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ITEM #17 <br />CITY OF COLTON <br />AGENDA REPORT <br />FOR COUNCIL MEETING OF April 4, 2006 <br />TO: HONORABLE MAYOR AND CITY COUNCIL <br />FROM: ERIC FRASER, WATER & WASTEWATER DIRECTOR <br />DEAN DERLETH, CITY ATTORNEY <br />SUBJECT: APPROVAL OF A MEMORANDUM UNDERSTANDING REGARDING <br />THE ALLOCATION OF FEDERAL FUNDS RELATED TO THE "WHITE <br />PAPER" FOR CLEAN-UP OF PERCHLORATE IN GROUNDWATER <br />DATE: MARCH 23, 2006 <br />BACKGROUND: <br />Colton is one of four water purveyors in the western portion of San Bernardino County that has <br />been significantly impacted by perchlorate contamination. The City joined with the other three <br />purveyors — Rialto, Fontana Water Company, West Valley Water District — and the County of San <br />Bernardino to form the Rialto -Colton Basin Technical Committee to identify a strategy for restoring <br />water supplies and cleaning up the groundwater. The strategy has been identified and outlined in <br />detail in a "White Paper' entitled "Proposed Initial 5 -Year Groundwater Cleanup Approach; Rialto - <br />Colton and Neighboring Basins; San Bernardino County, California." A copy of the proposed <br />White Paper is attached. <br />The "White Paper," which is essentially a funding mechanism, outlines a technical approach to <br />achieve the groundwater cleanup. The "White Paper" identifies the cost of this technical <br />approach, including investigation, capital improvements and five-year operating and maintenance <br />costs. The four water purveyors and the County agreed that it would be to all of the parties' <br />advantage to work together in trying to receive funds from the federal government to clean up the <br />groundwater. If the parties applied separately for federal funds, then their applications would <br />essentially compete against each other and each party might not get the amount needed to <br />achieve their goals. Because the perchlorate contamination is a basin -wide concern, the success <br />or failure of each party in securing federal funds for cleanup will affect the other parties. In light of <br />this interconnection between the parties, the water purveyors and the County agreed to make a <br />cooperative effort to secure federal funds for the groundwater cleanup. <br />The White Paper spells out how the requested funds will be used by Colton, as well as by the <br />other parties. In particular, the White Paper explains how the funds will be applied to restore <br />water supplies and clean up the groundwater. <br />