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Home My WebLink AboutAgenda Packet - EVWD Board of Directors - 01/08/2001East Valley Water District 1155 DEL ROSA AVENUE, SAN BERNARDINO, CA REGULAR BOARD MEETING January 8, 2001 5:30 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 Tuesday prior to the following Monday 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 December 26, 2000 Board Meeting Minutes. 4. Approval of Liens for Delinquent Water and Sewer Accounts. 5. General Fund Disbursements #183445 through #183537 in the amount of $108,943.27 and Payroll Checks #8280 through #8337 in the amount of $67,415.08, totaling $176,358.35. OLD BUSINESS 6. Radon Rule Update. (General Manager) 7. Assistance Agreement between EVWD and USEPA 8. Status of"Patton Station" project (Golf Course and related facilities). NEW BUSINESS 9. Director's fees and expenses for December 2000. 10. Resolution 2001.1 - A Resolution of the Board of Directors of the East Valley Water District authorizing the District to borrow from Citizens Business Bank. I 1. Proposed Southern California Edison rate increase. Discussion and possible action. 12. Discussion and possible action regarding claim for damages at by Owners of property, Tim and Sherrie Mazza. REPORTS 13. January 2, 2001 - Releases of Lien for Delinquent Water and Sewer Accounts. 14. Income Statement for November 2000. 15. General Manager's Report 16. Oral Comments from Board of Directors. MEETINGS 17. CSDA - PRACTICALITIES 2001, DISTRICT MANAGEMENT, GOVERNANCE AND LEADERSHIP, Doubletree Hotel~ Monterey, January 31 - February 1, 2001. 18. ASBCSD MEMBERSHIP MEETING, Sierra Lakes Golf/Country Club, Fontana, CA., January 15, 2001. ADJOURN 2 DRAFT SUBJECT TO APPROVAL EAST VALLEY WATER DISTRICT REGULAR BOARD MEETING DECEMBER 26, 2000 MINUTES The meeting was called to order at 5:50 p.m. by Vice President Goodin. Director Wilson led the flag salute. PRESENT: Directors Wilson, Negrete, Goodin ABSENT: Directors Sturgeon, Lightfoot STAFF: Robert Martin, General Manager; Paul Dolter, District Engineer; Mary Wallace, Administrative Assistant. LEGAL COUNSEL: Steve Kennedy GUEST(s): Cheryl Tubbs (Lilburn Corp.) APPROVAL OF AGENDA M/S/C (Wilson-Negrete) that the December 26, 2000 Agenda be approved as submitted. PUBLIC PARTICIPATION President Lightfoot deciared the public participation section of the meeting open at 5:52 p.m. There being no written or verbal comments, the public participation section was closed. APPROVAL OF DECEMBER 9, 2000 SPECIAL MEETING MINUTES. M/S/C (Wilson-Negrete) that the December 9, 2000 Special Meeting Minutes be approved as submitted. APPROVAL OF DECEMBER 11, 2000 BOARD MEETING MINUTES. M/SIC (Wilson-Negrete) that the December 11, 2000 Board Meeting Minutes be approved as submitted. APPROVAL OF LIENS FOR DELINQUENT WATER AND SEWER ACCOUNTS. The General Manager noted that the owner of property at 6521 Elm Ave. had paid the account and should be removed from the lien list, M/S/C (Wilson-Negrete) that the liens for delinquent water and sewer accounts be approved for processing with the exception as noted by the General Manager. RESOLUTION 2000.27 - NOTICE OF COMPLETION FOR PREPARATION AND COATING OF THE NORTH FORK TRESTLE LOCATED AT BLEDSOE GULCH COMPLETED BY PACIFIC TITAN, INC. was presented to the Board for approval. M/S/C (Wilson-Negrete) that Resolution 2000.27 be approved. RESOLUTION 2000.28 - NOTICE OF COMPLETION FOR INSTALLATION OF SODIUM HYPOCHLORITE GENERATION SYSTEM AT PLANT NO. 134 COMPLETED BY CHLOR TEC was presented to the Board for approval. M/SIC (Wilson-Negrete) that Resolution 2000.28 be approved, RESOLUTION 2000.29 - NOTICE OF COMPLETION FOR DRILLING WELL NO. 147 COMPLETED BY SO CAL PUMP & WELL SERVICE was presented to the Board for approval. M/S/C (Wilson-Negrete) that Resolution 2000.29 be approved. DISBURSEMENTS M/S/C (Wilson-Negrete) that General Fund Disbursements #183255 through #183444 in the amount of $863,028.68, Payroll Fund Disbursements #8224 through #8279 in the amount of $61,775.16 totaling $924,803.84 be approved. RADON RULE UPDATE The General Manager reported on the District's progress with the Rule to date. Information only. PUBLIC HEARING TO ADOPT THE 2000 UPDATE OF THE EAST VALLEY WATER DISTRICT'S URBAN WATER MANAGEMENT PLAN. M/S/C (Negrete-Wilson) that the Public Headng Sect[on be opened, Vice President Goodin declared the Public Hearing Section for the purpose of considering and adopting the 2000 Update of the East Valley Water District's Urban Water Management Plan be opened at 5:48 p.m. 2 There being no written or verbal comments, the General Manager recommended that the Public Hearing Section be closed. MfS/C (Wilson-Negrete) that the Public Hearing Section be closed at 5:49 p.m. ADOPTION OF THE 2000 UPDATE OF THE EAST VALLEY WATER DISTRICT'S URBAN WATER MANAGEMENT PLAN. M/S/C (Wilson-Negrete) that the 2000 Update of the East Valley Water District's Urban Water Management Plan be adopted. DISCUSSION AND POSSIBLE ACTION REGARDING THE FEDERAL MILEAGE RATE FOR YEAR 2001. M/SIC (Wilson-Negrete) that the Federal Mileage rate of 34.5 cents per mite be approved, effective January 1,2001. DECEMBER 19, 2000 RELEASES OF LIEN FOR DELINQUENT WATER AND SEWER ACCOUNTS. List of liens released on December 19, 2000 was reviewed. Information only. GENERAL MANAGER'S REPORT The General Manager reported on District operations to date; that the excavation on the 3 acre Webster Street site was underway and almost completed at a much lesser cost than originally projected. Information only. ORAL COMMENTS FROM BOARD OF DIRECTORS. Director Negrete stated that he was anticipating meetings with SBVMWD and their representatives in correlation with the ad-hoc committee on Water Rights that he had been appointed to. Information only. There being no further verbal or written comments from the Directors, this section of the meeting was closed. LETTER FROM MR. KENNETH LAWSON (East Valley Water District Consumer) IN APPRECIATION FOR THE SERVICE RENDERED AT HIS HOME BY OUR METER SHOP PERSONNEL, NAMELY GORDON GRANT AND RON SEVERSON. Information only. DRAFT SUBJECT TO APPROVAL EAST VALLEY WATER DISTRICT REGULAR BOARD MEETING DECEMBER 26, 2000 MINUTES eting was called to order at 5:50 p.m. by Vice President Goodin. Director the flag salute. ~R ~ENT: Directors Wilson, Negrete, Goodin ABSENT: Directors Sturgeon, Lightfoot STAFF: Robert Martin, General Manager; Paul Dolter, District Engineer; Mary Wallace, Administrative Assistant. LEGAL COUNSEL: Steve Kennedy GUEST(s): Cheryl Tubbs (Lilburn Corp.) APPROVAL OF AGENDA M/S/C (Wilson-Negrete) that the December 26, 2000 Agenda be approved as submitted. PUBLIC PARTICIPATION resident Lightfoot declared the public participation section of the meeting open at 5:52 p.m. There being no written or verbal comments, the public participation section was closed. APPROVAL OF DECEMBER 9, 2000 SPECIAL MEETING MINUTES. M/SIC (Wilson-Negrete) that the December 9, 2000 Special Meeting Minutes be approved as submitted. APPROVAL OF DECEMBER 11, 2000 BOARD MEETING MINUTES. M/S/C (Wilson-Negrete) that the December 11, 2000 Board Meeting Minutes be approved as submitted. APPROVAL OF LIENS FOR DELINQUENT WATER AND SEWER ACCOUNTS. The General Manager noted that the owner of property at 6521 Elm Ave. had paid the account and should be removed from the lien list, M/S/C (Wilson-Negrete) that the liens for delinquent water and sewer accounts be approved for processing with the exception as noted by the General Manager. RESOLUTION 2000.27 - NOTICE OF COMPLETION FOR PREPARATION AND COATING OF THE NORTH FORK TRESTLE LOCATED AT BLEDSOE GULCH COMPLETED BY PACIFIC TITAN, INC. was presented to the Board for approval. M/S/C (WilsomNegrete) that Resolution 2000.27 be approved. RESOLUTION 2000.28 - NOTICE OF COMPLETION FOR INSTALLATION OF SODIUM HYPOCHLORITE GENERATION SYSTEM AT PLANT NO. 134 COMPLETED BY CHLOR TEC was presented to the Board for approval. M/S/C (Wilson-Negrete) that Resolution 2000.28 be approved. RESOLUTION 2000.29- NOTICE OF COMPLETION FOR DRILLING WELL NO. 147 COMPLETED BY SO CAL PUMP & WELL SERVICE was presented to the Board for approval. M/S/C (Wilson-Negrete) that Resolution 2000.29 be approved. DISBURSEMENTS M/SIC (Wilson-Negrete) that General Fund Disbursements #183255 through #183444 in the amount of $863,028.68, Payroll Fund Disbursements #8224 through #8279 in the amount of $61,775.16 totaling $924,803.84 be approved. RADON RULE UPDATE The General Manager reported on the District's progress with the Rule to date. Information only. PUBLIC HEARING TO ADOPT THE 2000 UPDATE OF THE EAST VALLEY WATER DISTRICT'S URBAN WATER MANAGEMENT PLAN. M/S/C (Negrete-Wilson) that the Public Hearing Section be opened. Vice President Goodin declared the Public Hearing Section for the purpose of considering and adopting the 2000 Update of the East Valley Water District's Urban Water Management Plan be opened at 5:48 p.m. 2 There being no written or verbal comments, the General Manager recommended that the Public Hearing Section be closed. M/S/C (Wilson-Negrete) that the Public Hearing Section be closed at 5:49 p.m. ADOPTION OF THE 2000 UPDATE OF THE EAST VALLEY WATER DISTRICT'S URBAN WATER MANAGEMENT PLAN. M/S/C (Wilson-Negrete) that the 2000 Update of the East Valley Water District's Urban Water Management Plan be adopted. DISCUSSION AND POSSIBLE ACTION REGARDING THE FEDERAL MILEAGE RATE FOR YEAR 2001. M/S/C (Wilson-Negrete) that the Federal Mileage rate of 34.5 cents per mile be approved, effective January 1,2001. DECEMBER 19, 2000 RELEASES OF LIEN FOR DELINQUENT WATER AND SEWER ACCOUNTS. List of liens released on December 19, 2000 was reviewed. Information only. GENERAL MANAGER'S REPORT The General Manager reported on District operations to date; that the excavation on the 3 acre Webster Street site was underway and almost completed at a much lesser cost than originally projected. Information only. ORAL COMMENTS FROM BOARD OF DIRECTORS. Director Negrete stated that he was anticipating meetings with SBVMWD and their representatives in correlation with the ad-hoc committee on Water Rights that he had been appointed to. Information only. There being no further verbal or written comments from the Directors, this section of the meeting was closed. LETTER FROM MR. KENNETH LAWSON (East Valley Water District Consumer) IN APPRECIATION FOR THE SERVICE RENDERED AT HIS HOME BY OUR METER SHOP PERSONNEL, NAMELY GORDON GRANT AND RON SEVERSON. Information only. CALIFORNIA WATER LAW POLICY - 12TM ANNUAL CONFERENCE - APRIL 5-6, 2001, SAN FRANCISCO MARRIOTT. Information only. ADJOURN The meeting was adjourned at 6:05 p.m. Donald D. Goodin, Vice President Robert E. Martin, Secretary M[nutes:l 2/26/00 CERTIFICATE OF LIEN JANUARY 8, 2001 ACCOUNT OWNERS PROPERTY AMOUNT NUMBER NAME ADDRESS OWED 1. 004-0089-1' 7835 MCKINLEY ST 58.26 2. 052-0174-1' 6573 ELM AVE 56.48 3. 053-0260-2*+ 1804 ARGYLE AVE 318.69 4. 071-0011-3 7051 NEWBURYAVE 106.64 5. 074-2471-0' 27390 VILLA AVE 143.39 6. 082-0163-6' 25620 9TH ST 66.12 7. 094-0109-4' 7781 DEL ROSA AVE 79.99 8. 094-0119-5' 7742 BONNIE ST 138.04 9. 094-0217-7' 7725 MERITO AVE 129.67 10. 102-0136-2' 25041 UNION ST 51.18 ~---~44-0572-4' ~ 8,J~l Pr~ 12. 161-0098-1' 29594 BRIGHT SPOT RD 76.46 TOTAL ~ $1,311.82 * STILL OWNS PROPERTY + MULTIPLE UNITS Page 1 of 1 CERTIFICATE OF LIEN JANUARY 8, 2001 ACCOUNT OWNERS PROPERTY AMOUNT NUMBER NAME ADDRESS OWED 1. 004-0089-1' 7835 MCKINLEY ST 58.26 2. 052-0174-1' 6573 ELM AVE 56.48 3. 053-0260-2*+ 1804 ARGYLE AVE 318.69 4. 071-0011-3 7051 NEWBURY AVE 106.64 5. 074-2471-0' 27390 VILLA AVE 143.39 6. 082-0163-6' 25620 9TH ST 66.12 7. 094-0109-4' 7781 DEL ROSA AVE 79.99 8. 094-0119-5' 7742 BONNIE ST 138.04 9. 094-0217-7' 7725 MERITO AVE 129,67 10. 102-0136-2' 25041 UNION ST 51.18 11. 144-0572-4' 7724 PALM AVE 86,90 12. '161-0098-1' 29594 BRIGHT SPOT RD 76,46 TOTAL ~ $1,3'1'1,82 * STILL OWNS PROPERTY + MULTIPLE UNITS Page 1 of 1 East Va ' ey Water District TO: BOARD OF DIRECTORS FROM: ALBERTA M. HESS / CHIEF FINANCIAL OFFICER SUBJECT: DISBURSEMENTS DURING THE PERIOD DECEMBER 19, 2000 THROUGH DECEMBER 21, 2000 CHECK NUMBERS 183445 THROUGH 183537 IN THE AMOUNT OF $108,943.27 WERE ISSUED. PAYROLL CHECKS 8280 THROUGH 8337 IN THE AMOUNT OF $67,415.08 WERE DISTRIBUTED ON DECEMBER 20, 2000. TOTAL OF ACCOUNTS PAYABLE DISBURSEMENTS AND PAYROLL FOR THE PERIOD - $176,358.35. ~ o o o o o o o o o o o o o o 8~ o ~ oo ~ 6 oo ~ ooo ~ o ~ o oo~ ~ o ~ ~ oo §~ ~ ~ o o oo o oo ooo o o o ooo o oo i ~ o o oo o oo ooo o o o ooo o ~ ~ ~ ~ UNITED STATES ENVIRONMENTAL PROTECTION AGENCY %~..~,~i~.~ WASHINGTON, D.C. 20460 OFFICE OF December 1, 2000 ADMfNISTRATION AND RESOURCES MANAGEMENT Robert Martin, General Manager East Valley Water District 1155 Del Rosa Avenue San Bernardino, California 92413 Mr. Martin: On May 11 - 12, 2000 Klm Marshall and I visited your organization to perform an on-site review related to an assistance agreement between the East Valley Water District (EVWD) and the U.S. Environmental Protection Agency (EPA). We sincerely appreciate the time and support from Ms Alberta Hess and others, who provided us with their time, needed fries, and data. We also found enthusiasm about this project and a sense of responsibility. The purpose of our post award monitoring on-site visit was to review EVWD's assistance-related operations and the organization's administrative and financial procedures for managing assistance agreements. At the time of our review, the total agreement award amount was $4,399,600 which includes 76 percent federal funding and a 24 percent match. We performed some limited transaction testing, primarily in the area of contract management and payments. We believe the EVWD is generally doing a fine job of managing its one and only federal financial assistance agreement. However, we do have some observations and recommendations we wish to make. Up to now, EVWD received all of its revenue from paying customers they service as a water district. The assistance award represents a new kind of revenue and some adjustments to their operations may be needed. However, as Ms Hess has cited, they are still primarily a water district. As of now, EVWD utilizes spread sheets to track grant revenue and expenditures. The EVWD's administrative and financial management procedures do not include grant management procedures. We believe EVWD should document the additional procedures necessary to administer and manage this federal assistance award. It has been many years since EVWD officials updated the EVWD's indirect cost rate. The rate used in the assistance award may not be truly reflective of EVWD's indirect cost rate at this time, particularly when considering that EVWD is not typically a recipient of federal grant awards. EVWD officials stated they were aware of this and utilized the indirect cost rate of its subcontractor who had received federal assistance awards previously. EVWD officials should Internet Address (URL) · http://www.epa.gov Recycled/Recyclab[m · Pdnled wi~h Vegetable Oil Based Inks on Recycled Paper (Minimum 30% Postconsumer) reconsider its indirect cost rate and submit an indirect cost proposal package to EPA. In addition, EVWD will need to perform a Single Audit when its annual expenditures under the agreement exceed $300,000 as it almost certainly will, given the award amount and project period under the agreement. The EVWD contracts with the American Water Works Association Research Foundation (AWWARF) to perform technical work under the grant. The AWWARF also utilizes subcontractors to assist it in fulfilling it contracted obligation to EVWD. We found that EVWD has been monitoring this work through on-site visits to AWWARF to review procedures, documentation, and other files that support AWWARF's work and invoice claims. We believe this is a very proactive approach that should be continued. However, we believe EVWD should document its procedures of how it will monitor the sub agreement with AWW'ARF. We observed fi.om reviewing the invoice records submitted by AWWARF to EVWD and other supporting documentation that AWWARF required its subcontractors to submit invoice claims on AWWARF letterhead. We find this practice to be misleading and confusing. These organizations are not part of AWWARF nor do the signatures present on these invoices representative of AWWARF employees. Therefore, organizations that AWWARF subcontracts with should submit invoice claims on their letterhead and not AWWARF lotterhead. We recommend EYAVD instruct AWW~ and require this practice to cease for the purposes of obtaining payments using fimds under the award between EPA and EVWD. Recommendations We recommend the General Manager of the EVWD · Add to the existing procedures to cover grant administration and management; · Be alert to the need for a single audit and ensure that a single audit is performed; · Revisit the EVWD's indirect cost rate and submit an indirect cost proposal to EPA or other federal cognizant agency; · Document EVWD's contract monitoring procedures; and · Instruct AWWARF on its subcontractor's use of the appropriate letterhead when submitting invoice claims. 2 Let me thank you and Ms Hess, again, for the time and assistance we received during our review. Should you have any questions regarding this letter you may contact me on (202) 564-5364. Sincerely, Peggy L. Anthony 3 B~UNICK, ALVAREZ .,c. BATTERSBY FAX TRANSMISSION SHEET The Jnfotcr~cion contoJne4 i'n t~is hc,limJle is con~d~ti~J ~d rosy ~lso co~in pfi~lc~ed Buomcy-clJ~ ~fo~ ~8 in.dod only for ~c ~c of ~c ~duaJ or ~ to whom it is sd~c~s~. If you ~c ~pl~t~ ~ 8S~ r~le to dellv~ it to ~e in.dod ~cipi~ you ~ hercby nq~fi~d ~at ~y ~, d~s~nG~ion, die.huron or · ~P~S ~f this co~unlcaion is ~ly proh~ited. If you have received ~6 fa~lc i~ ~or, pl~c i~edia~ly n~ ~ by t~l~hone ~ te~ ~e od~ m~ Io ~ ~t ~c 8d~ abov~ ~a ~e U.i. Yosta[ S~ce. ~k you. PLEBE DEL~R T~ FOLLO~G PAGES ' Total u~b~ ofpag~ ~t (~cJu~ ~al): Plc~e re~ew ~ commit ~ P~ yo~ ' ' ,,. ~ For yo~ ~o~a~on O~al to foll~ ' Subje~oc~t: ' 't ~ p ~ ~.. Hy°u do not r~dvc ~1 ~e pages ~catei ~ove, or ~you have ~y pxobl~s ~nc~g ~s facs~le, plel~ ~ ~e ~d~si~ed opcator im~c~atcly al (909) 8~9-1301. ~erator Nooiuo~w ~ Assoc~T£S, P.C. ATTORNEYS AT LAW RO~4~ ~. Tot~ 1010 SE~D A~UE January 2, 2001 TO: Cheryl Alion St~0 *",f C~h~o~i~ F~ No. 916 ~-2308 Fra~ ~ ~ No, 858 ~4-9055 NOO~GIAN ~ ~$OC~TES, R~ = ~tatus ~TATt/~ OP ~__ To ~011~ ~ U.S.M.il (~, ~, l.t~) -, . No ofi~g ~l ~ ~nt ~ To {oH~ by Fed~l Ex~. De, comber 29, 2000 S~ate of California VIA FACSIMILE AND U.S. MAIL Department of General Sr. rviccs. Real Estam Services Division, Professional Services Branch 1102 Q St~et, Suite 6000 S~cramento, CA 95814 Arm: Cheryl L. Allzn Steven NL Kmaedy, Esq. VIA FACSIMILE AN]) U.S. MAIL Bru~ick, Alva~oz & Batte~sby 1839 Comm~r¢¢n~cr West Sm3 Bernardino, CaJifomia 92408 Re: SCare L~$e Number L~I62S, dated Augast 15, 199~, aS amended November ! Z, 1997; State Lease Number L-11'/2, dated D¢cmber 15, 1989, ~ amended November 12, 199'7 November 12, 1997, Sublease of State Lease Nmber L-I:~?2 between l:~l Valley Water Dbtrigt and CaBfomla Geff Holdings Dear Ms. Allen and Mr. Kennedy: This lencr provides a status update on our progress regarding tho Patton Suction proje, gt. Doug Crease of Crouse Beers ~ Associates. our engineers.~ have assembled a team to deel with all of tho issues regarding cor~truetion of a golf course on the ui~'r portion of the leased premises ~bov~ Patton State Hospital. The loam consists of our engin~rs (Crous¢-Beers), a golf gourde a,rchlt~t, a golf ,zour~4: mfmager, ga/ndividual from Toro Corporation who has a personal interest in this project, and the head of American Pacific Financial Services who is interested in funding. Irwin Mandgl, Frimk Lawrg'ace, Sean-P~ul Olmged and myself m~ with the team on D~',c=mber 20, 2000 ~ di~ougs their though~ on how to expedi~ the cons~ruotion precis. EssentiaUy their opinion is that the ptofltability of the golf cours~ is directly related to thc gost of handling the flaod control issues a.~ they affegt the actual l~larming of tho golf course and related facilities. Before the De.c. emb~r 20* meeting, the principals had agrcecl to move forwa~l with a ¢on~act with Crouse & Beers to prepare the flood control plan and submk it to Flood Control. A~ Cheryl L. Allen S~vcu M. Kennedy, Esq. Dcc~mb~r 29~ 2000 P~e 2 their ~he~, wc held off ~ ~t con~ b~a~g ~ey boli~v~ we could ~ve ~nsiderable c~n~ co~ if we ~mbino ~e fl~d consol piing ~ ~me of ~e golf ~o~ pl~ning. ~is was confi~ed ~ ~c ~cem~ 2ff~ m~tini ~ th~ p!~ing te~ assembl~ by Crouse & Beers. ~o, ~c pl~ ~ ~tcd ~ cxpl~c ~c u~o of thc lower 3~ acres ~ i~ may or ~y not ~late ~o the ~olf co~e ~tivities. B~ on ~e a~v~ cro~ & B~s ~ asked us ~ ~ucst a si~-~y ,~ension of time t~m the present d~ltne of De~mbcr 3 I, 2000 to A~il 1, 2~lto complete ~d svbmil flood comrol plans, At ~is ~me,'we ~e nm ~ng fo~ any extension of time to commence work on the soil ~. Fi~iy, ~ wo~d like ~o ~t a mc~tiag date d~g the ~ ~k of Feb--, 2001 so ~t we c~ ~uss o~ ove~l p~o~ess ~d ~y ~oblems ~ich we may enco~tcr in prcp~ng o~ I look fo~d To yo~ ~enU ~d reply. Sine.ely, NOO~GIAN & ASSOCIA~S, P.C. Robe. Mmtln, E~t Vall~ Wa~t Dis~ict, P.O..Box 3427, 1 ! 55 Del Rosa Avcnu0, Sm B~mdino, C~ifornia 92413 Fr~ L~wr~n~ (via f~si~lc on[y) 1~ M~del (via f~s~ile only) · l~-Pa~ Oiled (via thcsimile only) Crou~ & B~s, (via f~simile only) NOORIGb~ ~' ASSOCL~TES, P.C. ATTORNEYS AT LAW F~A'C g"I F{'I L'E'";" C O V U~:R S H[.E.,E T J~ua~ 2, 2001 B~ck, ~z P~x No. 909 Fra~ ~ ~ No. 858 ~4-9055 l~n M~el F~ No, 8~-~5-8936 ~ C~,* 0 R~s . F~ No. 909-736-52~ N~RIGI~N O ~SOC~TES, I~.C. ~{8 tr~ns'mission o0~lsts O~ "~" ~agO(~), ~cluaing ~ia cover skeet. I~ y~ s~oul~ ~ave ~TATt J~ OP ~__ 'Fo ioll~ ~ U.S. M,i! (a, V~ l,t~) _ No O~g ~fl[ ~e sent December 29, 2000 State of California VIA FACSIMILE AND U.S. MAlL Department of Oeneral Services Real Estate Services Division, Profcssiotml Services Branch 1 t02 Q Street. Suite 6000 Sagramerito, CA 95814 Atto: Cheryl L. Allen graven M. Kgrmed¥, Esq. VIA I~AC$[MH,E AND U.S. MAIL Brtmick, Alvaroz & Battetsby 1839 Corarngrccnter West San Bemardino, California 92408 Re: $~ate L~se Number L-1625, dat*d AugaSt 15, 199~, as amended No'~ember I ~, 1997; State Les, se Numb~r L-II'/2, dated I)~eembcr 1 $, 1989, as ~mendgd November 12. November 12, 1997, Sublease of State Lease Number I.-1172 between East VaUey Water District and CaUforuia Golf Holdings D=ar Ms. Allen end Mr. Kennedy: This lmter provides a status update on our progress regarding the Patton elation Doug Crouse of Crous~ Beers ~, Associates. our engineers,, have assembled a team to deal with ~! of th~ Issues regarding con~truetion of a golf course on thc upper portion of thc leased premises above Patton State Hospital. Thc learn consists of our engineers (Crease-Beers), a golf eoursg ~hiteut, a golf co'ursc manager, an i~dividual from Toro CorpOration who'has a l;grsonal interest in this project, ami the head of American Pacific Finencial SerVices who is interested in funding. Irwin Mendel, Frank L&WI'g'RCe, Jean-Paul Olmsted and myself met with thc team on December 20, 2000 to discuss their though~ on how to expedi~ the construction ~occss. . £ssentiall¥ their opinion i; that the profitability of the golf course is directly relatxsd to thc cost of handling the fitted control issues a.~ they affect the actual l~lanning of the golf cours~ and related facilities. Before the December 20* meeting, the principals had agree~ to move forward with a contract with Crouse & Beers to p~epave the flood control plan and submit it to Flood Control. At Cheryl L, Allen Stcven M. Kenn~y, Esq. December 29; 2000 Page 2 their I~hc~, we held off on ~t ~n~ b~ca~ ~ey beliov~ we could ~ve ~nsiderable c~ co~ if w~ combing ~e flood consol piing ~ some of~e golf co~sc pl~ning. ~io was confi~ed ~ ~e Decemb~ 20~ m~ting ~ the p!~ing te~ assembl~ by Crouse Bc~rs. ~so, ~c pl~ ~ ~tcd ~ gxpl~c ~c ~gc of~e lower 35 acres ~ i~ may or may not ~late to ~ ~olf ~e ~tivities. B~ on ~ a~ve, Cro~e & B~ ~ asked us W r~ucst a si~-~y .~ension of time i~ lhe present d~ltne of December 3 I, 2000 to A~il 1, 2~1 to complete ~d submit flood comrol plans. At ~is ~me,' we ~e not ~ng for any extension of time to commence ~ork on thc golfco~. Fi~ly, ~ wo~d like to ~t a me,tinS date d~g ~he ~a ~k. of Feb--, 2001 so w~ c~ ~uss o~ ove~l p~o~css ~d ~y ~oblems whic~ we may cnco~tcr in propane plans. I look fo~d to yo~ ~o~cn~ ~d reply. Sincerely, NOO~GIAN.& ASSOCIA~S, P.~. . Enclo~ ' E~' ~ob~ Mmtln. E~t Vall~ Wa~ Dis~ict, P.O..Bo~ 3427, 1 i$5 Del ~osa Avenue, 8~dlno, C~ifornia 91413 Fr~ Lawrcn~ (via 'f~si~lc only) I~ M~del (via f~simile only) l~l-Pa~ Oiled (via t~cslmile only) Crous~ & B~r~ (via f~simile o~ly) w~ w 0 ~0< w ~ ~ w i ~ °° O~ w ~ ~ © EAST VALLEY WATER DISTRICT DIRECTOR'S FEE AND EXPENSES REPORT DIRECTOR: DON GOODIN MONTH December-00 Meetings Claimed: Board Meetings (Dates) 9,11,26 Conferences and Other Meetinqs Date: 1 Organization: Economic Forecast Location: Cai State University Date: 2 Organization: Awards Banquet Location: Riley's Farm Date: 12 Organization: Thursda), Morning Groupl Location: Arrowhead CC Date: 18 Organization: Special Districts Location: El Rancho Verde CC Date: Organization: Location: Date: Organization: Location: Date: Organization: Location: Date: Organization: Location: TOTAL MEETINGS 7 X $125.00= $ 875.00 Personal Auto Date: Function: Date: Function: Total $ Lodging Date: Function: Date: Function: Total $ Meals (Receipts) Date: 18 Function: Special Districts $ 23.00 Date: Function: Total $ 23.00 Other Date: Function: Date: Function: Total $ Total Directors Expenses. $ 23.00 Total Directors Fees (Meetings) $ 875.00 Less Advance Payments Approved Date of Board Meeting, January 8, 2001 · -----'~' EAST VALLEY WATER DISTRICT DIRECTOR'S FEES AND EXPENSE REPORT DIRECTOR: Sturgeon MONTH OF: O..e_..c,~_[aber ,2000 Meetings Claimed ~ ~ Board Meeting (Dates)_ 9 & 11 :' :-'~ ? 6 .[i..~ Conferences and Other Meetings Date: 6 Organization ¢SDA Location Sacramento .~.>5 Date: 7 - 8 OrganizationCal. Water Policy Location Los Angeles Date: Organization Location Date: Organization Location Date: Organization Location Date: Organization Location TOTAL MEETINGS 5 ~ $125.00 each $ 625.00 Personal Auto Date: 6 Function Attended ¢SDA $ 20.52 Date: 8 FunctionAttendedCal. Water Policy $ 47.02 Total $ 67.54 ' '~dgings: (Receipts attached) V Date: Function Attended $ Date: Function Attended $ Total $ Meals: (Receipts attached) Date: Function Attended Reimbursement $ 20.00 - Date: Function Attended $ Total $ 20.00 Other: 11/15 Water Education Foundation 154.00 Date: 11/8 Function Attended ACWA $ 8.00 5/9 - 5/'11/2001 ACWA 240.00 Date: 11/8 Function Attended ACWA $ 9.00 Date: 12/7 Function Attended Cal. Water Policy $ 2.70 12/6 CSDA 172.00 Total $ 585.70 Total Director's Expenses $ 633.24 Total Director's Fees (Meetings) $ 625.00 Less any Advance Payments $ ~ ~ ~L ,---~'-- TOTAL DUE DIRECTOR $1,258.24 Signed Approved Date of Board Meeting EAST VALLEY WATER DISTRICT DIRECTOR'S FEES AND EXPENSE REPORT DIRECTOR: S~P ~,/~ o,¢ MONTH OF: atincls Claimed '~"~'~rd Meeting (Dates):/¢./1/.~ Conferences and Other Meetinqs Date: I~,.'-/.~ Organization ~"/-~ ~./ /'.~..,/4~.~-~_,,~,~1~ Location Date:12/~-'~/~,~Organization~'u~ ~,~,,.~./ ~4J,~.~. Location I,t.u,~] Date: ~zllf Organization ~.,o~, $,,,,~.. /~,~ Location Date: t~-/~.¢ Organization ~-&~/~ s~ , ~/f,,.Z,~, Location ¢'/~.,~'~ Date: /2//¢ Organization ~¢-? ,,//~.~,..~,z., ~',~/.¢&of Location ,A~-~s-, Date: Organization Location TOTAL # OF MEETINGS ~ @125.00 each $ /, Personal Auto: Date: Function Attended Miles x per mile $ Date: Function Attended Miles x per mile $. TOTAL $ ,~,~c!incls: (Receipts attached) Date: Function Attended $ Date: Function Attended $. TOTAL $ Meals: (Receipts attached) Date: Function Attended $. Date:. Function Attended $. TOTAL $. Other: Date: Function Attended $ Date: Function Attended $ Date: Function Attended $. TOTAL $ SUMMARY: Total Director's Fees (Meetings)$ Total Director's Expenses $. Less any Advance Payments ~ $. . ~.~_ ,~,./~'~- ~..- TOTAL DUE DIRECTOR $ ,, ~.~_ Signed Approved Date of Board Meeting. /~ ¢&' - ,o / o ~ o 0 ~ ~ ~ ~ Z ~ 0 ~ --~ Z Z ~ ~m <o <~ ~mzoD~m ~ Z < ~ ~ o o ~ o ~ ~o~o Z o 0 o Z ~ ~ ooo~ o ~oo~OOOO~O~ ~ w~ ~o~oo ~o~ o 0 0~ w~ W~ W o o o Z ~ ~ ~ ~ ° o O' oooo z ~ ooo _ ~ W 0 O0~Z ILl m EAST VALLEY WATER DISTRICT DIRECTOR'S FEE AND EXPENSES REPORT DIRECTOR: DON GOODIN MONTH December-00 Meetings Claimed: Board Meetings (Dates) 9,11,26 Conferences and Qther Meetings Date: 1 Organization: Economic Forecast Location: Cai State University, Date: 2 Organization: Awards Banquet Location: Riley'a Farm Date: 12 Organization: Thursday Mornin~ Groupi Location: Arrowhead CC Date: 18 Organization: Special Districts Location: El Rancho Verde CC Date: Organization: Location: Date: Organization: Location: Date: Organization: Location: Date: Organization: Location: TOTAL MEETINGS 7 X$125.00= $ 875.00 Personal Auto Date: Function: Date: Function: Total $ - Lod,qin,q Date: Function: Date: Function: Total $ Meals (Receipts) Date: 18 Function: Special Districts $ 23.00 Date: Function: Total $ 23,00 Other Date: Function: Date: Function: Total $ Total Directors Expenses $ 23.00 Total Directors Fees (Meetings) $ 875.00 Less Advance Payments Signed Z~-~ ~,,U/0/,~._,.._.~.._TOTAL_ DUE DIRECTOR $ 898.00 Approved Date of Board Meeting January 8, 2001 EAST VALLEY WATER DISTRICT DIRECTOR'S FEES AND EXPENSE REPORT ~IRECTOR: Sturgeon MONTH OB:p_e_~c~_~ber ,2000 Meetings Claimed > '~- ' Board Meeting (Dates) 9 & 11 ~ Conferences and Other Meetings Date: 6 OrganizationCSDA Location Sacramento . ,~ii_'i Date: 7 - 8 OrganizationCal. Water Policy Location Los Angeles Date: Organization Location Date: Organization Location Date: Organization Location Date: Organization Location TOTAL MEETINGS 5 ~ $125.00 each $ 625.00 Personal Auto Date: 6 Function Attended CSDA $ 20.52 Date: 8 FunctionAttendedCal. water Policy $ 47.02 Total $ 67.54 - odgings: (Receipts attached) D ate: Function Attended $ Date: Function Attended $ Total $ Meals: (Receipts attached) Date: Function Attended Reimbursement' $ 20.00 - Date: . Function Attended $ Total $ 20.00 - Other: 11 / 15 Water Education Foundation 154.00 Date: 11 / 8 Function Attended ACWA $ 8.00 b/'9 - 5/11/2001 ACWA 240.00 Date: 11/8 Function Attended ACWA $ 9.00 Date: 12/7 Function Attended Cal. Water Policy $ 2.70 12/6 CSDA 172.00 Total $ 585.70 Total Director's Expenses $ 633 · 24 Total Director's Fees (Meetings) $ 625.00 Less any Advance Payments $ Signed ~ f,__C~ ---_ TOTAL DUE DIR_ECTOR $1,258.24 Approved Date of Board Meeting EAST VALLEY WATER DISTRICT DIRECTOR'S FEES AND EXPENSE REPORT DIRECTOR: SA'~,¢ ~,/z.~o~ MONTHOF: ¢~a.~ ,_._¢tinqs Claimed B"~ard Meeting (Dates): /&/t/~ Conferences and Other Meetings Date: I~.~.~ Organization ~ ~/ /~¢-z~,nPLocation Date:~Organization ~u~ ~ ~¢~¢~ ~. ~ Location H.u~ Date: ~/1~ Organization ~ %A, ~,~ Location Date: /¢/~ Organization ~ s~, ~,~ Location Date: /~//¢ Organization ~F~ ~¢/¢~¢ ~,¢/.t&.F Location ~,~, Date: .Qrganization Location TOTAL ¢ OF MEETINGS ~ ~125.00 each $~1, ~, Personal Auto: ' Date: Function Attended Miles x per mile $. Date: Function Attended Miles x per mile $. TOTAL $ ~,~in~s: (Receipts attached) Date: Function Attended $. Date: Function Attended $. TOTAL .Meals: (Receipts a~ached) Date: Function Abended $. Date: Function Attended $. TOTA& $ Other: Date: Function Attended $ Date: Function Attended $ Date: Function AEended $ TOTAL $ CUMMARY: Total Director's Fees (Meetings) Total Director's Expenses $ ~ Less any Advance Payments ~ $ .~~~~ TOTAL DUE DIRECTOR $ ,, ~.~ Signed Approved Date of Board Meeting /- ¢ E - EAST VALLEY WATER DISTRICT DIRECTOR'S FEES AND EXPENSE REPORT DIRECTOR: ~t~//77:f/~'T' MONTH OF: [~C.,gt4~trJe,2000 'n~K/leetings Claimed Board Meeting (Dates) Conferences and Other Meetings Date: I~/q Organization 5'~.~ ,~,~. £~'4;r& )~r Location Date: tzlq Organization_..~o//,~t~ ~flthz~lCflP Location Date: Iz/tZ Organization i'l/u~50,~4 /14,,e, vts,6 C~tP Location ~',~'. Date: IZ[6- Organization A'~rt,~d aJ/~raq ~/_.CoaJ Location ~-6% Date: Organization Location Date: Organization Location TOTAL MEETINGS ,5' ~ $125.00 each $ Personal Auto Date: Function Attended $ Date: Function Attended $ Total $ L0d~ngs: (Receipts attached) ~ Date: Function Attended $ Date: Function Attended $ Total $ Meals: (Receipts attached) Date: Function Attended $ Date: Function Attended $ Total $ Other: Date: Function Attended $ Date: Function Attended $ Date: Function Attended $ Total $ Total Director's Expenses $ Total Director's Fees (Meetings) $ Less any Advance Payments $ ~i~Signed ! Approved Date of Board Meeting EAST VALLEY WATER DISTRICT DIRECTOR'S FEES AND EXPENSE REPORT D~..~TOR: AI~&£~v~ ~o~. o~: 4.~._ooo ~eetings Claimed Board ~.~i~ Conferences ~d Other Meetings Date: Date: Date: Date: Date:/~ Organization Date:/ TOTAL~EET~G8 Personal Auto Datm Function Attended Date: Function Attended $ Total $ ~'dgings: (Receipts attached) Date: Function Attended $ Date: Function Attended $ Total $ Meals: (Receipts attached) Date: Function Attended $ Date: Function Attended $ Total $ Other: Date: Function Attended $ Date: Function Attended $ Date: Function Attended $ Total Total Director's Expenses Total Director's Fees (Meetings) Less any Advance Payments TOTA U = TOR Signed Approved Date of Board Meeting RESOLUTION NO. 2001.01 A RESOLUTION OF TIlE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT AUTHORIZING THE DISTRICT TO BORROW FROM CITIZENS BUSINESS BANK WHEREAS, the East Valley Water District (hereinafter referred to as "EVWD") is a County Water District organized and operating pursuant to California Water Code Section 30000 et seq.; and WHEREAS, EVWD is permitted under the authority granted by Section 30321 of the Water Code of the State of California to borrow from Citizens Business Bank, a California Corporation (hereinafter referred to as "Bank"), such sums of money as EVWD may require to fulfill its statutory duties. NOW, THEREFORE, BE IT RESOLVED that EVWD is hereby authorized to borrow from the Bank such sums of money as, in the judgement of the officers hereinafter authorized, EVWD may require; provided that the aggregate amount of such borrowing, pursuant to this Resolution shall not at any one time exceed the sum of Two Million and 00/100 Dollars ($2,000,000.00) in addition to such amount as may be otherwise authorized. BE IT FURTHER RESOLVED that the following named officer: Glenn R. Lightfoot, President of the Board of Directors of EVWD, be and is hereby authorized, directed, and empowered, in the name of EVWD, to execute and deliver to the Bank, and the Bank is requested to accept, the note, advance account agreements, acceptance of agreements, or other instruments evidencing the indebtedness of EVWD for the monies so borrowed or to be borrowed, with interest thereon, and said authorized officer is authorized from time to time to execute renewals or extensions of said note or notes, advance account agreements, acceptance agreements, or other instruments. BE IT FURTHER RESOLVED that any two (2) of the following named officers: Glenn R. Lightfoot, President Donald D. Goodin, Vice-President Kip E. Sturgeon, Director Edward S. Negrete, Director George E. Wilson, Director Robert E. Martin, General Manager Alberta M. Hess, Chief Financial Officer of EVWD, be and are hereby authorized, directed, and empowered, in the name cf EVW'D, to execute and deliver to the Bank, and the Bank is requested to accept, authorization for advances of monies from said notes either in writing or verbally for deposit into the general account of EVWD. BE IT FURTHER RESOLVED that the signatures of the officers of EVWD authorized to act pursuant to this Resolution are set forth as follows: Glenn R. Lightfoot Donald D. Goodin President Vice-President · Kip E. Sturgeon Edward S. Negrete Director Director George E. Wilson Director Robert E. Martin Alberta M. Hess General Manager Chief Financial Officer BE IT FURTHER RESOLVED that the Bank is authorized to act upon this Resolution until written notice of its revocation is delivered to the Bank, and that the authority hereby granted shall apply with equal force and effect to the successors in office of the officers herein named. BE IT FURTHER RESOLVED that this Resolution shall take effect immediately upon its adoption. ADOPTED this 8th day of January, 2001. AYES: NOES: ABSENT: Glenn R. Lightfoot, President Board of Directors I, Robert E. Martin, Secretary of East Valley Water District, a Water District formed under the laws of the State of California, do hereby certify that the foregoing is a full and correct copy of a Resolution of the Board of Directors of said Water District duly and regularly adopted by the Board of Directors of said Water District duly and regularly adopted by the Board of Directors as said Water District in all respects by law, and by the by-laws of said Water District on the 8th day of January, 2001, at which meeting a majority of the Board of Directors of said Water District was present and voted in favor of said Resolution. I further certify that said Resolution is still in full force and effect and has not been amended or revoked and that the specimen signatures appearing above are the signatures of the officers authorized to sign for the East Valley Water District by virtue c~f this resolution. IN WITNESS WHEREOF, I have hereunto set my hand as such Secretary this 8~ day of January, 2001. ATTEST: Robert E. Martin, General Manager Secretary to the Board of Directors LOAN NUMBER LOAN NAME ACCT. NUMBER NOTE DATE iNITIALS 11695 East Valley Water 21S 131 12/15/00 District NOTE AMOUNT INDEX (w/Margin) RATE MATURITY DATE LOAN PURPOSE V $2,000,000.00 CITIZENS BUSINESS 9.5% 12/24/01 Commercial BANK PRIME RATE Creditor Use Only PROMISSORY NOTE (Commercial - Revolving Draw - Variable Rate) DATE AND PARTIES. The date of this Promissory Note (Note) is December 15, 2000. The parties and their addresses are: LENDER: CITIZENS BUSINESS BANK 1555 E. Highland Ave. San Sernardino, California 92404 Telephone: (909) 381-5581 BORROWER: EAST VALLEY WATER DISTRICT a California Corporation 1155 Del Rosa A~enue San Bernard[no, California 92410 1. DEFINITIONS. As used in this Note, the terms have the following meanings: A. Pronouns. The pronouns "1," "me," and "my" refer to each Borrower signing this Note, individually and together with their heirs, successors and assigns, and each other person or legal entity (including guarantors, endorsers, and sureties) who agrees to pay this Note. "You." and "Your" refer to the Lender, with its participants or syndicators, successors and assigns, or any person or company that acquires an interest in the Loan. B. Note. Note refers to this document, and any extensions, renewals, modifications and substitutions of this Note. C. Loan. Loan refers to this transaction generally, including obligations and duties arising from the terms of ail documents prepared or submitted for this transactien such as applications, security agreements, disclosures or notes, and this Note. D. Property. Property is any property, real, personal or intangible, that secures my performance of the obligations of this Loan. E. Percent. Rates and rate change limitations are expressed as annualized percentages. 2. PROMISE TO PAY. For value received, I promise to pay you or your order, at your address, or at such other location as you may designate, amounts advanced from time to time under the terms of this Note up to the maximum outstanding principal balance of $2,000,000.00 (Principal), plus interest from the date of disbursement, on the unpaid outstanding Principal balance until this Note matures or this obligation is accelerated. I may borrow up to the Principal amount more than one time. All advances made will be made subject to all other terms and conditions of this Loan. 3, INTEREST. Interest will accrue on the unpaid Principal balance of this Note at the rate of 9.5 percent (Interest Rate) until December 18, 2000, after which time it may change as described in the Variable Rate subsection. A. Interest After Default. If you declare a default under the terms of this Loan, including for failure to pay in full at maturity, you may increase the interest Rate payable on the outstanding Principal balance of this Note. In such event, interest will accrue on the outstanding Principal balance at the variable interest Rate in effect from time to time, plus an additional 5.000 percent, until paid in fu][. B. Maximum Interest Amount. Any amount assessed or collected as interest under the terms of this Note or obligation will be limited to the Maximum Lawful Amount of interest allowed by state or federal law. Amounts collected in excess of the Maximum Lawful Amount will be applied first to the unpaid Principal balance. Any remainder will be refunded to me. C. Statutory Authority. The amount assessed or collected on this Note is authorized by the California Banking Law {Ca[. Fin. Code, Div. 1). D. Accrual. During the scheduled term of this Loan interest accrues using an Actual/360 days counting method, East Valley Water District California Promissory Note Initlals __ CA/3C011707130QOO00000000000BOO00000Cn5 elsa6 Bankers Systems, Inc,, St. Cloud, MN Page 1 E. Variable Rate. The Interest Rate may change during the term of this transaction. (1) Index. Beginning with the first Change Date, the Interest Rate will be based on the following index: CITIZENS BUSINESS BANK PRIME RATE OF INTEREST. THIS INDEX IS DETERMINED BY CITIZENS BUSINESS BANK FROM TIME TO TIME AS A MEANS OF PRICING CREDIT EXTENSIONS TO SOME CUSTOMERS AND lS NEITHER TIED TO ANY EXTERNAL RATE OF INTEREST OR INDEX NOR NECESSARILY THE LOWEST RATE OF INTEREST CHARGED BY,,~,...~ CITIZENS BUSINESS BANK AT ANY GIVEN TIME FOR ANY PARTICULAR CLASS OF CUSTOMERS OR CREDIT EXTENSIONS. The Current Index is the most recent index figure available on each Change Date. You do not guaranty by selecting this index, or the margin, that the Interest Rate on this Note will be the same rate you charge on any other loans or class of loans you make to me or other borrowers. If this Index is no longer available, you will substitute a similar index. You will give me notice of your choice. (2) Change Date. Each date on which the Interest Rate may change is called a Change Date, The Interest Rate may change December 16, 2000 and daily thereafter. (3) Calculation Of Change. On each Change Date, you will calculate the Interest Rate, which will be the Current Index. The result of this calculation will be rounded to the nearest .001 percent. Subject to any limitations, this will be the interest Rate until the next Change Date. The new Interest Rate will become effective on each Change Date. The Interest Rate and other charges on this Note will never exceed the highest rate or charge allowed by law for this Note. (4) Effect Of Variable Rate. A change in the Interest Rate will have the following effect on the payments: The amount of scheduled payments will change. 4. ADDITIONAL CHARGES. As additional consideration, I agree to pay, or have paid, these additional fees and charges. A. Nonrefundable Fees and Charges. The following fees are earned when collected and will not be refunded if I prepay this Note before the scheduled matudty date. Loan. A(n) Loan fee of $750.00 payable from separate funds on or before today's date. 5. GOVERNING AGREEMENT. This Note is further governed by the Commercial Loan Agreement executed between you and me as part of this Loan, as modified, amended or supplemented, Upon execution of this Note, I represent that I have reviewed and am in compliance with the terms contained in the Commercial Loan Agreement. 6. PAYMENT. I agree to pay this Note as follows: interest monthly beginning O1/24/2001 , with accrued interest and principal due at maturity. Payments will be rounded up to the nearest $.01. With the final payment I also agree to pay any additional fees or charges ow'ng and-the amount of any advances you have made to others on my behalf. Payments scheduled to be paid on the 29th, 30th or 31st day of a month that contains no such day will, instead, be mede on the last day of such month. Each payment I make on this Note wiII be applied first to interest that is due then to principal that is due, and finally to any charges that I owe other than principal and interest. If you and I agree to a different application of payments, we will describe our agreement on this Note. The actual amount of my final payment will depend on my payment record. 7. PREPAYMENT. I may prepay this Loan in full or in part at any time. Any partial prepayment will not excuse any later scheduled payments until I pay in full. 8. LOAN PURPOSE. The purpose of this Loan isto renew loan #11695; to fund unexpected expenses arising from a major earthquake, pump failures, regulatory requirements, etc.. 9. ADDITIONAL TERMS. Subject to a minimum $100.00 interest charge. 10. SECURITY. This Loan is not secured. 11. ASSUMPTIONS. Someone buying the Property cannot assume the obligation. You may declare the entire balance of the Note to be immediately due and payable upon the creation of, or contract for the creation of, any lien, encumbrance, or transfer of the Property, 12. WAIVERS AND CONSENT. To the extent not prohibited by law, I waive protest, presentment for payment, demand, notice of acceleration, notice of intent to accelerate and notice of dishonor. A. Additional Waivers By Borrower. In addition, I, and any party to this Note and Loan, to the extent permitted by law, consent to certain actions you may take, and generally waive defenses that may be available based on these actions or based on the status of a party to this Note. (1) You may renew or extend payments on this Note, regardless of the number of such renewals or extensions. {2) You may release any Borrower, endorser, guarantor, surety, accommodation maker or any other co-signer. (3) You may release, substitute or impair any Property securing this Note. {4) You, or any institution participating in this Note, may invoke your right of set-off. (5) You may enter into any saFes, repurchases or participations of this Note to any person in any amounts and I waive~' notice of such sales, repurchases or participations. East Valley Water District California promissory Note Initials -- CA/3C01170713000000000000000B000000OCn5 e1996 Bankers Systems, [nc., St. Cloud, MN P~ge 2 (6} I agree that any of us signing this Note as a Borrower is authorized to modify the terms of this Note or any instrument securing, guarantying or relating to this Note. B. No Waiver By Lender. Your course of dealing, or your forbearance from, or delay in, the exercise of any of ,/our rights, remedies, privileges or right to insist upon my strict performance of any provisions contained in this Note, or other Loan documents, shall not be construed as a waiver by you, unless any such waiver is in writing and is signed by you. V 13. SUSPENSION OF REMEDIES. You may not use any Remedy if I fail to make a payment which becomes due during a disability claim period and for which disability insurance coverage is provided. However, this term w{ll not prohibit the use of any remedy if a payment is for an amount advanced after I have given you notice of a disability claim, unless a different disability causes the nonpayment. 14. APPLICABLE LAW. This Note is governed by the laws of California, the United States of America and to the extent re~uire~ by the laws. o~-the jurisdiction where the Property is located. In the event of a dispute, the exclusive forum, venue and place of jurisdiction will be in California, unless otherwise required by law. 15. JOINT AND INDIVIDUAL LIABILITY AND SUCCESSORS. My obligation to pay this Loan is independent of the obligation of any other person who has also agreed to pay it. You may sue me alone, or anyone else who is obligated on this Loan, or any number of us together, to collect this Loan. Extending this Loan or new obligations under this Loan, will not affect my duty under this Loan and I will still be obligated to pay this Loan. The duties and benefits of this Loan will bind and benefit the successors and assigns of you and me. 16. AMENDMENT, INTEGRATION AND SEVERABILITY. This Note may not be amended or modified by oral agreement, No amendment or modification of this Note is effective unless made in writing and executed by you and me. This Note is the complete and final expression of the agreement. If any provision of this Note is unenforceable, then the unenforceable provision will be severed and the remaining provisions will still be enforceable. 17. INTERPRETATION. Whenever used, the singular includes the plural and the plural includes the singular. The section headings are for convenience only and are not to be used to interpret or define the terms of this Note. 18. NOTICE, FINANCIAL REPORTS AND ADDITIONAL DOCUMENTS. Un[ess otherwise required by law, any notice will be given by delivering it or mailing it by first class mail to the appropriate party's address listed in the DATE AND PARTIES section, or to any other address designated in writing. Not[ce to one party will be deemed to be notice to all parties. I inform you in writing of any change in my name, address or other application information. I agree to sign, deliver, and file any additional documents or certifications that you may consider necessary to perfect, continue, and preserve my obligations under this Loan and to confirm your lien status on any Property. Time is of the essence. , V 1B_CREIDtT INFORMATION. I agree that from time to time you may obtain credit information about me from others, including other lenders and credit reporting agencies, and report to others (such as a credit reporting agency) your credit experience with me. I agree that you will not be liable for any claim arising from the use of information provided to you by others or for providing such information to others. 20. AGREEMENT TO ARBITRATE. You or I may submit to arbitration any dispute, claim or other matter in question between or among you and me that arises out of or relates to this Transaction (Dispute), except as otherwise indicated in this section or as you and I agree to in writing. For purposes of this section, this Transaction includes this Note and any other documents, instruments and proposed loans or extensions of credit that re[ate to this Note. You or I will not arbitrate any Dispute within any "oore proceedings" under the United States bankruptcy laws. You and I must consent to arbitrate any Dispute ~oncerning a debt secured by real estate at the time of the proposed arbitration. You may foreclose or exercise any powers of sale against real property securing a debt underlying any Dispute before, duting or after any arbitration. You may also enforce the debt secured by this real property and underlying the Dispute before, during or after any arbitration. You or t may seek provisional remedies at any time from a court having jurisdiction to preserve the rights of or to prevent irreparable injury to you or me, Foreclosing or exercising a power of sale, beginning and continuing a judicial action or pursuing self-help remedies will not constitute a waiver of the right to compel arbitration. The arbitrator will determine whether a Dispute is arbitrable. A single arbitrator wilt resolve any Dispute, whether individual or joint in nature, or whether based on contract, tort, or any other matter at law or in equity. The arbitrator may consolidate any Dispute with any related disputes, claims or other matters in question not arising out of this Transaction. Any court having jurisdiotion may enter a judgment or decree on the arbitrator's award. The judgment or decree will be enforced as any other judgment or decree. You and I acknowledge that the agreements, transactions or the relationships which result from the agreements or transactions between and among you and me involve interstate commerce. The United States Arbitration Act will govern the interpretation and enforcement of this section. The American Arbitration Association's Supplemental Procedures for Resolving Financial Services Disputes, in effect on the late of this Note, will govern the selection of the arbitrator and the arbitration process, un[ess otherwise agreed to in this Note ~llllPr another writing. East Valley Water District California Promissory Note Initials CA/3C0117071300000000000000oa0oooooocn5 el 996 Bankers Systems, Inc., St. Cloud, MN Page 3 21. WAIVER OF TRIAL FOR ARBITRATION. You and I understand that the parties have the right or opportunity to litigate any Dispute through a trial by judge or jury, but that the parties prefer to resolve Disputes through arbitration instead of litigation. If any Dispute is arbitrated, you end ! voluntarily and knowingly waive the right to have a trial by jury or judge during the arbitration. 22. SIGNATURES. By signing, I agree to the terms contained in this Note. I also acknowledge receipt of a copy of this Note. BORROWER: East Valley Water District Glenn R. L[ghtfoot, Pres[dent LENDER: Citizens Business Bank East Valley Water District California Promissory Note Initials CA/3C01170713OOOOODOOOO00OOOBOOOOOOOCn5 el 996 Bankers Systems, Inc., St. Cloud, MN LOAN NUMBER LOAN NAME ACCT. NUMBER AGREEMENT DATE INITIALS 11 B95 East Valley Water 21 B131 12/15/00 District NOTE AMOUNT INDEX (w/Margin} RATE MATURITY DATE LOAN PURPOSE $2,000,000.00 CITIZENS BUSINESS 9.5% 12/24/01 Commercial BANK PRIME RATE Creditor Use Only COMMERCIAL LOAN AGREEMENT Revolving Draw Loan DATE AND PARTIES. The date of this Commercial Loan Agreement (Agreement) [s December 15, 2000. The parties and their addresses are as follows: LENDER: CITIZENS BUSINESS BANK 1555 E. High[and Ave. San Bernardino, California 92404 BORROWER: EAST VALLEY WATER DISTRICT a California Corporation 1155 Del Rosa Avenue San Bernardino, California 92410 1. DEFINITIONS. For the purposes of this Agreement, the following terms have the following meanings. A. Accounting Terms. In this Agreement, any accounting terms that are not specifically defined will have their customary meanings under generally accepted accounting principles, B. Insiders. Insiders include those defined as insiders by the United States Bankruptcy Code, as amended; or to the extent left undefined, include without limitation any officer, employee, stockholder or member, director, partner, or any immediate family member of any of the foregoing, or any person or entity which, directly or indirectly, controls, is controlled by or is under common control with me. C, Loan. The Loan refers to this transaction genera]ly, including obligations and duties arising from the terms of all documents prepared or submitted for this transaction. D. Pronouns. The pronouns "1", "me" and "my" refer to every Borrower signing this Agreement, individually or together, and their heirs, successors and assigns. "You" and "your" refers to the Loan's lender, any participants or syndicators, or any person or company that acquires an interest in the Loan and their successors and assigns. E. Property. Property [s any property, real, personal or intangible, that secures my performance of the obligations of this Loan. 2. ADVANCES. Advances under this Agreement are made according to the following terms and conditions. A. Multiple Advances - Revolving. [n accordance with the terms of this Agreement and other Loan documents, you will provide me with a revolving draw note and the maximum outstanding principal balance will not exceed $2,000,000,00 (Principal). B, Requests for Advances. My requests are a warranty that i am in compliance with all the Loan documents. When required by you for a particular method of advance, my requests for an advance must specify the requested amount and the date and be accompanied with any agreements, documents, and instruments that you require for the Loan. Any payment by you of any check, share draft or other charge may, at your option, constitute an advance on the Loan to me. All advances will be made in United States dollars. I will indemnify you and hold you harmless for your reliance on any request for advances that you reasonably believe to be genuine. To the extent premit~ed by law, I will indemnify you and hold you harmless when the person making any request represents that I authorized this person to request an advance even when this person is unauthorized or this person's signature is not genuine. I or anyone I authorize to act on my behalf may request advances by the following methods. (11 I make a request in person. (2} I make a request by phone. East Valley Water District CAI3C01170713000000000000000DOOOOOOOEn4 el 996 Bant(ers Systems, Inc., St. Cloud, MN Page 1 {3) I make a request by mail. C. Advance Limitations. in addition to any other Loan conditions, requests for, and access to, advances are subject to the following limitations. (1) Obligatory Advances. You will make all Loan advances subject to this Agreement's terms and conditions. (21 Advance Amount. Subject to the terms and conditions contained in this Agreement, advances will be made in exactly the amount I request. {3) Cut-Off Time. Requests for an advance received before 04:00 PM will be made on any day that you are open for business, on the day for which the advance is requested, (4~ Disbursement of Advances. On my fulfillment of this Agreement's terms and conditions, you will disburse the advance into my account number 238-103363. (5) Credit Limit. I understand that you will not ordinarily grant a request for an advance that would cause the unpaid principal of my Loan to be greater than the Principal Jimit. You may, at your option, grant such a request without obligating yourselves to do so in the future. (6) Records. Your records will be conclusive evidence as to the amount of advances, the Loan's unpaid principal balances and the accrued interest. D. Conditions. ~ w[[I satisfy all of the following conditions before you either issue any promissory notes or make any advances under this Agreement. (1) No Default. There has not been a default under this Agreement or other Loan documents nor would a default result from making the Loan or any advance. {2) Information. You have received all documents, information, certifications and warranties as you may require, all properly executed, if appropriate, on forms acceptable to you. This includes, but is not limited to, the documents and other items listed in the Loan Checklist Report which is hereby incorporated by reference into this Agreement. (3) Inspections, You have made ali inspections that you consider necessary and are satisfied with this inspection. (4l Conditions and Covenants. I will have performed and complied with all conditions required for an advance and all covenants in this Agreement and any ether Loan documents. (5) Warranties and Representations. The warranties and representations contained in this Agreement are true and correct at the time of making the requested advance. {6) Financial Statements, My most recent financial statements and other financial reports, delivered to you, are current, complete, true and accurate in ali material respects and faidy represent my financial condition. V (7) Bankruptcy Proceedings. No proceeding under the United States Bankruptcy Code has been commenced by or against me or any of my affiliates. 3. MATURITY DATE. I agree to fully repay the Loan by December 24, 2001. 4. WARRANTIES AND REPRESENTATIONS. I make to you the following warranties and representations which will continue as long as this Loan is in effect, except when this Agreement provides otherwise. A. Power. I am duly organized, and validly existing and in good standing in all jurisdictions in which I operate. I have the power and authority to enter into this transaction and to carry on my business or activity as it is now being conducted and, as applicable, am qualified to do so in each jurisdiction in which I operate. B. Authority. The execution, delivery and performance of this Loan and the obligation evidenced by the Note are within my powers, have been duly authorized, have received all necessary governmental approval, will not violate any provision of law, or order of court or governmental agency, and will not violate any agreement to which I am a party or to which I am or any of my property is subject. C, Name and Place of Business. Other than previously disclosed in writing to you I have not changed my name or principal place of business within the last 10 years and have not used any other trade or fictitious name. Without your prior written consent, I do not and will not use any other name and will preserve my existing name, trade names and franchises. D. Loan Purpose. This Loan is for Commercial purposes. E. No Other Liens. I own or lease all property that I need to conduct my business and activities. I have good and marketable title to ali property that I own or lease. All of my Property is free and clear of ail liens, security interests, encumbrances and other adverse claims and interests, except those to you or those you consent to in writing. F. Compliance With Laws. I am not violating any laws, regulations, rules, orders, judgments or decrees applicable to me or my property, except for those which I am challenging in good faith through proper proceedings after providing adequate reserves to fully pay the claim and its cha[lenge should I lose. G. Legal Dispute. There are no pending or threatened lawsuits, arbitrations or other proceedings against me or my property that singly or together may materially and adversely affect my property, operations, financial condition, or business. H. Adverse Agreements, ~ am not a party to, nor am I bound by, any agreement that is now or is likely to becom~ materially adverse to my business, Property or operations. East Valley Water D/strict California Commercial Loan Agreement Initials -- CA/3C01170713000000000000000D0000OOOEn4 °1996 Bankers Systems, Inc., St. Cloud, MN Page 2 I. Other Claims. There are no outstanding claims or rights that would conflict with the execution, delivery or performance by me of the terms and conditions of this Agreement or the other Loan documents. No outstanding claims or rights exist that may result in a lien on the Property, the Property's proceeds and the proceeds of proceeds, except liens that were disclosed to and agreed to by you in writing, J. Solvency. I am able to pay my debts as they mature, my assets exceed my liabilities and I have sufficient capital for my current and planned business and other activities. I will not become insolvent by the execution or performance of this Loan. S. FINANCIAL STATEMENTS. I will prepare and maintain my financial records using consistently applied generally accepted accounting principles then in effect. I will provide you with financial information in a form that you accept and under the following terms. A. Certification. [ represent and warrant that any financial statements that I provide you fairly represents my financial condition for the stated periods, is current, complete, true and accurate in all material respects, includes all of my direct or contingent liabilities and there has been no material adverse change in my financial condition, operations or business since the date the financial information was prepared. B. Frequency. Annually, I will provide to you my financial statements, tax returns, annual internal audit reports or those prepared by independent accountants as soon as available or at least within 30 days after the close of each of my fiscal years. Any annual financial statements that [ provide you will be audited statements. C. SEC Reports. I will provide you with true and correct copies of all reports, notices or statements that I provide to the Securities and Exchange Commission, any securities exchange or my stockholders, owners, or the holders of any material indebtedness as soon as available or at least within 30 days after issuance. D. Requested information. I will provide you with any other information about my operations, financial affairs and condition within 30 days after your request. 6. COVENANTS. Until the Loan and all related debts, liabilities and obligations are paid and discharged, I will comply with the following terms, unless you waive compliance in writing. A. Participation. I consent to you participating or syndicating the Loan and sharing any information that you decide is necessary about me and the Loan with the other participants or syndicators. B. Inspection. Upon reasonable notice, I witl permit you or your agents to enter any of my premises and any location where my Property is located during regular business hours to do the following. (1) You may inspect, audit, check, review and obtain copies from my books, records, journals, orders, receipts, and any correspondence and other business related data. (2~ You.may discuss my affairs, finances and business with any one who claims to be my creditor. After prior notice to me, you may discuss my financial condition and business operations with my independent accountants, if any, or my chief financial officer and I may be present during these discussions. As long as the Loan is outstanding, [ will direct all of my accountants and auditors to permit you to examine my records in their possession and to make copies of these records. You will use your best efforts to maintain the confidentiality of the information you or your agents obtain, except you may provide your regulator, if any, with required information about my financial condition, operation and business or that of my parent, subsidiaries or affiliates. C. Business Requirements. I will preserve and maintain my present existence and good standing in the jurisdiction where I am organized and all of my rights, privileges and franchises. I will do all that is needed or required to continue my business or activities as presently conducted, by obtaining licenses, permits and bonds everywhere [ engage in business or activities or own, lease or locate my I~roperty. I will obtain your prior written consent before I cease my business or before t engage in any new line of business that is materially different from my present business. D. Compliance with Laws. I will not violate any laws, regulations, rules, orders, judgments or decrees applicable to me or my Property, except for those which I challenge in good faith through proper proceedings after providing adequate reserves to fully pay the claim and its appeal should I lose. Laws include without limitation the Federal Fair Labor Standards Act requirements for producing goods, the federal Employee Retirement income Security Act of 1974's requirements for the establishment, funding and management of qualified deferred compensation plans for employees, health and safety laws, environmental laws, tax laws, licensing and permit laws. On your request, I will provide you with written evidence that I have fully and timely paid my taxes, assessments and other governmental charges levied or imposed on me, my income or profits and my property. Taxes include without limitation sales taxes, use taxes, personal property taxes, documentary stamp taxes, recordation taxes, franchise taxes, income taxes, withholding taxes, FICA taxes and unemployment taxes. ( will adequately provide for the payment of these taxes, assessments and other charges that have accrued but ere not yet due and payable. E. New Organizations. I will obtain your written consent and any necessary changes to the Loan documents before I organize or participate in the organization of any entity, merge into or consolidate with any one, permit any one else to merge into me, acquire all or substantially all of the assets of any one else or otherwise materially change my legal structure, management, ownership or financial condition. F. Dealings with [nsiders. I will not purchase, acquire or lease any property or services from, or sell, provide or lease any property or services to, or permit any outstanding loans or credit extensions to, or otherwise deal with, any Insiders except East Valley Water District CA/3C01170713000000000000000DOOOOOOOEn4 e1995 Bankers Systems, Inc.. St, Cloud, MN Page 3 as required under contracts existing at the time I applied for the Loan and approved by you or as this Agreement otherwise permits. I will not change or breach these contracts existing at Loan application so as to cause an acceleration of or an increase in any payments due. G. Other Debts, I will pay when due any and all other debts owed or guaranteed by me and will faithfully perform, or comply with all the conditions and obligations imposed on me concerning the debt or guaranty. ~ H. Other Liabilities. [ will not incur, assume or permit any debt evidenced by notes, bonds or similar obligations, except: debt in existence on the date of this Agreement and fully disclosed to you; debt subordinated in payment to you on conditions and terms acceptable to you; accounts payable incurred in the ordinary course of my business and paid under customary trade terms or contested in good faith with reserves satisfactory to you. I. Notice to You. I will promptly notify you of any material change in my financial condition, of the occurrence of a default under the terms of this Agreement, or a default by me under any agreement between me and an,/ third party which materially and adversely affects my property, operations, financial condition or business. J. Certification of No Default. On your request, my chief financial officer or my independent accountant will provide you with a written certification that to the best of their knowledge no event of default exists under the terms of this Agreement or the other Loan documents, and that there exists no other action, condition or event which with the giving of notice or lapse of time or both would constitute a default. As requested, my chief financial officer or my independent accountant will also provide you with computations demonstrating compliance with any financial covenants and ratios contained in this Agreement. If an action, condition or event of default does exist, the certificate must accurately and fully disclose the extent and nature of this action, condition or event and state what must be done to correct it. K. Use of Loan Proceeds. I will not permit the loan proceeds to be used to purchase, carry, reduce, or retire any loan incurred to purchase or carry any margin stock. L. Dispose of No Assets. Without your prior written consent or as the Loan documents permit, I wii[ not sell, lease, assign, transfer, dispose of or otherwise distribute all or substantially all of my assets to any person other than in the ordinary course of business for the assets' depreciated book value or more. NI. No Other Liens. I will not create, permit or suffer any lien or encumbrance upon any of my properties for or by anyone, other than you, except for: nonconsensual liens imposed by law ar[sing out of the ordinary course of business on obligations that are not overdue or which I am contesting in good faith after making appropriate reserves; valid purchase money security interests on personal property; or any other liens specifically agreed to by you in writing. N. Guaranties. I will not guaranty or become liable in any way as surety, endorser (other than as endorser of negotiable instruments in the ordinary course of business) or accommodation endorser or otherwise for the debt or obligations of any other person or entity, except to you or as you otherwise specifically agree in writing. O. No Default under Other Agreements. I will not allow to occur, or to continue unremedied, any act, event or condition~ which constitutes a default , or which, with the passage of time or giving of notice, or both, would constitute a default under any agreement, document, instrument or undertaking to which I am a party or by which I may be bound. P. Legal Disputes. i will promptly notify you in writing of any threatened or pending lawsuit, arbitration or other proceeding against me or any of my property, not identified in my financial statements, or that singly or together with other proceedings may materially and adversely affect my property, operations, financial condition or business. I will use my best efforts to bring about a favorable and speedy result of any of these lawsuits, arbitrations or other proceedings. Q. Other Notices. I will immediately provide you with any information that may materially and adversely affect my ability to perform this Agreement and of its anticipated effect, R. No Change in Capital. I will not release, redeem, retire, purchase or otherwise acquire, directly or indirectly, any of my capital stock or other equity security or partnership interest, or make any change in my capital structure, except to the extent required by any agreements signed prior to this Agreement and disclosed to you or with your prior written consent. S. Loan Obligations. I will make full and timely payment of all principa[ and interest obligations, and comply with the other terms and agreements contained in this Agreement and in the other Loan documents. T. insurance. I will obtain and maintain insurance with insurers, in amounts and coverages that are acceptable to you and customary with industry practice. This may include without limitation insurance policies for public liability, fire, hazard and extended risk, workers compensation, and, at your request, business interruption and/or rent loss insurance. At your request, I will deliver to you certified copies of all of these insurance policies, binders or certificates. I will obtain and maintain a mortgagee or loss payee endorsement for you when these endorsements are available. I will immediately notify you of cancellation or termination of insurance. I will require all insurance policies to provide you with at least 10 days prior written notice to you of cancellation or modification. I consent to you using or disclosing information relative to any contract of insurance required by the Loan for the purpose of replacing this insurance. I also authorize my insurer and you to exchange all relevant information related to any contract of insurance required by any document executed as part of this Loan. U. Loan Balance. [ will pay down this revolving draw Loan's outstanding Principal to $0 for 30 consecutive days. 7. DEFAULT. I will be in default if any of the following occur: ~ A. Payments. I fail to make a payment in full when due. East Valley Water District California Commerciar Loan Agreement Initials __ CA/3C011707130000000OO000000DOOOOO00En4 el 996 Bankers Systems, Inc., St. Cloud, MN Page B. Insolvency or Bankruptcy. ] make an assignment for the benefit of creditors or become insolvent, either because my liabilities exceed my assets or [ am unable to pay my debts as they become due; or I petition for protection under federal, state or local bankruptcy, insolvency or debtor relief laws, or am the subject of a petition or action under such laws and fail to have the petition or action dismissed within a reasonable period of time not to exceed 60 days. C. Business Termination. I merge, dissolve, reorganize, end my business or existence, or a partner or majority owner dies or is declared legally incompetent. D. Faiture to Perform. I fail to perform any condition or to keep any promise or covenant of this Agreement. E. Other Documents. A default occurs under the terms of any other transaction document. F. Other Agreements, I am in default on any other debt or agreement I have with you, G. Misrepresentation. I make any verbal or written statement or provide any financial information that is untrue, inaccurate, or concea{s a material fact at the time it is made or provided. H. Judgment. I fail to satisfy or appeal anyiudgment against me, I. Forfeiture. The Property is used in a manner or for a purpose that threatens confiscation by a legal authority. J. Name Change. I change my name or assume an additional name without notifying you before making such a change. K. Property Transfer. ~ transfer all or a substantial part of my money or property, L. Property Value. The value of the Property declines or is impaired, M. Material Change. Without first notifying you, there is a material change in my business, including ownership, management, and financial conditions. N. Insecurity. You reasonably believe that you are insecure. B. REMEDIES. After [ default, and after you give any legally required notice and opportunity to cure the default, you may at your option do any one or more of the following, A. Acceleration. You may make ell or any part of the amount owing by the terms of the Loan immediately due. B. Sources. You may use any and all remedies you have under state or federal law or in any instrument securing the Loan, C, Insurance Benefits. You may make a claim for any and all insurance benefits or refunds that may be available on my default, D. Payments Made On My Behalf. Amounts advanced on my behalf will be immediately due and may be added to the balance owing under the terms of the Loan, and accrue interest at the highest post-maturity interest rate, E. Termination. You may terminate my right to obtain advances and may refuse to make any further extensions of credit. F. Attachment. You may attach or garnish my wages or earnings. G. Set-Off. You may use the right of set-off. This means you may set-off any amount due and payable under the terms of the Loan against any right I have to receive money from you. My right to receive money from you includes any deposit or share account balance I have with you; any money owed to me on an item presented to you or in your possession for collection or exchange; and any repurchase agreement or other non- deposit obligation. "Any amount due and payable under the terms of the Loan" means the total amount to which you are entitled to demand payment under the terms of the Loan at the time you set-off. Subject to any other written contract, if my right to receive money from you is also owned by someone who has not agreed to pay the Loan, your right of set-off will be limited to my proportionate interest in the obligation. In the absence of reasonable proof of net contributions, my proportionate interest equals the amount of such obligation divided equally by all parties having present rights to receive such money. Your right of set-off does not apply to an account or other obligation where my rights arise only in a representative capacity. It also does not apply to any Individual Retirement Account or other tax-deferred retirement account. In addition, your right to set-off against any demand deposit accounts I have deposited with you may be limited by applicable California law. In certain circumstances, I may be entitled to a notice of set-off. State law may further limit your right of set-off. You will not be liable for the dishonor of any check when the dishonor occurs because you set-off against any of my accounts. I agree to hold you harmless from any such claims arising as a result of your exercise of your right of set-off. H. Waiver. Except as otherwise required by law, by choosing any one or more of these remedies you do not give up your right to use any other remedy. You do not waive a default if you choose not to use a remedy. By electing not to use any remedy, you do not waive your right to later consider the event a default and to use any remedies if the default continues or occurs again. 9. COLLECTION EXPENSES AND ATTORNEYS' FEES. On or after Default, to the extent permitted by law, I agree to pay all expenses of collection, enforcement or protection of your rights and remedies under this Agreement. Expenses include, but are not limited to, attorneys' fees, court costs and other legal expenses. These expenses are due and payable immediately, if not paid immediately, these expenses will bear interest from the date of payment until paid in full at the highest interest rate in effect as provided for in the terms of this Loan. All fees and expenses will be secured by the Property I have granted to you, if any, To the extent permitted by the United States Bankruptcy Code, ~ agree to pay the reasonable attorneys' fees you incur to collect this debt as awarded by any court exercising iurisdiction under the Bankruptcy Code. East Valley Water District 10. APPLICABLE LAW. This Agreement is governed by the laws of California, the United States of America and to the extent required, by the laws of the jurisdiction where the Property is located. In the event of a dispute, the exclusive forum, venue and place of jurisdiction will be in California, unless otherwise required by law. 11. JOINT AND INDIVIDUAL LIABILITY AND SUCCESSORS. My obligation to pay this Loan is independent of the obligation of any other person who has also agreed to pay it. You may sue me alone, or anyone else who is obligated on this Loan, or any number of us together, to collect this Loan. Extending this Loan or new obligations under this Loan, will not affect my duty under this Loan and I will still be obligated to pay this Loan. The duties and benefits of this Loan will bind and benefit the successors and assigns of you and me. 12. AMENDMENT, INTEGRATION AND SEVERABILITY. This Agreement may not be amended or modified by oral agreement. No amendment or modification of this Agreement is effective unless made in writing and executed by you and me. This Agreement is the complete and final expression of the understanding between you and me. If any provision of this Agreement is unenforceable, then the unenforceable provision will be severed and the remaining provisions will still be enforceable. 13. INTERPRETATION. Whenever used, the singular includes the plural and the plural includes the singular. The section headings are for convenience only and are not to be used to interpret or define the terms of this Agreement. 14. NOTICE, FINANCIAL REPORTS AND ADDITIONAL DOCUMENTS. Unless otherwise required by law, any notice will be given by delivering it or mailing it by first class mail to the appropriate party's address listed in the DATE AND PARTIES section, or to any other address designated in writing. Notice to one party will be deemed to be notice to all parties. I will inform you in writing of any change in my name, address or other application information. I will provide you any financial statement or information you request. All financial statements and information I give you will be correct and complete. I agree to sign, deliver, and file any additional documents or certifications that you may consider necessary to perfect, continue, and preserve my obligations under this Loan and to confirm your lien status on any Property. Time is of the essence. 15. AGREEMENT TO ARBITRATE. You or I may submit to arbitration any dispute, claim or other matter in question between or among you and me that arises out of or relates to this Transaction (Dispute), except as otherwise indicated in this sect[on or as you and I agree to in writing. For purposes of this section, this Transaction includes this Agreement and any other documents, instruments and proposed loans or extensions of credit that relate to this Agreement. You or I will not arbitrate any Dispute within any "core proceedings" under the United States bankruptcy laws. You and I must consent to arbitrate any Dispute concerning a debt secured by real estate at the time of the proposed arbitration. You may foreclose or exercise any powers of sale against real property securing a debt underlying any Dispute before, during or after any arbitration. You may also enforce the debt secured by this real property and underlying the Dispute before, during or after any arbitration. You or I may seek provisional remedies at any time from a court having jurisdiction to preserve the rights of or to prevent irreparable injury to you or me. Foreclosing or exercising a power of sale, beginning and continuing a judicial action or pursuing self-help remedies will not constitute a waiver of the right to compel arbitration. The arbitrator will determine whether a Dispute is arbitrable. A single arbitrator will resolve any Dispute, whether individual or joint in nature, or whether based on contract, tort, or any other matter at law or in equity. The arbitrator may consolidate any Dispute with any related disputes, claims or other matters in question not arising out of this Transaction. Any court having jurisdiction may enter a judgment or decree on the arbitrator's award. The judgment or decree will be enforced as any other judgment or decree. You and I acknowledge that the agreements, transactions or the relationships which result from the agreements or transactions between and among you and me involve interstate commerce. The United States Arbitration Act will govern the interpretation and enforcement of this section. The American Arbitration Association's Supplemental Procedures for Resolving Financial Services Disputes, in effect on the date of this Agreement, will govern the selection of the arbitrator and the arbitration process, unless otherwise agreed to in this Agreement or another writing. 16. WAIVER OF TRIAL FOR ARBITRATION. You and I understand that the parties have the right or opportunity to litigate any Dispute through a trial by judge or jury, but that the parties prefer to resolve Disputes through arbitration instead of litigation. If any Dispute is arbitrated, you and I voluntarily and knowingly waive the right to have a trial by jury or judge during the arbitration. 17. SIGNATURES. By signing, I agree to the terms contained in this Agreement. I also acknowledge receipt of a copy of ~his Agreement. BORROWER: East Valley Water District Glenn R. Lightfoot, President East Valley Water District California Commercial Loan Agreement Initials -- CAJ3C01170713000000000000000DOOOOOOOEn4 el 996 Bankers Systems, Inc., St. Cloud, MN Page 6 LENDER: Citizens Business Bank V East Valley Water District California Commercial Loan Agreement initials CA/3C01170713000000000000000D0000000En4 el 996 Bankers Systems. inc., St. Cloud, MN Page 7 DOCUMENTATION TRANSMITTAL SHEET UNSECURED LOAN Enclosed are the following documents regarding your $ Rev By Documents Docs Required Docs in Order 1) Disbursement Au~orization ~3) Commerci~ Lo~ Agreement 4) Business ~pose Statement ~ 5) Aviso/Notice to Cosigner 6) Corporate Borrowing Resolution ~ '~ 7) P~tnership Borrowing Author~ation 8) Certificate re Org~afion ~ M~agement of LLC 9) Cont~uing ~ N°' Amount $. ~., ~L~n Document~ Renewed by Loan Officer: Loan Fee: East v Water District Memorandum To: Board of Directors/~ From: Robert Martin~ Date: January 4, 2001 Re: SCE Rate Increase Enclosed for your review is the rate increase proposal submitted by Southern California Edison (SCE) Company to the PUC. As you can see, the basic request is for an immediate 30% rate increase. This may well be followed, however, by additional increases later this year if the wholesale power market is ~i)[ought under control. The PUC has issued a tbntative opinion that would ~?afi~'.h:, 15% increase to industrial/commercial users. This opinion will probably ~i~i~i~.,cl by the time our Board meets on Monday. ~!iiii~ase to electricity rates has an immediate effect upon our District ~¢~!~i~. During the 1999/2000 fiscal year, our total pumping cost was ~:i (~;~!~ately $1.2 million. I have included for your review a simplified rate ~!! !~i~~' based upon our FY2000 power costs and water sales. Basically, a ~'~ ~.;?~te increase by SCE would trigger the need to increase our water rates 6; approximately $0.05. I have also included general rate information for both our water and sewer operations. In consideration of these pending SCE rate increases, I believe that our Agency needs to consider implementing its own rate adjustments. This will, of course, require the appropriate public hearings. I would suggest that the Board set a date, or dates, for these hearings and begin consideration of specific options. REM:mew SOUTHERN CALIFORNIA '" JAN 3 EDISON® An £DI$ON INT£RNATIONAL® Company' ' ' ~ :-~ ~.~ ~;'? ': ' NOTICE OF APPLICATION FOR A RATE INCREASE NOTICE OF APPLICATION FOR A BATE INCI~EASE This notice is to inform you that your electric utility, Southern Califomia Edison Company (SCE), has asked the California Public Utilities Commission (CPUC) for authorization to raise electric rates to its customers as of January 4, 2001. SCE l~as requested that the rate increase be subject to refund, which means that ff evidence later proves~that the increase is not justified, customers would receive a refund. In Application No. 00-11-038, SCE states that it should be permitted to raise its rates because it pays substantially more for elecb-icity than it receives in rates from its customers. As you may know, changes in the regulation of power production and power sales have resulted in extremely kigh prices in markets for wholesale power. SCE claims that without an electric rate increase it would have difficulty purchasing wholesaie power for its customers. The table below shows the amounts and percentages of SCE's proposed rate increases for each class of customers. The second column shows current rates, wl:dch have been frozen, by legislation (Assembly Bill 1890), since 1998. The third and fourth columns show how rates would change on January 4, 2001, ff SCE's request for a 30% rate increase is approved as filed. These columns include the 10% bill credit the Residential and CS-1 rate groups (including CARE* customers) receive until December 31, 2001. The fifth and sixth columns show how rates would change, if wholesale electricity costs remain unreasonably high and rates are increased by 5% eveW six months for two years, under SCE's proposed trigger mechanism, aud reflects the elimination of the 10% biff credit given to the Residential and CS-1 rate groups. Current, Proposed, And Potential Average Rates (1) (2) (3) (4) (5) (6) Rate Group Current Rates Proposed Rates Potential Rates c/kWh January 4, 2001 % Jan. 1, 2003 e/kWh ¢A<wh Residential 11.45 15.27 33%+~' 20.11 76% CARE+ 9.75 10.84 11%~'~ 14.49 49% CS-1 11.91 ] 5.88 33%~''I' 20.91 76°/, TC-1 7.38 9.60 30% 11.67 58% CS-2 9.99 12.99 30% 15.79 58% TOU-GS 10.04 13.05 30% 15.86 58% TOU*8-Sec 8.54 11,10 30% 13.50 58°/, TOU-8-Pri 7.61 9.90 30% 12.03 58% TOU~8-Sub 4.62 6.00 30% 7.29 58% Large Power 6.94 9.02 30% 10.97 58% PA-1 12.54 16.31 30% 19.82 58% PA-2 8.58 11.15 30% 13.55 58% Ag-TOU 8.20 10.66 30% 12.96 58% TOU-PA-5 7.15 9.29 30% 11.29 58% Ag. & Pump 9.03 11.73 30% 14.26 58% St. Lights 14.90 19.37 30% 23.54 58% System 9.62 12.65 32% 15.93 66% ~r CARE stands for California Alternate Rates for Energy and the rate is available to qualifying Iow income customers. ~'+ In 2001, the Residential and CS-1 rate groups will see a 33% rate increase 01% for CARE customers) because the 10% bill credit they currently receive is based on the currently effective tariffed rates, not the proposed rates. If the CPUC approves our request for a 30% rate increase, a typical single-family residential customer consuming 500 kilowatt-hours of electricity per month in the winter months would see a monthly increase of approximately $19.48 from $58.44 to $77.92. A typical multi-family residential customer consum'mg 350 kilowatt-hours of electricity would see a monthly increase of approximately $13.05 from $39.11 to $52.16. These amounts will vmT depending on how much electricity each customer uses. The Ci~UC has started to review SCE's request by holding public hearings on December 27 and 28, 2000. If SCE can demonstrate to the CPUC that it needs an immediate rate increase to continue to provide sen4ce, the CI~IJC may make a decision as elu'Iy as its meeting on Janua~T 4, 2001. If you want to express your opinion to the CPUC about the issues in this case, you can write to the CPUC's Public Advisors office at: California Public Utilities Commissior~ 320 W. Fourth St, Suite 500 Los Angeles, CA 90013 [Email: public.advisor.la@cpuc, ca.gov] When future hearings are scheduled, ffyou want to participate formally in these hearings, you can contact the Public Advisor's Office at the address above for information and assistance in participating. In addition to contacting the CPUC at the address listed above, ffyou want more information about Application No. 00-11-038, please write to SCE at: SCE Corporate Communications PO. Box 800 Rosemead, CA 91770 You may review a copy of our application and related exhibits at our corporate headquarters (2244 Walnut Grove Avenue, [Rosemead, CA), at the San Francisco office of the CPUC, or at any of SCE's business offices listed below. 