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HomeMy WebLinkAboutAgenda Packet - EVWD Board of Directors - 01/02/2024BOARD OF DIRECTORS JANUARY 2, 2024 East Valley Water District was formed in 1954 and provides water and wastewater services to 104,000 residents within the cities of San Bernardino and Highland, and portions of San Bernardino County. EVWD operates under the direction of a 5­member elected Board. GOVERNING BOARD EXECUTIVE MANAGEMENT James Morales, Jr. Chairman of the Board Michael Moore General Manager/CEO Ronald L. Coats Vice­Chairman Brian W. Tompkins Chief Financial Officer Chris Carrillo Governing Board Member Jeff Noelte Director of Engineering & Operations David E. Smith Governing Board Member Kerrie Bryan Director of Administrative Services Phillip R. Goodrich Governing Board Member Patrick Milroy  Operations Manager Rocky Welborn  Water Reclamation Manager Justine Hendricksen District Clerk Board of Directors Special Meeting January 02, 2024 ­ 5:30 PM 31111 Greenspot Road, Highland, CA 92346 www.eastvalley.org PLEASE NOTE: Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection in the District’s office located at 31111 Greenspot Rd., Highland, during normal business hours. Also, such documents are available on the District’s website at eastvalley.org and are subject to staff’s ability to post the documents before the meeting. Pursuant to Government Code Section 54954.2(a), any request for a disability­related modification or accommodation, including auxiliary aids or services, that is sought in order to participate in the above agendized public meeting should be directed to the District Clerk at (909) 885­4900 at least 72 hours prior to said meeting. In order to comply with legal requirements for posting of agenda, only those items filed with the District Clerk by 12:00 p.m. on Wednesday prior to the following Wednesday meeting not requiring departmental investigation, will be considered by the Board of Directors. CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL OF BOARD MEMBERS PUBLIC COMMENTS Any person wishing to speak to the Board of Directors is asked to complete a Speaker Card and submit it to the District Clerk prior to the start of the meeting. Each speaker is limited to three (3) minutes, unless waived by the Chairman of the Board. Under the State of California Brown Act, the Board of Directors is prohibited from discussing or taking action on any item not listed on the posted agenda. The matter will automatically be referred to staff for an appropriate response or action and may appear on the agenda at a future meeting. DISCUSSION AND POSSIBLE ACTION ITEMS a.Consider Approval of Joint Use Agreement with San Bernardino Valley Municipal Water District for the Operation and Maintenance of the Regional Recycled Water Pipeline and the Weaver Basins REPORTS a.General Manager/CEO Report b.Legal Counsel Report c.Board of Directors’ Comments ADJOURN BOARD OF DIRECTORSJANUARY 2, 2024East Valley Water District was formed in 1954 and provides water and wastewater services to104,000 residents within the cities of San Bernardino and Highland, and portions of SanBernardino County.EVWD operates under the direction of a 5­member elected Board.GOVERNING BOARD EXECUTIVE MANAGEMENTJames Morales, Jr.Chairman of the Board Michael MooreGeneral Manager/CEORonald L. CoatsVice­Chairman Brian W. TompkinsChief Financial OfficerChris CarrilloGoverning Board Member Jeff NoelteDirector of Engineering & OperationsDavid E. SmithGoverning Board Member Kerrie BryanDirector of Administrative ServicesPhillip R. GoodrichGoverning Board Member Patrick Milroy Operations ManagerRocky Welborn Water Reclamation ManagerJustine Hendricksen District Clerk Board of Directors Special Meeting January 02, 2024 ­ 5:30 PM 31111 Greenspot Road, Highland, CA 92346 www.eastvalley.org PLEASE NOTE: Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection in the District’s office located at 31111 Greenspot Rd., Highland, during normal business hours. Also, such documents are available on the District’s website at eastvalley.org and are subject to staff’s ability to post the documents before the meeting. Pursuant to Government Code Section 54954.2(a), any request for a disability­related modification or accommodation, including auxiliary aids or services, that is sought in order to participate in the above agendized public meeting should be directed to the District Clerk at (909) 885­4900 at least 72 hours prior to said meeting. In order to comply with legal requirements for posting of agenda, only those items filed with the District Clerk by 12:00 p.m. on Wednesday prior to the following Wednesday meeting not requiring departmental investigation, will be considered by the Board of Directors. CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL OF BOARD MEMBERS PUBLIC COMMENTS Any person wishing to speak to the Board of Directors is asked to complete a Speaker Card and submit it to the District Clerk prior to the start of the meeting. Each speaker is limited to three (3) minutes, unless waived by the Chairman of the Board. Under the State of California Brown Act, the Board of Directors is prohibited from discussing or taking action on any item not listed on the posted agenda. The matter will automatically be referred to staff for an appropriate response or action and may appear on the agenda at a future meeting. DISCUSSION AND POSSIBLE ACTION ITEMS a.Consider Approval of Joint Use Agreement with San Bernardino Valley Municipal Water District for the Operation and Maintenance of the Regional Recycled Water Pipeline and the Weaver Basins REPORTS a.General Manager/CEO Report b.Legal Counsel Report c.Board of Directors’ Comments ADJOURN BOARD OF DIRECTORSJANUARY 2, 2024East Valley Water District was formed in 1954 and provides water and wastewater services to104,000 residents within the cities of San Bernardino and Highland, and portions of SanBernardino County.EVWD operates under the direction of a 5­member elected Board.GOVERNING