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SECOND SUPPLEMENT TO THE <br />COST SHARING AGREEMENT FOR THE <br />COLTON/SAN BERNARDINO REGIONAL TERTIARY <br />TREATMENT SYSTEM AND REACH IV -E OF THE <br />SANTA ANA REGIONAL INTERCEPTOR <br />On May 26, 1993 the City of San Bernardino Municipal Water Department, the City of <br />Colton and the Santa Ana Watershed Project Authority (SAWPA) entered into an <br />agreement titled "COST-SHARING AGREEMENT FOR THE DESIGN OF THE <br />COLTON/SAN BERNARDINO REGIONAL TERTIARY TREATMENT SYSTEM AND <br />REACH IV -E OF THE SANTA ANA REGIONAL INTERCEPTOR". Subsequently, In <br />January, 1994 a "SUPPLEMENT" to the above noted cost sharing agreement was <br />approved by the same parties to more precisely define and refine the respective parties <br />financial responsibilities related to the RIX and SARI projects. <br />Neither of the referenced agreements anticipated the possibility of the two pipelines, the <br />RIX conveyance pipeline and the Santa Ana Regional Interceptor, which were constructed <br />under one construction contract, being completed at separate times. In fact, construction <br />work on the Santa Ana Regional Interceptor was completed on February 21, 1996 as <br />agreed between the parties. Construction work on the RIX conveyance pipeline, being <br />performed under the same construction contract by Colich & Sons is expected to be <br />completed in late March, 1996. <br />All parties agree that SAWPA payment responsibilities for Construction Engineering and <br />related activities by CH2M Hill and their subconsultants as well as project management <br />activities undertaken by SAWPA and Mr. Gordon Magnuson shall terminate as of the close <br />of business on February 21, 1996 except as noted below. This action is consistent with <br />the completion of construction work on the Santa Ana Regional Interceptor on February <br />21, 1996. <br />SAWPA's respective payment responsibilities for construction related work, potential <br />claims and changes in work along with costs for project management and consulting <br />services in evaluating and bringing the Santa Ana Regional Interceptor Reach IV -E portion <br />of the project to a close shall continue to remain in effect and are fully recognized by <br />SAWPA. <br />01 <br />