Page 58 - Yucaipa Valley Water District

Director Memorandum No. 18-022 Page 12 of 22

or any of them, for any and all purposes necessary or convenient for the purposes of this
Agreement.

5.2.4 To accumulate operating and reserve funds and invest the same as
allowed by law for the purposes of the GC.

5.2.5 As may be permitted by law, to apply for and accept grants,
contributions, donations and loans, including under any federal, state or local programs for
assistance in developing or implementing any of its projects or programs in connection with any
project untaken in the GC’s name.

5.2.6 To acquire lease, purchase, construct, hold, manage, maintain,
operate and dispose of any buildings, property, water rights, works or improvements within and
without the respective boundaries of the Parties necessary to accomplish the purposes described
herein, or to assist any Party in doing so.

5.2.7 To implement the Cost Share in a manner that qualifies as a pass
through charge under the Constitutional requirements of Proposition 218 and similar revenue-
raising requirements.

5.2.8 To exercise any power necessary or incidental to the foregoing
powers in the manner and according to the procedures provided for under the law applicable to the
Parties to this Agreement.

5.2.9 In addition to the above, and to the extent not directly represented
on the GC, the GC shall coordinate its efforts with the agencies that are charged with implementing
all applicable judicial decrees governing the Basin.

6. FUNDING GC ACTIVITIES

Funding for GC activities shall be provided pursuant to an expense sharing
mechanism described in more detail in Exhibit B hereto. This mechanism is based in part on a
regional sharing of Operation and Maintenance costs for San Bernardino Basin Area recharge
activities, as those Operation and Maintenance costs shall be determined by the GC in its annual
budgeting, in conjunction with BTAC. All Parties shall share in the Operation and Maintenance
cost components. Ex Oficio participants shall not share in any costs which are attributable to
bringing imported water to the Basin nor its recharge, but all other Parties shall participate in such
costs, pursuant to the Equitable Allocation attached as Exhibit B hereto. Ex Officio participants
intend to, through separate agreement(s) with the Conservation District and/or Valley District,
cooperate in the payment of up to a maximum of 27.95% of costs associated with the recharge of
water that results from natural precipitation and run-off in the basin (native water). Each Party
shall be contractually responsible hereunder for the annual payment of fees for their assigned
portion of the budgeted expenses of the GC, based on that Party’s allocation, as determined by the
aforementioned allocation formula and the approved GC budget.

Yucaipa Valley Water District - February 6, 2018 - Page 58 of 175