30553 Rimrock Rd., Barstow, CA 92311 374 Lagoon St., Bishop, CA 93514 505 w. 14th Ave., Blytl~e, CA 92225 1 Pebbly Beach Rd., Avalon, CA 90704 3001 Chateau Rd., Mammoth Lakes, CA 93546 510 S. China Lake Blvd., Ridgecrest, CA 93555 26364 Pine Ave., Rimforest, CA 92378 41694 Dinkey Creek Rd., Shaver Lake, CA 93664 421 W. J St., Tehachapi, CA 93561 6385 Adobe Rd., Twentynine Palms, CA 92277 120 Woodland Dr., Wofford Heights, CA 93285 6999 Old Woman Springs Rd., Yucca Valley, CA 92284 You can also find the documents filed with the CPUC in tliis case on the CI~UC website. The address of the C?UC website is www. cpuc.ca.gov. Para solicitor una copia en espafiol de esta notificaci6n por favor llame a Southern California Edison (626) 302-1212, pregunte por Corporate Communications. (=IV) uo!ldmnsuo3 I~nuu~' 0 0 . ~ ............ ' .......... .X ~. .. ~. ~ o o ~ q q ~ o o ~ lsoo fiu~dmnd lenuu~ .............. 000~00 ......... ~ ~ooo 666666616666666666666 BRUNICK, A REZ & BATTERSB¥ FAX TRANI {/SSlON SHEET cop~ of this co~lc~ti~ is s~ly prob~ited. ~4 ~mm ~e ofi~nel message to ~ et ~c nd~s ~bovc ~ ~= U.S. Postal S~c~. ~enk you. PLEBE ~EL~R TI ~ FOLLO~G PAGES TO: ~ ' N~e: -~ , .... .. . ~zz~ion:. .... ' ' . .' Total nmb~ ofpag~ sent (~clu~g .... Ple~e renew ~d comment ...... Per yo~ requ~ . :~ ~ For yo~ ~o~gon . . ,,, ~al to foll~ ~ .. If you do not receive all the pages i~dicatcd above, or i/you have any problems concemi~8 this facs~le, ple~ cae ~e ~d~si~ed operator ~aely at (90~ 889-8301. ~e[ator LAW OFRC ~ OF GRANOWITZ, WHI ~E AND WEBER 330 Nor~'D' Sin :t, ~im 300 San Bematdlr~o CA92401 TELEPHONE: (9 9)889-0366 F~ (~09), e ~9~44 FACSIMILE TRANS ~.q~lON SHEET PLEASE DELIVER Ti:I~ FOLLOW NG MATERIAL AS SOON AS POSSIBLE TO: STEVEN M. K ~INEDY YOUR FAX NO: (909) 388-18~ OURFAX NO: (OOg) 889-0544 CA~E CAPTION: kq~,-,. I I~,em*'V .lb,? Water TOTAL NUMBER OF PAGES, INCLUDING THIS PAGE: 5 IF YOU DO NOT RECEIVE ALL OF THESE; 'AGES, OR IF THEY ~ NOT CLEAI~ PLEASE CALL ME AS SOON AS POSSIBLE, iT (909) 889d)366 X:~w~ed and cenf~h:At~ infQnnazmn and is only roi' tho usc of ~lg/ad/v/duai(s) or ff~ti~ lu~n~l h~r/n. ? fll~ !~ of Uli~ mqe i$ ~e~ Ihe ~t=nded rec/pi~fK, er lb, mnple3~m o~ ~8~nt mspon~iblo ~or deliver' m ~e int~lSed mcipie~t, you ~ h~s. eby n~t~tl,~1 th~. aey r. ommunicet/on h ,.,,~,. plc~ immcdiftely n~d/F/u] 'by tcle ~c ~d vcturn tho m/b'{~] mMMIE~ M us ~ th~ above GRANOWI17., WHITE AND WEBER EN R. WEBER C%I~%NOWI'£Z, WI-II~ E AND WEBER December 2000 Steven M. Kennedy Brunick, Alvarez & Battersby 1839 Commercenter West Post Office Box 6425 San Bernard[no, CA 92412 Re: Mazza v. East Valley Water Dia~ rct Dear Steve: As we previously discussed, I represent Mr. md Mrs. Mazza, regarding their claim for damage caused by sewage backups into the r home. Previously, Mr. and Mrs. Mazza filed a claim on September 19, 2000. That cl ~im addressed an incident which occurred on September 4, 2000. Since then, my clients have determined that th ~ir damages from that incident were higher than they had originally anticipated (among , ither things, they made no allowance for such things as exterior damage and clean up, and loss of use, etc.). There were further backups, causing additional damage, on Nova nber 11 and 12, as well. Accordingly, I herewith submit an amended cl: im which addresses incidents occurring on September 4, November 11 and November 1:1, 2000. Please advise me if you are able to accept such claim on behalf of the Distric. If not, then I will send it directly to Mr. Martin for his review, cons'deration, and board action. Please confirm with me as soon as possible w ~ether or not you will be able to accept this claim. Additionally, if you have any questions, dease call. Very [ruly yours. GPA IOWITZ, WHITE AND WEBER SRW/am ,., RECEIVED DEC 0 4 2000 BRUNICK, ALYAREZ & BATT£RSISY ent By: 0rano~[tz, White and Weber; 909 889 054~; Dec-§-00 9:37; Page 2/4 CLAIM AGAINST TO: EAST VALLEY WATER DISTRICT 11,55 DEL RO,,~A AVENUE SAN EIERNARDINO, CA 92410 c/o Steven M. Kennedy Brunlck. ,Nvarez & Battemby 1839 Commementar West Post Office Box 6425 5an Bemardino, CA 92412 Pursuant to the applt,',,bia provisions ~f the California Government Cod~, the following infon'nation is submitted in support of Ute instant claim: (a) The name~ of the Claimants are Tin' I~[za and Shente Mazza. Claimants' mailing address if 7120 Conejo Drive. San Bemardino. California 92404. (b) 'Notice~ concerning this claim should =e sent to Granowitz. White and Weber. 330 North "[Y' Street. Suite 300. San Bemardino. CA 92401, directed to the attention of Steven R. Weber, (c) This amended claim is intended to amend and supplement the claims for damage~ to personal propen'y filed wi th East Veiny of a single-family residence. On or about September 4, 2(~0. sewage and sewer water backed up through the sewer syMem owned, ol~re~ and/or n a~ttslned by East Valey Water Such sewage end sewer water backed u; intg Claimants' home. causing extensive damage tO the structure and various lams of Claimants' pemonal property including, but not limited to. ~trpeting~ atilt padding, walls, baseboards, and thresholde. 1 tent By: Gran0wltz, White and weoec| 909 88~ 0Sa Dec-5-00 9:38; Page 3/4 At agpreximately the same time. sewage nd sewer water fi. owed up through plpe~ or1 the exterior of Claimants' prope~¥, ~auelng sewe.3e to flow over and onto Claimants' property and landscaping. 84 ~h aoaumance, end subsequent clean up efforts by EVWD employees re~ulted in damage to Claimants' landscaping and has let{ what Cl,=lmanl$ understand and l: alleys to be hazardous biological waste. Claimanl~ have Irmurmd sul~tsntlal ex~ en~e In repairing or replacing damaged items. Claimants al~o experienced:' i~x~nvenienoe, Ioas of uae, and were subjected to extremely ~oul odors inside ~nd ou~Jda of their home, whloh has not yet completely subsided, The exact amount of Claimants' damag; ~ from such incident have not yet been ascertained, but exceed the sum of :$ ,617.83, the sum previously stated in Clalrnantl' =lalm of Sel)tsml3er 19, 20 3. Not included in such claim were damages incJudlng, but not limited to. e3 terior clean up, darrmge to land~c, aping, ~ of use, and physical and emotional di~tmN resulting f~om being exposed to extremely foul odors and possible hea [h hazards attendant with sewage and sewer water. Claimants have replaced carpet, carpet ~adding, dr/wall, baseboan;ls, and other items. AJI such items w~re replaced as a lireot and proximate result of the sewage I)ackup and ~esulfing flcmding into Claim ~ts' home. Subsequent to filing their o~iginal clai of Septenvoer 19. 2000, the sewage system one again beaked up anal floes ~] into Claimants' hcxne and yard on or about November 11, 2000. Such lloodlrtg cau~:l additional damage to Claimants' home and pemonal properly including bul no( limited to. damaging the new caq~et, carpet padding, drywall, baseboards, l hresholds and other items previously replaced as a result of the incident of Sap1 ember 4, 2000. Claimantl have incurred additional damages aa. a result of damage to ¢=arpet, c. arl:~t padding, furniture, thresholds, d~lfwall and baseboards, bathroom n~gs, linen baskets end contents thereof, w~llpaper, and other items to t)e shown ar. cxxding to proof. Personal property .d ,maged or clestroyed as e result of the incident of November 11, 2000. interior's ~ the structure, incJude, but is not limited to, scuba diving equipment including, :1~ ut not limited to, two wet suits, boots, gloves, buoyancy compensators, dive be , dive skin, large beach towels, as well as other i)emonal propen~y including. ~ hour limited to, a suitcase and other miscellaneous clothing. In acldlflon, Mr. Mazz. a lost and contain the ~l~vage after it flowed i~( ~mi~ home. On November 11. 2000 and again on No~ :tuber 12, 2000. sewage also backed up 2 }ent By: 0ranowltz, wht~e end Weber; 909 889 054. 0sc-5.00 9:39; Page 4/4 and flowed into the Clalmant~' prope~ ¢ tslde of their home. Such backups and subseqLmnt cleanup effort~ by ~ hi hi oaused further damage Inoludlng, but not linlited to, landscaping and has adde~l tO the accumulation of whet Claimants are informed and believe constitutes haz.~rdous biological waste. c~aiman~ have ~u~,red ~mage to:~lth~i~ real and pe ona properS. T ay .ave I~en wubi~g~l ~o foul m;Iors, inconv®nleqce, Io~ of use of ~nd?or dem~u~ion of ~eir I~nd~c~plng, l~d will h~¥~ to iflcur th~ goM of hezl~rdou~ waste clean up for the ~ewege in the intetrior and exterior of their home, emotional distmM, W of income, and olher items 13 be shown according to proof. The total amount of damage~ incun'ed by Claimant ~ is presently unascedained, but is within the juri~dlctlon of the Superior Court. Dated this 1st day of December, 2000 GRANI )WITZ, WHITE AND WEBER By:~___ STE VEN R. WEBER Atto ~eya for Cieimant~ 3 RELEASE OF LIENS JANUARY 2, 2001 ACCOUNT OWNERS PROPERTY AMOUNT NUMBER NAME ADDRESS OWED 1. 002-0187-3+ 1133 EDGEMONT DR 124.03 2. 052-0117-5 6612 PRADERAAVE 156.45 3. 061-0101-3 25267 17TH ST 129,83 4. 061-0119-2 25010 PACIFIC ST 117.38 5. 073-0001-2 6938 DWIGHTWAY t6.71 6. 073-0081-2 25145 ELMO DR 8'1.45 7. 112-0098-0 24532 COURT ST 31.04 8. 114..0132-7 254864TH ST 31,54 TOTAL $ 688.43 --' & +PAID THROUGH TAX ROLLS Page 1 of 1 V-~ r~- y~1.~ ~e Glenn R. Ughffoot East Water District Donald D. Goodln Vice President 1155 Del Rosa Avenue., P.O. Box 3427 Kip E. Sturgeon Director San Bernardino, California 92413 Edward S. Negrete (909) 889-9501 Director George E. "Skip" Wilson Director Robert E. Mar~in General Minager Alberta M. Hess Chief Financial Officer Januaw 3,2001 The accompanying financial statements for the period ending November 30, 2000, have been prepared solely by the staff of the East Valley .Water District and have not been audited, reviewed, or compiled by an independent certified public accountant. Management has elected to omit substantially all of the disclosures and the statement of cash flows required by generally accepted accounting principles. If the omitted disclosures were included in the financial statements, they might influence the user's conclusions about the District's financial position, results of operations and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters. Administration (909) 885-4900, Fax (909) 889-5732 · Engineering (909) 888-8986, Fax (909) 383-1481 Customer Service & Finance (909) 889-9501, Fax (909) 888-6741 East Valley Water District Balance Sheet November 30, 2000 ASSETS UTILITY PLANT - at cost: Utility plant in service - water department $65,870,756.98 Utility plant in service - sewer department 19,290,080.00 85,160,836.98 Less: Accumulated depreciation (24~625~075.79) 60,535,761.19 Construction in progress 3,320,632.81 63~856~394.00 RESTRICTED ASSETS: Water department - bond funds - cash in bank 6,475.00 Certificate of Participation reserved funds - cash in bank 1,227,337.46 Reserved funds - designations - cash in bank 1~561~450.00 2~795~262.46 CURRENT ASSETS: Cash on hand and in banks 11,303,031.02 Less: Cash restricted 2~795~262.46 8,507,768.56 Accounts receivable (net of allowance) 878,139.25 Other receivables (net of allowance) 139,928.76 Grants Receivable 232,180.00 Inventory 679,462.80 Prepaid expenses 310,379.60 13~543~121.43 OTHER ASSETS AND DEFERRED COSTS (Net of Amortization): Bond discount and incidental bond expenses 114,795.78 Deferred financing charges 299~391.22 414,187.00 TOTAL ASSETS $80,608,964.89 East Valley Water District Balance Sheet November 30, 2000 LIABILITIES AND EQUITY LONG- TERM DEB T: Certificates of Participation due after one year $11,955,000.00 Less: Deferred amount on refunding of Certificates of Participation (292,025.96) 11~662,974.04 CURRENT LIABILITIES: Accounts Payable 1,038,639.62 Accrued payroll and benefits 367,315.34 Accrued pension contributions 5,923.53 Customer service deposits 996,153.48 Deferred Rental Income 53,333.00 Accrued interest payable 65,128.91 Deposits - refundable 97,120.09 Certificate~ of Participation due within one year 760~000.00 3,383~613.97 TOTAL LIABILITIES 15,046,588.01 EQUITY: Contributed capital: Invested in utility plant 22,437,812.26 Other contributed capital 3,665,614.18 Retained earnings: Reserved for water bond funds 6,475 Reserved for emergencies 1,545,000.00 Reserved for unemployment insurance 16,450.00 Fund Balance 35,945,351.39 Net Income for current year 1~945,674.05 TOTAL EQUITY 65,562,376.88 TOTAL LIABILITIES AND EQUITY $80,608,964.89 V w ~