BOARD EXECUTIVE MANAGEMENTJames Morales, Jr.Chairman of the Board Michael MooreGeneral Manager/CEORonald L. CoatsVice­Chairman Brian W. TompkinsChief Financial OfficerChris CarrilloGoverning Board Member Jeff NoelteDirector of Engineering & OperationsDavid E. SmithGoverning Board Member Kerrie BryanDirector of Administrative ServicesPhillip R. GoodrichGoverning Board Member Patrick Milroy Operations ManagerRocky Welborn Water Reclamation ManagerJustine HendricksenDistrict ClerkBoard of Directors Special MeetingJanuary 02, 2024 ­ 5:30 PM31111 Greenspot Road, Highland, CA 92346www.eastvalley.orgPLEASE NOTE:Materials related to an item on this agenda submitted to the Board after distribution of theagenda packet are available for public inspection in the District’s office located at 31111Greenspot Rd., Highland, during normal business hours. Also, such documents are availableon the District’s website at eastvalley.org and are subject to staff’s ability to post thedocuments before the meeting.Pursuant to Government Code Section 54954.2(a), any request for a disability­relatedmodification or accommodation, including auxiliary aids or services, that is sought in orderto participate in the above agendized public meeting should be directed to the District Clerkat (909) 885­4900 at least 72 hours prior to said meeting. In order to comply with legal requirements for posting of agenda, only those items filed with the District Clerk by 12:00 p.m. on Wednesday prior to the following Wednesday meeting not requiring departmental investigation, will be considered by the Board of Directors. CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL OF BOARD MEMBERS PUBLIC COMMENTS Any person wishing to speak to the Board of Directors is asked to complete a Speaker Card and submit it to the District Clerk prior to the start of the meeting. Each speaker is limited to three (3) minutes, unless waived by the Chairman of the Board. Under the State of California Brown Act, the Board of Directors is prohibited from discussing or taking action on any item not listed on the posted agenda. The matter will automatically be referred to staff for an appropriate response or action and may appear on the agenda at a future meeting. DISCUSSION AND POSSIBLE ACTION ITEMS a.Consider Approval of Joint Use Agreement with San Bernardino Valley Municipal Water District for the Operation and Maintenance of the Regional Recycled Water Pipeline and the Weaver Basins REPORTS a.General Manager/CEO Report b.Legal Counsel Report c.Board of Directors’ Comments ADJOURN Agenda Item #a January 2, 20241 Meeting Date: January 2, 2024 Agenda Item #a Discussion Item 9 6 8 Special Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Consider Approval of Joint Use Agreement with San Bernardino Valley Municipal Water District for the Operation and Maintenance of the Regional Recycled Water Pipeline and the Weaver Basins RECOMMENDATION That the Board of Directors Authorize the General Manager/CEO to execute the Joint Use Agreement for the Operation and Maintenance of the Regional Water Recycled Water Pipeline and the Weaver Basins with San Bernardino Valley Municipal Water District. BACKGROUND / ANALYSIS The Regional Recycle Water Pipeline and Weaver Basins (Regional Project) will deliver and percolate recycled water from the Sterling Natural Resource Center (SNRC) and two other recycled water projects. The Regional Project will be owned and operated by the San Bernardino Valley Municipal Water District (SBVMWD). The proposed Joint Use Agreement for the Operation and Maintenance of the Regional Recycled Water Pipeline and the Weaver Basins (Agreement) describes roles and responsibilities for both parties related to the Regional Project. The SNRC will soon be commissioned and deliver recycled water to the Regional Project. The Regional Project was built by East Valley Water District (EVWD) on behalf of SBVMWD. The Regional Project facilities will officially be transitioned to SBVMWD after the Notice of Completion, which is anticipated in early 2024. Several agreements describe the responsibilities for planning, design and construction of the Regional Project. The proposed Agreement describes the responsibilities of both parties for the operation of the Regional Project. The Agreement provides EVWD with rights to the water produced at SNRC. As such, EVWD is responsible for ensuring the water complies with the SNRC permit requirements from the Regional Water Quality Control Board. SBVMWD is responsible for operating and maintaining the Regional Project. Both agencies shall coordinate and share relevant operational data accordingly. In order to provide for maintenance of the pipeline, a future study will be performed to identify additional temporary storage of recycled water outside of Weaver Basins. Agenda Item #a January 2, 20242 Meeting Date: January 2, 2024 Agenda Item #a Discussion Item 9 6 8 AGENCY GOALS AND OBJECTIVES I - Implement Effective Solutions Through Visionary Leadership A. Identify Opportunities to Optimize Natural Resources C. Strengthen Regional, State and National Partnerships IV - Promote Planning, Maintenance and Preservation of District Resources A. Develop Projects and Programs to Ensure Safe and Reliable Services REVIEW BY OTHERS This Agreement has been reviewed by legal counsel. FISCAL IMPACT The Agreement has no impact on the current fiscal year budget. The study for additional emergency storage will be included in a future budget, subject to Board approval. Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Jeff Noelte Director of Engineering and Operations ATTACHMENTS Agreement 4037037.1 1 JOINT USE AGREEMENT FOR THE OPERATION AND MAINTENANCE OF THE REGIONAL RECYCLED WATER PIPELINE AND THE WEAVER BASINS This Joint Use Agreement (“Agreement”) for the operations and maintenance of the Weaver Basins and Regional Recycled Water Pipeline is entered into and effective as of this 2nd day of January, 2024 (“Effective Date”), by and between San Bernardino Valley Municipal Water District (“San Bernardino Valley”) and the East Valley Water District (“East Valley”). San Bernardino Valley and East Valley may be referred to individually as “Party” or collectively as “Parties.” RECITALS WHEREAS, on September 1, 2015, the Parties executed the Framework Agreement for the Construction and Operation of Potential Groundwater Replenishment Facilities (“Framework Agreement” [attached hereto as Attachment A]). The Parties agreed in the Framework Agreement to work collaboratively towards the construction and operation of a wastewater treatment facility that would enable the Parties to replenish groundwater supplies in the San Bernardino Basin Area; San Bernardino Valley, as lead agency under the California Environmental Quality Act (“CEQA”), certified a Final Environmental Impact Report (“Final EIR” [attached hereto as Attachment B]) and associated Mitigation Monitoring and Reporting Plan (“MMRP” [attached hereto as Attachment C] ) for the Sterling Natural Resource Center (“SNRC”), an advanced treatment facility capable of treating up to eight (8) million gallons per day (“mgd”) with an anticipated expanded capacity of ten (10) mgd, on March 16, 2016 (State Clearinghouse [SCH] No. 2015101058); WHEREAS, on September 22, 2016, San Bernardino Valley filed a wastewater change petition (“Petition”), pursuant to California Water Code section 1211, with the State Water Resources Control Board (“State Water Board”), to change the point of discharge, place of use, purpose of use, and quantity of discharge of East Valley’s treated wastewater discharged to the Santa Ana River; WHEREAS, on February 2, 2017, San Bernardino Valley, East Valley, and the Center for Biological Diversity (“CBD”) executed a Memorandum of Understanding for Species and Water Management in the San Bernardino Basin Area (“CBD MOU” [attached hereto as Attachment D]) to resolve the CBD’s protest against the Petition. The CBD MOU may be amended in the future to reflect changed conditions; WHEREAS, on March 9, 2017, the United States Fish and Wildlife Service (“USFWS”) issued a biological opinion (“2017 BiOp” [attached as Attachment E]) (FWS-SB-16B0182-17F0387) for the construction and operation of the SNRC in accordance with section 7 of the Federal Endangered Species Act. The 2017 BiOp concluded that the proposed construction and operation of the SNRC is not likely to jeopardize the continued existence of or adversely modify the critical habitat of the San Bernardino kangaroo rat (“SBKR”) or Santa Ana Sucker (“SAS”). The biological opinion also identifies that the SNRC be included as a covered activity of the Upper Santa Ana River Habitat Conservation Plan (“HCP”); 4037037.1 2 WHEREAS, on April 28, 2017, the State Water Board’s Division of Water Rights issued an order approving the Petition in Order WW0095 (“Order WW0095” [attached hereto as Attachment F]). The State Water Board included a Mitigation Monitoring and Reporting Program (“Order MMRP” [attached hereto as Attachment G]) as part of Order WW0095. The Order MMRP recites mitigation measures in the Final EIR for SNRC, and specifies implementation and monitoring responsibilities, including San Bernardino Valley being signatory to the HCP and the inclusion of the SNRC as a covered activity; WHEREAS, on August 11, 2017, the USFWS issued an amendment to the 2017 BiOp (“Amended 2017 BiOp” [attached hereto as Attachment H]) (FWS-SB-16B0182-17F0387- R001). The Amended 2017 BiOp addressed the roles and responsibilities of both the United States Environmental Protection Agency and State Water Board associated with implementation of the 2017 BiOp conservation measures; WHEREAS, on November 21, 2017, the Parties and the City of San Bernardino executed the Settlement Agreement (attached hereto as Attachment I) resolving and settling claims in the two related lawsuits filed in connection with the SNRC; WHEREAS, on June 20, 2018, the San Bernardino County Local Agency Formation Commission approved the activation of East Valley’s latent wastewater treatment authority conditioned on San Bernardino Valley assigning to East Valley San Bernardino Valley’s obligations as lead agency arising under the SNRC Final EIR and associated MMRP; WHEREAS, in October 2018, the Parties executed a written assignment agreement (“Assignment Agreement” [attached hereto as Attachment J]) whereby San Bernardino Valley assigned all obligations and responsibilities, express and implied, arising from and/or related to the SNRC Final EIR and associated MMRP, SCH #2015101058, to East Valley, and East Valley accepted, assumed, and agreed to perform, fulfill and comply with all obligations and responsibilities, express and implied arising from and/or related to the SNRC Final EIR and associated MMRP, and the CDFW- and USFWS-approved Habitat Mitigation and Monitoring Plan (“HMMP” [attached hereto as Attachment K]); WHEREAS, in July 2019, East Valley, as the lead agency under CEQA, adopted an addendum to the Final EIR (“Addendum No. 1”), which evaluated specified operational changes to the SNRC facility that included emergency operations and recycled water detention ponds, use of an adjacent parcel, and food waste facilities. Addendum No.1 did not create new or increased environmental impacts beyond those analyzed and mitigated in the Final EIR; WHEREAS, on January 27, 2021, East Valley, as the lead agency under CEQA, adopted a second addendum to the Final EIR (“Addendum No. 2”), with project modifications. Addendum No. 2 allowed for the recharge of SNRC-treated water into an alternative groundwater recharge site (“Weaver Basins”) and extension of the Final EIR treated water conveyance pipeline system (“Regional Recycled Water Pipeline”) to the alternative groundwater recharge site. Modifications to the SNRC Project in Addendum No. 2 reduced impacts to the SBKR; 4037037.1 3 WHEREAS, on January 3, 2022, USFWS issued a second amendment to the 2017 BiOp (“Second Amended 2017 BiOp” [attached hereto as Attachment L]) (FWS-SB-16B0182- 