Page 27 - Beaumont Basin Watermaster

Beaumont Basin Watermaster Memorandum No. 17-16 Page 4 of 177

conditions had not yet been vetted by the SGPWA, and went on to
explain each of those conditions.

Member Fraser voiced his support of the five conditions outlined, and
suggested that they be sent to the SGPWA Board of Directors to be
formally reviewed and at that point Legal Counsel could draft a final
resolution granting a storage account with the stipulated conditions.

After further discussion, Member Zoba moved to continue this item at
the next Watermaster meeting. The motion was seconded by Member
Kyle Warsinski and passed 5-0.

At the Watermaster meeting on December 7, 2016, the Watermaster Committee continued the
discussion of the Storage Account for the San Gorgonio Pass Water Agency as Beaumont Basin
Watermaster Memorandum No. 16-21 (Attachment C) was presented. At this meeting,
Committee Member Zoba provided an overview of the status of the Storage Agreement and that
a response was expected from the San Gorgonio Pass Water Agency regarding the proposed
conditions previously discussed. The meeting minutes for this agenda item were as follows:

C. Conditions Related to the Groundwater Storage Agreement in the
Beaumont Basin for the San Gorgonio Pass Water Agency [Memorandum
No. 16-21, Page _ of _]

Recommendation: Pending

Member Zoba stated that except for what was discussed by Legal
Counsel Montoya earlier in the meeting, the Committee is ready to move
forward related to the SGPWA Groundwater Storage Agreement subject
to the five conditions and that an update would be provided at the next
meeting.

SGPWA General Manager Jeff Davis addressed the Committee and made
a commitment to having something for Committee consideration at the
February meeting.

On January 23, 2017, the San Gorgonio Pass Water Agency forwarded revised conditions from
the perspective of the SGPWA. These conditions were subsequently discussed at a conference
call on January 26, 2017 (Attachment D). During the conference call, it was apparent that there
was a divergence between the common fundamental concepts that seemed agreeable and the
text used to describe those common understandings between the parties.

At the Watermaster meeting on February 1, 2017, the Watermaster Committee continued the
discussion of the Storage Account for the San Gorgonio Pass Water Agency as Beaumont Basin
Watermaster Memorandum No. 16-21 (Attachment E) was presented. At this meeting,
Committee Member Zoba provided a draft Resolution No. 17-01 with a recommendation to
conduct special meetings of the Watermaster to complete the storage agreement. During the
Watermaster meeting, the proposed language prepared by the San Gorgonio Pass Water Agency
and discussed by conference call during the prior week was not mentioned, presented, or