Page 59 - Yucaipa Valley Water District

Director Memorandum No. 18-022 Page 13 of 22

7. DISPUTE RESOLUTION

The Parties recognize that there may be disputes regarding the obligations of the
Parties or the interpretation of this Agreement. The Parties agree that they may attempt to resolve
disputes as follows:

7.1 Statement Describing Alleged Violation of Agreement. A Party or Parties
alleging a violation of this Agreement (the “Initiating Party(ies)”) shall provide a written statement
describing all facts that it believes constitute a violation of this Agreement to the Party(ies) alleged
to have violated the terms of this Agreement (the “Responding Party(ies)”).

7.2 Response to Statement of Alleged Violation. The Responding Party(ies)
shall have sixty (60) days from the date of the written statement to prepare a written response to
the allegation of a violation of this Agreement and serve that response on the Initiating Party(ies)
or to cure the alleged violation to the reasonable satisfaction of the Initiating Party(ies). The
Initiating Party(ies) and the Responding Party(ies) shall then meet within thirty (30) days of the
date of the response to attempt to resolve the dispute amicably.

7.3 Mediation of Dispute. If the Initiating Party(ies) and the Responding
Party(ies) cannot resolve the dispute within ninety (90) days of the date of the written response,
they shall engage a mediator, experienced in water-related disputes, to attempt to resolve the
dispute. Each Party shall ensure that it is represented at the mediation by a Director or Trustee
or other representative with authority to settle. These representatives of the Initiating Party(ies)
and the Responding Party(ies) may consult with staff and/or technical consultants during the
mediation and such staff and/or technical consultants may be present during the mediation. The
costs of the mediator shall be divided evenly between the Initiating Party(ies) and the Responding
Party(ies). The decision of the mediator shall be non-binding.

7.4 Reservation of Rights. Subject to the above requirements, in the event that
mediation fails, each Party retains and may exercise all legal and equitable rights and remedies
it may have to enforce the terms of this Agreement; provided, that prior to commencing litigation,
a Party shall provide at least five (5) calendar days’ written notice of its intent to sue to all Parties.

8. RELATIONSHIP TO WATER RIGHTS AND PRIOR AGREEMENTS

8.1 Water Rights and Existing Agreements. Nothing in this Agreement is
intended to modify the water rights of the Parties or the Ex Oficio participants, whether existing
under a judgment, proceedings of the State Water Resources Control Board, or the common law.
Nothing in this Agreement is intended to modify any existing agreements between and among the
Parties, unless expressly stated herein.

8.2 Agreements Among Water Users. Nothing in this Agreement is intended
to modify the rights of the signatories of this Agreement among themselves.

8.3 Judgments. Nothing in this Agreement is intended to modify the rights of
the Parties under the terms of the judgments in Orange County Water District v. City of Chino et
al. (Orange County Superior Court, Case No. 117628, April 17, 1969) and Western Municipal
Water District of Riverside County v. East San Bernardino County Water District et al. (Riverside
County Superior Court Case No. 78426, April 17, 1969); Chino Basin Water District v. City of
Chino, San Bernardino Superior Court Case No. 164327; Big Bear Municipal Water District v.

Yucaipa Valley Water District - February 6, 2018 - Page 59 of 175