17F0387-R002). The second amendment revised the conservation measures for the SBKR and Santa Ana River woolly-star based on changes to the SNRC project. These changes did not change project effects on SAS and the analysis in the 2017 biological opinion remains valid; WHEREAS, the Parties coordinated the design and construction of the Regional Recycled Water Pipeline and the Weaver Basins (collectively, “Regional Recycled Water System”) pursuant to the Regional Recycled Water Pipeline Reimbursement Agreement as modified by the First, Second, and Third Addenda (attached hereto as Attachment M). A map of the Regional Recycled Water System is included as Attachment N; WHEREAS, the Regional Recycled Water Pipeline is a thirty-inch diameter pipeline that, in general, facilitates the conveyance of tertiary treated recycled water from the SNRC into the Weaver Basins (“Recycled Water”); WHEREAS, the Weaver Basins consist of up to five recharge basins on San Bernardino Valley’s property in the City of Highland, California. The Weaver Basins’ recharge basins are estimated to be capable of detaining up to sixteen (16) mgd of water for percolation into the Bunker Hill Subbasin, it is the intent of San Bernardino Valley to receive Recycled Water from East Valley for purposes of groundwater recharge at the Weaver Basins. However, these basins may also be used for recharge of imported or local stormwater in the future; WHEREAS, as part of the SNRC project, East Valley constructed and operates two Emergency Basins, one at the SNRC, and one adjacent to the Weaver Basins on East Valley’s property, for the discharge and detention of Recycled Water under certain circumstances. A map of the Emergency Basins is included as Attachment O; WHEREAS, in December 2022, the Parties received the final Wildlife Hazard Management Plan (attached hereto as Attachment P) for the Weaver Basins, Emergency Basins and SNRC, which analyzes the potential hazards the development of the Weaver Basins, Emergency Basins, and SNRC would pose to aircraft at the San Bernardino International Airport and Redlands Municipal Airport; WHEREAS, on December 1, 2023, the USFWS issued a third amendment to the 2017 BiOp (“Third Amended 2017 BiOp” [attached hereto as Attachment Q]). The Third Amended 2017 BiOp provides flexibility for implementing Santa Ana sucker conservation measures and concludes that the proposed changes would not affect the Santa Ana Sucker in any way that was not considered in the 2017 BiOp; WHEREAS, on December 1, 2023, the Santa Ana Region Regional Water Quality Control Board (“Regional Water Board”) issued East Valley the Waste Discharge Requirements and Master Recycling Permit for the East Valley Water District Sterling Natural Resource Center, Order No. R8-2023-0009 (“WDR Permit” [attached hereto as Attachment R]); WHEREAS, the City of San Bernardino Municipal Water Department (“City”) has proposed a recycled water recharge project that would also discharge water at the Weaver Basins and would 4037037.1 4 convey some of the City’s recycled water through some portions or all of the constructed Regional Recycled Water Pipeline; and WHEREAS, to facilitate the City’s use of the Regional Recycled Water Pipeline and Weaver Basins, it is anticipated that future agreements would be entered with the City and/or other parties who convey water to Weaver Basins in the future. AGREEMENT 1. Recitals. The above recitals are incorporated herein as if set forth in full. 2. Term. This Agreement shall continue for ten (10) years from the Effective Date (“Initial Term”). Unless a Party provides notice of intent to terminate per Section 16 to the other Party no less than 1 year prior to the intended termination date, then this Agreement will automatically renew for successive five (5) year terms after the Initial Term. 3. Scope. This Agreement governs the Parties’ operations and use of the Regional Recycled Water System for the groundwater recharge of Recycled Water in accordance with applicable law. East Valley shall hold the rights to and is responsible for the Recycled Water subject to the requirements of this Agreement. San Bernardino Valley will serve as the transmitter of Recycled Water in the Regional Recycled Water System. Except as otherwise provided herein, this Agreement does not apply to East Valley’s operation and management of the SNRC facilities and the Emergency Basins associated with the SNRC. 4. Regional Recycled Water System Operations. a. San Bernardino Valley shall operate the Regional Recycled Water System within San Bernardino Valley’s sole discretion. b. East Valley shall not convey Recycled Water through the Regional Recycled Water Pipeline that does not comply with the terms, conditions, and requirements of the applicable WDR Permit (and subsequent orders), approved by the Regional Water Board ) or the State Water Board. East Valley shall strictly comply with the terms, conditions, and requirements of the WDR Permit and any subsequent orders relative to the conveyance of Recycled Water under this Agreement issued by the Regional Water Board, the State Water Board, or the United States Environmental Protection Agency. c. East Valley’s WDR Permit shall regulate and include specifications for the Recycled Water produced at the SNRC, and also include specifications for the percolation of Recycled Water into the Bunker Hill Subbasin through the Weaver Basins. d. East Valley shall only convey the permitted capacity up to 10 mgd of Recycled Water through the Regional Recycled Water Pipeline to the Weaver Basins. The 4037037.1 5 Parties shall coordinate in good faith to discuss any and all future plans to expand the amount of Recycled Water conveyed over currently permitted amounts. e. San Bernardino Valley reserves the right to allow any other potential parties to convey native water, imported water, storm water, recycled water, or otherwise, to the Weaver Basins. Under no circumstances shall the addition of other parties that may convey water