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Home My WebLink AboutAgenda Packet - EVWD Board of Directors - 05/27/2003 East Va ' ey Water District 1155 DEL ROSA AVENUE, SAN BERNARDINO, CA REGULAR BOARD MEETING May 27, 2003 2:00 P.M. AGENDA "In order to comply with legal requirements for posting of agenda, only those items filed with the District Secretary by 10:00 a.m. on Wednesday prior to the following Tuesday meeting not requiring departmental investigation, will be considered by the Board of Directors". CALL TO ORDER PLEDGE OF ALLEGIANCE 1. Approval of Agenda 2. Public Comments CONSENT CALENDAR 3. Approval of Board Meeting Minutes for May 13, 2003. 4. Approval of Special Meeting Minutes (Budget Workshop) for May 15, 2003. 5. Approval of Liens for Delinquent Water and Sewer Accounts. 6. Resolution 2003.24 - Dedication of Water Distribution System within Tract 15985-2 (Lots 88-151) in the City of Highland. 7. Resolution 2003.26 - Dedication of Sewers within Tract 15825 in the City of Highland. 8. Resolution 2003.27 - Dedication of Water Distribution within Tract 15825 in the City of Highland. 9. Approval of Development Agreement between East Valley Water District and Haagen Company, a California LLC, to provide domestic water and sewer service to 6.3 AC retail center dwelling units located at the northeast corner of Greenspot Road and Church Street, in the City of Highland. 10. Review and accept Financial Statements for period ended April 30, 2003. ll. Accounts Payable Disbursements: Accounts Payable Checks #193227 through #193370 were distributed May 14, 2003 through May 21, 2003 in the amount of $471,518.83. Payroll Checks for period ended May 23, 2003 and included checks and direct deposits in the amount of $84,096.50.Total Disbursements for the period were $555,615.14. OLD BUSINESS 12. Radon Rule Update (General Manager) NEW BUSINESS 13. Discussion and possible action regarding sponsorship donation to the Highland Area Chamber of Commerce. 14. Resolution 2003.25 - In Recognition olD. Burnell Cavender as General Manager of the San Bernardino Valley Water Conservation District. 15. Discussion and possible action regarding Call for Nominations for candidates for Region Chair, Vice Chair, and Board Member positions for ACWA Region 9. 16. Discussion and possible action regarding date and time for a Public Hearing to discuss a possible rate increase for water and/or sewer. 17. Review and approval of engagement letter from Rogers, Anderson, Malody & Scott, LLP (RAMS) for annual auditing services pursuant to Government Auditing Standards. REPORTS 18. May 12, 2003 and May 19, 2003 - Releases of Lien for Delinquent Water and Sewer Accounts. 19. General Manager's Report a) Perchlorate Issues b) Current Construction Activity 20. Oral Comments from Board of Directors. ~ MEETINGS 21. ACWA LEGISLATIVE SYMPOSIUM, Holiday Inn Capitol Plaza, Sacramento, CA., June 10 & ll, 2003. 22. WESTCAS 11TM ANNUAL SUMMER CONFERENCE, Shelter Pointe Hotel, San Diego, CA., June 25- 27, 2003. 23. ACWA (REGION 7&9) TOUR OF KERN WATER BANK, Bakersfield, CA. June 5-6, 2003. CLOSED SESSION j24. CONFERENCE WITH REAL PROPERTY NEGOTIATOR [Government Code Section 54954.5] Property: 7920 Webster St. (3.2 Acre Site) & APN: 1201-361-0l & 02 (10 Acre Site) Party with whom District will negotiate: City of Highland Party who will be negotiating on behalf of the District: Robert Martin Under Negotiation: Price and Terms of Payment ANNOUNCEMENT OF CLOSED SESSION ACTION ADJOURN 2 DRAFT SUBJECT TO APPROVAL EAST VALLEY WATER DISTRICT MAY 13, 2003 REGULAR BOARD MEETING MINUTES The meeting was called to order at 2:00 p.m. by President Goodin. Director Wilson led the flag salute. PRESENT: Directors Lightfoot, Sturgeon, Negrete, Wilson, Goodin ABSENT: None STAFF: Robert Martin, General Manager; Paul Dolter, District Engineer; Brian Tompkins, Chief Financial Officer; Mary Wallace, Administrative Assistant LEGAL COUNSEL: Steve Kennedy GUEST(s): Richard L. Fockler (EVWD Customer), Gary Sturdivan (EVWD), Jo McAndrews APPROVAL OF AGENDA M/S/C (Lightfoot-Wilson) that the May 13, 2003 Agenda be approved as submitted. PUBLIC PARTICIPATION President Goodin declared the public participation section of the meeting open at 2:02 p.m. There being no written or verbal comments, the public participation section was closed. APPROVAL OF APRIL 22, 2003 BOARD MEETING MINUTES. M/S/C (Wilson-Sturgeon) that the April 22, 2003 Board Meeting Minutes be approved as submitted. Minutes: 05/13/03 APPROVAL OF SPECIAL MEETING MINUTES FOR APRIl, 29, 2003. 1WS/C (Wilson-Sturgeon) that the April 29, 2003 Special Meeting Minutes be approved as submitted. APPROVAL OF LIENS FOR DELINQUENT WATER AND SEVVER ACCOUNTS. The General Manager stated that the charges identified by Account Numbers: 0140190- 09, 0150235~01, 0910382-05, 1010105-03, 1120120-00, and 1420162-01 had been paid ' and should be removed from the lien list. 1WS/C (Wilson-Sturgeon) that the liens for delinquent water and sewer accounts be approved for processing with the exceptions as noted by the General Manager. RESOLUTION 2003.22 AUTHORIZING LIQUIDATION OF STOCK was presented to the Board for approval. M/S/C (Wilson-Sturgeon) that Resolution 2003.22 be approved. DEVELOPMENT AGREE1V[ENT BETWEEN EAST VALLEY WATER DISTRICT AND NORTH AMERICAN RESIDENTIAL COMMUNITIES, INC. TO PROVIDE DOMESTIC SEWER SERVICE TO FIVE (5) DWELLING UNITS LOCATED AT THE NORTH WEST CORNER OF BURNS AVENUE AND BROWNING ROAD IN TIlE CITY OF HIGHLAND WITHIN TRACT NO. 16389 was presented to the Board for approval. M/S/C (Wilson-Sturgeon) that the Development Agreement between East Valley Water District and North American Residential Communities, Inc. to provide Sewer Service to five (5) dwelling units be approved. DEVELOPMENT AGREEMENT BETWEEN EAST VALLEY WATER DISTRICT AND NORTH AMERICAN RESIDENTIAL COMMUNITIES, INC. TO PROVIDE DOMESTIC WATER AND SEWER SERVICE TO THIRTEEN (13) DWELLING UNITS LOCATED AT THE WEST SIDE OF BROWNING ROAD~ EAST OF TIARA, IN THE CITY OF HIGlqI,AND WITHIN TRACT NO. 14419 was presented to the Board for approval. M/S/C (Wilson-Sturgeon) that the Development Agreement between East Valley Water District and North American Residential Communities, Inc. to provide water and sewer service to thirteen (13) dwelling units be approved. 2 Minutes: 05/13/03 DISBURSEMENTS M/S/C (Wilson-Sturgeon) that the total Disbursements of $2,005,530.93, which included General Fund Disbursements #192962 through 193226 distributed during the period of April 23, 2003 through May 9, 2003 in the amount of $1,834,062.47 and Payroll Fund Disbursements for the period ended April 25, 2003 in the amount of $84,683.07 and May 9, 2003 in the amount of $86,785.39 totaling $171,468.46, be approved. RADON RULE UPDATE The General Manager reported on the District's progress with the Rule to date; that we are awaiting the VA/HUD mark-up regarding the issue. Information only. CLAIM FOR DAMAGES AT 26607 6TH STREET FROM RICHARD FOCKLER As the owner of property located at 26607 6th Street in the City of Highland, Mr. Fockler addressed the Board regarding a claim for damages to his sewer line. Ivl/S/C (Wilson-Lightfoot) That, to the extent that the Claim relates to a cause of action with an accrual date that is outside the applicable limitations period under Government Code Section 911.2, the Board had no jurisdiction to accept the Claim under the California Tort Claims Act, Government code Section 900 et seq., since the presentation thereof is untimely; that, to the extent that the Claim seeks money for all other damages and losses alleged therein that relate to a cause of action with an accrual' date that is within the applicable limitations period under Government Code Section 911.2, that the Board reject the Claim and refer the matter to District's Insurance Crozier. DISCUSSION AND POSSIBLE ACTION REGARDING CLAIM FROM BETTY SV~gET FOR ACCIDENT VOtlCH OCCURRED ON THE EAST SIDE OF T][PPECANOE AVE., ONE BLOCK SOUTH OF 9TH STREET. MJS/C (Sturgeon-Wilsun) That the application be granted for the express limited purpose of allowing the Claim to be presented to the Board; that the Claim be rejected by the Board and referred to District's Legal Counsel and Insurance Carrier. DIRECTOR'S FEES AND EXPENSES FOR APRIL 2003 were presented to the Board for approval. M/S/C (Wilson-Negrete) that the Director's fees and expenses for April 2003 be approved. 3 Minutes: 05/13/03 RESOLUTION 2003.23 SUPPORTING NOMINATION OF RANDY FIORINI AS VICE PRESIDENT FOR THE ASSOCIATION OF CALIFORNIA WATER AGENCI3~S was presented to the Board for approval. M/S/C (Lighffoot-Sturgeon) that Resolution 2003.23 supporting nomination of Randy Fiorini be approved. DISCUSSION AND POSSIBLE ACTION REGARDING REQUEST FROM REDLANDS HIGH SCHOOL (PTSA) FOR A BOTTLED WATER DONATION. M/S/C (Lightfoot-Negrete) that the request for a water donation to Redlands High School (PTSA) be approved. SPECIAL ELECTION ON MAY 19, 2003 TO FILL BOARD VACANCY ON THE ASBCSD BOARD OF DIRECTORS. No action was taken. Information only. TEMPORARY ENTRY PERMIT FOR THE EAST BRANCH EXTENSION PHASE H, tVIENTONE FEEDER EAST, ALTERNATE ROUTE H was presented to the Board for approval. M/S/C (Sturgeon-Lightfoot) that the Temporary Entry Permit for the East Branch Extension Phase II, Mentone Feeder East, Alternate Route II be modified by Legal Counsel and that the permit be approved with modifications in place. "2002 CONSUMER CONFIDENCE REPORT" FOR EAST VALLEY WATER DISTRICT was presented to the Board for review and approval. M/S/C (Sturgeon-Wilson) that the 2002 Consumer confidence Report be approved subject to recommended changes. REVIEW VARIOUS PROPOSALS FOR NEW EVVv']D LOGO. Various art work for a new District logo in conjunction with their 50-year anniversary next year was reviewed. It was suggested that the employees' ideas also be submitted for review at the Board meeting on June 10, 2003. Information only. RELEASES OF LIEN FOR DELINQUENT WATER AND SEWER ACCOUNTS. List of liens released on April 28, 2003 was reviewed. Information only. GENERAL MANAGER'S REPORT The General Manager reported on the District's operations to date; that the District had purchased a 1954 truck and that Gary Sturdivan was present to answer any questio15s which the Board might have regarding the vehicle; that ballots had been tallied and the Poster Contest winners for 2003 had been determined; that the Water Advisory 4 Minutes: 05/13/03 Commission will be meeting at 9:00 a.m. on Friday, May 23rd; that Mary Wallace will need your reservations for the retirement dinner on May 28, 2003 honoring Bumie Cavender; that the Annual Board Workshop is at 9:00 a.m. on Thursday, May 15, 2003. Information only. ORAL COMMENTS FROM BOARD OF DIRECTORS Directors Sturgeon stated that he had attended the ACWA Conference in Tahoe last week and that a scheduled luncheon meeting with Steve Copelan (SBVMWD) had been requested. Information only. Director Wilson commented on the ACWA Conference which he had also attended and talked about the auditing standards. Information only. There being no further verbal or written comments from the Directors, this section of the meeting was closed. SAN BERNARDINO CHAMBER OF COMMERCE "LEGISLATIVE BREAKFAST FEATURING JOHN LONGVILLE, SItANDIN HILLS GOLF CLUB, MAY 16, 2003. Information only. ASBCSD MEMBERSttlP MEETING HOSTED BY SAN BERNARDINO VALLEY WCD, CLARA'S RESTAURANT, REDLANDS, CA. , MAY 19, 2003. Information only. CLE 4TH ANNUAL SUPER CONFERENCE "TILE ENDANGERED SPECIES ACT" ItYATT REGENCY ISLANDIA ltOTEL, SAN DIEGO, JIJNE 23-24, 2003. Information only. WEF 2003 WATER LAW & POLICY BRIEFING, HYATT REGENCY ISLANDIA B[OTEL, SAN DIEGO, CA., JUNE 17-18, 2003. Information only. CLOSED SESSION M/S/C (Lighffoot-Negrete) that the meeting adjourn to Closed Session. The Board entered into Closed Session at 3:25 p.m. as provided for in the California Open Meeting Law, Government Code Section 54945.9(a), to discuss those items listed on the Agenda. ADJOURN TO REGULAR SESSION President Goodin declared that the meeting adjourn to regular session. 5 Minutes: 05/13/03 ANNOUNCEMENT OF CLOSED SESSION ACTIONS The Board returned to session at 3:40 p.m. The items listed on the Agenda were discussed in closed session with no reportable action being taken. ADJOURN The meeting was adjourned at 3:40 p.m. until the Special Meeting on May 15, 2003. Donald D. Goodin, President Robert E. Martin, Secretary 6 Minutes: 05/13/03 DRAFT SUBJECT TO APPROVAL EAST VALLEY WATER DISTRICT SPECIAL MEETING (BOARD WORKSHOP) May 15, 2003 MINUTES The Special Meeting (Board Workshop) was called to order at 9:00 a.m. by President Goodin. Robert Martin led the flag salute. ROLL CALL PRESENT: Directors: Sturgeon, Lightfoot, Wilson, Goodin ABSENT: Director Negrete STAFF: Robert Martin, General Manager; Paul Dolter, District Engineer; Brian Tompkins, Chief Financial Officer; Mary Wallace, Administrative Assistant LEGAL COUNSEL: Steve Kennedy GUEST(s): Joseph Monroe, Ron Buchwald (EVWD) DIRECTOR NEGRETE ARRIVED AT 9:50 a.m. The Board President stated that this meeting is a workshop only. No decisions will be made. Major projects; Future Capital Projects; Debit/Credit Charge Cards; Automatic Debit Transferring; Liquid Assets (Cash); Operating Reserves; Revenue v Expense Analyses; Existing Water and Sewer Rates; Water and Sewer Rate Comparisons; EVWD Construction Schedule/Costs; Financing Alternatives & Debt Analysis; Proposals and Recommendations, and Detailed Budget. No decisions were made. Information only. Bd.Workshop Minutes:05/15/03 SPECIAL MEETING (BOARD WORKSHOP MAY 15, 2003 PAGE TWO The meeting was adjourned at 11:15 a.m. until the next regularly scheduled Board Meeting on May 27, 2003. Donald D. Goodin, President Robert E. Martin, Secretary Bd. Workshop Minutes: 05/13/03 CERTIFICATE OF LiEN MAY 27, 2003 ACCOUNT OWNERS PROPERTY AMOUNT NUMBER NAME ADDRESS OWED ~h~l. 0170256-02+ $20,69 ~2. 