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COST -SHARING AND REIMBURSEMENT AGREEMENT AMONG THE CITY OF <br />REDLANDS, NEIL WATSON, AND GEORGE NASH, REGARDING THE PIONEER <br />MUTUAL WATER COMPANY WELL REPAIR AND OPERATIONS <br />This COST -SHARING AND REIMBURSEMENT AGREEMENT ("Agreement") is <br />made and entered into on May 21, 2024, by and among the City of Redlands ("City"), Neil <br />Watson ("Watson"), and George Nash ("Nash") for the cost -sharing and reimbursement of costs <br />in connection with well repairs. In this Agreement, the City, Watson, and Nash are referred to <br />individually as "Party" and collectively as the "Parties." <br />RECITALS <br />A. The City, Watson, and Nash are shareholders of Pioneer Mutual Water Company (the <br />"Company"). <br />B. The Parties desire to repair a Company well that has failed and requires significant repair. <br />C. The Company will enter into a contract for the performance of the above -mentioned repairs, <br />subject to reimbursement by the Parties. <br />D. The Parties have agreed to share the costs of said repairs, which will benefit the Parties as <br />provided in this Agreement. <br />E. The Parties have agreed to share the costs of any future work or repairs and ongoing operating <br />costs according to the terms contained in this Agreement. <br />NOW, THEREFORE, in consideration of the mutual covenants contained herein, the Parties <br />mutually agree to the following: <br />1. Recitals. The Recitals stated above are true and correct and are incorporated by this reference <br />into this Agreement. <br />2. Scope of Repairs. Company shall contract for the performance of repair work in accordance <br />with the plans and specifications set forth on Exhibit A, attached hereto. <br />3. Responsibilities of the Parties. The Parties will share the costs of previously described <br />repairs and any future repairs or work and operating costs as follows: <br />a. City shall be responsible for 75% of the costs incurred. <br />b. Watson shall be responsible for 15% of the costs incurred. <br />c. Nash shall be responsible for 10% of the costs incurred. <br />City, Watson, and Nash shall promptly reimburse the Company for their proportionate share <br />of the repair work (the "Reimbursement"), no later than thirty (30) days following the <br />Company's written invoice therefore. <br />1 <br />I:\cmo\Agreements\Cost Sharing and Reimbursement Agreement Re Pioneer Mutual Water Company Well Repair FY23-0088.docx-ms <br />