to the Regional Recycled Water System reduce the volume of Recycled Water allowed to be conveyed by East Valley to Weaver Basins under this Agreement nor shall East Valley be responsible for water quality for other parties who convey water to Weaver Basins. f. San Bernardino Valley reserves the right to refuse Easy Valley’s Recycled Water prior to or during conveyance through the Regional Recycled Water Pipeline that does not comply with the provisions of this Agreement, including but not limited to requirements of the WDR Permit. In the event San Bernardino Valley exercises its right in this subsection, it shall meet and confer with East Valley in good faith per Section 17 to determine the actions necessary to return operation of the Weaver Basins to the specifications of this Agreement, including but not limited to requirements of the WDR Permit and any subsequent amendments thereto. g. East Valley may only discharge Recycled Water into the Emergency Basins: (i) during Emergency Circumstances as defined by Section 10; or (ii) to allow inspections as provided for in Paragraph h, below. h. San Bernardino Valley may, from time to time, conduct inspections of the Regional Recycled Water Pipeline which require the Regional Recycled Water pipeline to be free and clear and emptied of any and all Recycled Water or other contents. San Bernardino Valley shall, as soon as practicable, provide notice to East Valley in accordance with Section 16 of San Bernardino Valley’s planned inspection. Upon receiving notice from San Bernardino Valley, East Valley shall as soon as practicable: (i) cease conveyance of Recycled Water through the Regional Recycled Water Pipeline; (ii) permit Recycled Water in the Regional Recycled Water Pipeline to drain via gravity flow, (iii) coordinate with San Bernardino Valley to provide a discharge point for pumping out Recycled Water from the pipeline that does not drain by gravity, and (iv) ensure that the discharge of Recycled Water complies with all relevant laws, regulatory permits and approvals. i. East Valley shall be solely responsible for all costs associated with the actions in Paragraph (h), above, including but not limited to the cost of regulatory permits and environmental compliance and mitigation, except that San Bernardino Valley will be responsible for costs associated with hiring a contractor to pump water out of the Regional Recycled Water Pipeline. 5. Access and Security. 4037037.1 6 a. Access to the Weaver Basins is strictly limited to San Bernardino Valley’s officers, staff, employees, and independent contractors; provided, that San Bernardino Valley shall coordinate with East Valley to provide East Valley’s officers, staff, employees, and independent contractors with access when reasonably necessary to implement this Agreement, including, but not limited to, during maintenance pursuant to Section 6 or during Emergency Circumstances as defined in Section 10. b. Access to SNRC and the Emergency Basins is strictly limited to East Valley’s officers, staff, employees, and independent contractors; provided, that East Valley shall coordinate with San Bernardino Valley to provide San Bernardino Valley’s officers, staff, employees, and independent contractors with access when reasonably necessary to implement this Agreement, including, but not limited to, water quality sampling and monitoring, during maintenance and facility improvements pursuant to Section 6 or during Emergency Circumstances as defined in Section 10. c. San Bernardino Valley shall provide adequate security to the Regional Recycled Water System and all appurtenances. d. East Valley shall provide adequate security to the SNRC and the Emergency Basins. 6. Regional Recycled Water System Maintenance. a. San Bernardino Valley shall be responsible for routine and emergency maintenance and repairs of the facilities, pipelines, or appurtenances that compose the Regional Recycled Water System, except as provided in Section 6.b. b. East Valley shall be solely responsible for routine and emergency maintenance of the Emergency Basins, all facilities associated with the SNRC, and for the portion of the Regional Recycled Water Pipeline from the inlet valves to the Emergency Basins. c. All routine and emergency maintenance and repairs shall meet the standard of professional care and skill customarily provided in the performance of such services. 7. Wildlife Hazard Mitigation Plan. a. The Parties shall implement this Agreement in compliance with the Wildlife Hazard Mitigation Plan. Any and all obligations and requirements in the Wildlife Hazard Mitigation Plan are incorporated into this Agreement and are binding on the Parties. b. The Parties shall, as required by the Wildlife Hazard Mitigation Plan, provide training to appropriate staff, including, but not limited to, maintenance staff or 4037037.1 7 independent contractors, to ensure compliance with the Wildlife Hazard Mitigation Plan. c. East Valley shall be responsible for implementing the Wildlife Hazard Mitigation Plan at the SNRC site, the Emergency Basins, and any other future Recycled Water retention facility constructed by East Valley. d. San Bernardino Valley shall operate the Weaver Basins in accordance with the Wildlife Hazard Mitigation Plan, including implementing and conducting monitoring in accordance with the Plan, keeping access roads clear of any and all obstructions. 