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SECOND AMENDMENT TO THE AGREEMENT FOR THE COOPERATIVE USE OF UNUSED WELL CAPACITY, THE TEXAS GROVE RESERVOIR, AND THE CENTRAL FEEDER This Second Amendment to the Agreement for the Cooperative Use of Unused Well Capacity, the Texas Grove Reservoir, and the Central Feeder ("Second Amendment") is made and entered into this 16th day of February, 2021 ("Effective Date"), by and between the City of Redlands ("City") and the San Bernardino Valley Municipal Water District ("Valley District"). City and Valley District are sometimes individually referred to herein as a "Party" and, together, as the "Parties." RECITALS WHEREAS, Valley District owns a well on San Bernardino Avenue within city of Redlands ("Well") which is connected to City's water system; and WHEREAS, by letter agreement dated April 25, 2005 ("Letter Agreement"), a true and correct copy of which is attached hereto as Exhibit "A," and incorporated herein by this reference, City regularly paid Valley District to pump water from the Well into City's water system, paying Valley District for the costs associated with such pumping; and WHEREAS, the Letter Agreement expired on December 31, 2010; and WHEREAS, the Well is located within the boundaries of the San Bernardino Valley Water Conservation District ("Conservation District") which has assessed each well within its service area to fund the Conservation District's operations; and WHEREAS, the Agreement for the Cooperative Use of Unused Well Capacity, the Texas Grove Reservoir and the Central Feeder ("Original Agreement") was entered into on the 2nd day of April, 2013, by and between City and Valley District, a true and correct copy of which is attached hereto as Exhibit "B," and incorporated herein by this reference; and WFIEREAS, Amendment No. 1 to the Original Agreement was entered into on the 6th day of October, 2015, by and between City and Valley District and provided backup cooling water for Valley District's Citrus Pump Station, atrue and correct copy ofwhich is attached hereto as Exhibit "C," and incorporated herein by this reference, and the Original Agreement, as amended, shall be hereinafter referred to as the "Agreement;" and WHEREAS, per Section 3.d. of the Original Agreement, the Parties acknowledge that the Agreement was intended not only to serve as the basis for cooperative operations at the time the Agreement was executed, but it was also intended to serve as the basis for long-term cooperation. The Parties also agreed to consider amending the Agreement at appropriate times to reflect additional facilities and new opportunities to improve the conjunctive management of the San Bernardino Basin Area ("SBBA") and/or water supply reliability for the San Bernardino Valley; and WHEREAS, in or around 2015, certain local water agencies formed the San Bernardino Amendment No. 2 L:\ca\djm\Agrecmcnts\SBVMWn 2nd Amend.FY20-0077.docxjn Page 1