays Emhart =F44 =$B$33 =D50*C50 =E50 =0 ‐E50
Total County Remedy
Pumping that was
Delivered to Colton
Colton pays County =G45 =$B$33 =D51*C51 =E51 =0 ‐E51
County Remedy Pumping
at CR‐3 that was
Delivered to Colton
County pays Rialto =C45*H45 =$O$22 =D52*C52 =E52 =0 ‐E52 Emhart Remedy
Pumping at CR‐3 that
was delievered to Colton
Emhart pays Rialto =C44 =$O$22+$O$23 =D53*C53 =E53 =0 ‐E53 County Remedy Pumping
at Miro 2 and Miro 3 that
was delivered to Rialto
Rialto Pays County =(D45+E45)*(1‐
H45) =$O$22 =D54*C54 =0 ‐E54 =E54
County share of Regional
Board Remedy‐driven
Incremental Lifting Costs
(CR‐3)
County pays Rialto =C45 =O23*B40 =D55*C55 =E55 =0 ‐E55
Emhart Share of Regional
Boad Remedy‐driven
Incremental Lifting Costs
(CR‐3)
Emhart pays Rialto =C45 =O23*B41 =D56*C56 =E56 =0 ‐E56
Emhart Remedy Pumping
at Miro 2 and Miro 3
(delivered to Colton)
Emhart to County =D44+E44 =B35 =D57*C57 =E57 =0 ‐E57
Colton gets all water pumped for Emhart remedy on an annual basis 80% of Remedy‐driven incremental
(per County/Emhart Agreement;
Exhibit H)
20% of Remedy‐driven incremental
(per County/Emhart Agreement;
Exhibit H)
Actual lifting costs at Miro 2/3
(County to provide if needed)
From Exhibit H ‐‐ Rialto Base CR‐3
Lifting Costs (annual average)
Cost note
Colton Base Lifting Costs
TABLE 1: ANNUALIZED WATER ALLOCATION
TABLE 2: CALCULATION OF LIFTING COST ALLOCATION (excludes electrical from Treatment Plant, addressed separately below) Colton gets from County the delta between water delivered Colton minus what Emhart pumped that water year. Rialto gets all water not delivered to Colton.

Notes
59 60
61 62
63 64
65 66
67 68
69 70
71 72
73 AB C D E F G H I J K L M N O
Percent Annual Amount Notes To Rialto County Share Emhart Share County Share of CTP
Energy Costs
=(B40*C45+D45+E4
5)/F46 =B61*N$24
Per County Emhart
Allocation
Agreement
(County share is
80% of CR‐3 flow+
100% of Miro 2
and Miro 3) (first 2
years)
Remedy‐drive
Incremental lifting
at CR‐3
=SUM(N23) =H61*B40 =H61*B41
Emhart Share of CTP
Energy Costs =1‐B61 =B62*N$24
Per County Emhart
Allocation
Agreement
(Emhart share is
20% of CR‐3 flow
plus 100% of EW1
Share)(first 2
years)
CTP energy costs =C63 =C61 =C62
Total =SUM(C61:C62) Total =SUM(H61:H62) =SUM(I61:I62) =SUM(J61:J62) To Rialto To Emhart To County
County Owes =H52+H55+C61 NA NA
Colton Owes NA =J50 =I51
Rialto Owes NA NA =I54
Emhart Owes =C62+H56+H53 NA =I57
County pays to Rialto its share of CTP Energy, its share of remedy‐driven incremental at CR‐3, and for CR‐3 water delivered  to Colton
Colton pays its base lifting costs * AF of water received (to Emhart or County) Rialto pays its lifting costs for water it receives from Miro 2 and Miro 3 TABLE 5:  END OF YEAR WATER SUMMARY  (Annual Total Based on Water and Treatment Plant Use) Notes
Emhart pays to Rialto, its share of CTP Energy, its share of remedy‐driven incremental at CR‐3, its share of CR‐3 pumped for Emhart remedy; Emhart pays to County for Miro 2 and Miro 3 water Emhart delivers to Colton (if any) TABLE 4:  COMBINED REMEDY SHARE OF ELECTRICAL AT
CR‐3 METER (CR‐3 INCREMENTAL PLUS CTP)TABLE 3:  ALLOCATION OF TREATMENT PLANT ELECTRICAL COSTS 74 75
76 77
78 79
80 81
82 AB C D E F G H I
Step 7:  Annual Energy Cost Reconciliation
First Quarter Second Quarter Third Quarter Fourth Quarter Total Previous Water Year Payments Actual Allocated Cost Balance Due
Estimated Quarterly
Payments for Next Water
Year
County to Rialto =SUM(B77:E77) =B69 ‐D71 =G77 ‐F77 =G77/4 Colton to Emhart =SUM(B78:E78) =J50 =G78 ‐F78 =G78/4
Colton to County =SUM(B79:E79) =I51 =G79 ‐F79 =G79/4
Emhart to Rialto =SUM(B80:E80) =B72 =G80 ‐F80 =G80/4
Emhart to County =SUM(B81:E81) =D72 =G81 ‐F81 =G81/4
Explanatory Notes
Use this Column to
determine Annual
Payments for next Water
Year
Negative value means
payee writes a check to
payor.  Can handle as
credit on first quarterly
payment
Current Year Actual
divided by 4
Previous Water Year Payments Reconciliation and Estimated Next Water Year Payments