8. Water Quality. a. East Valley’s conveyance and discharge of Recycled Water from the SNRC facility through the Regional Recycled Water Pipeline and into the Weaver Basins shall comply with all approvals and permits from the applicable regulatory agencies, which include, but are not limited to, the Regional Water Board and State Water Board. b. East Valley shall be solely responsible for any and all groundwater quality mitigation and remediation requirements that may arise resulting from the discharge of Recycled Water from the SNRC to the Weaver Basins, Emergency Basins, or otherwise; including future changes to water quality regulations and/or changes in water quality due to interaction between the Recycled Water and groundwater and/or sediments in the Weaver Basins or Bunker Hill Subbasin. c. In the event that the Recycled Water from the SNRC facility adversely affects, damages, or otherwise injures the Regional Recycled Water Pipeline, East Valley shall be solely responsible for: (i) assessing methods to modify the quality of the Recycled Water so that the Recycled Water does not adversely affect the pipeline; (ii) implementing changes to the SNRC to modify the quality of the Recycled Water that the Recycled Water does not adversely affect the pipeline; and (iii) reimbursing San Bernardino Valley for all costs associated with designing and constructing repairs to the pipeline. 9. Data Collection and Monitoring. a. The Parties agree to work cooperatively and in good faith to implement a data collection and water quality monitoring program. Each Party agrees to provide the other Party with all pertinent data, previous studies, and related information necessary for the operations of the Regional Recycled Water System upon request. b. San Bernardino Valley shall collect and maintain percolation rate and water level data of the Weaver Basins and shall provide data to East Valley upon request. 4037037.1 8 c. East Valley shall simultaneously provide San Bernardino Valley with copies of all water quality monitoring reports and correspondence East Valley provides the applicable regulatory agencies, including, but not limited to, the Regional Water Board or State Water Board. d. East Valley shall provide San Bernardino Valley with applicable operations and water quality data for the purpose of monitoring real-time water quality of Recycled Water destined for the Weaver Basins. e. San Bernardino Valley shall provide East Valley access to operations data at Weaver Basins. 10. Emergency Circumstances. a. San Bernardino Valley may, in its sole discretion, temporarily shut off conveyance of Recycled Water through the Regional Recycled Water Pipeline to the Weaver Basins during Emergency Circumstances. Emergency Circumstances are defined as: i. Occurrences where East Valley’s real-time monitoring system detects Recycled Water that is in violation of the applicable approvals and permits, including, but not limited to, the WDR Permit (“Off-Spec Water”). ii. Occurrences where San Bernardino Valley determines in its discretion, which will not be unreasonably withheld, that the discharge of Recycled Water from the SNRC facility into the Weaver Basins is not in compliance with the conditions of East Valley’s approvals and permits, including, but not limited to, the WDR Permit; iii. Occurrences where there is a rupture, breakage, or other malfunction in the Regional Recycled Water Pipeline. iv. Occurrences where the Weaver Basins are unable to receive Recycled Water from the SNRC. v. High groundwater levels affecting surrounding neighborhoods. b. During an Emergency Circumstances event, East Valley’s PLC shall send a signal notification to the San Bernardino Valley’s PLC and redirect the Recycled Water flow to the SNRC-onsite Emergency Basin first. In the event that the onsite Emergency Basin is at capacity and the Off-Spec Water cannot be cleared, East Valley shall coordinate with San Bernardino Valley to manually direct Off-Spec Water to the Emergency Basin adjacent to the Weaver Basins. c. The Parties shall coordinate responses to unplanned events that may impact the ability of San Bernardino Valley to accept Recycled Water from the SNRC facility. San Bernardino Valley shall make reasonable effort to consult with East 4037037.1 9 Valley regarding a potential Emergency Circumstance prior to shutting off conveyance to the Weaver Basins through the Regional Recycled Water Pipeline. d. In the event San Bernardino Valley shuts off access to the Weaver Basins pursuant to an Emergency Circumstance, East Valley shall be fully responsible for discharge, cleanup, and disposal of the Recycled Water in accordance with all applicable requirements of law. 11. Development of Additional Emergency Storage or Alternative Discharge Location a. East Valley shall, within one year of the Effective Date, prepare a Feasibility Study to assess alternatives to provide additional emergency storage or an additional discharge location for the SNRC. b. The Parties agree that the intent of the Feasibility Study shall be to identify a preferred alternative to conveying Recycled Water through the Regional Recycled Water Pipeline for discharge at the Weaver Basins in the event the Regional Recycled Water System is inoperable for an extended period of time. c. East Valley agrees to work cooperatively with San Bernadino Valley and in good faith to identify the required volume of additional emergency storage to be developed or an additional discharge location for up to eight (8) mgd of Recycled Water, identify the preferred alternative, and complete the Feasibility Study. d. The Parties agree that the preferred alternative identified in the Feasibility Study shall be mutually agreeable to the Parties and that approval shall not be unreasonably withheld. e. East Valley shall be solely responsible for completing design, environmental compliance, permitting, and completing all required agreements and approvals for the preferred alternative(s). f. East Valley shall be solely responsible for constructing, operating and maintaining the facilities required to implement the preferred alternative(s). g. The Parties acknowledge and agree that they are not committing to any course of action contemplated by this Section at this time, and nothing in this Section is intended or will be construed to be a pre-decisional commitment of funds or resources by any Party. Nor shall this Section be intended or construed to modify the application of the National Environmental Policy Act, the California Environmental Quality Act, or other applicable law, to the environmental review of any course of action contemplated by this Section. h. East Valley agrees to indemnify and hold harmless San Bernardino Valley for any claims resulting from, relating to, or in any way connected to the environmental review related to this Section. 4037037.1 10 12. Compliance with State Water Law, CEQA, and federal ESA. The Parties shall participate in any joint powers authority formed in connection with implementation of the HCP. Additionally, East Valley acknowledges and agrees to implement all the requirements of the Final EIR, addenda thereto, and the associated MMRP, the Assignment Agreement and subsequent amendments, Order WW0095 and Order MMRP, the 2017 BiOp and amendments thereto, the HMMP, and the HCP. 13. Electricity. East Valley shall provide San Bernardino Valley with electricity to power the Weaver Basins operations via Plant No. 143 at no cost; provided, that East Valley shall have no obligation to provide electricity after San Bernardino Valley establishes its own power service. San Bernardino Valley will take reasonable efforts to pursue an alternative electricity source. 14. Indemnification. a. Except as provided in Paragraph b, below, each Party to this Agreement (as “Indemnifying Party”) shall indemnify, defend and hold harmless the other Party and its officers, managers, agents, employees, affiliates and successors (collectively, “Indemnified Party”) from and against any and all losses, damages, liabilities, deficiencies, claims, actions, judgments, settlements, interest, awards, penalties, fines, costs, or expenses whatsoever, including without limitation attorneys’ fees and legal costs (“Damages”), suffered by the Indemnified Party and arising from the negligence, willful misconduct or breach of this Agreement by the Indemnifying Party; provided, however, such indemnification obligation shall not apply to the extent that any such Damages are caused by the negligence, willful misconduct or breach of this Agreement by the Indemnified Party. b. East Valley shall indemnify, defend (at East Valley’s sole cost and expense with legal counsel approved by San Bernardino Valley, which approval shall not be unreasonably withheld), protect, and hold harmless San Bernardino Valley and its officers, directors, managers, agents, employees, affiliates and successors (collectively, “SBV Indemnified Parties”) from and against any and all claims, demands, obligations, damages, actions, orders, losses, liabilities, costs, and expenses of every kind and nature whatsoever, including without limitation attorneys’ fees and legal costs (“Claim” or “Claims”) which may arise from or in any manner relate, directly or indirectly, to this Agreement, including without limitation, any Claim resulting from East Valley’s staff, employees, or independent contractors actions or omissions while accessing the Weaver Basins, and also including, without limitation, any Claim that is in any way connected to a release or threatened release of, introduction to, mobilization of, or exposure to, any chemical, contaminant, pollutant, hazardous substance and/or hazardous waste into the environment, land, soil, water (including, but not limited to surface water, groundwater, or drinking water supplies), air, liquefaction, and/or seepage to low lying lands. This paragraph shall, without limitation, apply to any release, threatened release, introduction, exposure to and/or mobilization of the broad class of chemicals known as per- and polyfluroalkyl substances by East Valley. 4037037.1 11 c. This Section shall survive the termination of any other agreement between San Bernardino Valley and East Valley. East Valley’s obligations in Paragraph b, above, shall survive the expiration or earlier termination of this Agreement until such time as any action against SBV Indemnified Parties for such matter indemnified hereunder is fully and finally resolved or barred by the applicable statute of limitations or statute of repose. 15. Insurance. a. Without in any way affecting Section 14, each Party shall secure and maintain throughout the term of this Agreement the following types of insurance with limits as shown: i. Commercial/General Liability. East Valley shall carry General Liability Insurance covering all operations and services performed under Sections 4, 5, and 6 of this Agreement, providing coverage for bodily injury and property damage with a combined single limit of five million dollars ($5,000,000) per occurrence. The policy coverage shall include: (i) premises operation and mobile equipment; (ii) broad form property damage; (iii) explosion, collapse, and underground hazards; (iv) personal injury; (v) contractual liability; and (vi) pollution liability. ii. Workers’ Compensation. A program of Worker’s Compensation Insurance or a State-approved Self-Insurance Program in an amount and form to meet all applicable requirements of the Labor Code of the State of California, including Employer’s Liability with one million dollar ($1,000,000) limits, covering all persons providing services contemplated in Sections 4, 5, and 6 of this Agreement. iii. Comprehensive General and Automobile Liability Insurance. This coverage to include contractual coverage and automobile liability coverage for owned, hired, and non-owned vehicles. The policy shall have combined single limits for bodily injury and property damage of not less than one million dollars ($1,000,000). b. Without in any way affecting Section 14, East Valley shall provide liability insurance for environmental impairment including cleanup costs, and endorsed for “Sudden and Accidental” contamination or pollution. Such coverage shall be in an amount and form to meet all applicable state and federal requirements, but in no event shall be less than five million dollars ($5,000,000) per occurrence, or fifteen million dollars ($15,000,000) aggregate limit. c. All policies, except for Workers’ Compensation Policies, shall contain additional endorsements naming the Parties hereto, their directors and managers, the County and their officers, employees, agents, and volunteers as additional named insured with respect to liabilities arising out of the performance of this Agreement. 4037037.1 12 d. The Parties shall require the carriers of the above required coverages to waive all rights of subrogation. e. Each Party shall require all independent contractors and subcontractors to provide insurance covering the contracted operations with the same coverage and subject to the same insurance specifications set forth herein, and naming San Bernardino Valley and East Valley as an additional insured. f. Each Party shall provide proof of insurance coverage via notice as provided for in Section 16 within sixty (60) days of the execution of this Agreement. 16. Notices. All notices, requests, demands, or other communications required or permitted under this agreement shall be addressed as follows: SAN BERNARDINO VALLEY MUNICIPAL WATER DISTRICT Heather Dyer, CEO/General Manager 380 East Vanderbilt Way San Bernardino, CA 92408 heatherd@sbvmwd.com EAST VALLEY WATER DISTRICT Michael Moore, General Manager/CEO 31111 Greenspot Road Highland, CA 92346 mmoore@eastvalley.org 17. Dispute Resolution. a. The Parties desire that this Agreement operate between them fairly and reasonably. If during the term of this Agreement a dispute arises between the Parties, or one Party perceives the other as acting unfairly or unreasonably, or a question of interpretation arises hereunder, then the Parties shall cause their respective representatives to promptly confer and exert their good faith efforts to reach a reasonable and equitable resolution of the issue. If the Parties’ representatives are unable to resolve the issue within ten (10) business days, the matter shall be referred within two (2) business days of the lapse of such period to the Parties’ responsible officers for resolution. No Party shall seek resolution by mediation of any dispute arising in connection with this Agreement until all Parties’ responsible officers, who shall be identified by each Party from time to time, have had at least ten (10) business days to resolve the dispute following referral of the dispute to such responsible officers. b. If a dispute under this Agreement is not resolved by the Parties pursuant to Section 17.a within sixty (60) days from the date on which a Party first requested mediation, then either Party may seek to resolve such dispute through litigation. Such actions shall be brought in San Bernardino County Superior Court. 4037037.1 13 c. Regardless of whether it is the prevailing party in any litigation or other action to enforce or interpret this Agreement, each Party shall bear its own attorneys’ fees, costs of suit, and other necessary disbursements. This paragraph shall not apply to the costs or attorneys’ fees relative to the indemnification provisions of Section 14. 18. Entire Agreement. This instrument constitutes the entire agreement and understanding between the Parties with respect to the subject matters hereof, and supersedes and replaces any prior agreements and understandings, whether oral or written, by and between them with respect to such matters. 19. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California, without regard to any otherwise applicable principles of conflicts of laws. 20. Amendment. This Agreement may be amended from time to time. No alteration, amendment, or variation of this Agreement shall be valid unless made in writing and signed by all Parties. 21. Severability. If any provision of this Agreement is determined by any court of competent jurisdiction to be invalid and unenforceable to any extent, the remainder of this Agreement shall not be affected thereby, and each provision hereof shall be valid and shall be enforced to the fullest extent permitted by law. 22. Assignment. The Parties may not assign, in whole or in part, their rights or obligations under this Agreement without the express written consent of the other Party; provided, that such written consent shall not be unreasonably withheld. 23. No Third-Party Beneficiary. Nothing contained in this Agreement shall be deemed or construed by the Parties or by any third person to create the relationship of principal and agent, or partnership or joint venture, or any association between the Parties, and none of the provisions contained in this Agreement or any act of the Parties shall be deemed to create any relationship other than as specified herein, nor shall this Agreement be construed, except as expressly provided herein, to authorize either Party to act as the agent for the other. 24. No Waiver. No waiver of any provision of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether or not similar, nor shall any waiver constitute a continuing waiver, nor shall a waiver in any instance constitute a waiver in any subsequent instance. No waiver shall be binding unless executed in writing by the Party making the waiver. 25. Titles & Captions. Titles and captions are for the convenience of reference only and do not define, describe, or limit the scope of the intent of the Agreement or any of its terms. Reference to section numbers are to sections in the Agreement unless expressly stated otherwise. 4037037.1 14 26. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original instrument, but all of which together shall constitute one and the same instrument. 27. Authority to Execute. Each person executing this Agreement represents and warrants that he or she is duly authorized and has legal authority to execute and deliver this Agreement for or on behalf of the parties to this Agreement. Each Party represents and warrants to the other(s) that the execution and delivery of the Agreement and the performance of such Party’s obligations hereunder have been duly authorized. IN WITNESS WHEREOF, the parties hereto have entered into this instrument as of the Effective Date set forth above. SAN BERNARDINO VALLEY MUNICIPAL WATER DISTRICT By: Name: Date: EAST VALLEY WATER DISTRICT By: Name: Date: