Page 56 - Yucaipa Valley Water District

Director Memorandum No. 18-022 Page 10 of 22

otherwise modified, and represented to the GC for eighty percent (80%) approval. No portion of
the GC budget imposing any expenditures on any Party shall be approved or adopted on less than
an eighty percent (80%) vote of the Equitable Allocation weighted voting, but the inability to
secure an eighty percent (80%) vote on segregable portions of the budget shall not prevent the GC
from implementing, and proceeding with, those portions of the budget which secured the required
eighty percent (80%) approval.

4.7 The Valley District shall perform the accounting and revenue collection
functions of the GC in tracking and securing the funding from the GC members pursuant to the
approved annual budget, and consistent with the approved cost allocations among the GC
members therein, for all imported water supplies. The Conservation District shall perform the
accounting and revenue collection functions of the GC in tracking and securing the funding from
the GC members pursuant to the approved annual budget, and consistent with the approved cost
allocations among the GC members therein, for all facilities costs. The Conservation District shall
credit each Party or Ex Oficio participant otherwise subject to the Conservation District’s
groundwater charge, in the amounts such Party contributes to the GC budget for facilities costs
that would be encompassed in that groundwater charge, in order to prevent double collection of
such costs with the Conservation District’s groundwater charges. Groundwater charges payable
by the Ex Oficio Participants may be suspended as part of the separate funding agreement
outlined in Section 4.8. In the event of any delinquency, either Valley District or the Conservation
District may request the GC to appoint it, or any other GC member or group of members, to
represent the GC in securing collection of unpaid and owing amounts from any delinquent
member or members. The reasonably incurred costs of such collection efforts may be reimbursed
to the agent the GC authorizes to go forward with them, and may be added as an administrative
cost to other members, or as a credit against future amounts owing to the GC from such
authorized agent.
4.8 Ex Oficio participants will not be subject to the Conservation District’s
groundwater charges as long as a separate funding agreement as outlined in this Section 4.8 is
in effect. Ex Oficio participants may jointly negotiate and execute a separate agreement with the
Conservation District and/or Valley District that will provide for the annual payment of up to
27.95% of costs associated with the recharge of native waters. As of the Effective Date of this
Agreement, Ex Oficio participants understood the estimated annual costs associated with water
recharge, both native and imported, to be $800,000 for Conservation District activities and
$200,000 for activities that may occur in recharge basins outside of the Conservation District’s
control. Ex Oficio participants, via the separate funding agreement, may agree to collectively pay
no more than 27.95% of the cost for recharge of native waters. In any such agreement, in the
event that imported water is recharged and the costs for such activity are comingled with the cost
for recharge of native water, the Conservation District and/or Valley District will pro-rate the costs
associated with recharge to separate the costs for native and imported water recharge. Ex Oficio
participants are not intended to be charged for the costs of recharge of imported water or
associated capital, the operations and maintenance for imported supplies, or any other costs not
expressly agreed to in the separate funding agreement.

4.9 No later than six (6) months into the budget year for which any budget is
adopted by the GC, the Budget Committee shall prepare a year-in-process budget review, to
assess the validity and accuracy of the presumptions upon which the budget was based, identify
any budget savings or additional expenditures, assess any additional opportunities for
groundwater replenishment that may have come available since the passing of the budget, and
otherwise assess and recommend to the GC any potential amendment to the existing year

Yucaipa Valley Water District - February 6, 2018 - Page 56 of 175