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Riverside Memorandum of Understanding <br />June 16, 2009 City Council Meeting Page 2 <br />Declaration and a Draft Negative Declaration. In November 2007, Riverside submitted written <br />comments expressing concerns over the possibility that the new wells would negatively impact <br />Riverside's Flume Well #2, which is located approximately 850 feet from the proposed Project <br />location. Riverside wanted the City to, among other things, perform a groundwater hydrology <br />study to analyze the impacts from the wells. In Staff's opinion, Riverside did not provide <br />sufficient evidence to justify the hydrology study and recommended Project approval on the <br />basis of a Negative Declaration. On December 19, 2007, the City Council voted to adopt the <br />Negative Declaration and approved the Project. Six months later, on June 13, 2008, Riverside <br />filed its Petition for Writ of Mandate and Complaint for Declaratory and Injunctive Relief. <br />On July 17, 2008, City and Riverside staff began settlement discussions, as mandated by CEQA. <br />At that meeting, several additional issues of mutual concern were discussed, including the <br />Riverside Groundwater Aquifer Storage and Recovery System (the "Recharge Project"), the <br />Pellissier Ranch Specific Plan, the Groundwater Management Plan for Riverside Basin, the John <br />W. North Sewer Discharge Permit, and the RIX Facility. Since the initial settlement meeting in <br />July, staff and counsel have met regularly to discuss these issues. Most recently, terms of a <br />proposed MOU have been developed and are discussed in detail below. <br />MEMORANDUM OF UNDERSTANDING - SUMMARY AND ANALYSIS OF PROPOSED TERMS <br />A. Wells 30 and 31 Litigation <br />Colton agreed to make Wells 30 and 31 available for a pump test, which was conducted <br />between January 19, and January 23, 2009. The results were documented in a draft Pump Test <br />Report, showing that the operation of Colton Wells 30/31 appears to have a very small impact on <br />the water levels at Riverside's Flumes wells. The cost to conduct the pump test was $47,360. <br />Based upon the impact thresholds provided by Riverside, the 40 -year impact on all the Flume <br />Wells as a result of the operation of Wells 30/31 would be approximately $29,240. Riverside <br />will reimburse Colton the difference between the costs to conduct the pump test and the <br />estimated 40 year impacts ($18,120). Riverside will dismiss with prejudice the CEQA lawsuit <br />and support Colton's efforts to obtain required permits for Wells 30 and 31 from other permitting <br />agencies. <br />B. Riverside Groundwater Aquifer Storage and Recovery System <br />The Riverside Groundwater Aquifer Storage and Recovery System (the "Recharge <br />Project"), is a proposed project to capture and recharge Santa Ana River storm water and <br />imported water, on and near Riverside's Flume Well Tract property located in Colton. The <br />proposed project currently includes spreading basins and facilities for the diversion of water <br />from the Santa Ana River to those basins. Colton has requested that the proposed project also <br />include recreational features and be configured to accommodate local circulation requirements <br />for South Colton. Under the MOU, Riverside will agree to consider and study the addition of <br />these components into the proposed project. Riverside also agrees to fund the cost of Recharge <br />Project environmental analysis, including any recreational elements associated with the <br />improvements. Riverside and Colton agree to jointly seek grant funding, from federal and/or <br />state funds, for the Recharge Project on terms that are mutually acceptable. <br />2 <br />