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2012/09/19 Eastern Municipal Water District (EMWD) Perris Desalination Program MOU EXHIBIT "B" MEMORANDUM OF UNDERSTANDING FOR THE PERRIS DESALINATION PROGRAM — BRACKISH WATER WELLS 94, 95, AND 96 BETWEEN EASTERN MUNICIPAL WATER DISTRICT, WESTERN MUNICIPAL WATER DISTRICT, THE COUNTY OF RIVERSIDE, THE CITY OF MENIFEE, THE CITY OF PERRIS AND THE CITY OF MORENO VALLEY This Memorandum of Understanding ("MOU") is made and entered into this 19th day of September, 2012, between and among EASTERN MUNICIPAL WATER DISTRICT, a public agency (hereinafter "Eastern"); WESTERN MUNICIPAL WATER DISTRICT, a public agency (hereinafter "Western"), THE COUNTY OF RIVERSIDE, a political subdivision of the State of California ("County"), THE CITY OF MENIFEE, a municipal corporation (hereinafter"Menifee"), THE CITY OF PERRIS, a municipal corporation (hereinafter "Perris"), and THE CITY OF MORENO VALLEY, a municipal corporation (hereinafter "Moreno Valley"). Eastern, Western, County, Menifee, Perris, and Moreno Valley are hereinafter sometimes referred to individually as a Party and collectively as the "Parties." RECITALS WHEREAS, the Lakeview/Hemet North Groundwater Management Zone contains brackish groundwater which, if desalinated, could provide a potable water supply to over 40,000 people in portions of the disadvantaged communities of Perris and Menifee ; and WHEREAS, the Perris II Desalination Facility project will provide the capacity to treat brackish groundwater and produce approximately 6,000 acre-feet per year of potable water; and WHEREAS, production of this potable water would reduce Eastern's reliance on imported water by approximately Four and One-Half Percent (4.5%); and WHEREAS, new brackish water wells are required to produce water for treatment at the Perris I and Perris II Desalination Facilities; and WHEREAS, Eastern has previously obtained a grant from the Santa Ana Watershed Project Authority "SAWPA")to build Brackish Water Well 93; and WHEREAS, Eastern intends to install Brackish Water Wells 94, 95, and 96 to provide additional water for desalination (the "Perris Desalination Program — Brackish Water Wells 94, 95, and 96," or"Project"); and WHEREAS, the Project will allow existing brackish water wells to be refurbished while maintaining current production capacities; and WHEREAS, to fund a portion of the construction of the Project, Eastern is preparing an application to the Santa Ana Watershed Project Authority ("SAWPA") for a grant in the amount of up to Seventy Five Percent (75%) of the total project costs, which are estimated to be Ten Million Two Hundred and Thirty Two Thousand Four Hundred Dollars ($10,232,400) under the One Water One Watershed ("OWOW") Program; and / NOW, THEREFORE, in consideration of the above recited premises, which are incorporated herein by reference, together with the mutual covenants herein contained and attached hereto, it is agreed that: AGREEMENT 1. EASTERN'S RESPONSIBILITIES. Eastern shall be the lead agency for the construction of the Project in accordance with the Plans and shall have primary responsibility for inspection and construction of the Project. Eastern shall be the grant recipient and administrator for the OWOW grant. Eastern shall also be responsible for choosing and paying (with grant and matching funds) for a contractor to complete the well drilling, well equipping, and transmission pipeline construction work contemplated under the Project. Eastern will provide the Match Funding of at least Twenty Five Percent (25%) of the total costs for the Project. Match Funding may include planning and design costs incurred by Eastern after September 30, 2008. Eastern will own and operate the wells and transmission lines upon completion of the Project. Eastern shall ensure that all of the Parties are named as additional insured under any policy of insurance related to construction of the Project. 2. WESTERN'S RESPONSIBILITIES. Western shall be responsible for a portion of the collaborative planning efforts for the Project, and will support and assist in the regional effort to utilize local groundwater resources. 