0430126-01 $72.73 3. 045039'1-01 $6'1.76 4. 0520047-04* $145.85 ~, 5. 0~20053-00 $87.94 6. 0530003-01 $t66.16 7. 0610103-04'+ $82.95 8. 0640101-04 $76.62 9. 0730099-01' $56.34 ~, 10. 0840337-06' $102.79 11. 1640638-01' $87.17 TOTAL $ 941 * STILL OWNS PROPERTY + MULTIPLE UNITS Page 1 of 1 EXHIBIT "A" RESOLUTION 2003.24 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT ACCEPTING DEDICATION OF WATER DISTRIBUTION SYSTEM TRACT 15985-2 (LOTS 88-151 ) BE IT HEREBY RESOLVED by the Board of Directors of the East Valley Water District, as follows: WHEREAS, the water line system and appurtenant structures constructed at Tract 15985- 2 for public use in the City of Highland, have been dedicated to East Valley Water District by Trimark Pacific-East Highlands, LLC, a California limited liability company. NOW THEREFORE, BE IT HEREBY RESOLVED, that the Dedication of Water Distribution System dated November 27, 2002 and executed by Stephen E. Hester, Vice President for Trimark Pacific-East Highlands, LLC, a California limited liability company on November 7, 2002 be accepted and all rights, title and interest in and to said water system be vested in the East Valley Water District, and that the Secretary of this District be, and is hereby authorized and directed to record this Resolution with said Dedication of Water Distribution system attached hereto, in the office of the County Recorder of the County of San Bernardino, State of California. The foregoing resolution was duly adopted at a meeting of the Board of Directors of the East Valley Water District, upon motion duly made, seconded and carried on May 27, 2003. AYES: Directors NOES: ABSENT: EAST VALLEY WATER DISTRICT Donald D. Goodin, Board President Attest: Robert E. Martin Board Secretary Tract15985-2 W2212 5/8103jw RECORDING REQUESTED BY: East Valley Water District ,qssFWHEN RECORDED MAIL TO: East Valley Water District Post Office Box 3427 San Bernardino, California 92413 iRREVOCABLE OFFER OF DEDICATION OF WATER SYSTEM Board of Directors East Valley Water District San Bernardino, California 92413 We hereby declare that the water system and appurtenant structures to be constructed in Tract 15985-2. Lot in accordance with all the requirements of the East Valley Water District are intended for public use and that upon their acceptance by said District, all rights, title and interest of the undersigned in and to said water system shall thereupon vest in the District. The within dedication shall be binding upon heirs, successors, assignees, executors, or administrators ofthe undersigned. SEE EXHIBIT'A". The undersigned further declares and hereby certifies that, to its current, actual knowledge, there are no liens or debts of any nature presently due or outstanding against or upon said water system and appurtenant structures for labor or materials or for any other cause, and that the undersigned will hold East Valley Water District free and harmless from any and all such claims of liens asserted upon said water system and appurtenant structures should they be claimed or arise provided such claims or liens arose from acts which occurred on or before the date listed above. (Corporate Seal) ~ Trimark Pacific-East Highlands, LLC, a California limited liability company by: TPH, LLC, a California limited liability company, Its Member Manager by: Trimark Ventures, inc., A California Corporatio~n, Its Member by: ..- . _. Stephen E. ~ester, Vice President ST^TE OF C^LIFORNI^ COU.TYOF On ~.[ l'~ 1,0'~ , 20--' .~... ..,- before me, thaundar$ignad, a Notary Pub~ic in and for tha said ¢ounty and Personally known to me ( ' ' ' rice) to be the person.~whose name.(.s.)~r's subscribed to. the same in his/he~"~T authorized capacity([es~',, and that by his/her, Lthei~signature(~s}~n the instrument the person(~, or the entity upon behalf of which the persort(.s) acted, executed the instrument. WITNESS my hand and official seal. __~ Orange. Cou ty · (Rev: 2/6/02) Drawer No. 3 0 0 ~rr ~ 0 0 < mn ~ N-I ~ ~ ,,,~ LLI Ltl O, N~ ;H¥O ~J. IHN .-JLU .NFIO~ . EXHIBIT "A" RESOLUTION 2003.26 RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT ACCEPTING DEDICATION OF SEWERS TRACT 15825 BE IT HEREBY RESOLVED by the Board of Directors of the East Valley Water District, as follows: WHEREAS, the sanitary sewers and appurtenant structures constructed in accordance with specifications of the East Valley Water District at Tract 15825 for public use in the City of Highland, have been dedicated to East Valley Water District by Centex Homes. NOW THEREFORE, BE IT HEREBY RESOLVED, that the Dedication of Sewers dated May 15, 2003 and executed by Leo McKinley, Division Controller for Centex Homes on May 15, 2003 be accepted and all rights, title and interest in and to said sewers be vested in the East Valley Water District, and that the Secretary of this District be, and is hereby authorized and directed to record this Resolution with said Dedication of Sewers attached hereto, in the office of the County Recorder of the County of San Bernardino, State of California. The foregoing resolution was duly adopted at a meeting of the Board of Directors of the East Valley Water District, upon motion duly made, seconded and carried on May 15, 2003. AYES: Directors NOES: ABSENT: EAST VALLEY WATER DISTRICT Donald D. Goodin, Board President Attest: Robert E. Martin Board Secretary S1976 5/15/03 jw RECORDING REQUESTED BY: East Valley Water District WHEN RECORDED MAIL TO: East Valley Water District Post Office Box 3427 San Bernardino, California 92413 IRREVOCABLE OFFER OF DEDICATION OF SEWER SYSTEM Board of Directors East Valley Water District San Bernardino, Califomia 92413 DATE: ~, ~'~ We hereby declare that the sewer system and appurtenant structures to be constructed in "~,~, ~ ~ in accordance with all the requirements of the East Valley Water District are intended for public use and that upon their acceptance by said District, all rights, title and interest of the undersigned in and to said sewer system shall thereupon vest in the District. The within dedication shall be binding upon heirs, successors, assignees, executors, or administrators of the undemigned. SEE EXHIBIT "A". The undersigned fu~her declares and hereby ce~ifies that there are no liens or debts of any nature presently due or outstanding against or upon said sewer system and appudenant structures for labor or materials or for any other cause, and that the undersigned will hold East Valley Water District free and harmless from any and all such claims of liens asseAed upon said sewer system and appu~enant structures should they be claimed or arise provided such claims or liens arose from acts which occu~ed on or before the date listed above. (Corporate Sea~) Centex Homes Leo McKinley, Divisiop~ontroller STATE OF CALIFORNIA ) On ~lf ~) ,20~,beforeme, the undersigned, a Nota~ Public in and for the said Coun~ and. personally known to me (or proved to me on the basis of satisfacto~ evidence) to be the person(s) whose name(s) is/are subscribed to the same in hisSer/their authorized ~pacity (les), and that by his/her/~eir signature (s) on the instrument the person (s), or the entity upon behalf of which the person (s) acted, executed the instrument. WITNESS ~y band and~fficial seal. ~ ~ ......... -,~, '.. ... Signature ~ (Seal) HIGHLAND AVE 5th ST. ,~' VICINITY MAP s~'~t~ TRACT' 15825 " EXHIBIT "A" RESOLUTION 2003.27 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT ACCEPTING DEDICATION OF WATER DISTRIBUTION SYSTEM TRACT 15825 BE IT HEREBY RESOLVED by the Board of Directors of the East Valley Water District, as follows: WHEREAS, the water line system and appurtenant structures constructed in accordane with specifications of the East Valley Water District at Tract 15825 for public use in the City of Highland, have been dedicated to East Valley Water District by Centex Homes. NOW THEREFORE, BE IT HEREBY RESOLVED, that the Dedication of Water Distribution System dated May 15, 2003 and executed by Leo McKinley, Division Controller for Centex Homes on May 15, 2003 be accepted and all rights, title and interest in and to said water system be vested in the East Valley Water District, and that the Secretary of this District be, and is hereby authorized and directed to record this Resolution with said Dedication of Water Distribution system attached hereto, in the office of the County Recorder of the County of San Bernardino, State of California. The foregoing resolution was duly adopted at a meeting of the Board of Directors of the East Valley Water District, upon motion duly made, seconded and carried on May 27, 2003. AYES: Directors NOES: ABSENT: EAST VALLEY WATER DISTRICT Donald D. Goodin, Board President Attest: Robert E. Martin Board Secretary W1976 5/15/03 jw RECORDING REQUESTED BY: East Valley Water District WHEN RECORDED MAIL TO: East Valley Water District Post Office Box 3427 San Bemardino, California 92413 IRREVOCABLE OFFER OF DEDICATION OF WATER SYSTEM Board of Directors East Valley Water District San Bernardino, California 92413 DATE: We hereby declare that the water system and appurtenant structures to be constructed in '~'~.~c.'~ \~5'Z~ in accordance with all the requirements of the East Valley Water District are intended for public use and that upon their acceptance by said District, all rights, title and interest of the undersigned in and to said water system shall thereupon vest in the District. The within dedication shall be binding upon heirs, successors, assignees, executors, or administrators of the undersigned. SEE EXHIBIT "A". The undersigned further declares and hereby certifies that there are no liens or debts of any nature presently due or outstanding against or upon said water system and appurtenant structures for labor or materials or for any other cause, and that the undersigned will hold East Valley Water District free and harmless from any and all such claims of liens asserted upon said water system and appurtenant structures should they be claimed or arise provided such claims or liens arose from acts which occurred on or before the date listed above. Centex Homes (Corporate Seal) BY~"/------~--~--~-~ "-"~ ' r ............ .. ................................. ..... .o. STATE OF CALIFORNIA ) ) On ~,~igq \~-~ ,20 ~)5, before me, the undersigned, a Notary Public in and for the said County and State, personallyt appeared ~--~ ¥.-J\ personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the same in his/her/their authorized capacity (les), and that by his/her/their signature (s) on the instrument the person (s), or the entity upon behalf of which the person (s) acted, executed the instrument. WITNESS my hand.and official seal. /~ .,.,,..,,,.,.,. ',.% Signature _ ',, ,,..:.....(? HIGHLAND AVE ~. · · .. VICINITY MAP ..... .... ¢,t~ TRACT' 15825., ' DEVELOPMENT AGREEMENT Tills AGREEMENT is made this day of , , by and between EAST VALLEY WATER DISTRICT, a public agency (hereinafter "the DISTRICT"), and HAAGEN COMPANY, a California LLC (hereinafter "the DEVELOPER"). RECITALS A. The DISTRICT is a County Water District organized and operating pursuant to California Water Code Section 30000 et seq. B. The DEVELOPER proposes to subdivide and develop certain r~al property within the boundaries of the DISTRICT which is located at the northeast corner of Greenspot Road and Church Street, in the City of Highland, County of San Bernardino, State of California, and is generally identified as CUP-01-009 (hereinafter "the PROPERTY"). A copy of the Tentative Tract Map for the PROPERTY is attached hereto as Exhibit "A" and is incorporated herein by this reference. C. The development of the PROPERTY will consist of 6.3 AC retail center dwelling units, and the DEVELOPER desires that the DISTRICT provide domestic water and sewer service to the PROPERTY. The DEVELOPER intends to design and construct the facilities necessary for water and sewer service to be furnished to the PROPERTY. D. The DISTRICT supplies domestic water and sewer service within the area to be served and is the public agency empowered by law to provide such services to the PROPERTY. E. The purpose of this AGREEMENT is to provide the terms and conditions under which the DEVELOPER will design and construct the facilities necessary for the DISTRICT to supply water and sewer service to the PROPERTY (hereinafter "the PROJECT"). COVENANTS NOW THEREFORE, in consideration of the preceding Recitals and the mutual Covenants contained herein, the parties hereto agree as follows: ~' Section 1. DESIGN OF FACILITIES. The DEVELOPER agrees to design the water and sewer facilities for the PROPERTY in the following manner and according to the Rules and Regulations of the DISTRICT: a. The DISTRICT agrees to provide to the DEVELOPER