Exhibit I
‐1‐

Exhibit I
Water Management Plan
(Example)

EXAMPLE
Step 1: Input Planned Combined Remedies Output
Winter Months (gpm) (AF)
October 1635 220 800 108 2435 328
November 1635 220 800 108 2435 328
December 1635 220 800 108 2435 328
January 1635 220 800 108 2435 328
February 1635 220 800 108 2435 328
March 1635 220 800 108 2435 328
April 1635 220 800 108 2435 328
Summer Months
May 1635 220 1540 207 3175 427
June 1635 220 1540 207 3175 427
July 1635 220 1540 207 3175 427
August 1635 220 1540 207 3175 427
September 1635 220 1530 206 3165 426
Annual Total 2639 1788 4427
Annual Average 1635 220 1108 149 2743 369
Red Box means that
treatment plant
production exceeds
ability to deliver water
to Colton
Red Box means
that treatment
plant production
exceeds available
water rights
Notes
1 Emhart pumping not to exceed "Current Rights Available to Emhart" identified below. 2 Emhart pumping may in the future include a portion of other extraction wells, such as Rialto-3. In that instance, table can be modified as appropriate. 3 County pumping not to exceed "Current Rights Available to County" identified below. 4 County pumping may in the future include other wells. In that instance, table can be modified as appropriate. 5 1 gpm = 0.134506281 Acre Feet per Month
Miro‐3 (gpm) County Total (AF)
EXHIBIT I ‐ COMBINED REMEDIES ANNUAL WATER MANAGEMENT PLAN PLANNED COMBINED REMEDIES OUTPUT
Month
Emhart Pumping1 2 County Pumping2 3
EW‐1 (gpm) Possible EW‐2
(gpm) Emhart Total (AF)3 RIALTO‐3 (gpm)
Combined Remedies Total
Miro‐2 (gpm)
Step 2: Input Available Water Rights
City Rights per 1961
Decree
Current Required
% Reduction per
1961 Decree
(cannot be
greater than 50%)
Current Rights
Per 1961 Decree
(AF)
Rialto Rights
Unavailable to
Rialto due to
Standby
Agreement
Current Rights
Available to
Emhart (AF)
[Accounting for
200 AF
agreement
between Colton
and County]
Current Rights
Available to County
(AF)
Combined Remedy
Rights Available for
Treatment Plant
(AF)
Rialto 4366 27% 3187 1600 0 1587 1587
Colton 3900 27% 2847 NA 2647 200 2847
Total 8266 6034 2647 1787 4434
Step 3:  Input Colton Monthly Minimum Needs and Maximum Capacity to Accept Water from the Combined Remedies Month Minimum Water
Needs
Maximum
Capacity of
Colton to Accept
Water
October 115 300
November 115 300
December 115 300
January 115 300
February 115 300
March 115 300
April 115 300
May 196 400
June 196 400
July 196 400
August 196 400
September 196 400
TOTAL* 1785
* Not to exceed Colton Water Rights
Step 4: Input Monthly Maximum Operational Flow Rate for Delivery of Water to Rialto and Colton Maximum
Operational Flow
Rate (gpm)
Maximum
Volume of Water
Deliverable to
Colton (AF)
Octboer 2040 274 274
November 2040 274 274
December 2040 274 274
January 2040 274 274
February 2040 274 274
March 2040 274 274
April 2040 274 274
May 2040 274 274
June 2040 274 274
July 2040 274 274
August 2040 274 274
September 2040 274 274
Total 2040 3293
* Lesser of Maximum Capacity of Colton to Accept Water (Step 3, Column C) and Maximum Volume of Water Deliverable to Colton (Step 4, Column C) (gpm) (AF)
4000 538
Upper Limit for Delivery of Water to
Colton* (AF)
Text is red if value
exceeds water
delivery capacity
to Colton
Box is red if minimum water needs exceed Colton Water Rights Maximum Water Deliverable to
Rialto Per Month (AF)
AVAILABLE RIALTO AND COLTON WATER RIGHTS (AF)
Text is red if
maximum volume
of water
deliverable to
Colton is less than
Colton minimum
water needs
COLTON WATER BUDGET (AF)
Step 5:  Input Rialto Month‐by‐Month Minimum Needs
Month Minimum Water
Needs (AF)
October 75
November 75
December 75
January 75
February 75
March 75
April 75
May 200
June 200
July 200
August 200
September 200
Total* 1525
Colton Water
Rights
Minimum
Summer Needs
(sum of minimum
for each summer
month)
Water Rights
Available in
Winter Months
(rights minus
summer minimum
needs)
2847 980 1867
What County
Pumped
Annual Delivery
Capacity Available
to County for
Initial 200 AF
Rialto Water
Rights
Amount Rialto can
Pump from other
wells (before any
adjustments)
Water County
Pumps for Colton
Above 200 AF (per
Water Year)
1788 200 1587 0 0
* Purple Box indicates value exceeds capacity tp deliver water to Colton What Emhart
Pumped (all for
Colton) (AF per
water year)
What County
Pumped for
Colton (AF per
water year)
Total to Colton
(AF per water
year)
Total Water to
Colton in Summer
Months (AF)
Monthly Total to
Colton in Summer
Months (AF per
month)
(assuming Rialto
rights utilized as
much as possible
for County
Remedy)
Maximum
Potential Water to
Colton in Summer
(assuming Colton
uses all its water
rights available
after subtracting
winter use)
2639 200 2839 1072 214 216
(From production
values above)
(From table
above)
(Emhart delivery
plus County
delivery)
(Annual total AF
to Colton minus
water to Colton in
winter)
If cell is green,
delivery to Colton
will be limited by
delivery capacity
Used to calculate
potential shift of
water to Colton in
summer to meet
minimum Colton
needs (which in
turn allows Rialto
to produce more
from its other
wells). Green
indicates
potential delivery
limited by
delivery capacity
to Colton.
267
Calculation of Water Pumped for Colton for County Remedy Calculation of Water to Colton in the Summer Months
RIALTO WATER BUDGET
* Not to exceed Rialto Water Rights
Calculation of Maximum Monthly Delivery to Colton in Winter (to ensure Colton can receive its minimum needs in the summer)
Box is red if minimum water needs exceed Rialto Water Rights Step 6:  Parties meet and confer to determine if they can agree upon maximum prioritized delivery of water to Colton in winter months (Table 1) or must revert to default water delivery schedule (Table 2)
For Table 1
Maximum Monthly Delivery to Colton
in Winter to Preserve Rights for
Summer (available winter rights/7)*
Month
Planned
Combined
Remedies Output
(AF)
Planned Delivery
to Rialto (AF)
Remaining Rialto
Water Rights (AF)
Planned Delivery
to Colton (AF)
Remaining Colton
Water Rights (AF)
Start (Total Water
Rights) 1587 2847
October 328 75 1512 253 2594
November 328 75 1437 253 2342
December 328 75 1362 253 2089
January 328 75 1287 253 1837
February 328 75 1212 253 1584
March 328 75 1137 253 1332
April 328 75 1062 253 1079
May 427 213 849 214 865
June 427 213 637 214 651
July 427 213 424 214 436
August 427 213 211 214 222
September 426 211 0 214 8
Total Water
Delivered 4427 1587 2839
Unused Water
Rights for Water
Year
08 Box is Red if CTP
produces more
than capacity to
deliver water to
Colton.