3. COUNTY'S RESPONSIBILITIES. County, through its Environmental Health Department, shall be responsible for collaborative planning efforts for the Project, and will support and assist in the regional effort to utilize local groundwater resources. 4. MENIFEE'S RESPONSIBILITIES. Menifee shall be responsible for supporting, assisting and collaborating in the planning efforts for the Project to utilize local groundwater resources. 5. PERRIS'S RESPONSIBILITIES. Perris shall be responsible for collaborative planning efforts for the Project, and will support and assist in the regional effort to utilize local groundwater resources. 6. MORENO VALLEY'S RESPONSIBILITIES. Moreno Valley shall be responsible for collaborative planning efforts for the Project, and will support and assist in the regional effort to utilize local groundwater resources. 7. ALL PARTIES' RESPONSIBLITIES. The Parties agree to collaborate on an outreach program to inform the affected communities of the efforts to utilize local groundwater resources. 2 8. NOTICES. Any written communication required or permitted to be given hereunder will be deemed received upon personal delivery or 48 hours after deposit in any United States mail depository, first class postage prepaid, and addressed to the party for whom intended, as follows: If to Eastern: Eastern Municipal Water District PO Box 8300 Perris, CA 92572-8300 Attn: Paul D. Jones, General Manager If to Western: Western Municipal Water District 14205 Meridian Parkway Riverside, CA 92518 Attn: John Rossi, General Manager If to County: County of Riverside Department of Environmental Health PO Box 7600 Riverside, CA 92503 Attn: John Watkins, Deputy Director If to Menifee: City of Menifee 29714 Haun Road Menifee, CA 92586 Attn: William Rawlings, City Manager If to Perris: City of Perris 101 North "D" Street Perris, CA 92370 Attn: Richard Belmudez, City Manager If to Moreno Valley: City of Moreno Valley 14177 Frederick Street Moreno Valley, CA 92553 Attn: Henry T. Garcia, City Manager 9. GENERAL. This MOU contains the entire agreement between the Parties with respect to the matters herein provided for and may only be amended by a subsequent written amendment executed by all parties. This MOU may be executed in counterparts, each of which shall be deemed an original but which together shall constitute a single agreement. 10. INDEMNIFICATION._In contemplation of the provisions of Section 895.2 of the California Government Code imposing certain tort liability jointly upon public entities solely by reason of such entities being parties to any agreement as defined by Section 895 of the Code, the Parties hereto, pursuant to the authorization contained in Section 895.4 and 895.6 of the Code, agree that each Party shall be liable for any damages including, but not limited to, claims, demands, losses, liability, costs and expenses including reasonable attorneys fees, resulting from the negligent of wrongful acts or omissions of their employees or agents in the performance of the MOU, and each Party 3 / shall indemnify, defend and hold harmless the other Parties from such demands, damages, losses or liabilities for their negligence. 11. INVALIDITY; SEVERABLITY. If any portion of this MOU is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall constitute in full force and effect. 12. SUCCESSORS AND ASSIGNS. This MOU shall be binding upon and inure to the benefit of the successors and assigns of the parties hereto. 13. SIGNATURE CLAUSE. The signatories hereto represent that they have been appropriately authorized to execute this MOU on behalf of the Party for whom they sign. [End = Signatures on Following Page] 4 IN WITNESS WHEREOF, the parties hereto have executed this MOU EASTERN MUNICIPAL WATER DISTRICT Cl OF M�ErNIF E By: By: V Paul D. Jones II, General Manager Joh . Denver, Mayor Date: Date:—off , t F- Z 77 Josep c er, Attorney WESTERN MUNICIPAL WATER DISTRICT TY OF PE RIS By: By: John Rossi, General Manager Richard Belmudez, City Manager Date: Date: COUNTY OF RIVERSIDE CITY OF MORENO VALLEY DEPARTMENT OF ENVIRONMENTAL HEALTH By: By: John Watkins, Deputy Director Henry T. Garcia, City Manager Date: Date: 5