tentative water and sewer plans which conform to the requirements of the DISTRICT. b. The DEVELOPER agrees to design the water and sewer facilities for the PROPERTY in accordance with the DISTRICT's Standards for Design and Processing of Water and Sewer Plans and the tentative plans provided by the DISTRICT. The designs shall be submitted to the DISTRICT in a complete form which shall provide sufficient information for review and approval by the DISTRICT in the exercise of its sole discretion. c. The DISTRICT may request certain changes in the plans to provide for oversizing of facilities, which DEVELOPER agrees to incorporate into ~' the plans and specifications for the PROPERTY. d. The DEVELOPER shall furnish the DISTRICT with any and all easements necessary for the construction, operation, maintenance, and repair of any and all water and/or sewer facilities to be installed and/or used for the PROJECT. All easements shall be submitted to the DISTRICT for review and approval by the DISTRICT in the exercise of its sole discretion prior to the DISTRICT's acceptance of any dedication of the PROJECT facilities under Section 6 of this AGREEMENT. e. The DEVELOPER shall submit all plans, drawings, specifications, and contract documents, for all work to be performed pursuant to ,this AGREEMENT, to the DISTRICT for review and approval, if acceptable to the DISTRICT. The DISTRICT agrees to review all such documents in a timely manner and, upon inclusion of all changes thereto requested by the DISTRICT in a manner satisfactory to the DISTRICT, the DISTRICT will provide the DEVELOPER with authorization to proceed. The DEVELOPER shall not proceed with the construction of the PROJECT and any other water or sewer facilities for use on the PROPERTY until the DISTRICT so authorizes. Section 2. CONSTRUCTION OF FACILITIES. The DEVELOPER agrees to construct the PROJECT and all other water and sewer facilities necessary for the PROPERTY in the following manner subject to the DISTRICT's approval: a. The DEVELOPER shall obtain all necessary permits from the City of Highland and all other public or private agencies required for the construction thereof. The PROJECT and the facilities appurtenant thereto shall be constructed at a location determined by the DISTRICT, and shall be relocated by the DISTRICT at the DEVELOPER's sole expense if such relocation is deemed necessary by the DISTRICT in its sole discretion. The DEVELOPER hereby grants the DISTRICT full access to the PROPERTY and all other locations where the work contemplated herein is to be performed. b. All facilities constructed pursuant to this AGREEMENT shall be in accordance with accepted standards and practices in the industry and in compliance with all local, state, and federal laws, rules, and regulations. The DEVELOPER shall be responsible for providing all labor, materials, and equipment necessary to perform the work for the PROJECT, and such work shall be performed in a timely and workmanlike manner by a party or entity acceptable to the DISTRICT. All such facilities shall conform to the DISTRICT's Standard Specifications for the Furnishing of Materials and the Construction of Water and Sewer Pipelines. Ail costs and liabilities in connection with the design and construction of the PROJECT shall be borne solely by the DEVELOPER. c. The DISTRICT shall inspect and approve all work to be .performed under this AGREEMENT. However, any approval by the DISTRICT of such work, or of the designs, specifications, reports, and/or materials furnished hereunder, is understood to be conceptual approval only and will not operate to relieve the DEVELOPER or its contractors, consultants, or subcontractors of responsibility for complying with all laws, codes, industry standards, and liability for damages caused by negligent acts, errors, omissions, noncompliance with industry standards, or their own willful misconduct. Further, neither the DISTRICT's review, approval, or acceptance of any of the work or services performed in connection with this AGREEMENT shall be construed as a waiver of any rights hereunder or of any defense or cause of action which the DISTRICT may have arising out of the performance of this AGREEMENT or any previous or subsequent agreements. The DEVELOPER shall cause the facilities constructed under this AGREEMENT to be inspected as required by any and all other public or private agencies. Section 3. DEVELOPER'S COSTS. In addition to all other obligations imposed upon the DEVELOPER under this AGREEMENT, the DEVELOPER shall be responsible for the payment of all of the following: a. The DEVELOPER shall pay to the DISTRICT all, or any portion, of the connection fees for the PROPERTY at the time of application for water and sewer service therefor. The DISTRICT will provide water and sewer service only to those specific subdivision lots within the PROPERTY for which payment in full has been made to the DISTRICT. b. The DEVELOPER shall be solely responsible for the payment of all costs, fees, and expenses associated with the construction, inspection, operation, maintenance, repair, and relocation of the PROJECT, including all costs, fees, and expenses incurred for the environmental analysis, engineering, and design of the PROJECT. c. The DEVELOPER shall comply with all rules, regulations, resolutions, and ordinances of the DISTRICT that are currently in place or may hereafter be adopted, and shall pay when due any and all fees, deposits, charges, rates, fines, penalties, taxes, and/or assessments that may be levied by the DISTRICT. d. The DEVELOPER hereby consents, and waives any objection, to the exercise of any and all collection remedies that are available to the DISTRICT under the law upon the PROPERTY and/or the person and/or property of DEVELOPER and its shareholders and partners. Section 4. SECURITY. a. The DEVELOPER shall provide performance, completion, and/or payment bonds for the PROJECT in the minimum amount of not less than 100 percent of the estimated construction costs containing covenants which are acceptable to the DISTRICT and the City of Highland. b. The DEVELOPER shall provide a maintenance bond for the PROJECT in the amount of 100 percent of the construction cost, which shall contain covenants which are satisfactory to the DISTRICT. Such bond shall remain in force for at least twelve (12) months from the date of acceptance by the DISTRICT of the dedication of said facilities. c. The DEVELOPER shall also procure and maintain during the performance of this AGREEMENT such policies of insurance, bonds from an acceptable surety, cash deposits, escrow accounts, letters of credit, and other forms of security, in amounts and upon terms deemed sufficient by the DISTRICT in its sole discretion to protect the DISTRICT from any and all exposure to loss and/or liability. Section 5. COSTS FOR OVERSIZING. Pursuant to Section 1.c. of this AGREEMENT, the DISTRICT agrees to pay to the DEVELOPER the incremental cost of oversizing any PROJECT facilities greater than twelve inches (12") in diameter for water distribution pipelines and ten inches (10") in diameter for sewage collection pipes. The DISTRICT shall determine the amount of the incremental cost of oversizing and the method of payment in the exercise o~' its sole discretion prior to its acceptance of the PROJECT facilities. Section 6. DEDICATION OF FACILITBES. a. The DEVELOPER shall, upon completion of the construction of all facilities to be installed hereunder to the satisfaction of the DISTRICT, dedicate said facilities to the DISTRICT by a deed of dedication or such other instrument as the DISTRICT may prescribe, and the DISTRICT agrees to accept the dedication thereof by formal action of its Board of Directors. Thereafter, such dedicated facilities shall become and be operated and maintained by the DISTRICT as part of the DISTRICT's water and sewer system. The DISTRICT shall not accept dedication of said water or sewer facilities until all connection fees have been paid unless otherwise allowed under Section 3.a. herein. b. The DEVELOPER hereby grants the DISTRICT full access to the PROPERTY for the purpose of installing, operating, inspecting, maintaining, and repairing all meters, valves, and other appurtenances necessary for the DISTRICT to record, regulate, and control the amount of water pumped therefrom. Section 7. SERVICE RESTRICTIONS. Any obligation on the part of the DISTRICT to supply water to the PROPERTY pursuant to the terms of this AGREEMENT shall be excused in the event that the performance thereof is interrupted for any of the following reasons: riots, wars, sabotage, civil disturbances, insurrection, explosion, court order, natural disasters such as floods, earthquakes, landslides, and fires, and other labor disturbances and other catastrophic events which are beyond the reasonable control of the DISTRICT. Notwithstanding a~iy other provision to the contrary, the DISTRICT may suspend or refuse water service to the PROPERTY if the DEVELOPER is in breach, default, or violation of this AGREEMENT or any role, regulation, resolution, and/or ordinance of the DISTRICT that is currently in place or may hereafter be adopted, or if such service would adversely affect the health, safety, or welfare of the DISTRICT's customers, or for any other reason deemed paramount by the DISTRICT in its sole discretion. Section 8. NO REPRESENTATIONS, WARRANTIES, OR CLAIM OF WATER RIGHTS. The DISTRICT makes no express or implied representations or warranties concerning the quality, pressure, or temperature of any water delivered pm:suant to the terms of this AGREEMENT, or the manner in which the water is provided, or its fitness for any particular purpose, and the DISTRICT shall not be held liable for any losses incurred or damages sustained as a direct or indirect result thereof, nor shall the DISTRICT be held liable for any losses incurred or damages sustained after the water furnished hereunder is transferred to the PROJECT facilities. Any water conveyed by the DISTRICT under this AGREEMENT shall not serve as the basis of, or otherwise support, any water rights claim that may be asserted by the DEVELOPER. Section 9. LIABILITY FOR DAMAGES. The DISTRICT shall not be held liable or responsible for any debts or claims that may arise from the operation of this AGREEMENT, or for any damage claims for injury to persons, including the DEVELOPER and/or its officers, directors, shareholders, guests, invitees, trespassers, agents, contractors, consultants, and employees, or for property damage, from any cause arising out of or in any way related to the PROPEKTY, the PKOJECT, and/or the DEVELOPER's obligations hereunder. Section 10. RELEASE. The DEVELOPER hereby expressly waives and releases the DISTRICT and its agents, officers, directors, and employees from any and all liability for the claims, actions, and/or losses set forth in Section 9 above and for any costs and expenses incurred in connection therewith. The DEVELOPEK, notwithstanding the provisions of California Civil Code § 1542, which provides as follows: "A general release does not extend to claims which the creditor did not know or suspect to exist in his or her favor at the time of the executed release which if known by him or her must have materially affected his or her settlement with the debtor." 