Page 65 - Yucaipa Valley Water District

Director Memorandum No. 18-022 Page 19 of 22

Exhibit B

EQUITABLE ALLOCATION METHOD

The Parties to this agreement have agreed to equitably share costs and establish the
voting weight for each Party using the following method, which shall be performed annually
after the annual submittal of the Western-San Bernardino Watermaster Report to the Court. The
details for this method are included in a Microsoft Excel Spreadsheet titled BTAC Equitable
Allocation Method SBBA 1.18.18.xlsx, as amended by the GC from time to time, which is
incorporated here by reference. Copies of that file have been made available to all parties.

I. Calculation of the Equitable Operations and Maintenance (O&M) Cost.

The equitable distribution of the O&M Costs amongst the Parties shall be calculated from the
approved budget, as follows:

Equitable O&M Cost Plaintiffs = 0.2795 x O&M Costs

Equitable O&M Cost Non Plaintiffs = Proportion of Total Pumping x 0.7205 x O&M Costs

where,
O&M Costs = annual budgeted or actual costs to operate and maintain the facilities needed
to recharge supplemental water into the SBBA that have been reviewed and approved by
the Council

Proportion of Total Pumping (%) = Party’s total SBBA pumping
Non-Plaintiff Total SBBA Pumping

where,

Party’s total SBBA pumping (acre-feet) = the Party’s total amount pumped from the SBBA
for the previous complete calendar year, as published by the Western-San Bernardino
Watermaster, and adjusted for any water pumped by one Party and received by another
Party, to coordinate with non-parties still paying the groundwater charge, Parties may be
requested to report production to the SBVWCD, as needed.

Non-Plaintiff Total SBBA Pumping (acre-feet) = total Non-Plaintiff pumping of the parties
for the previous complete calendar year, as recorded by the Western-San Bernardino
Watermaster.

II. Calculation of the Equitable Water Cost.

The equitable distribution of the water cost for sustainability will only be paid by the Non-
Plaintiff parties and shall be calculated, as follows:

Equitable Water Cost = Party Gap + Sustainability

where,

Yucaipa Valley Water District - February 6, 2018 - Page 65 of 175