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CITY OF COLTON ITEM #11 <br />AGENDA REPORT <br />FOR COUNCIL MEETING OF June 16, 2009 <br />TO: Honorable Mayor and City Council <br />FROM: City Manager and City Attorney <br />SUBJECT: Memorandum of Understanding (MOU) between the City of Riverside <br />and the City of Colton Regarding Mutual Cooperation on Matters o <br />Regional Significance <br />DATE: June 10, 2009 <br />BACKGROUND <br />On June 13, 2008, Riverside initiated the case entitled City of Riverside vs. City of Colton, San <br />Bernardino Superior Court No. CIVSS807782, alleging that Colton's environmental analysis <br />under the California Environmental Quality Act (Pub. Resources Code, § 21000 et seq.) <br />("CEQA") of Wells 30 and 31 was inadequate and did not comply with CEQA (the "CEQA <br />lawsuit"). Riverside indicated to Colton that it believed that the operation of Wells 30 and 31 <br />would have an adverse impact on Riverside's adjacent water resources, including Flume Wells 2, <br />3, 4 and 6 (the "Flume Wells"). <br />Riverside claimed in its lawsuit that the wells would have significant impacts on Riverside's <br />water supply and that these impacts were required to be analyzed in an EIR. Shortly after the <br />lawsuit was filed, the parties began extensive settlement discussions. The cities concluded that <br />the well lawsuit was in fact reflective of a larger set of issues between the two cities and that any <br />settlement of the lawsuit should also address other outstanding issues. Staff and legal counsel <br />have been meeting regularly to discuss these issues and have agreed upon terms to address the <br />number of outstanding issues. A Memorandum of Understanding (MOU) was drafted to address <br />these issues. <br />DISCUSSION <br />For several years, Colton has been evaluating possible sites to drill new water wells to augment <br />the City's water needs. The City's Water Facilities Master Plan includes the construction of <br />eight new wells by the year 2010 in order to effectively meet the recommended water production <br />capacity for the City. After extensive investigation, the City determined that the ideal location <br />for two new wells would be at the intersection of Fogg and Congress Streets. <br />In October 2007, the City prepared, pursuant to CEQA, an Initial Study for the Project. On the <br />basis of the Initial Study, staff concluded that drilling the wells would not have significant <br />environmental impacts under CEQA. Staff then prepared a Notice of Intent to Adopt a Negative <br />