7 expressly waives and relinquishes all rights and benefits afforded to the DEVELOPER thereunder and under any and all similar laws of any state or territory of the United States with respect to the claims, actions, and/or losses referenced above. This AGREEMENT shall a~t as. a release of any claims that may arise from the aforementioned whether such claims are currently known or unknown. The DEVELOPER understands and acknowledges the significance and consequences such specific waiver of Civil Code § 1542 and hereby assumes full responsibility for any injuries, damages, losses, or liability that may result from the claims identified above. This AGREEMENT shall also act as a release of any claims, actions, and/or losses set forth in Section 9 above, that may arise in the future whether such claims are currently foreseen or unforeseen. Section 11. HOLD HARMLESS. Excepting the sole or active negligence or willful misconduct of the DISTRICT, the DEVELOPER shall indemnify and hold the DISTRICT and its officers, directors, agents, and employees harmless from and against all claims and liabilities of any kind arising out of, in connection with, or resulting from, any and all acts or omissions on the part of the DEVELOPER and/or its officers, directors, shareholders, partners, assignees, guests, invitees, trespassers, agents, contractors, consultants, and employees in connection with the PROPERTY, the PROJECT, and the performance of their obligations under this AGREEMENT, including design defects, even if occurring after the completion of the PROJECT, and defend the DISTRICT and its officers, directors, agents, and employees from any suits or actions at law or in equity for damages, and pay all court costs and counsel fees in connection therewith. In addition, the DEVELOPER agrees to defend, indemnify, and hold the DISTRICT harmless from and against all claims, losses, liabilities, damages, demands, actions, judgments, causes of action, assessments, penalties, costs, expenses (including, without limitation, the reasonable fees and disbursements of legal counsel, expert witnesses, and accountants), and all foreseeable and unforeseeable consequential damages which might arise or be asserted against the DISTRICT and/or the DEVELOPER with regard to the PROPERTY and/or the PROJECT which are alleged and/or determined to be tortious, and/or in violation of present and future federal, state, and local laws (whether under common law, statute, rule, regulation, or otherwise), including, but not limited to, the California Environmental Quality Act, Public Resources Code Section 21000 et seq., and the Guidelines adopted thereunder, California Code of Regulations Section 15000 et seq., all as the same may be amended from time to time. Section 12. NOTICES. Any notice, tender, or delivery to be given hereunder by either party to the other shall be effected by personal delivery in writing or by registered or certified mail, postage prepaid, return receipt requested, and shall be deemed communicated as of mailing or in the case of personal delivery, as of actual receipt. Mailed notices shall be addressed as set forth below, but each party may change its address by written notice in accordance with this section. If to the DISTRICT: East Valley Water District P.O. Box 3427 1155 Del Rosa Avenue San Bernardino, CA 92413 Attn: General Manager If to the DEVELOPER: _ Haagen Company, LLC 23456 Hawthorne Blvd., Ste. 120 Torrance, CA 90505 Attn: Christopher Fahey Section 13. DISPUTES. Any dispute or controversy arising out of, under, or in connection with, or in relation to this AGREEMFoNT, and any amendments thereto, or the breach thereof, which is not resolved informally by prior mutual agreement of the parties hereto, shall be submitted to arbitration in accordance with the California Arbitration Act, Sections 1280 through 1294.2 of the Code of Civil Procedure. The cost of such arbitration shall be paid by the parties equally; however, the prevailing party in the arbitration shall be entitled to reimbursement of its attorneys fees and other costs incurred in connection therewith. Section 14. ATTORNEYS FEES. If a dispute arises which cannot be resolved by arbitration, regarding the breach or enforcement of the provisions of this AGREEMENT, the prevailing party therein shall be entitled to recover all attorneys fees and other costs actually incurred in connection wi[h reaching a resolution of the dispute whether or not an action, claim, or lawsuit is filed. In any action brought, the entitlement to recover attorneys fees and costs will be considered an element of costs and not of damages. Section 15. INUREMENT. This AGREEMENT and all provisions hereof shall be jointly and severally binding upon, and inure to the benefit of, the parties hereto, their respective heirs, successors, legal representatives, and assigns, and each of the shareholders and partners of the DEVELOPER in their individual, separate, and/or other capacities. Section 16. ASSIGNMENT. This AGREEMENT may not be assigned to any individual or entity without the written consent of the parties hereto. Section 17. INTEGRATION AND AMENDMENT. This AGREEMENT constitutes the entire understanding of the parties hereto with respect to the subject matter hereof and supersedes any and all prior agreements, whether oral or written, between the parties in connection therewith. This AGREEMENT may not be amended unless in writing and signed by the parties hereto. Section 18. CAPTIONS. The captions of sections and subsections of this AGREEMENT are for reference only and are not to be construed in any way as a part of this AGREEMENT. Section 19. INTERPRETATION AND ENFORCEMENT. This AGREEIVIF, NT shall not be construed against the party preparing it, but shall be construed as if both parties jointly prepared this AGKEEIV[ENT and any uncertainty or ambiguity contained herein shall not be interpreted against any one party. Failure by either party to enforce any provision of this AGREEMENT, or any waiver thereof by such party, shall not constitute a waiver of said party's right to enforce subsequent violations of the same or any other terms or conditions herein. This AGREEMENT shall be enforced and governed by and under the laws of the State of Calif6rnia, and venue for any action brought to interpret and/or enforce any provision of this AGREEMENT shall be in a state or federal court located in the State of California that would generally have in rem jurisdiction over the PROPERTY. 10 Section 20. SEVERABILITY. If any portion of this AGREEMENT is declared by a court of competent jurisdiction to be illegal, invalid, or unenforceable, the remaining provisions of this AGREEMENT shall continue in full force and effect. Section 21. TIME OF THE ESSENCE. Time is of the essence in this AGREEMENT, and the parties hereto agree to proceed in good faith, with due diligence, to complete all covenants and conditions set forth herein and to perform such further acts as is reasonably necessary to effectuate the purpose of this AGREEMENT. Section 22. AUTHORITY. Each individual executing this AGREEMENT on behalf of a party hereto represents and warrants that he or she is fully and duly authorized and empowered to so execute on behalf of such party, and that this AGREEMENT is binding in the manner set forth in Section 15 hereof. 1N WITNESS WHEREOF, the parties hereto have caused this AGREEMENT to be executed by their respective officers as of the date first above written. DISTRICT By: East Valley Water Distfiet President, Board of Directors ATTEST: ATTEST: 11 CALIFORNIA ALL.PURPOSE ACKNOWLEDGMENT State of California / ss. County of LOS ANGELES On May 12. '2003 before me,Kimberly Williams Notary Public personally appeared Alexande~ Haagen III ]D personally known to me E] proved to me on the basis of satisfactory evidence to be the person(~, whose name(.~ is/~ subscribed to the within instrument and acknowledged to me that he/s~/th~ll~ executed the same in his/he~/tb.l~ authorized capacity(W, and that by his/h~/tb~3 signature(~on the instrument the person~ or the entity upon behalf of which the personal} acted, executed the instrument. ~ ~ Los/~gelea County __ [ WITNESS my hand and offici@l s~a[. OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent Description of Attached Document Title or Type of Document: Signer(s) Other Than Named Above: Capacity(les) Claimed by Signer Signer's Name: ,~ Individual Top of ~humb here [] Corporate Officer --'l'itle(s): E] Partner--[] Limited []General [] Attorney-in-Fact [] Trustee [] Guardian or Conservator [] Other: Signer ts Representing: Notary Public 12 EX~IIRIT "A" [Tentative Tract Map for the PROPERTY] 13 East Valley Water District Balance Sheet - Unaudited April 30, 2003 ASSETS UTILITY PLANT - at cost: Utility plant in service - water department $70,201,771 Utility plant in service - sewer department 20,413,310 90,615,081 Less: Accumulated depreciation (29,420,059) 61,195,022 Construction in progress 10,701,101 71,896,123 RESTRICTED ASSETS: Water department - bond funds - cash in bank 6,475 Certificate of Participation reserved funds - cash in bank 1,550,658 Reserved funds - designations - cash in bank 2,186,450 3,743,583 CURRENT ASSETS: Cash and Investments 12,268,573 Less: Restricted Cash and Investments 3,743,583 8,524,990 Accounts receivable (net of allowance) 810,666 Other receivables (net of allowance) 54,366 Inventory 749,370 Prepaid expenses 2,415,641 12,555,033 OTHER ASSETS AND DEFERRED COSTS (Net of Amortization): Bond discount and incidental bond expenses 25,624 Deferred financing charges 410,677 436,301 TOTAL ASSETS $88,631,040 East Valley Water District Balance Sheet - Unaudited April 30, 2003 LIABILITIES AND EQUITY LONG-TERM DEBT: Certificates of Participation due after one year $13,767,186 Less: Deferred amount on refunding of COPs (727,300) 13,039,886 CURRENT LIABILITIES: Accounts Payable 1,827,276 Accrued payroll and benefits 401,091 Customer service deposits 1,133,511 Deferred Rental income 2,500 Accrued interest payable 6,475 Deposits - refundable 283,660 Certificates of Participation due within one year 1,726,266 5,380,779 TOTAL LIABILITIES 18,420,665 EQUITY: Contributed capital: Invested in utility plant 24,588,200 Other contributed capital 3,695,064 Retained earnings: Reserved for water bond funds 6,475 Reserved for emergencies 2,170,000 Reserved for unemployment insurance 16,450 Unreserved 37,794,186 Net Income for current year 1,940,000 TOTAL EQUITY 70,210,375 TOTAL LIABILITIES AND EQUITY $88,63'1,040 0 0 m~ ~o- III ~o~' ~ - ~ ~ Z Z East Valley Water District Board Memorandum Date: MAY 27, 2003 From: Brian W. Tompkins / Chief Fi?~an~cial Officer Subject: Disbursements. Recommendation: Approve the attached list of accounts payable checks and payroll issued during the period May 14, 2003 through May 21, 2003. Background: Accounts payable checks are shown on the attached listing and include numbers 193227 to 193370 for A total of $471,518.83. The source of funds for this amount is as follows: COP Construction Funds $ 6,494.81 EPA Grant Funds Unrestricted Funds $465,023.83 Payroll disbursed was for the period ended May 23,2003 and included checks and direct deposits, Totaling $84,096.50. Fiscal Impact: Total disbursements- $555,615.14. ..~ o o o o o d c~ c~ o ,~ ~ ~ w o ww ~ ~ 0 0 ww o 0 w < ¥¥ ~ ~ ~ o ~ zz ~ O0 ~ ~ ~ HIGHLAND AREA CHAMBER OF COMMERCE - P. O. Box 455 - Highland, CA 92346 (909) 864-4073 - Fax (909) 864-4583 Web-page: www.higlilandchamber.org / Email: hcoe~highlandchamber.org M~J 9, 200~ Mary Wallace East Valley Water District 1155 Del Rosa Ave. San Bemardino, CA 92410 Dear Mary: With your support this past year, our Chamber has been very active and visible in the Highland community. As a result, we have been able to significantly expand the opportunities for the businesses in the Highland area to have a voice in government decisions and to increase opportunities for our members to network with other businesses and commtmity leaders. Our goals this year include increasing the services provided to our members, continue expand DisCOVer Highland Night, looking at additional ways to showcase Highland and its businesses, and continue partnering with the City for redevelopment/development of Highland's COmmercial areas. Your continued support of the Chamber and the community is vital to acCOmplishing these goals. As you know, our only means of financial support, other than some funding from the City, is through our membership dues, fundraisers, and our sponsorship program. Since you have been so supportive of the Highland community, we would like East Valley Water District to continue to be one of our sponsors! I have attached this year's spensorship package for your review with the hope that you will continue to be a Chamber Sponsor. One of the benefits not listed in the package is that by being a sponsor, it is a one- time donation for the entire year. You ~re not hassled to sponsor each event as it occurs since you will already be a sponsor. Another convenience is that the funds can be provided in quarterly payments if you so desire. Please review the package and return to us at your earliest Convenience the enclosed form indicating your intentions for the new sponsorship year. The sponsorships are limited and will be assigned on a first come basis. As a past sponsor you do have first right of refusal. We are proud to have you as a member, and look forward to you continuing your Sponsorship. We anticipate an exciting year with your COntinued support. Sincerely, ..