Red Box means
CTP output does
not match water
provided to Rialto
and Colton. Blue
Box means
delivery is less
than minimum
monthly need.

Green Box means
that production
plus other water
rights meets
minimum
monthly needs in
summer.

Red Box means
delivery exceeds
water rights.

Red Box means
CTP output does
not match water
provided to Rialto
and Colton. Blue
Box means
delivery is less
than minimum
monthly need.

Yellow text
means that
delivery to Colton
limited by
delivery capacity
to Colton. Purple
text means some
CTP Output
shifted to Colton
from Rialto.

Red Box means
delivery exceeds
water rights
1 2
1 2
Table 1 ‐ Maximum Prioritized Delivery of Water to Colton in Winter Months If Planned Delivery to Colton (Column E) is
less than Colton's minimum water needs in a
given month, and Colton has additional
available water rights, the Parties may
manually increase the Planned Delivery to
Colton by inputting the amount of Colton
Water Rights to be preferentially used by the
County (per Paragraph VI. B. 2. a. ix.) (AF)
0 0
0 0
0 0
0 0
0 Rialto receives all water that is not delivered to Colton. The Colton delivery calculation ensures that Rialto receives at least its minimum needs, provided that such volume does not exceed the volume of water pumped by the County in that month In each Summer Month:

Colton receives the lesser of (1) a value equal to 1/5th of the total to be pumped for Colton in that water year less the amount pumped in the winter months (2) the monthly maximum capacity to deliver water to Colton and (3) Colton's maximum capacity to accept water If remaining water rights are less than zero, County/Emhart will need to evaluate changes to production rates or alternative sources of water. 0 0
0 Red Box Means Value Causes water to Colton
to exceed delivery capacity to Colton
Under the "Maximum Prioritized Delivery" schedule:

In each Winter Month:

Colton receives the lesser of (1) a value equal to 1/7th of the Colton Water Rights minus the total summer minimum water needs (2)the monthly treatment plant output minus the lesser of (Rialto minimum monthly needs and the amount pumped for the County Rialto receives all water that is not delivered to Colton. 0 EXAMPLE
Month
Planned
Combined
Remedies Output
(AF)
Colton 200 AF
Pumped for
County Remedy
Delivered to
Colton (AF)
Planned Delivery
to Rialto (AF)
Remaining Rialto
Water Rights (AF)
Planned Delivery
to Colton (AF) for
Emhart
Planned Delivery to
Colton (AF) for
Combined Remedy
Remaining Colton
Water Rights (AF)
Surplus Available to
County to Pump for
Colton (AF)
Start (Total Water
Rights) 1587 2847
October 328 28.6 79 1508 220 248 2599
November 328 28.6 79 1429 220 248 2350
December 328 28.6 79 1350 220 248 2102
January 328 28.6 79 1271 220 248 1853
February 328 28.6 79 1192 220 248 1605
March 328 28.6 79 1113 220 248 1356
April 328 28.6 79 1034 220 248 1108
May 427 0 207 827 220 220 888
June 427 0 207 620 220 220 668 8
July 427 0 207 413 220 220 448 8
August 427 0 207 205 220 220 228 8
September 426 0 206 0 220 220 8 8
Total Water
Delivered 4427 200 1588 2639 2839
Unused Water
Rights for Water
Year
08 Red Box indicates
mismatch
between CTP
output and
delivery to cities.

Delivery is
reduced if
capacity to deliver
water to Colton is
not sufficient to
deliver 200 AF to
Colton.

Blue Box means
delivery is less
than minimum
monthly need.

Red Box means
delivery exceeds
water rights.

Blue Box means
delivery is less
than minimum
monthly need.

Green text means
that delivery to
Colton limited by
delivery capacity.

Blue Box means
delivery is less than
minimum monthly
need. Green text
means that delivery to
Colton limited by
delivery capacity.

Red Box means
delivery exceeds
water rights.

If remaining water rights are less than zero, County/Emhart will need to evaluate changes to production rates or alternative sources of water.

Step 7: Parties shall make any necessary modifications to the WMP as required by the limitations of Paragraph VI.B.2.a of the Four Party Implementation Agreement
Table 2 ‐ Default Water Delivery Schedule
Rialto receives all water pumped by County (except for 200 AF that the County may pump for Colton and Colton receives all water pumped by Emhart plus the 200 AF that the County may pump for Colton. The Colton 200 AF from the County is divided equally among the Winter Months.

Under the "Default Delivery" schedule:

EXAMPLE
Instructions
Some things to Check:

1. Does minimum need of each city fall within its water rights?

2. Is each city getting its minimum needs met?

3. Can an adjustments to seasonal pumping fix a problem with 2?

4. If capacity to deliver water to Colton is limited, can water be wheeled to Colton in another way?

5. If production exceeds water rights, will need to reduce pumping from treatment plant unless Emhart or County can get additional water rights.

10. After trigger measurement, County can request use of additional Colton water rights (subject to delivery capacity restraints) or Colton can utilize those rights at its other wells.

11. Rialto can produce from its other wells an amount equal to its excess rights, following reporting of the curtailment, if such rights are not needed for the County Remedy.

1. County and Emhart provide data for yellow boxes in rows 9 to 21

2. Rialto and Colton provide anticipated percent reductions for yellow boxes on rows 36 and 37

3. Colton provides its minimum needs and maximum capacity to receive water by month (yellow boxes on rows 44 to 55)

4. Colton and Rialto identify capacity values for yellow cells on rows 61 and 72, 75 (likely no change year to year)

5. Rialto provide its minimum needs by month (rows 82 to 93)

6. County and Emhart adjust anticipated treatment plant output (yellow cells on rows 9 to 21) to ensure minimum needs are met and water rights not exceeded (based on data provided by cities). Check

7. Each month, update yellow cells using actual production and delivery data (rows 9 to 21 and 82 to 93). Adjust future months as appropriate.

8. After trigger measurements reported in June, parties adjust data to reflect deliveries and pumping to date (for that water year) and curtailment. Parties make other adjustments as needed to pumping pattern to ensure pumping does not exceed water rights.

