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D. Riverside has constructed the John W. North Water Treatment <br />Plant, funded in part by a grant from the State of California (Proposition 50, the Water <br />Security, Clean Drinking Water, Coastal and Beach Protection Act of 2002), within the <br />City of Grand Terrace. The Plant's operation requires that certain waste be discharged <br />into the Grand Terrace sewer system, for disposal by Colton. On January 30, 2008, <br />Riverside formally submitted its application to Colton for an industrial user discharge <br />permit to allow for such discharge. To date, no such permit has been issued. <br />E. Colton is a part owner (with the City of San Bernardino as part of a <br />Joint Powers Authority ("JPA")) of the Regional Rapid Infiltration and Extraction <br />("RIX") Facility that discharges tertiary treated wastewater to the Santa Ana River. The <br />RIX facility was designed to provide tertiary treatment for 40 MGD (million gallons per <br />day) of secondary treated effluent through percolation and extraction of treated effluent. <br />However, due to infiltration issues at the existing percolation basins, the RIX facility is <br />not operating at design capacity. The JPA had contemplated a capacity restoration <br />project that would bring sanitation ponds south along the Santa Ana River towards water <br />wells within the City of Riverside. <br />F. On June 13, 2008, Riverside initiated the case entitled City of <br />Riverside vs. City of Colton, San Bernardino Superior Court No. CIVSS807782, alleging <br />that Colton's environmental analysis under the California Environmental Quality Act <br />(Pub. Resources Code, § 21000 et seq.) ("CEQA") of Wells 30 and 31 was inadequate <br />and did not comply with CEQA (the "CEQA lawsuit"). Riverside has further indicated to <br />Colton that it believes that the operation of Wells 30 and 31 will have an adverse impact <br />on Riverside's adjacent water resources, including Flume Wells 2, 3, 4 and 6 (the "Flume <br />Wells"). Collectively, this shall be known as the "Wells 30 and 31 Dispute." <br />G. Colton has indicated a short term need for wastewater treatment to <br />serve the southwestern portions of the city while it constructs the regional backbone <br />infrastructure to serve these developing areas. Riverside has indicated a willingness to <br />provide an interim service connection to their wastewater treatment facilities to allow <br />development to proceed. <br />WHEREAS, the Cities of Colton and Riverside desire to work together on these <br />issues with the common goal of bettering the quality of life within the Inland Empire by <br />protecting the water resources for their water customers. <br />NOW, THEREFORE, in consideration of the above recitals that are incorporated <br />herein, the parties hereto agree to the specific action items, terms and conditions as <br />follows: <br />1. Riverside Groundwater Aquifer Storage and Recovery System (the <br />"Recharge Project") <br />1.1 Riverside shall act as the lead agency for the Recharge Project, and <br />Colton shall act as the responsible agency. Riverside and Colton will work cooperatively <br />in identifying the potential environmental impacts of the Recharge Project and the <br />methods of mitigating such impacts. After the issuance of a draft Environmental Impact <br />Report by Riverside, but prior to Riverside's presentation of the Final EIR to its City <br />2 <br />