~ Karen Executive Dh'ector - HIGHLAND AREA CHAMBER OF COMMERCE~ SPONSORSI-~ PACKAGE JUNE 2003 - lVLA_Y 2004 tvtAY East Valley Water District ~-] We .want to renew as a Chamber Sponsor of the Highland Area Chamber of Commerce for the June 2003 - May 2004 sponsorship year. OR [~ We do not want to renew as a Chamber Sponsor of the Highland Area Chamber of Commerce for the June 2003 - May 2004 sponsorship year. We intend to make our sponsorship donation of $1000 in one lump sum. OR We intend to make our sponsorship donation in four equal quarterly payments or in two equal semi-annual payments. East Valley Water District By: Please ret*tm to the Chamber by May 30, 2003for the Newsletter Publication Announcements. HIGHLAND AREA CHAMBER OF COMMERCE SPONSORSHIP PACKAGE JUNE 2003 - MAY 2004 llighland Area Chumber of Commerce Identified Events Fourth of'July Parade (July 2003) State of the Community Luncheon (November 2003) Golf Tournament (October 2003) Installatiun Dinner (January 2004) Discover Highlund Expo (Segtember 2003) Sponsorship Recognition Luncheon (May 2004) Monthly Luncheons Quarterly Good Morning Highland Breakfast Sponsor Levels · $$,000 - Title Sponsor (1) - $2,500 Corporate Sponsors - $1,000 Chasnber Sponsors Ali levels of sponsorships will receive the following media recognition: · Identified events, Membership directory, Montldy membership luncheons, Good Morning Highland breakfasts · Media Coverage including printed newspaper, PSA's, radio and Chamber mailings relating to chamber events. · Special Recognition for all sponsors in the monthly membership newsletter. · The Chamber will sugply and display a banner lisling all sponsors for display at the Fourth of ]'uly Parade and Annual Golf Tournament. (This takes the place oflndivMual banners for space reasons} $5~000 Sponsorship Level - Title Sponsor · There is one Title Sponsor of the Chamber each year. Jack's Dispeaal Services, Inc., is the current Title Sponsor and has first right of refusal to be the Title Sponsor. The Title Sponsor shall receive media recognition on the following: · Free ~A page ad space in the Chamber business directory. · Idgntified as thc C. hamhea' Title Sponsor on all Chamber newsletters. · Two foursomes at the Golf Tournament. · Free beoth space at tile Discover Highland Expo. · Complimentary lunch for two at the Sponsorship Recognition Luncheon with preferred seating. · Complimentaxy table for eight at the State of the Community Luncheon with prefen-cd seating. · Complimentary table for eight at the Installation Dinner - key recognition for sponsorship level with preferred seating. · Coraplimentary lunch for two at the Chamber Monthly Luncheons and Quarterly Brealffasts. · A free set of Chamber Member Mailing Labels $2,500 Sponsorship Level - Corporate Sponsor · Fret ¼ page ad space in the Chamber business directory. · Identfficd as the Chamber Corporate Sponsor on all Chamber newsletters. · One foursome at the Got Tournament. · Free boofli space at thc Discover Highland Expo. · Two complimentary tickets for the Sponsorship Recognition Luncheon with preferred seating. · Four corapl/mentary tickets for the State of the Community Luncheon. · Four complimentary tickets for the Installation Dinner - key recognition for sponsorship level with prefen~d seating. · Two complimentavd tickets at the Chamber Monthly Luncheons and Quarterly Breakfasts. · A free set of Chamber Member Mailing Labels $I000 Sponsorsraip Level - Chamber Sponsor · Free business card-size ad space in the Chamber business directory. · Identified as the Chamber Sponsor on all Chamber newsletters. · Two complimentary tickets for the Sponsorship Recognition Luncheon with preferred stating. · Two complimentary tickets for the State of the Community Luncheon. · Two complimentary tickets for the Installation Dinner as well as key recognition for sponsorship level. · A flee set of Chamber Member Mailing Labels For more information about becoming a sponsor or to renew your current sponsorship please contact the Highland Chamber at 864-4073 RESOLUTION 2003.25 RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT IN RECOGNITION OF D. BURNELL CA VENDER AS GENERAL MANAGER OF THE SAN BERNARDINO VALLEY WATER CONSERVATION DISTRICT BE IT HEREBY RESOLVED, by the Board of Directors of the East Valley Water District as follows: WHEREAS, D. BURNELL CAVENDER has served as General Manager of the San Bernardino Valley Water Conservation District and as Project Manager for the Santa Ana River-Mill Creek Cooperative Water Project for the past seven years; and WHEREAS, the said D. BURNELL CAVENDER served admirably on several committees while being active in the Association of California Water Agencies, better known as ACWA, and as a Board Member and Chairman of several committees and Task Force groups for the Western Coalition of Arid States, or WESTCAS; and WHEREAS, the said D. BLIRNELL CAVENDER has selflessly performed his duties in an exceptional manner and devoted considerable time and immeasurable effort to promote and promulgate successful operations within his Agency for the benefit of the residents of the San Bernardino Valley. NOW THEREFORE BE IT RESOLVED, that the Members of the Board of Directors of the East Valley Water District and each of them on behalf of each Board Member, Executive Officer, Employee, and Constituent of said District, express to D. BURNELL "BURNIE" CAVENDER their gratitude and sincere appreciation for the service he has so unselfishly performed; BE IT FURTHER RESOLVED, that this Resolution become a permanent record of this District and that the original Resolution, signed by the Directors of this Board be presented to D. BURN"ELL CA VENDER after being suitably.framed. DATED: May27, 2003 Donald D. Goodin, President George E. "Skils" Wilson, Vice President Attest: Robert E. Martin, Board Secretary Association of California Water Agencies ~l~,(~,J~tl~i~. Since 1910 ' MEMORANDUM ,., ~a~ ~4, ~003 TO: ACWA ~GION 9 AGENCY ~ER P~S~E~S A~ GE~L ~NAGE~ FROM: ~GION 9 NOTATING CO~TTEE Larry Libeu, San Bernardin° Valley WCD (909) 928-3777 Steve Stockton, San Gorgonio Pass WA (909) 845-2577 Robert DeLoach, Cucamonga C~ (909) 987-2591 Randy Hill, Victor Valley ~ (760) 843-3127 S~CT: CALL FOR NO.NATIONS FOR ~GION 9 LEADE~P: Seeing Candidat~ for Region Officer and Board Member Positions For 2004-2005 Term The Region 9 No.hating Co~ttee is loo~ng for members who are interested in lea~ng ~e direction of ACWA Re,on 9 for the 2004-2005 te~. The No~nating Co--tree is c~enfiy seeing can~dates for the Region 9 Bo~d, which is comprised of Char, Vice Chair ~d up to five Bo~d Member positions. The leadership of ACWA's ten geographical Regions is inte~al to the leadership of the Association as a whole. The Char and Vice Chair of Region 9 se~e on ACWA's Statewide Bo~d of Directors and reco~end co~ttee appointments for Region 9. Members of the Re,on 9 Bo~d dete~ne the ~recfion ~d focus of region issues ~d activi~es. Ad~tionally, they suppo~ the fulfillment of ACWA's go~s. If you, or someone witch your agency, ~e interested in being a ieader witch the Association by beco~ng a Re.on 9 Officer or Bo~d Member. please complete the following steps: 1) Read the enclosed informatiop on the Re,on Role and Respo~ibi~ties, Election T~eline Proc~s and Procedures, and Region 9 Rules and Re~lations 2) Complete the enclosed No.nation Request Form including a brief, half-page bio describing your qualifications 3) Obtain a Resolution of Support from your agency's Board of Directors (see sample) 4) Submit the requested information to ACWA by: T~DAY~ ~Y 3~ 200~ We will keep candidates info.ed of each step throughout the election process. The Region 9 No~nating Co.tree will announce ~eir reco~ended slate the week of August 1, 2003 and the elections will be complete~ by September 30, 2003. Can~dates who are elected will begin their two-year te~ of se~ice on Janu~y 1, 2004. If you have any questions, please contact ACWA Field Representative John Chandler by e-mailing johnc~acwanet.com or calling (916) 441-4545. AssociationofCaliforniaWaterAgencies 910 K Street, Suite100, Sacramento, California 95814-3577 916/441-4545 F^X916/325-4849 Hall of the States 400 N. Capitol St., N.W., Suite 357 South, Washington, D.C. 20001-1512 202/434-4760 F^X 202/434-4763 www.acwanet.com THE ROLE OF TIqF REGIONS Mission: A CWA Regions will provide the grassroots support to advance ACWA 's legislative and regulatory agenda. Background As a result of ACWA's i993 strategic planning process, known as Vision 2000, ACWA modified its governance structure from one that was based on sections to a regional-based configuration. Ten regions were established to provide geographic balance and to group agencies with similar interests. The primary charge of regions: I. To provide a structure where agencies can come together and discuss / resolve issues of mutual concern and interest and based on that interaction, provide representative input to the ACWA board. II. To provide the local outreach organization (grassroots support) necessary to advance ACWA's legislative and regulatory priorities as determined by ACWA policy through the Board, State Legislative, Federal Affairs, or other policy committees. IH. To provide a forum to educate region members on ACWA's priorities and issues of local and statewide concern. IV. To assist with association membership recruitment at the regional level. V. To take positions recommending specific action to the ACWA Board on local, regional, state and federal issues as well as to recommend endorsement for various government offices and positions. Individual region boards CANNOT take positions, action or disseminate communication on issues and endorsements without, going through the A CWA Board structure. Region chairs and vice chairs, with support from their region boards, provide the regional leadership to full'ill this charge. GENERAL DUTIES / RESPONSIBILITIES FOR REGION OFFICERS Re~ion Chair: · Serves as Region representative to the ACWA Board of Directors at six meetings per year, and periodic chair, vice chair meetings. · Is a member of ACWA's Outreach Program, and encourages involvement. ~ Appoints Outreach Contact to help lead outreach effort within the region. Revised 3/19/03 O :\CommunicationskRegionskRole of Region & Board Presides over all Region activities and ensures that such actlvities promote and support accomplishment of ACWA's Goals. · Makes joint recommendations to the ACWA president regarding regional appointment to all ACWA committees. · Selects representatives't~) serve on the region's nominating committee. · Facilitates communication from the regional board and region members to the ACWA Board and staff. Region Vice Chair: · Serves as Region representative to the ACWA Board of Directors at six meetings per year, and periodic chair, vice chair meetings. · In the absence of the chair and in partnership with the chair,'exercises the powers and performs duties of the region between region activities. · Is a member of ACWA's Outreach Program, and encourages involvement. · Makes joint recommendations to the ACWA president regarding regional appointment to all ACWA committees. Region Board Member: · Serves as alternate for the chair and/or vice chair in their absence (if appointed) to represent the region to the ACWA Board. · Supports program planning and activities for the region. · Actively participates and encourages region involvement in ACWA's Outreach Program. Revised 3/19/03 O:\Communications\Regions\Role of Region & Board Last Revised 4/7/03 2003 Region Election Timelines (2004-2005 Term) February - May 1: Nominating Committees Appointed, · Region chairs appoint t~ee to five region members to serve as the respective region's Nominating Committee. The Nominating Committee appointments wil! be announced to the ACWA membership during Spring Conference, May 7-9, in South Lake Tahoe. May 8-12: Call for Candidates · The call for candidate nominations for Region Officers (chair/vice chair) and Board Member positions will be announced and packets will be distributed at ACWA Spring Conference. (The packet will include a Nomination Request Form, a sample board resolution of support and a list of the roles and responsibilities for each of the region positions.) · The call for candidate nominations packet will be mailed from region nominating committees to ACWA member agency Board Presidents and General Managers. July 3: Deadline for Nomination Request~ ·. · Deadhne to submit all Nomination RequeSt Forms and board resolutions of ~1~ support for candidacy for region positions. · Nominating Committee members may need to solicit additional candidates in person to achieve a full complement of nominees for the slate. July 11: Candidate Information to Nominating Committees · Al1 information submitted by candidates will be forwarded to the respective region Nominating Committee members with a cover memo explaining their task. July 14 - 30: Recommended Slates Selected · Nominating Committees will meet (in person or via phone) to determine a slate of individuals to recommend to their region members for election. · Nominating Comrrdttee chairs will inform their respective ACWA field representative and current region chair of their recommended slate. August 1: Elections Begin (Mail or In Person) · For those regions holding elections via mall, official ballots identifying the recommended Nominating Committee slate and any additional candidates for consideration will be produced and mailed to ACWA member agencies only. Those regions holding elections in-person will be sent "unofficial ballots" to be used as a reference prior to the in-person election meeting. Nominations will be accepted from the floor at in-person meetings provided ~ that all candidates have submitted the required documents by the July 3 deadline. (Meetings must be held between August i and September 30.) O:\Communic ations'~.egions\Elections2003XRegio n electionprocess2003.doc August 1: Elections Begin (Mail or In Person) - Continued · One member from each agency present will sign in as the designated voter. · Only one ballot per agency will be provided. september 30: Election Results Due · Deadline for ALL region elections. All ballots must be received by ACWA.