9. If Colton has extra water rights, it can request additional deliveries up to production of treatment plant, provided that Rialto is able to increase its production at other wells to accommodate a reduced

Exhibit I
‐1‐

Exhibit I
Water Management Plan
(Excel Spreadsheet Formulas)
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
29 30
31 AB C D E F G H I J
Winter Months (gpm) (AF)
October =SUM(B9:C9)*$C$30 =SUM(E9:G9)*$C$30 =SUM(B9:C9,E9:G9) =D9+H9 November =SUM(B10:C10)*$C$30 =SUM(E10:G10)*$C$30 =SUM(B10:C10,E10:G10) =D10+H10 December =SUM(B11:C11)*$C$30 =SUM(E11:G11)*$C$30 =SUM(B11:C11,E11:G11) =D11+H11 January =SUM(B12:C12)*$C$30 =SUM(E12:G12)*$C$30 =SUM(B12:C12,E12:G12) =D12+H12 February =SUM(B13:C13)*$C$30 =SUM(E13:G13)*$C$30 =SUM(B13:C13,E13:G13) =D13+H13 March =SUM(B14:C14)*$C$30 =SUM(E14:G14)*$C$30 =SUM(B14:C14,E14:G14) =D14+H14 April =SUM(B15:C15)*$C$30 =SUM(E15:G15)*$C$30 =SUM(B15:C15,E15:G15) =D15+H15 Summer Months
May =SUM(B17:C17)*$C$30 =SUM(E17:G17)*C$30 =SUM(B17:C17,E17:G17) =D17+H17 June =SUM(B18:C18)*$C$30 =SUM(E18:G18)*C$30 =SUM(B18:C18,E18:G18) =D18+H18 July =SUM(B19:C19)*$C$30 =SUM(E19:G19)*C$30 =SUM(B19:C19,E19:G19) =D19+H19 August =SUM(B20:C20)*$C$30 =SUM(E20:G20)*C$30 =SUM(B20:C20,E20:G20) =D20+H20 September =SUM(B21:C21)*$C$30 =SUM(E21:G21)*C$30 =SUM(B21:C21,E21:G21) =D21+H21 Annual Total =SUM(D9:D21) =SUM(H9:H21) =SUM(J9:J21)
Annual Average =AVERAGE(B9:B21) =AVERAGE(D9:D21) =AVERAGE(E9:E21) =AVERAGE(H9:H21) =AVERAGE(I9:I21) =AVERAGE(J9:J21) Red Box means that treatment plant
production exceeds ability to deliver
water to Colton
Red Box means that treatment
plant production exceeds
available water rights
Notes
1 2
3 4
5 1 gpm = 0.134506281 Acre Feet per Month
County pumping not to exceed "Current Rights Available to County" identified below.

County pumping may in the future include other wells. In that instance, table can be modified as appropriate.

County Total (AF)
Step 1: Input Planned Combined Remedies Output
Emhart pumping not to exceed "Current Rights Available to Emhart" identified below.

Emhart pumping may in the future include a portion of other extraction wells, such as Rialto-3. In that instance, table can be modified as appropriate.

EXHIBIT I ‐ COMBINED REMEDIES ANNUAL WATER MANAGEMENT PLAN PLANNED COMBINED REMEDIES OUTPUT
Month
Emhart Pumping1 2 County Pumping2 3
EW‐1 (gpm) Possible EW‐2 (gpm) Emhart Total (AF)3 RIALTO‐3 (gpm) Combined Remedies Total
Miro‐2 (gpm) Miro ‐3 (gpm)
32 33
34 35
36 37
38 39
40 41
42 43
44 45
46 47
48 49
50 51
52 53
54 55
56 57
58 59
60 61
62 63
64 65
66 67
68 69
70 71
72 73
74 75
76 77

ABC D E F G H
City Rights per 1961 Decree
Current Required % Reduction per
1961 Decree (cannot be greater than
50%)
Current Rights Per 1961
Decree (AF)
Rialto Rights Unavailable
to Rialto due to Standby
Agreement
Current Rights
Available to Emhart
(AF) [Accounting for
200 AF agreement
between Colton and
County]
Current Rights Available
to County (AF)
Combined Remedy Rights
Available for Treatment
Plant (AF)
Rialto
4366 =B36 ‐4366*C36 1600 0 =D36 ‐E36 =SUM(F36:G36)
Colton 3900 =B37 ‐B37*C37 NA =D37‐200 200 =SUM(F37:G37) Total =SUM(B36:B37) =SUM(D36:D37) =SUM(F36:F37) =SUM(G36:G37) =SUM(F38:G38) Month Minimum Water Needs Maximum Capacity of Colton to Accept Water
October
November
December
January
February
March
April
May
June
July
August
September
TOTAL* =SUM(B44:B55)
Maximum Operational
Flow Rate (gpm)
Maximum Volume of Water
Deliverable to Colton (AF)
Octboer =B61*$C$30 =MIN(C44,C61)
November =B62*$C$30 =MIN(C45,C62)
December =B63*$C$30 =MIN(C46,C63)
January =B64*$C$30 =MIN(C47,C64)
February =B65*$C$30 =MIN(C48,C65)
March =B66*$C$30 =MIN(C49,C66)
April =B67*$C$30 =MIN(C50,C67)
May =B68*$C$30 =MIN(C51,C68)
June =B69*$C$30 =MIN(C52,C69)
July =B70*$C$30 =MIN(C53,C70)
August =B71*$C$30 =MIN(C54,C71)
September =B72*$C$30 =MIN(C55,C72)
Total =AVERAGE(B61:B72) =SUM(C61:C72)
(gpm) (AF)
=C76*C30
Step 2: Input Available Water Rights
Step 3: Input Colton Monthly Minimum Needs and Maximum Capacity to Accept Water from the Combined Remedies * Not to exceed Colton Water Rights
Text is red if maximum
volume of water
deliverable to Colton is less
than Colton minimum
water needs
COLTON WATER BUDGET (AF)
AVAILABLE RIALTO AND COLTON WATER RIGHTS (AF)
Maximum Water Deliverable to Rialto Per Month (AF)
Text is red if value
exceeds water delivery
capacity to Colton
Box is red if minimum water needs exceed Colton Water Rights Step 4: Input Monthly Maximum Operational Flow Rate for Delivery of Water to Rialto and Colton * Lesser of Maximum Capacity of Colton to Accept Water (Step 3, Column C) and Maximum Volume of Water Deliverable to Colton (Step 4, Column C) Upper Limit for Delivery of Water to Colton* (AF)
78 79
80 81
82 83
84 85
86 87
88 89
90 91
92 93
94 95
96 97
98 99
100
101
102
103
104
105
106
107
108
109
110

AB C D E F G B
Month Minimum Water Needs (AF)
October
November
December
January
February
March
April
May
June
July
August
September
Total* =SUM(B82:B93)
Colton Water Rights
Minimum Summer Needs (sum
of minimum for each summer
month)
Water Rights Available in Winter
Months (rights minus summer
minimum needs)
=D37 =SUM(B51:B55) =A101 ‐B101
What County Pumped
Annual Delivery Capacity
Available to County for Initial
200 AF
Rialto Water Rights Amount Rialto can Pump from other wells (before any adjustments)
Water County Pumps for Colton Above 200 AF (per Water
Year)
=H22 =MIN(C73 ‐$D$22,200) =G36 =IF(A105 ‐(B105+C105)<0,(B105+C105)‐A105,0) =IF(A105 ‐(B105+C105)>0,A105‐(B105+C105),0) * Purple Box indicates value exceeds ca
What Emhart Pumped (all
for Colton) (AF per water
year)
What County Pumped for
Colton (AF per water year) Total to Colton (AF per water year) Total Water to Colton in Summer Months (AF) Monthly Total to Colton in Summer Months (AF per month) (assuming Rialto rights utilized as much as possible for County Remedy)
Maximum Potential Water to Colton in
Summer (assuming Colton uses all its water
rights available after subtracting winter use)
=D22 =MIN(B105+E105,C73) =B109+A109 =C109 ‐SUM(E115:E121) =D109/5 =(D37 ‐SUM(E115:E121))/5 (From production values
above)
(From table above) (Emhart delivery plus County delivery) (Annual total AF to Colton minus water to Colton in winter)
If cell is green, delivery to Colton will be limited by delivery capacity
Used to calculate potential shift of water to
Colton in summer to meet minimum Colton
needs (which in turn allows Rialto to
produce more from its other wells). Green
indicates potential delivery limited by
delivery capacity to Colton.

Step 5: Input Rialto Month‐by‐Month Minimum Needs
Maximum Monthly Delivery to Colton in Winter to Preserve Rights for Summer (available winter rights/7)* =C101/7
Calculation of Water Pumped for Colton for County Remedy Calculation of Water to Colton in the Summer Months
RIALTO WATER BUDGET
* Not to exceed Rialto Water Rights
Calculation of Maximum Monthly Delivery to Colton in Winter (to ensure Colton can receive its minimum needs in the summer) Box is red if minimum water needs exceed Rialto Water Rights Step 6: Parties meet and confer to determine if they can agree upon maximum prioritized delivery of water to Colton in winter months (Table 1) or must revert to default water delivery schedule (Table 2) For Table 1
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138

AB C D EF G H
Month Planned Combined Remedies
Output (AF) Planned Delivery to Rialto (AF) Remaining Rialto Water Rights (AF) Planned Delivery to Colton (AF) Remaining Colton Water Rights (AF) Start (Total Water Rights)
=D36‐E36 =D37
October =MIN(J9,D$76) =MIN(MAX((B115 ‐E115),B82),H9)‐G115 =D114‐C115 =MIN(C61,D61,(B115 ‐MIN(B82,H9)),D$101)+G115 =F114‐E115 November =MIN(J10,D$76) =MIN(MAX((B116 ‐E116),B83),H10)‐G116 =D115‐C116 =MIN(C62,D62,(B116‐MIN(B83,H10)),D$101)+G116 =F115‐E116 December =MIN(J11,D$76) =MIN(MAX((B117 ‐E117),B84),H11)‐G117 =D116‐C117 =MIN(C63,D63,(B117 ‐MIN(B84,H11)),D$101)+G117 =F116‐E117 January =MIN(J12,D$76) =MIN(MAX((B118 ‐E118),B85),H12)‐G118 =D117‐C118 =MIN(C64,D64,(B118‐MIN(B85,H12)),D$101)+G118 =F117‐E118 February =MIN(J13,D$76) =MIN(MAX((B119 ‐E119),B86),H13)‐G119 =D118‐C119 =MIN(C65,D65,(B119 ‐MIN(B86,H13)),D$101)+G119 =F118‐E119 March =MIN(J14,D$76) =MIN(MAX((B120 ‐E120),B87),H14)‐G120 =D119‐C120 =MIN(C66,D66,(B120‐MIN(B87,H14)),D$101)+G120 =F119‐E120 April =MIN(J15,D$76) =MIN(MAX((B121 ‐E121),B88),H15)‐G121 =D120‐C121 =MIN(C67,D67,(B121 ‐MIN(B88,H15)),D$101)+G121 =F120‐E121 May =MIN(J17,D$76) =B122 ‐E122 =D121 ‐C122 =(MIN(IF(B51>E$109,IF($F$109>=B51,B51,$F$109),$E$109),$C68,D68))+G12 2 =F121‐E122 June =MIN(J18,D$76) =B123 ‐E123 =D122 ‐C123 =(MIN(IF(B52>E$109,IF($F$109>=B52,B52,$F$109),$E$109),$C69,D69))+G12 3 =F122‐E123 July =MIN(J19,D$76) =B124 ‐E124 =D123‐C124 =(MIN(IF(B53>E$109,IF($F$109>=B53,B53,$F$109),$E$109),$C70,D70))+G124 =F123‐E124 August =MIN(J20,D$76) =B125 ‐E125 =D124 ‐C125 =(MIN(IF(B54>E$109,IF($F$109>=B54,B54,$F$109),$E$109),$C71,D71))+G12 5 =F124‐E125 September =MIN(J21,D$76) =B126 ‐E126 =ROUND(D125‐C126,0) =(MIN(IF(B55>E$109,IF($F$109>=B55,B55,$F$109),$E$109),$C72,D72))+G12 6 =ROUND(F125‐E126,0) Total Water Delivered =SUM(B115:B126) =SUM(C115:C126) =SUM(E115:E126) Unused Water Rights for
Water Year
=D126 =F126
Box is Red if CTP produces
more than capacity to deliver
water to Colton.

Red Box means CTP output does not match water
provided to Rialto and Colton. Blue Box means
delivery is less than minimum monthly need.

Green Box means that production plus other
water rights meets minimum monthly needs in
summer.

Red Box means delivery exceeds water rights.

Red Box means CTP output does not match water provided to Rialto and Colton. Blue Box means delivery is less than minimum monthly need. Yellow text means that delivery to Colton limited by delivery capacity to Colton. Purple text means some CTP Output shifted to Colton from Rialto.

Red Box means delivery exceeds water
rights
1 2
1 2
In each Summer Month:

Colton receives the lesser of (1) a value equal to 1/5th of the total to be pumped for Colton in that water year less the amount pumped in the winter months (2) the monthly maximum capacity to deliver water to Colton and (3) Colton's maximum capacity to accept water If remaining water rights are less than zero, County/Emhart will need to evaluate changes to production rates or alternative sources of water. =SUM(G115:G126)
Red Box Means Value Causes water to Colton to
exceed delivery capacity to Colton
Under the "Maximum Prioritized Delivery" schedule:

In each Winter Month:

Rialto receives all water that is not delivered to Colton. The Colton delivery calculation ensures that Rialto receives at least its minimum needs, provided that such volume does not exceed the volume of water pumped by the County in that month Table 1 ‐ Maximum Prioritized Delivery of Water to Colton in Winter Months If Planned Delivery to Colton (Column E) is less than
Colton's minimum water needs in a given month, and
Colton has additional available water rights, the
Parties may manually increase the Planned Delivery
to Colton by inputting the amount of Colton Water
Rights to be preferentially used by the County (per
Paragraph VI. B. 2. a. ix.) (AF)
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162

AB C DE F G H IB
Month Planned Combined
Remedies Output (AF) Colton 200 AF Pumped for County Remedy Delivered to Colton (AF) Planned Delivery to Rialto (AF)
Remaining Rialto Water
Rights (AF)
Planned Delivery to
Colton (AF) for Emhart
Planned Delivery to
Colton (AF) for
Combined Remedy
Remaining Colton Water
Rights (AF)
Surplus Available to County to Pump
for Colton (AF)
Start (Total Water Rights) =D36‐E36 =D37
October =J9 =MIN(H9,IF(D9+200/7>$C$61,($C$61 ‐D9),200/7)) =H9‐C142 =E141 ‐D142 =D9 =F142+C142 =H141 ‐G142 November =J10 =MIN(H10,IF(D10+200/7>$C$61,($C$61 ‐D10),200/7)) =H10‐C143 =E142 ‐D143 =D10 =F143+C143 =H142 ‐G143 December =J11 =MIN(H11,IF(D11+200/7>$C$61,($C$61 ‐D11),200/7)) =H11‐C144 =E143 ‐D144 =D11 =F144+C144 =H143 ‐G144 January =J12 =MIN(H12,IF(D12+200/7>$C$61,($C$61 ‐D12),200/7)) =H12‐C145 =E144 ‐D145 =D12 =F145+C145 =H144 ‐G145 February =J13 =MIN(H13,IF(D13+200/7>$C$61,($C$61 ‐D13),200/7)) =H13‐C146 =E145 ‐D146 =D13 =F146+C146 =H145 ‐G146 March =J14 =MIN(H14,IF(D14+200/7>$C$61,($C$61 ‐D14),200/7)) =H14‐C147 =E146 ‐D147 =D14 =F147+C147 =H146 ‐G147 April =J15 =MIN(H15,IF(D15+200/7>$C$61,($C$61 ‐D15),200/7)) =H15‐C148 =E147 ‐D148 =D15 =F148+C148 =H147 ‐G148 May =J17 =MIN(IF(SUM(C$142:C$148)<200,MIN((200 ‐SUM(C$142:C$148))/5),IF(D17+(200‐SUM(C$142:C$148))/5>$C68,($C68‐D17),0)),$C68‐F149) =H17 ‐C149 =E148 ‐D149 =D17 =F149+C149 =H148 ‐G149 June =J18 =MIN(IF(SUM(C$142:C$148)<200,MIN((200 ‐SUM(C$142:C$148))/5),IF(D18+(200‐SUM(C$142:C$148))/5>$C69,($C69‐D18),0)),$C69‐F150) =H18 ‐C150 =E149 ‐D150 =D18 =F150+C150 =H149 ‐G150 =IF(H$155>0,H$155,0) July =J19 =MIN(IF(SUM(C$142:C$148)<200,MIN((200 ‐SUM(C$142:C$148))/5),IF(D19+(200‐SUM(C$142:C$148))/5>$C70,($C70‐D19),0)),$C70‐F151) =H19 ‐C151 =E150 ‐D151 =D19 =F151+C151 =H150 ‐G151 =IF(H$155>0,H$155,0) August =J20 =MIN(IF(SUM(C$142:C$148)<200,MIN((200 ‐SUM(C$142:C$148))/5),IF(D20+(200‐SUM(C$142:C$148))/5>$C71,($C71‐D20),0)),$C71‐F152) =H20 ‐C152 =E151 ‐D152 =D20 =F152+C152 =H151 ‐G152 =IF(H$155>0,H$155,0) September =J21 =MIN(IF(SUM(C$142:C$148)<200,MIN((200 ‐SUM(C$142:C$148))/5),IF(D21+(200‐SUM(C$142:C$148))/5>$C72,($C72‐D21),0)),$C72‐F153) =H21 ‐C153 =ROUND(E152 ‐D153,0) =D21 =F153+C153 =ROUND(H152 ‐G153,0) =IF(H$155>0,H$155,0) Total Water Delivered
=SUM(B142:B153) =SUM(C142:C153) =SUM(D142:D153) =SUM(F142:F153) =SUM(G142:G153) Unused Water Rights for
Water Year
=E153 =H153
Red Box indicates
mismatch between CTP
output and delivery to
cities.

Delivery is reduced if capacity to deliver water to Colton is not sufficient to deliver 200 AF to Colton. Blue Box means delivery is less than minimum monthly
need.

Red Box means delivery
exceeds water rights.

Blue Box means delivery is
less than minimum
monthly need. Green text
means that delivery to
Colton limited by delivery
capacity.

Blue Box means
delivery is less than
minimum monthly
need. Green text means
that delivery to Colton
limited by delivery
capacity.

Red Box means delivery
exceeds water rights.

If remaining water rights are
Under the "Default Delivery" schedule:

Rialto receives all water pumped by County (except for 200 AF that the County may pump for Colton and Colton receives all water pumped by Emhart plus the 200 AF that the County may pump for Colton. The Colton 200 AF from the County is divided equally among the Winter Months.

AB C D E F
Instructions
Some things to Check: