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DISC USSION/ANALYSIS: <br />The parties discussed the need to enter into a Memorandum of Understanding ("MOU") to <br />address certain issues that have arisen during the negotiations over the White Paper. The issues <br />addressed by the MOU are as follows: <br />• The proposed MOU states that the parties agree to abide by the allocations set forth in the <br />White Paper. This provision applies specifically to the even split of 20 percent to each <br />party in the event that the federal funds received are less than the amount requested in <br />the White Paper. <br />• The proposed MOU states that nothing in the White Paper or the MOU itself may be used <br />in litigation involving any of the parties. In other words, the parties to the MOU may not <br />assert that any monies received through the White Paper should affect any settlement in <br />Colton's litigation regarding the perchlorate contamination, or vice versa. <br />• The proposed MOU also ensures that the White Paper cannot be used separately by any <br />of the parties to individually obtain federal funds for the groundwater cleanup. However, <br />the parties can use applicable portions of the White Paper to use in a submission for <br />federal funds or state funds. <br />The proposed MOU, a copy of which is attached, is contingent upon approval by the governing <br />bodies of each parry. Staff requests the City Council's approval to enter into the MOU with the <br />other parties. <br />ALTERNATIVES: <br />Alternatively, the City could decline to enter into the MOU. However, such action would jeopardize <br />the City's ability to receive a fair share of federal funds to use for the groundwater cleanup and <br />maintenance and operations of the three wells affected by the perchlorate plume. <br />FINANCIAL IMPACT: <br />The potential financial impact from entering into the MOU could be beneficial to the City, by <br />providing a better chance of receiving the amount of money specified in the White Paper for <br />Colton to maintain and operate the three wells affected by the perchlorate plume. <br />ENVIRONMENTAL IMPACT: <br />None. <br />CONFLICT OF INTEREST — Gift Disclosure Requirements <br />Not applicable <br />RECOMMENDATION: <br />City staff recommends that the City Council approve and authorize the City Manager to execute <br />the MOU by and between the County of San Bernardino, City of Rialto, City of Colton, West Valley <br />