- October 6: Announcement of Election Results · Newly-elected members of the region boards will be contacted accordingly. · An ACWA Advisory will be distributed (via fax) to all members reporting the statewide region election results. · Results will be posted at acwanet.com. · Region election results will be published in the October 20 issue 6f ACWA News. O:\Communicationsq~.egions~,Elections2003~R.egion electio nprocess2003 .doc ACWA STATEWIDE REGION ELECTION PROCEDURES Region Board Composition: Each region shall elect its chair and vice chair to the Association's Board of Directors as provided in Axticle IV, Section l(b) of ACWA's Bylaws, and elect up to five (5) region board members. a) Each region board must consist of five (5) and up to seven (7) voting board members (including the region officer positions of chair and vice chair). Candidate Eligibility: All ACWA public agency members are eligible to serve in region officer and board member positions based on the condition that they meet the following criteria: a) All candidates must represent an ACWA agency member. b) All candidates must have a resolution of support signed by their affiliated agency. c) Candidates may not be affiliate, associate or individual members of ACWA, in accordance with Article II, Section 1 (a-c) of ACWA's Bylaws on membership voting rights. Term of Service: Region officers and board members shall hold office for two (2) years, or until successors are elected and take office. (Term limits are subject to individual region rules and regulations.) Newly-elected region boards take office effective January 1 of the calendar year following the election. Alternates: Each region board shall appoint alternates for both the region officer positions (chair and vice chair) from among the elected board members. Alternates will represent the region at meetings of the Association' s Board of Directors when the chair or vice chair is unable to attend Vacancies: Should a vacancy occur on a region board before the end of the term, the region boar? shall appoint a new region board member, pending support from his/her agency. Voting Eligibility: In accordance with ACWA's Bylaws, only ACWA public agency members are entitled to vote during a region board election and at all region meetings. Each agency is entitled to 9ne vote. Elections: Each region shall conduct its election either by mail ballot or at an in-person region meeting before September 30 of odd-numbered years. Mail ballots will be sent to the board president of each ACWA member agency and will require the Board President's signature for approval. Agency general managers will be sent copies of the ballot mailing. Revised 5/13/03 O:\CommunicationsXRegions\2003 ElectionsXRegionElectionProcedures2003 In-person elections will require one designated voter for each agency, whose name must be identified in writing on the ballot. Nominating Committee: Each region chair shall appoint a nominating committee of three (3) and no more than five (5) persons to: a) Pursue qualified memb~Ps from within the region to mn for election to the region board. b) Review eligible nomination requests and select a slate of candidates for consideration by the voting ACWA region membership. c) Consider geo~aphic diversity, agency size and focus in selecting a recommended slate of candidates. Nominating Committee members must represent ACWA publie agency members. The appointments of members to the ten (10) nominating committees shall be announced during ACWA's spring conference of the calendar year of an election. Revised 5/13/03 O..\CommunicationsXRegions52003 Elections\RegionElectionProcedures2003 ACWA REGION OFFICER/BOARD MEMBER CANDIDATE NOMINATION FORM DUE: THURSDAY, JULY 3, 2003 Send To: ACWA Attn: Kelly Smith 910 K Street, Suite 100 Sacramento, CA 95814 Or Fax to: (916) 325-485.6 Attn: Kelly Smith Name of Candidate: Agency: Title: Phone: Fax: E-mail: ACWA Region: County: Region Position Sought: (may check more than one) ~ Chair ~ Vice Chair [~ Board Member Agency Function(s): (check all that apply) ~ Wholesale ~ Consecration ~ Sewer ~ Flood Control ~[ Retailer [~[ Groundwater Management Ag ~ Wastewater Reclamation Urban ~ Water Use Planning ~ Other: Describe your ACWA-related activities that help qualify you for this office: In the space provided, please w~lte or attach a brief, half-page bio s~mmarizing the experience and qualifications that make you a viable c2ndidate for ACWA Region leadership. Please include the n~mber of years you have served in your current agency position, the n~mber of years you have been involved in water issues and in what capacity you have been involved in the water community. [~ YES, I will attend the meetings of the Region Board during my te~a~ of office; including participating in ACWA's Outreach Program, region activities, regular and special meetings and conference calls, as well as other ACWA functions to set an example of commitment to the organization. I hereby submit my name for consideration by the Nominating Committee. (Please attach a copy of your agency's resolution of support~sponsorship for your candidacy.) Signature Date RESOLUTION NO. A RESOLUTION OF THE BOARD OF DIRECTORS OF THE (DISTRICT NAM[E) PLACING. IN NOMINATION (NOMINEE NAME) AS A MEMBER OF THE ASSOCIATION OF CALIFORNIA WATER AGENCIES REGION (POSITION) BE iT RESOLVED BY THE BOARD OF DIRECTORS OF (DISTRICT NAME) AS FOLLOWS: A. Recitals (i) The Board of Directors (Board) of the (District Name) does encourage and support the participation of its members in the affairs of the Association of California Water Agencies (ACWA). (ii) (Nominee Title), (Nominee Name) is currently serving as (Position) for ACWA Region and/or (iii) (Nominee Name) has indicated a desire to serve as a (Position) of ACWA Region .-- B. Resolves NOW, THEREFORE, BE IT RESOLVED THAT THE BOARD OF DIRECTORS OF (DISTRICT NAME), (i) Does place its full and unreserved support in the nomination of (Nominee Name) for the (Position) of ACWA Region __ (ii) Does hereby determine that the expenses attendant with the service of (Nominee Name) in ACWA Region shall be borne by the (District Name). Adopted and approved this day of (month) 2003. (Nominee Name), (Title) (SEAL) (District Name) ATTEST: (Secretary Name), Secretary I, (SECRETARY NAME), Secretary to the Board of Directors of (District Name), hereby certify that the foregoing Resolution was introduced at a regular meeting of the Board of Directors of said District, held on the day of __ (month) 2003, and was adopted at that meeting by the following role call vote: AYES: NOES: ABSENT: ATTEST: (Secretary Name), Secretary to the Board of Directors of (District Name) -2- Revised 5-13-03 ACWA REGION 9 RULES & REGULATIONS Region Board Composition: The region shall elect its chair and vice chair to the Association's Board of Directors as provided in Article IV, Section l(b) of ACWA's Bylaws, and elect five (5) region board members. The Chair and Vice Chair shall be elected, one from each area, and the positions shall be rotated between the two (2) following designated areas of Region 9: Western area which shall include: Arid area which shall include: Beaumont-Cherry Valley WD Apple Valley Foothill CWD Chino Basin WCD Apple Valley Heights CWD City of Riverside Baldy Mesa WD Crestline Village WD Bard WD Crestline-Lake Arrowhead WA Big Bear Area Regional Wastewater Cucamonga CWD Agency East Valley WD Big Bear CSD Eastern MWD Big Bear MWD Elsinore Valley MWD Bighorn-Desert View WA Jurupa CSD Coachella Valley WD Lake Arrowhead CSD Desert Water Agency Lake Hemet MWD East Blythe CWD Monte Vista WD Hesperia WD Rancho California WD Hi-Desert WD San Bernardino Valley MWD Idyllwild WD San Bernardino Valley WCD Imperial ID San Gorgonio Pass WA Joshua Basin WD Santa Aha Watershed Project Authority Mariana Ranchos CWD West San Bernardino CWD Mission Springs WD Western MWD Mojave Water Agency Palo Verde ID Pinyon Pines CWD Thunderbird CWD Twentynine Palms WD Victor Valley WD The Chair will appoint the Region 9 secretary. Candidate Eligibility: All ACWA public agency members are eligible to serve in region officer and board member positions based on the condition that they meet the following criteria: Page 1 of 3 Revised 5-13-03 a) All candidates must represent an ACWA agency member. b) All candidates must have a resolution of support signed by their affiliated agency. c) Candidates may not be affiliate, associate or individual members of ACWA,'in accordance with Article 1~, Section 1 (a-c) of ACWA's Bylaws on membership voting rights. Only one person from an agency can hold an elected position within the region at the same time. Term of Service: Region officers and'board members shall hold office for two (2) years, or until successors are elected and take office. The newly-elected region board members take offic~ effective January 1 of the calendar. .year following the election. Alternates: The region board shall appoint alternates for both the region officer positions (chair and vice chair) from among the elected board members. Alternates will represent the region at meetings of the Association's Board of Directors when the chair or vice chair is unable to attend. Vacancies: Should a vacancy occur in the Region Chair position, the Alternate Chair shall assume the position. Should a vacancy occur in the Region Vice Chair position, the Alternate Vice Chair shall assume the position. Should a vacancy occur in either the Alternate Chair or Alternate Vice Chair position, the Region Chair shall appoint a replacement from the remaining Board members with concurrence from the Region Board. Should a vacancy occur in any of the other three remaining Board positions, the Region Chair shall appoint a replacement from a member agency within the appropriate designated area with concurrence from the Region Board. Any vacancy being filled will be only for the remainder of the term of the vacant position. Voting Eligibility: In accordance with ACWA's Bylaws, only ACWA public agency members are entitled to vote during a region board election and at all region meetings. Roll call or ballot voting shall be one per regular member agency only. A majority vote of those present and voting shall rule. Page 2 of 3 Revised 5-13-03 A quorum must be present for a vote to occur. Elections: The region shall conduct its election either by mail ballOt or at an in-person region meeting before September 30 of odd-numbered years. P/ease see the current region election timeline for specific dates. Mail ballots wi[[ be sent tO the board president of each ACWA member agency and will require the Board President's signature for approval. Agency general managers will be sent copies of the ballot mailing. In-person elections will require one designated voter for each agency, whos.e name must be identified in writing on the ballot. Nominating Committee: The region chair shall'~ppoint a nominating committee of three (3) and no mo~e than five (5) persons to: a) Pursue qualified members from within the region to run for election to the region board. b) Review eligible nomination requests and select a slate of candidates for consideration by the voting ACWA region membership. c) Consider geographic diversity, agency size and focus in selecting a recommended slate of candidates. Nominating Committee members must represent ACWA public agency members. The Nominating Committee shall consist of the same number of members from each area. The nominating committee appointments shall be announced during ACWA's spring conference of the calendar year of an election. Region Activities: The region will hold at least quarterly meetings, including the ACWA conferences. The Region 9 Board will set all region meetings. Any member wanting to add an agenda item for consideration at any Region 9 meeting must submit the information to be discussed at least 48 hours in advance of the meeting to the Region Chair to ensure that both sides of the issue will be presen}.ed for consideration and understanding. However, a majority vote of those present, after a quorum is established, may provide for immediate consideration of an issue. Rules & Regulations: Region 9 Rules and Regulations can be amended by a majority vote at any Region meeting following advance written notice to member agencies. Page 3 of 3 JAY H. ZERCHER, C.P.A. ROBERT lB. MEMORY, PHILUP H* WALLER, May 16, 2003 ~URIE ~ M~SCHER, C.P.A. Board of Directors ~ast Valley Water District ~ost Office Box 3427 San ~ernardino, Cali[ornia ~24~3 We are pleased to confirm our understanding of the services we are to provide East Valley Water District for the years ended June 30, 2003 through June 30, 2005. We will audit the · financial statements of East Valley Water District as of and for the years ended June 30, 2003 through June 30, 2005. We understand that the financial statements will be presented in accordance with the financial reporting model described in GASB Statement No. 34. Also, the document we submit to you will include the following additional information that will be subjected to the auditing procedures applied in our audit of the financial statements: , Schedule of expenditures of federal awards Audit Objectives The objective of our audit is the expression of an opinion as to whether your financial statements are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles and to report on the fairness of the additional information referred to in the first paragraph when considered in relation to the financial statements taken as a whole. The objective also includes reporting on - · Internal control related to the financial statements and compliance with laws, regulations, and the provisions of contracts or grant agreements, noncompliance with which could have a material effect on the financial statements in accordance with Government Auditing Standards. Internal control related to major programs and an opinion (or disclaimer of opinion) on compliance with laws, regulations, and the provisions of contracts or grant agreements that could have a direct and material effect on each major program in accordance with the Single Audit Act Amendments of 1996 and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. The reports on internal control and compliance will each include a statement that the report is intended for the information and use of the audit committee, management, specific legislative or regulatory bodies, federal awarding agencies, and if applicable, pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. ~ Board of Directors May 16, 2003 East Valley Water District Page 2 Our audit will be conducted in accordance with U.S. generally accepted auditing standards; the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the Single Audit Act Amendments of 1996; and the provisions of OMB Circular A-133, and will include tests of accounting records, a determination of major programs in accordance with Circular A-133, and other procedures we consider necessary to enable us to express such an opinion and to render the required reports. If our opinion on the financial statements or the Single Audit compliance opinion is other than unqualified, we will fully discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not formed an opinion, we may decline to express an opinion or issue a report as a result of this engagement. Management Responsibilities Management is responsible for establishing and maintaining internal control and for compliance with the provisions of contracts, agreements, and grants. In fulfilling this responsibility, est[mates and judgments by management are required to assess the expected benefits and related costs of the controls. The objectives of internal control are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorizations and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles, and that federai award programs are managed in compliance with applicable laws and regulations and the provisions of contracts and grant agreements. Management is responsible for making all financial records and related information available to us. We understand that you will provide us with such information required for our audit and that you are responsible for the accuracy and completeness of that information. We will advise you about appropriate accounting principles and their application and will assist in the preparation of your financial statements, including the schedule of expenditures of federal awards, but the responsibility for the financial statements remains with you. That responsibility includes the establishment and maintenance of adequate records and effective internal control over financial reporting and compliance, the selection and application of accounting principles, and the safeguarding of assets. Management is responsible for adjusting the financial statements to correct material misstatements and for confirming to us in the representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. You are responsible for the design and implementation of programs and controls to prevent and detect fraud, and for informing us about all known or suspected fraud affecting the government involving (a) management, (b) employees who have significant roles in internal control, and (c) others where the fraud could have a material effect on the financial statements. You are also responsible for informing us of your knowledge of any allegations of fraud or suspected fraud affecting the government received in communications from employees, former employees, regulators, or others. In addition, you are responsible for identifying and ensuring that the entity complies with applicable laws and regulations. Additionally, as required by OMB Circular A-133, it is management's responsibility to follow up and take corrective action on reported audit findings, if any. Board of Directors May 16, 2003 East Valley Water District Page 3 Audit Procedures - General An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit will involve judgment about the number of transactions to be examined and the areas to be tested. We will plan and perform the audit to obtain reasonable rather than absolute assurance about whether the financial statements are free of material misstatement, whether from errors, fraudulent financial reporting, misappropriation of assets, or violations of laws or governmental regulations that are attributable to the entity or to acts by management or employees acting on behalf of the entity. As reqgired by the Single Audit Act Amendments of 1996 and OMB Circular A-133, our audit will include test of transactions related to major federal award programs for compliance with applicable laws and regulations and the provisions of contracts and grant agreements. Because an audit is designed to provide reasonable, but not absolute assurance and because we will not perform a detailed examination of all transactions, there is a risk that material misstatements or noncompliance may exist and not be detected by us. In addition, an audit is not designed to detect immaterial misstatements or violations of laws or governmental regulations that do not have a direct and material effect on the financial statements or major programs. However, we will inform you of any material errors and any fraudulent financial reporting or misappropriation of assets that comes to our attention. We will also inform you of any violations of laws or governmental regulations that come to our attention, unless clearly inconsequential. We will include such matters in the reports required for a Single Audit. Our responsibility as auditors is limited to the period covered by our audit and does not extend to matters that might arise during any later periods for which we are not engaged as auditors. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and may include tests of the physica~ existence of inventories, and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, creditors, and financial institutions. We will request written representations from your attorneys as part of the engagement, and they may bill you for responding to this inquiry. At the conclusion of our audit, we will also require certain written representations from you about the financial statements and related matters. Audit Procedures - Internal Controls In planning and performing our audit, we will consider the internal control sufficient to plan the audit in order to determine the nature, timing, and extent of our auditing procedures for the purpose of expressing our opinions on East Valley Water District's finandal statements and on its compliance with requirements applicable to major programs. We will obtain an understanding of the design of the relevant controls and whether they have been placed in operation, and we will assess control risk. Tests of controls may be performed to test the effectiveness of certain controls that we consider relevant to preventing and detecting errors and fraud that are material to the financial statements and to preventing and detecting misstatements resulting from illegal acts and other noncompliance mat[ers that have a direct and material effect on the financial statements. Tests of controls relative to the financial statements are required only if control risk is assessed below the maximum level. Our tests, if performed, will be fess in scope than would be necessary to render an opinion on internal control and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to Government Auditing Standards. Board of Directors May 16, 2003 East Valley Water District Page 4 As required by OMB Circular A-133, we will perform tests of controls to evaluate the effectiveness of the design and operation of controls that we consider relevant to preventing or detecting material noncompliance with compliance requirements applicable to each major federal award program. However, our tests will be less in scope than would be necessary to render an opinion on those controls and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to OMB Circular A-133. An audit is not designed to provide assurance on internal control or to identify reportable conditions. However, we will inform the governing body or audit committee of any matters involving internal control and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financia~ data consistent with the assertions of management in the financial statements. We will also inform you of any nonreportable conditions or other matters involving internal control, if any, as required by OMB Circular A-133. Audit Procedures - Compliance Our audit will be conducted in accordance with the standards referred to in the section titled Audit Objectives. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of East Valley Water District's compliance with applicable laws and regulations and the provisions of contracts and agreements, including grant agreements. However, the objective of those procedures will not be to provide an opinion on overall compliance and we will not express such an opinion in our report on compliance issued pursuant to GovernmenfAuditing Standards. OMB Circular A-133 requires that we also plan and perform the audit to obtain reasonable assurance about whether the auditee has complied with applicable laws and regulations and the provisions of contracts and grant agreements applicable to major programs. Our procedures will consist of the applicable procedures described in the OMB Circular A-f33 Compliance Supplement for the types of compliance requirements that could have a direct and material effect on each of East Valley Water District's major programs. The purpose of those procedures will be to express an opinion on East Valley Water District's compliance with requirements applicable to major programs in our report on compliance issued pursuant to OMB Circular A- 133. Audit Administration, Fees, and Other We understand that your employees will prepare all cash, accounts receivable, or other confirmations we request and will locate any invoices selected by us for testing. Board of Directors May 16, 2003 East Valley Water District Page 5 At the conclusion of the engagement, we will complete the appropriate sections of and sign the Data Collection Form that summarizes our audit findings. We will provide copies of our repods to the district; however, it is management's responsibility to submit the reporting package (including financial statements, schedule of expenditures of federal awards, summary schedule of pdor audit findings, auditors' reports, and a corrective action plan, if any) along with the Data Collection Form to the designated federal clearinghouse and, if appropriate, to pass-through entities. The Data Collection Form and the reporting package must be submitted within the earlier of 30 days after receipt of the auditors' reports or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audits. At the conclusion of the engagement, we will provide information to management as to where the reporting packages should be submitted and the number to submit. The workpapers for this engagement are the property of Rogers, Anderson, Malody & Scott, LLP and constitute confidential information. However, we may be requested to make certain workpapers available to the EPA or its designee, or the U.S. General Accounting Office pursuant to authority given to it by law or regulation. If requested, access to such workpapers will be provided under the supervision of Rogers, Anderson, Malody & Scott, LLP personnel. Furthermore, upon request, we may provide photocopies of selected workpapers to the EPA or its designee, or the U.S. General Accounting Office. The EPA or its designee, or the U.S. General Accounting Office may intend, or decide, to distribute the photocopies or information contained therein to others, including other governmental agencies. The workpapers for this engagement will be retained for a minimum of three years after the date the auditors' report is issued or for any additional period requested by the EPA or its designee, or the U.S. General Accounting Office. If we are aware that a federal awarding agency, pass- through entity, or auditee is contesting an audit finding, we will contact the parties contesting the audit finding for guidance prior to destroying the workpapers. We expect to begin our audit on approximately July 28, 2003 and to issue our reports no later than the first Board of Directors' meeting in October. Our fee for these services will be at our standard houdy rates plus out-of-pocket costs (such as report reproduction, typing, postage, travel, copies, telephone, etc.) except that we agree that our gross fee, including expenses, for the fiscal year ended June 30, 2003, will not exceed $24,500 for the financial audit and preparation of the state controller's report and $8,000 to perform additional procedures required by Governmental Auditing Standards and OMB Circular A-133. For the years ended June 30, 2004 and June 30, 2005, assuming that there are no significant accounting or reporting requirement changes, we agree that the maximum fees will be increased by 3% per year over the June 30, 2003 amounts. Our standard hourly rates vary according to the degree of responsibility involved and the experience level of the personnel assigned to your audit. Our invoices for these fees will be rendered each month as work progresses and are payable on presentation. The above fee is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the audit. If significant additional time is necessary, we will discuss it with you and arrive at a new fee estimate before we incur the additional costs. Board of Directors May 16, 2003 East Valley Water District Page 6 Government Auditing Standards require that we provide you with a copy of our most recent quality control review report. Our 1999 peer review report accompanies this letter. We appreciate the opportunity to be of service to East Valley Water District and believe this letter accurately summarizes the significant terms of our engagement, if you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please sign the enclosed copy and return it to us. Very truly yours, ROGERS, ANDERSON, MALODY & SCOTT, LLP RESPONSE: This letter correctly sets forth the understanding of East Valley Water District. By: Title: Date: TIMPSON GARCIA arc,e. CERTIFIED PUBLIC ACCOUNTANTS PARTNERS May 17, 2000 To the Owners William d. Boyle, CPA Rogers, Anderson, Malody & Scott, LLP We have reviewed the system of quality control for the accounting and auditing practice of, Rogers, Anderson, Malody & Scott, LLP (the firm) in effect for the year ended November 30, 1999. A system of quality control encompasses the gum's organizational structure and the policies adopted and procedures established to provide it with reasonable assurance of complying with professional standards. The elements of quality control are described in the Statements on Quality Control Standards issued by the American Institute of Certified Public Accountants (AICPA). The design of the system and compliance with it are the responsibility of the firm. Our responsibility is to express an opinion on the design of the system, and the fmm's compliance with the system based on our review. Our review was conducted in conformity with standards established by the Peer Review Board of the AICPA. In performing our review, we obtained an understanding of the system of quality control for the firm's accounting and auditing practice. In addition, we tested compliance with the rum's quality control policies and procedures to the extent we considered appropriate. These tests covered the application of the fwm's policies and procedures on selected engagements. Because our review was based on selective tests, it would not necessarily disclose all weaknesses in the system of quality control or all instances of lack of compliance with it. Because there are inherent limitations in the effectiveness of any system of quality control, departures from the system may occur and not be detected. Also, projection of any evaluation of a system of quality control to future periods is subject to the risk that the system of quality control may become inadequate because of changes in conditions, or because the degree of compliance with policies or procedures may deteriorate. In our opinion, the system of quality control for the accounting and auditing practice of Rogers, Anderson, Malody & Scott, LLP in effect for the year ended November 30, 1999, has been designed to meet the requirements of quality control standards for an accounting and auditing practice established by the AICPA and was complied with during the year then ended to provide the firm with reasonable assurance of complying with professional standards. !610 Harrison Street · O,~kand, Cf', 9.}1z ;_~,Jt 9 ~. 510.832.2325 or 800.94i.2727 o Fax 510.4652979 ,', E-v ail t9,D i'npsongarca corn Member - DMsior, of Firms - SEC: Practice Section - American Institute of CRt*s Met :,e' - f' lot Grou¢ * A Woidwde Netwo k of Indeper~den Fr'ns RELEASES OF LIEN MAY 12, 20O3 ACCOUNT OWNERS PROPERTY AMOUNT NUMBER NAME ADDRESS OWED I. 0070061-01 28.22 2. 0350021-01 20.39 3. 03501~21-03 50.18 4. 1030018-00 231.30 5. 1441922-01 70.58 TOTAL $ 400.67 +PAID THROUGH TAX ROLLS Page 1 of 1 RELEASES OF LIEN MAY 19,2003 ACCOUNT OWNERS PROPERTY AMOUNT NUMBER NAME ADDRESS OWED 1. 0020044-04+ 19.16 2. 0042585-00+ 49.53 3. 0080016-03+ 36.45 4. 0140040-02+ 59.63 5. 0150209-00+ 54.81 6. 0191763-02+ 110.22 7. 0330068-02+ 14.76 8. 0420016-07+ 101.02 9. 0430104-03+ 92.82 10. 0430148-09+ 163.33 11. 0450077-02+ 179.66 ~12. 0530025-02+ 13.60 13. 0530149-02+ 55.53 14. 0610019-01+ 73.47 15. 0630120-02+ 58.66 16. 0720002-01+ 15.82 t7. o720104-02+ 15.18 18. 0730095-09+ 138.60 19. 0820253-00+ 101.32 20. 0910010-08+ 60.97 21. 0910766-00+ 147.01 22. 092d038-09+ 55.42 23. 0940024-00+ 162.06 24. 0940115-05+ ~ 72.28 25. 1010126-02+ 64.55 26. 1010208-06+ 77.58 Page1 of 2 ~7. 1030030-02+ 131.04 28. 1040203-08+ 89.21 29. 1110289-00+ 53.14 30. 1130187-01+ 51.04 31. 1130254-02+ 143.43 32. 1210138-02+ 51.89 33. 1250279-01+ 52.87 34. 1350141-03+ 105.85 35. 1361971-04+ 152.15 36. 1400322-01+ 27.43 37. 1441732-07+ 18.85 38. 1443011-03+ 99,60 TOTAL ~'~ $2,969.94 +PAID THROUGH TAX ROLLS Page 2 of 2 IAssociation of California Water Agencies Ih,01. *~c~t*Oh Since 1910 Leadei'sh p Aavocacy .... ~' *'; ' The Western Coalition · "'States' ! ]th Annual Summer Conference June 25-27, 2003 at the Shelter Pointe Hotel & Marina 155l Shelter Island Drive Son Diego, CA 92106 Reservations: 1-800-566-2§24 WESTCA$ is the Voice of Water Qualify in the Arid West bedicated to environmentally conscientious planning of water resources and development of water quality standards for the unique ecosystem of the Arid West PRELIMINARY AGENDA WEDNESDAY JUNE 2003, 9:00 a.m. COPPA Meeting (Committee on Programs & Public Awareness) v' Newsletter ,,/ Website update v' WESTCAS Video v' Conference programs 9:30 a.m. Sanitary Sewer Overflows Task Force ,/ Review Draft General NPDES Permit for conveyance systems 10:00 a.m. ' Clean Water Act Task Force Meeting ¢ Clean Wtr/Drinking Wtr SRF Reauthoriz. · / Water Infrastructure Network 0NIN) · / Clean Water Act/Add West Wtr Quality Update ¢. Arid West Definitions 10:30 a.m. Nutrient WorkGroup Meeting 11:00 a.m. ESATask Force Meeting 11:30 a.m. Lunch (on your own) 1:00 p.m. Water Quality Standards/'TMDL Task Force v- Discussion of Draft TMDL Rule 2:00 p.m. Safe Drinking Water Act (SDWA) Task Force Meeting ¢ Arsenic v' Perchlorate · / Radon 3:30 p.m. Science Committee Meeting ,/ Wtr. Recycling Task Force update Wtr Envir. Research Found. Proj. update WET Task Force Update ,/ Arid West Wtr Quality Resrch. Proj update ¢' 4:30 p.m. Legislative Budget Committee Meeting 5:30 p.m. Board Meeting 6:45 p.m. Percolation & Recharge, - Hosted by the Associate's Committee Profecting the Area 's Water on~.' Environment The Arid West has a unique ecosyst,.'m. There is only minimal precipitation and most stream-~ are ephemeral or effluent-dependent. There also are mar!y man-made water conveyance systems. In 1992 the areas water and Wastewater service providers joined tog ;t{~er to share their talents and resources to address comr~on issues, to this end, they created WESTCAS, the West( m Coalition of Arid States. ~ This grassroots organization, suppor:s development of water and wastewater programs anH regulations that assure adequate supplies of high quaity' water to those living in the Arid West while protecting tha 'environment. What Does WESTCAS have :o offer? WESTCAS provides members with: a )owefful presence in Washington, DC and in regional an-I state regulatory and legislative decision making; an ef'ective .vehicle 'for information exchange through meeting-~' and publications; the opportunity to help draft federal, r,;gional, state and local legislation and regulations about water quality and supply. What Has WESTCAS Accoml: iished? · Settlement of a law suit against ,-'PA that resulted in major changes in ways to admnister the Whole Effluent Toxicity (WET) Test. · Preparation for introduction in C ~ngress, the Arid West Water Quality Act and astan¢ -alone bill related to Constructed Water Conveyance = ~ystems. · Approval of a Regional Arid W,:~st Water Quality Research Project to develop a~propriate water quality criteria and standards for' ephemeral and effluent-dependent streams and 1o conduct other research relating to arid areas; · Development of a WESTCAS Internet site (http://westcas.org) to promote co ~munication and WESTCAS as the voice of water quality in the arid West. Who Should Belong to WE.~;TCAS? Water and wastewater service provide s, including cities and towns, water and irrigation dist'icts, wastewater agencies, Native American nations and 3thers concerned with management of issues reiate¢ to water and wastewater supply, such as attorneys, 9ngineering firms. and consulting firms. Announcing a Special WESTCAS Workshop Collaboration or Collision Course? Conver~in~ Interests in Water Resource Plannin~ & Regulatory Core, ii&nee Moderator: ~m Moore, Risk Sciences ',; w/ Practical Programs and Presentations Prepared by: ee & Cindy Paulsen of Brown & Caldwell As part of WESTCAS' 11~n Annual Summer Conference June 25 - 27, 2003 , Shelter Pointe Hotel San Diego, California ~, No Fee for First-Time California Attendees For informat~n or t~ re~ister c&ll Donna Jacomet @ 909-928-3777, ext. ~206 > $149/nlght for sing 8a~ prior & 2 days after conference > Situated on th~ tip of 8h~iter Island in 8an Diego Bay; each room features a patio or ,~--'~--balcony, a small-mfrlgerator¢ aworkdesk;complete-wlth telephon~/datapod, coffeemaker, halrdwer, and Iron. . > ~o pools and Jacu=ls, full se~ice fitness ~lub; a sunning beach with volle~all on the sand, jogging paths~ tennis couP, bike, water spots and boat rentals. > T~e hotel provides a free ~huttle se~tce, slmpiy Call 619-221-8000 to arrange to be picked up. The shuffle runs approximately eve~ 30 mlnutes. To ensur~ room avallablll~;'~a[~ res~watlons before ~ & ~ . Conference Registrabon ~ ,¢ De~ ~llne for early reglstratlon /s MA Y 30, 2003 O $150 early reglstratlor ' '; O $15 additional lunch* O $200 late registration: 7 ?' B $80 additional banquet ~ Meeting fees prepal~,~:'" ~ $85 conference materials. For non-members~ · ~, [3 $150 non-member, 17 meeting [3 $255 early registration-returning [3 Free for first time California Agencies [3 $295 late registration -returning · All meals Inclu~fed In registration fee: add? meals are for affendees'guests who'd like to Join us · *For those who cannot attend but wish to pumhase the conference materials Name: [aa you'd like it to appear on name badqe) Agency'. Address: ulty, t~tate, Zip: " Phone: E-mall Address: Will you be staying at the hotel? If so, wlli you book under our room block? Send completed reglstratl~'"form & payment to: 7.?~I; ? ' .,gL: WESTCAS c/o EIVNVD Attn: Donna Jacomet ' '~ :" For add'l InfOrmation call (909) 928-3777, ext. 4206 PO Box 8300 . .,~:., FAX Number [909) 928-6160 (forms can be faxed, Perds, CA 92572-8300 :'"~': please indicate when payment will be mailed) Make checks payable to WESTCA$. Sorry, we don't accep{ credit cards Assoc~atmn of California Water Agencies', ACWA REGION 7 & 9 Invites Region 7 & 9 Members to Participate in a Tour of the Kern Water Bank Where and When??????? Thursday, June 5th, 6:00 to 9:00 p.m. Dinner briefing on the Kern Water Bank Benji's, 4001 Rosedale Hwy, Bakersfield Friday, June 6th, 9:00 a.m. to 2:00 p.m. Kern Water Bank Tour Dinner Briefing on the Kern Water Bank, Thursday, June sth 6:00 p.m. to 9:00 p.m. The Kern Water Bank Authority will be hosting a dinner for Region 7 & 9 members at Benji's French-Basque restaurant, 4001 Rosedale Hwy, Bakersfield. This will be a great oppommity to mix with you fellow members. The dinner will also include a briefing on the Kem Water Bank covering groundwater-banking programs in Kern County, how they were developed, how they operate and specifics about the projects. Kern Water Bank Tour, Friday, June 6th 9:00 a.m. to 2:00 p.m. On Friday morning participants will be treated to lunch and tour of the Pioneer Project and the Kern water bank and the surrounding area. The Kern Water Bank is one of the largest and most effective Water Banks in the nation. RSVP for Region 7 & 9 Kern Water Bank Tour Thursday June 5th 6:00 to 9:00 p.m. and Friday June 6t~ 9:00a.ra. to 2:00p.m. CALL: John Chandler ACWA Field Representative (916) 441-4545 or j ohnc~acwanet.com Recommend Hotel DoubleTree in Bakersfield Transportation Airport Shuttle Serving: Kem County Airport Pick-Up: Courtesy Phone in the main Terminal area Advance Shuttle Reservations: (805) 323-7111 EXT 4150 Other Destinations: Amtrack Station, Bus Station, and Mercury Aviation Must Make arrangements with guest services Park-N-Fly: Yes, call guest services for details General Ardval Directions FROM THE SOUTH: Follow northbound I-5 to the nodhbound Hwy 99 exit. Continue on Hwy 99 for approximately 25 miles. Take the Rosedale Hwy exit, then turn left at the bottom of the exit. Go west approximately 2 blocks. Turn left at Camino Del Rio Court. FROM THE NORTH: Follow Hwy 99 South to the Rosedale Hwy exit. At the bottom of the ramp, turn fight. Then make an immediate left on to Camino Del Rio Court, FROM THE WEST: From interstate 5 North or South exit on to Hwy 58 east. Continue for approximately 20 miles. Turn right on to Camino Del Rio Court. FROM THE EAST: From Hwy 58 westbound exit to Hwy 99 nodhbound. Continue for 2 miles, exit on Rosedale Hwy west. Turn left and go two blocks. Turn left on to Camino Del Rio Court. Comr~el'cla[ DoubleTree Hotel Bakersfield 3100 Camino Del Rio Court, Bakersfietd, CA 93308 Dial Direct: (661) 323-7111 FAX: (661) 323-0331 http://www.doubletreehotels.com