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HomeMy WebLinkAboutAgenda Packet - EVWD Board of Directors - 06/11/2002i • East Valley Water District 1155 DEL ROSA AVENUE, SAN BERNARDINO, CA REGULAR BOARD MEETING June 11, 2002 2:00 P.M. AGENDA ----------------------------------------------------------- ------------ "In order to comply with legal requirements for posting of agenda, only those items tiled with the District Secretary by 10:00 a.m. on Tuesday prior to the following Tuesday meeting not requiring departmental investigation, will be considered by the Board of Directors ". ------------------------------------------------------------------ - - - - -- CALL TO ORDER PLEDGE OF ALLEGIANCE 1. Approval of Agenda 2. Public Comments CONS CALENDAR 3 Approval of Board Meeting Minutes for May 28, 2002. 4. Approval of Special Meeting Minutes (Board Workshop) for June 5, 2002. 5. Approval of Liens for Delinquent Water and Sewer Accounts. 6. Approval of Development Agreement between East Valley Water District and Centex Homes to provide water and sewer service to 34 dwelling units within Tract No. 15825 located at northeast corner of Willowwood and Cloverhill in the City of Highland. 7. Approval of Development Agreement between East Valley Water District and Centex Homes to provide water and sewer service to 37 dwelling units within Tract No. 15954 located at southeast corner of Highland Avenue and Cloverhill in the City of Highland. 8. Accounts Payable Disbursements: Accounts Payable Checks #189262 through 9189393 were distributed May 22, 2002 through May 29, 2002 in the amount of $541,152.70. Payroll Checks for period ended May 24, 2002 in the amount of $81,912.40. Total Disbursements for the period were $623.065.10. OLD BUSINESS 9. Radon Rule Update (General Manager) Ot 10. Discussion and possible action regarding proposed redevelopment project for the area located on the East side of Church Avenue, North of Fifth Street. ] 1. Review report on the Arroyo Verde Mutual Water Company Water System Improvement Project. Discussion and possible action. NEW BUSINESS 12. Resolution 2002.25 —Adopt Resolution of Intention to Form Arroyo Verde Assessment District. 13. Director's fees and expenses for May 2002. 14. Request from Chris Gribas to address the Board and ask questions about various issues. 15. Request from Lorie Allen to address the Board about various issues of concern. 16. Resolution 2002.24 — Accept Pipeline License Agreement from San Manuel Band of Serrano Mission Indians. 17. Review of Board policy on Directors' reimbursement of fees and expenses. Discussion and possible action. 18. Discussion and possible action regarding S -P East Highlands, LLC Agreement to Adjust Boundaries and Relocate Water Facilities. 19. Discussion and possible action regarding removing pipe easement at 28342 Burns Street, Highland, CA. REPORTS 20. May 31, 2002 — Releases of Lien for Delinquent Water and Sewer Accounts. 21. General Manager's Report. 22. Oral Comments from Board of Directors. MEETINGS 23. STATE OF THE COUNTY ADDRESS — Radisson Hotel & Convention Center, June 13, 2002. 24. ASBCSD MEMBERSHIP MEETING— Woody's Cocky Bull, Victorille, CA., June 17, 2002. 25. SAN BERNARDINO AREA CIIAMBER OF COMMERCE "Business After Hours ", Inland Empire Job Corps center, 3173 Kerry Street, San Bernardino, June 27, 2002. 2 CLOSED SESSION 26. CONFERENCE WITII LABOR NEGOTIA'T'OR [Government Code Section 54957.6(a)] District Negotiator: General Manager Employee Organization: S.B.P.E.A. ANNOUNCEMENT OF CLOSED SESSION ACTIONS ADJOURN DRAFT SUBJECT TO APPROVAL EAST VALLEY WATER DISTRICT REGULAR BOARD MEETING MAY 28, 2002 MINUTES The meeting was called to order at 2:00 p.m. by President Goodin. Director Sturgeon led the flag salute. PRESENT: Directors Lightfoot, Sturgeon, Negrete, Wilson, Goodin ABSENT: None STAFF: Robert Martin, General Manager, Paul Dolter, District Engineer; ~' Brian Tompkins, Chief Financial Officer, Mary Wallace, Administrative Assistant. LEGAL COUNSEL: Steve Kennedy GUEST(s): Gary Miller (Architect), Jo McAndrews APPROVAL OF AGENDA M/S/C (Negrete-Sturgeon) that the May 28, 2002 Agenda be approved as submitted. PUBLIC PARTICIPATION President Lightfoot declared the public participation section of the meeting open at 2:02 p.m. There being no written or verbal comments, the public participation section was closed. APPROVAL OF MAY 14, 2002 BOARD MEETING MINUTES. M/S/C (Wilson-Negrete) that the May 14, 2002 Board Meeting Minutes be approved as submitted. APPROVAL OF LIENS FOR DELINQUENT WATER AND SEWER ACCOUNTS. The General Manager noted the liens identified by Account Numbers 123-1166-3 and 156-0609-2 had been paid 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 exceptions as noted by the General Manager. RESOLUTION 2002.21 - ESTABLISH AN INVESTMENT POLICY FOR PUBLIC FUNDS was presented to the Board for approval. M/S/C (Wilson-Negrete) that Resolution 2002.21 be approved. REVIEW AND ACCEPT FINANCIAL STATEMENTS FOR THE PERIOD ENDED APRIL 30, 2002. M/S/C (Wilson-Negrete) that the Financial Statements for the period ended April 30, 2002 be accepted. DISBURSEMENTS M/S/C (Wilson-Negrete) that General Fund Disbursements #189085 through #189261 in the amount of $317,621.84 and Payroll Fund Disbursements for period ended May 3, 2002 in the amount of $78,586.64, totaling $396,208.48 be approved. RADON RULE UPDATE The General Manager reported on the District's progress with the Rule to date; that he and President Goodin had been in Washington D.C. last week enlisting support on the Radon issue; that the Rural Water Association had expressed their support for EVWD's position on the issue; that a meeting had been arranged with Mr. Lewis on Thursday to ask his help on several "key" issues. Information only. RESOLUTION 2002,23 - AUTHORIZING EXECUTION OF A GRANT DEED FROM METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA was presented to the Board for approval. M/S/C (Lightfoot-Sturgeon) that Resolution 2002.23 be approved. CLAIM FOR DAMAGES AT 25352 E. 6th Street by Jack Cramp. M/S/C (Wilson-Negrete) that the claim for damages at 25352 E. 6th Street from Jack Cramp be denied and referred to District's Legal Counsel and Insurance Agency. MINUTES: MAY 28, 2002 DISCUSSION AND POSSIBLE ACTION REGARDING THE PRELIMINARY DESIGN REPORT FOR THE PROPOSED DISTRICT HEADQUARTER FACILITIES. Gary Miller, Amhitect, presented a Preliminary Design Report of the proposed District's Headquarters and related facilities, answered questions, and received constructive comments about the report from the Board Members. The General Manager recommended approval of the Preliminary Design Report with an Exterior Design Report to follow. M/S/C (Lightfoot-Negrete) that the Preliminary Design Report by Gary W. Miller Architect & Associates be approved. PUBLIC HEARING TO CONSIDER ADOPTION OF A RESOLUTION OF NECESSITY OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT DECLARING THAT THE ACQUISITION OF CERTAIN PROPERTY BY EMINENT DOMAIN IS NECESSARY FOR THE OPERATION, MAINTENANCE, REPAIR, REPLACEMENT, AND IMPROVEMENT OF PLANT 120. M/S/C (Lightfoot-Negrete)that the Public Hearing Section of the Board Meeting to consider the Adoption of a Resolution of Necessity be opened at 3:23 p.m. There being no written or verbal comments on the project, President Goodin recommended that the Public Hearing Section of the meeting be closed and that the Resolution of Necessity be adopted. M/S/C (Lightfoot-Negrete)that the Public Hearing Section of the Board Meeting be closed at 3:25 p.m. RESOLUTION 2002.22 - ADOPT RESOLUTION OF NECESSITY TO AUTHORIZE COMMENCEMENT OF EMINENT DOMAIN PROCEEDINGS TO ACQUIRE PROPERTY BY CONDEMNATION was presented to the Board for approval. M/S/C (Lightfoot-Wilson) that Resolution 2002.22 be approved. DISCUSSION AND POSSIBLE ACTION REGARDING HIGHLAND AREA CHAMBER OF COMMERCE SPONSORSHIP. M/S/C (Wilson-Sturgeon) that the District support the Highland Area Chamber of Commerce at the $1,000 sponsorship level. ENGAGEMENT LETTER FOR ANNUAL AUDITING SERVICES BY RAMS was presented to the Board for review and approval. MINUTES: MAY 28, 2002 M/SIC (Wilson-Sturgeon) that RAMS be authorized to provide the District with audit services for the year ended June 30, 2002 as summarized in their engagement letter to the Board of Directors. DISCUSSION AND POSSIBLE ACTION REGARDING PROPOSED REDEVELOPMENT PROJECT FOR THE AREA LOCATED ON THE EAST SIDE OF CHURCH AVENUE, NORTH OF FIFTH STREET. The General Manager requested that action on this item be deferred to the June 11th Board Meeting to allow more time for review by Legal Counsel. M/S/C (Lighffoot-Negrete) that a decision on the City of Highland's proposed redevelopment project be deferred until the next regularly scheduled Board Meeting on June 11,2002. MAY 14, 2002 RELEASES OF LIEN FOR DELINQUENT WATER AND SEWER ACCOUNTS. List of liens released on May 14, 2002 was reviewed. Information only. PRESIDENT GOODIN DECLARED A FIVE (5) MINUTE BREAK IN THE MEETING AT 3:50 P.M. DIRECTORS LIGHTFOOT AND STURGEON LEFT THE BOARD MEETING AT 3:50 P.M. PRESENTATION OF THE WINNING POSTERS FOR THE DISTRICT'S POSTER CONTEST. Jo McAndrews presented the winning posters selected by votes from District Employees; stated that gifts had been purchased for the First, Second and Third Place Winners in each category; that award presentation dates at the applicable schools had been arranged for the winners and their respective teachers; that Directors would be welcomed to make the presentations on those dates. Information only. GENERAL MANAGER'S REPORT The General Manager reported on District operations to date; reminded all Directors of the Budget Workshop scheduled for June 5th; that the Plant 37 project was underway; that vandalism has occurred several times at the District's vacant building on Webster (i.e.: broken windows); that the District's billing system is in the conversion process. Information only. 4 Mr~JTES: MAY 28, 2002 ORAL COMMENTS FROM BOARD OF DIRECTORS. Director Goodin asked other Director's about their thoughts regarding communicating with each other by means of personal "e-mail" and also asked Legal Counsel if this could be considered a violation of the Brown Act. Information only. There being no further verbal or written comments from the Directors, this section of the meeting was closed. WRI - "SALTON SEA: OLD & NEW CHALLENGES". CSUSB, 5500 UNIVERSITY PARKWAY, SAN BERNARDINO, CA., JUNE 3, 2002. Information only. WATER EDUCATION FOUNDATION'S 2002 WATER LAW & POLICY BRIEFING, HYATT REGENCY ISLANDIA HOTEL, SAN DIEGO, JULY 18-19, 2002. Information only. CLOSED SESSION M/S/C (Wilson-Negrete)that the meeting adjourn to Closed Session. The Board entered into session at 4:08 p.m. as provided for in the California Open Meeting Law, Government Code Section 54945.9(a), to discuss those items listed on the Agenda. ADJOURN TO REGULAR SESSION M/S/C (VVilson-Negrete) that the meeting adjourn to regular session. ANNOUNCEMENT OF CLOSED SESSION ACTIONS The Board retumed to session at 4:30 p.m. The items listed on the Agenda were discussed in closed session with no reportable action being taken. ADJOURN The meeting was adjourned at 4:30 p.m. Donald D. Goodin, President Robert E. Martin, Secretary MINUTES: MAY 28, 2002 DRAFT SUBJECT TO APPROVAL EAST VALLEY WATER DISTRICT SPECIAL MEETING(BOARD WORKSHOP) June 5, 2002 MINUTES The Special Meeting (Board Workshop) was called to order at 9:03 a.m. by President Goodin. Director Lightfoot led the flag salute. ROLL CALL PRESENT: Directors: Sturgeon, Lightfoot, Wilson, Goodin ABSENT: Director Negrete STAFF: Robert Martin, General Manager; Paul Dolter, District Engineer; Brian Tompkins, Chief Financial Officer; Mary Wallace, Administrative Assistant GUEST(s): None DIRECTOR NEGRETE ARRIVED AT 9:05 A.M. The Board President stated that this meeting is a workshop only. No decisions will be made. Major projects; Future Capital Projects; Liquid Assets (Cash); Operating Reserves; Existing Water and Sewer Rates; Water and Sewer Rate Comparisons; EVWD Construction Schedule/Costs; Debt Analysis; Proposals and Recommendations, and Detailed Budget. No decisions were made. The meeting was adjourned at 10:50 a.m. Donald D. Goodin, President Robert E. Martin, Secretary Bd.Workshop Minutes:06/0$/02 CERTIFICATE OF LIEN JUNE tl, 2002 ACCOUNT OWNERS PROPERTY AMOUNT NUMBER NAME ADDRESS OWED 1. 035-0021-3' $50.18 2. 051-0043-6' $86.26 3. 062-0014-4'+ $176.25 4. 082-0163-7 $94.55 5. 092-0165-3'+ $78.21 6. 094-0037-5* $85.66 7. 104-0175-2' $51.78 8. 105-0977-1' $53.30 9. 113-0218-0' $214.70 10. 114-0173-4' $51.96 11. 122-0669-3' $87.24 12. 132-0246-3 $61.55 13. 165-0178-1 $37.70 TOTAL $1,129.34 ,,,..-~/ * STILL OWNS PROPERTY ~t + MULTIPLE UNITS Page 1 of I DEVELOPMENT AGREEMENT THIS AGREEMENT is made this day of , __, by and between EAST VALLEY WATER DISTRICT, a public agency (hereinafter "the DISTRICT"), and CENTEX HOMES, a Nevada General Parmership (hereinafter "the DEVELOPER"). RECITALS A. The DISTRICT is a County Water District organized and operating pursuant to California Water Code Section 30000 et seq. B. The DEVELOPER proposes to subdivide and develop certain real property within the boundaries of the DISTRICT which is located at northeast corner of Willowwood and Cloverhill, in the City of Highland, County of San Bernardino, State of California, and is generally identified as Tract No. 15825 (hereinafter "the PROPERTY"). A copy of the Tentative Tract Map for the PROPERTY is attached hereto as Exhibit "A" and is incorporated herein by this reference. C. The development of the PROPERTY will consist of 34 dwelling units, and the DEVELOPER desires that the DISTRICT provide domestic water and sewer service to the PROPERTY. The DEVELOPER intends to design and construct the facilities necessary for water and sewer service to be furnished to the PROPERTY. D. The DISTRICT supplies domestic water and sewer service within the area to be served and is the public agency empowered by law to provide such services to the PROPERTY. E. The purpose of this AGREEMENT is to provide the terms and conditions under which the DEVELOPER will design and construct the facilities necessary for the DISTRICT to supply water and sewer service to the PROPERTY (hereinafter "the PROJECT"). COVENANTS NOW THEREFORE, in consideration of the preceding Recitals and the mutual Covenants contained herein, the parties hereto agree as follows: Section 1. DESIGN OF FACILITIES. The DEVELOPER agrees to design the water and sewer facilities for the PROPERTY in the following manner and according to the Rules and Regulations of the DISTRICT: a. The DISTRICT agrees to provide to the DEVELOPER tentative water and sewer plans which conform to the requirements of the DISTRICT. b. The DEVELOPER agrees to design the water and sewer facilities for the PROPERTY in accordance with the DISTRICT's Standards for Design and Processing of Water and Sewer Plans and the tentative plans provided by the DISTRICT. The designs shall be submitted to the DISTRICT in a complete form which shall provide sufficient information for review and approval by the DISTRICT in the exercise of its sole discretion. c. The DISTRICT may request certain changes in the plans to provide for oversizing of facilities, which DEVELOPER agrees to incorporate into the plans and specifications for the PROPERTY. d. The DEVELOPER shall furnish the DISTRICT with any and all easements necessary for the construction, operation, maintenance, and repair of any and all water and/or sewer facilities to be installed and/or used for the PROJECT. All easements shall be submitted to the DISTRICT for review and approval by the DISTRICT in the exercise of its sole discretion prior to the DISTRICT's acceptance of any dedication of the PROJECT facilities under Section 6 of this AGREEMENT. e. The DEVELOPER shall submit all plans, drawings, specifications, and contract documents, for all work to be performed pursuant to this AGREEMENT, to the DISTRICT for review and approval, if acceptable to the DISTRICT. The DISTRICT agrees to review all such documents in a timely manner and, upon inclusion of all changes thereto requested by the DISTRICT in a manner satisfactory to the DISTRICT, the DISTRICT will provide the 2 DEVELOPER with authorization to proceed. The DEVELOPER shall not proceed with the construction of the PROJECT and any other water or sewer facilities for use on the PROPERTY until the DISTRICT so authorizes. Section 2. CONSTRUCTION OF FACILITIES. The DEVELOPER agrees to construct the PROJECT and all other water and sewer facilities necessary for the PROPERTY in the following manner subject to the DISTRICT's approval: a. The DEVELOPER shall obtain all necessary permits from the (city or county) and all other public or private agencies required for the construction thereof. The PROJECT and the facilities appurtenant thereto shall be constructed at a location determined by the DISTRICT, and shall be relocated by the DISTRICT at the DEVELOPER's sole expense if such relocation is deemed necessary by the DISTRICT in its sole discretion. The DEVELOPER hereby grants the DISTRICT full access to the PROPERTY and all other locations where the work contemplated herein is to be performed. b. All facilities constructed pursuant to this AGREEMENT shall be in accordance with accepted standards and practices in the industry and in compliance with all local, state, and federal laws, rules, and regulations. The DEVELOPER shall be responsible for providing all labor, materials, and equipment necessary to perform the work for the PROJECT, and such work shall be performed in a timely and workmanlike manner by a party or entity acceptable to the DISTRICT. All such facilities shall conform to the DISTRICT's Standard Specifications for the Furnishing of Materials and the Construction of Water and Sewer Pipelines. All costs and liabilities in connection with the design and construction of the PROJECT shall be borne solely by the DEVELOPER. c. The DISTRICT shall inspect and approve all work to be performed under this AGREEMENT. However, any approval by the DISTRICT of such work, or of the designs, specifications, reports, and/or materials furnished 3 hereunder, is understood to be conceptual approval only and will not operate to relieve the DEVELOPER or its contractors, consultants, or subcontractors of responsibility for complying with all laws, codes, industry standards, and liability for damages caused by negligent acts, errors, omissions, noncompliance with industry standards, or their own willful misconduct. Further, neither the DISTRICT's review, approval, or acceptance of any of the work or services performed in connection with this AGREEMENT shall be construed as a waiver of any rights hereunder or of any defense or cause of action which the DISTRICT may have arising out of the performance of this AGREEMENT or any previous or subsequent agreements. The DEVELOPER shall cause the facilities constructed under this AGREEMENT to be inspected as required by any and all other public or private agencies. Section 3. DEVELOPER'S COSTS. In addition to all other obligations imposed upon the DEVELOPER under this AGREEMENT, the DEVELOPER shall be responsible for the payment o fall of the following: a. The DEVELOPER shall pay to the DISTRICT all, or any portion, of the connection fees for the PROPERTY at the time of application for water and sewer service therefor. The DISTRICT will provide water and sewer service only to those specific subdivision lots within the PROPERTY for which payment in full has been made to the DISTRICT. b. The DEVELOPER shall be solely responsible for the payment of all costs, fees, and expenses associated with the construction, inspection, operation, maintenance, repair, and relocation of the PROJECT, including all costs, fees, and expenses incurred for the environmental analysis, engineering, and design of the PROJECT. c. The DEVELOPER shall comply with all rules, regulations, resolutions, and ordinances of the DISTRICT that are currently in place or may hereafter be adopted, and shall pay when due any and all fees, deposits, charges, rates, fines, penalties, taxes, and/or assessments that may be levied by the DISTRICT. d. The DEVELOPER hereby consents, and waives any objection, to the exercise of any and all collection remedies that are available to the DISTRICT under the law upon the PROPERTY and/or the person and/or property of DEVELOPER and its shareholders and partners. Section 4. SECURITY. a. The DEVELOPER shall provide performance, completion, and/or payment bonds for the PROJECT in the minimum amount of not less than 100 pement of the estimated construction costs containing covenants which are acceptable to the DISTRICT and the (city or county) b. The DEVELOPER shall provide a maintenance bond for the PROJECT in the amount of 100 percent of the construction cost, which shall contain covenants which are satisfactory to the DISTRICT. Such bond shall remain in force for at least twelve (12) months from the date of acceptance by the DISTRICT of the dedication of said facilities. c. The DEVELOPER shall also procure and maintain during the performance of this AGREEMENT such policies of insurance, bonds from an acceptable surety, cash deposits, escrow accounts, letters of credit, and other forms of security, in amounts and upon terms deemed sufficient by the DISTRICT in its sole discretion to protect the DISTRICT from any and all exposure to loss and/or liability. Section 5. COSTS FOR OVERSIZING. Pursuant to Section 1 .c. of this AGREEMENT, the DISTRICT agrees to pay to the DEVELOPER the incremental cost of oversizing any PROJECT facilities greater than twelve inches (12") in diameter for water distribution pipelines and ten inches (10") in diameter for sewage collection pipes. The DISTRICT shall determine the amount of the incremental cost of oversizing and the method of payment in the exercise of its sole discretion prior to its acceptance of the PROJECT facilities. Section 6. DEDICATION OF FACILITIES. a. The DEVELOPER shall, upon completion of the construction of all facilities to be installed hereunder to the satisfaction of the DISTRICT, dedicate said facilities to the DISTRICT by a deed of dedication or such other instrument as the DISTRICT may prescribe, and the DISTRICT agrees to accept the dedication thereof by formal action of its Board of Directors. Thereafter, such dedicated facilities shall become and be operated and maintained by the DISTRICT as part of the DISTRICT's water and sewer system. The DISTRICT shall not accept dedication of said water or sewer facilities until all connection fees have been paid unless otherwise allowed under Section 3.a. herein. b. The DEVELOPER hereby grants the DISTRICT full access to the PROPERTY for the purpose of installing, operating, inspecting, maintaining, and repairing all meters, valves, and other appurtenances necessary for the DISTRICT to record, regulate, and control the amount of water pumped therefrom. Section 7. SERVICE RESTRICTIONS. Any obligation on the part of the DISTRICT to supply water to the PROPERTY pursuant to the terms of this AGREEMENT shall be excused in the event that the performance thereof is interrupted for any of the following reasons: riots, wars, sabotage, civil disturbances, insurrection, explosion, court order, natural disasters such as floods, earthquakes, landslides, and fires, and other labor disturbances and other catastrophic events which are beyond the reasonable control of the DISTRICT. Notwithstanding any other provision to the contrary, the DISTRICT may suspend or refuse water service to the PROPERTY if the DEVELOPER is in breach, default, or violation of this AGREEMENT or any rule, regulation, resolution, and/or ordinance of the DISTRICT that is currently in place or may hereafter be adopted, or if such service would adversely affect the health, safety, or welfare of the DISTRICT's customers, or for any other reason deemed paramount by the DISTRICT in its sole discretion. Section 8. NO REPRESENTATIONS, WARRANTIES, OR CLAIM OF WATER RIGHTS. The DISTRICT makes no express or implied representations or warranties concerning the quality, pressure, or temperature of any water delivered pursuant to the terms of this AGREEMENT, or the manner in which the water is provided, or its fitness for any particular purpose, and the DISTRICT shall not be held liable for any losses incurred or damages sustained as a direct or indirect result thereof, nor shall the DISTRICT be held liable for any losses incurred or damages sustained after the water furnished hereunder is transferred to the PROJECT facilities. Any water conveyed by the DISTRICT under this AGREEMENT shall not serve as the basis of, or otherwise support, any water rights claim that may be asserted by the DEVELOPER. Section 9. LIABILITY FOR DAMAGES. The DISTRICT shall not be held liable or responsible for any debts or claims that may arise from the operation of this AGREEMENT, or for any damage claims for injury to persons, including the DEVELOPER and/or its officers, directors, shareholders, guests, invitees, trespassers, agents, contractors, consultants, and employees, or for property damage, from any cause arising out of or in any way related to the PROPERTY, the PROJECT, and/or the DEVELOPER's obligations hereunder. Section 10. RELEASE. The DEVELOPER hereby expressly waives and releases the DISTRICT and its agents, officers, directors, and employees from any and all liability for the claims, actions, and/or losses set forth in Section 9 above and for any costs and expenses incurred in connection therewith. The DEVELOPER, notwithstanding the provisions of California Civil Code § 1542, which provides as follows: "A general release does not extend to claims which the creditor did not know or suspect to exist in his or her favor at the time of the executed release which if known by him or her must have materially affected his or her settlement with the debtor." expressly waives and relinquishes all rights and benefits afforded to the DEVELOPER thereunder and under any and all similar laws of any state or territory of the United States with respect to the claims, actions, and/or losses referenced above. This AGREEMENT shall act as a release of any claims that may arise from the aforementioned whether such claims are currently known or unknown. The DEVELOPER understands and acknowledges the significance and consequences such specific waiver of Civil Code § 1542 and hereby assumes full responsibility for any injuries, damages, losses, or liability that may result from the claims identified above. This AGREEMENT shall also act as a release of any claims, actions, and/or losses set forth in Section 9 above, that may arise in the future whether such claims are currently foreseen or unforeseen. Section 11. HOLD HARMLESS. Excepting the sole or active negligence or willful misconduct of the DISTRICT, the DEVELOPER shall indemnify and hold the DISTRICT and its officers, directors, agents, and employees harmless from and against all claims and liabilities of any kind arising out of, in connection with, or resulting from, any and all acts or omissions on the part of the DEVELOPER and/or its officers, directors, shareholders, partners, assignees, guests, invitees, trespassers, agents, contractors, consultants, and employees in connection with the PROPERTY, the PROJECT, and the performance of their obligations under this AGREEMENT, including design defects, even if occurring after the completion of the PROJECT, and defend the DISTRICT and its officers, directors, agents, and employees from any suits or actions at law or in equity for damages, and pay all court costs and counsel fees in connection therewith. In addition, the DEVELOPER agrees to defend, indemnify, and hold the DISTRICT harmless from and against all claims, losses, liabilities, damages, demands, actions, judgments, causes of action, assessments, penalties, costs, expenses (including, without limitation, the reasonable fees and disbursements of legal counsel, expert witnesses, and accountants), and all foreseeable and unforeseeable consequential damages which might arise or be asserted against the DISTRICT and/or the DEVELOPER with regard to the PROPERTY and/or the PROJECT which are alleged and/or determined to be tortious, and/or in violation of 8 present and future federal, state, and local laws (whether under common law, statute, rule, regulation, or otherwise), including, but not limited to, the California Environmental Quality Act, Public Resources Code Section 21000 et seq., and the Guidelines adopted thereunder, California Code of Regulations Section 15000 et seq., all as the same may be amended from time to time. Section 12. NOTICES. Any notice, tender, or delivery to be given hereunder by either party to the other shall be effected by personal delivery in writing or by registered or certified mail, postage prepaid, return receipt requested, and shall be deemed communicated as of mailing or in the case of personal delivery, as of actual receipt. Mailed notices shall be addressed as set forth below, but each party may change its address by written notice in accordance with this section. If to the DISTRICT: East Valley Water District P.O. Box 3427 1155 Del Rosa Avenue San Bernardino, CA 92413 Arm: General Manager If to the DEVELOPER: Centex Homes 2280 Wardlow Circle, Ste. 150 Corona, CA 92880-2896 Attn: Don James Section 13. DISPUTES. Any dispute or controversy arising out of, under, or in connection with, or in relation to this AGREEMENT, and any amendments thereto, or the breach thereof, which is not resolved informally by prior mutual agreement of the parties hereto, shall be submitted to arbitration in accordance with the California Arbitration Act, Sections 1280 through 1294.2 of the Code of Civil Procedure. The cost of such arbitration shall be paid by the parties equally; however, the prevailing party in the arbitration shall be entitled to reimbursement of its attorneys fees and other costs incurred in connection therewith. Section 14. ATTORNEYS FEES. If a dispute arises which cannot be resolved by arbitration, regarding the breach or enforcement of the provisions of this AGREEMENT, the prevailing party therein shall be entitled to recover all attorneys fees and other costs actually incurred in connection with reaching a resolution of the dispute whether or not an action, claim, or lawsuit is filed. In any action brought, the entitlement to recover attorneys fees and costs will be considered an element of costs and not of damages. Section 15. INUREMENT. This AGREEMENT and all provisions hereof shall be jointly and severally binding upon, and inure to the benefit of, the parties hereto, their respective heirs, successors, legal representatives, and assigns, and each of the shareholders and partners of the DEVELOPER in their individual, separate, and/or other capacities. Section 16. ASSIGNMENT. This AGREEMENT may not be assigned to any individual or entity without the written consent of the parties hereto. Section 17. INTEGRATION AND AMENDMENT. This AGREEMENT constitutes the entire understanding of the parties hereto with respect to the subject matter hereof and supersedes any and all prior agreements, whether oral or written, between the parties in connection therewith. This AGREEMENT may not be amended unless in writing and signed by the parties hereto. Section 18. CAPTIONS. The captions of sections and subsections of this AGREEMENT are for reference only and are not to be construed in any way as a part of this AGREEMENT. Section 19. INTERPRETATION AND ENFORCEMENT. This AGREEMENT shall not be construed against the party preparing it, but shall be construed, as if both parties jointly prepared this AGREEMENT and any uncertainty or ambiguity contained herein shall not be interpreted against any one party. Failure by either party to enforce any provision of this AGREEMENT, or any waiver thereof by such party, shall not constitute a waiver of said party's right to enforce subsequent violations of the same or any other terms or conditions herein. This AGREEMENT shall be enforced and govemed by and under the laws of the State of California, and venue for any action brought to interpret and/or enforce any provision of this AGREEMENT shall be in a state or federal court located in the State of California that would generally have in rem jurisdiction over the PROPERTY. 10 Section 20. SEVERABILITY. If any portion of this AGREEMENT is declared by a court of competent jurisdiction to be illegal, invalid, or unenforceable, the remaining provisions of this AGREEMENT shall continue in full force and effect. Section 21. TIME OF THE ESSENCE. Time is of the essence in this AGREEMENT, and the parties hereto agree to proceed in good faith, with due diligence, to complete all covenants and conditions set forth herein and to perform such further acts as is reasonably necessary to effectuate the purpose of this AGREEMENT. Section 22. AUTHORITY. Each individual executing this AGREEMENT on behalf of a party hereto represents and warrants that he or she is fully and duly authorized and empowered to so execute on behalf of such party, and that this AGREEMENT is binding in the manner set forth in Section 15 hereof. IN WITNESS WHEREOF, the parties hereto have caused this AGREEMENT to be executed by their respective officers as of the date first above written. DISTRICT By: I)onald D. Good±n, East Valley Water District President, Board of Directors ATTEST: Secretary DEVELOPER: By: David Hahn President, Centex Homes ATTEST: 11 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California On Id_~J~ i~.-)~3-- , before me, . i - O _, ~, Date Na and T~Ue of Of~cer (e.g., 'Jane Doe, Notary Public") personally appeared E~e~oe{$) of Signer(s) nally known to me [] proved to me on the basis of satisfactory evidence to be the person~,S~ whose name(.~ is/afc- subscribed to the within instrument and acknowledged to me that he/sh,e~the7 executed the same in hi~ authorized capacity(iJ~, and that by his/hm'/tt~lT ~ '~' :~ii~-I~'l~l~(~Di~(~--~, signature(,~'on the instrument the person(~, or -,{¢_-.,~4-t~1~ C0mm. t 1309234 ,~. the entity upon behalf of which the person(s~ ~'~ NOTARY PUaUC-CALIFORNtA ~ acted, executed the instrument. ................................ WITNESS my hand and official seal. OPTIONAL Though lhe information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: Signer(s) Other Than Named Above: Capacity(les) Claimed b' Signer's Name: [] Individual Top of thumb here [] Corporate Officer. [] Partner-- [] L [] General [] Attorney in [] Trustee ; Representing: Notary Public 12 EXHIBIT "A" [Tentative Tract Map for the PROPERTY] 13 HIGHLAND AVE SITE t~ ylCINITY MAP . TRACT 15825 ' DEVELOPMENT AGREEMENT THIS AGREEMENT is made this __ day of ., __, by and between EAST VALLEY WATER DISTRICT, a public agency (hereinafter "the DISTRICT"), and CENTEX HOMES, a Nevada General Partnership (hereinafter "the DEVELOPER"). RECITALS A. The DISTRICT is a County Water District organized and operating pursuant to California Water Code Section 30000 et seq. B. The DEVELOPER proposes to subdivide and develop certain real property within the boundaries of the DISTRICT which is located at southeast comer of Highland Avenue and Cloverhill, in the City of Highland, County of San Bemardino, State of California, and is generally identified as Tract No. 15954 (hereinafter "the PROPERTY"). A copy of the Tentative Tract Map for the PROPERTY is attached hereto as Exhibit "A" and is incorporated herein by this reference. C. The development of the PROPERTY will consist of 37 dwelling units, and the DEVELOPER desires that the DISTRICT provide domestic water and sewer service to the PROPERTY. The DEVELOPER intends to design and construct the facilities necessary for water and sewer service to be furnished to the PROPERTY. D. The DISTRICT supplies domestic water and sewer service within the area to be served and is the public agency empowered by law to provide such services to the PROPERTY. E. The purpose of this AGREEMENT is to provide the terms and conditions under which the DEVELOPER will design and construct the facilities necessary for the DISTRICT to supply water and sewer service to the PROPERTY (hereinafter "the PROJECT"). COVENANTS NOW THEREFORE, in consideration of the preceding Recitals and the mutual Covenants contained herein, the parties hereto agree as follows: Section 1. DESIGN OF FACILITIES. The DEVELOPER agrees to design the water and sewer facilities for the PROPERTY in the following manner and according to the Rules and Regulations of the DISTRICT: a. The DISTRICT agrees to provide to the DEVELOPER tentative water and sewer plans which conform to the requirements of the DISTRICT. b. The DEVELOPER agrees to design the water and sewer facilities for the PROPERTY in accordance with the DISTRICT's Standards for Design and Processing of Water and Sewer Plans and the tentative plans provided by the DISTRICT. The designs shall be submitted to the DISTRICT in a complete form which shall provide sufficient information for review and approval by the DISTRICT in the exemise of its sole discretion. c. The DISTRICT may request certain changes in the plans to provide for oversizing of facilities, which DEVELOPER agrees to incorporate into the plans and specifications for the PROPERTY. d. The DEVELOPER shall furnish the DISTRICT with any and all easements necessary for the construction, operation, maintenance, and repair of any and all water and/or sewer facilities to be installed and/or used for the PROJECT. All easements shall be submitted to the DISTRICT for review and approval by the DISTRICT in the exemise of its sole discretion prior to the DISTRICT's acceptance of any dedication of the PROJECT facilities under Section 6 of this AGREEMENT. e. The DEVELOPER shall submit all plans, drawings, specifications, and contract documents, for all work to be performed pursuant to this AGREEMENT, to the DISTRICT for review and approval, if acceptable to the DISTRICT. The DISTRICT agrees to review all such documents in a timely manner and, upon inclusion of all changes thereto requested by the DISTRICT in a manner satisfactory to the DISTRICT, the DISTRICT will provide the 2 DEVELOPER with authorization to proceed. The DEVELOPER shall not proceed with the construction of the PROJECT and any other water or sewer facilities for use on the PROPERTY until the DISTRICT so authorizes. Section 2. CONSTRUCTION OF FACILITIES. The DEVELOPER agrees to construct the PROJECT and all other water and sewer facilities necessary for the PROPERTY in the following manner subject to the DISTRICWs approval: a. The DEVELOPER shall obtain all necessary permits from the (city or county) and all other public or private agencies required for the construction thereof. The PROJECT and the facilities appurtenant thereto shall be constructed at a location determined by the DISTRICT, and shall be relocated by the DISTRICT at the DEVELOPER's sole expense if such relocation is deemed necessary by the DISTRICT in its sole discretion. The DEVELOPER hereby grants the DISTRICT full access to the PROPERTY and all other locations where the work contemplated herein is to be performed. b. All facilities constructed pursuant to this AGREEMENT shall be in accordance with accepted standards and practices in the industry and in compliance with all local, state, and federal laws, rules, and regulations. The DEVELOPER shall be responsible for providing all labor, materials, and equipment necessary to perform the work for the PROJECT, and such work shall be performed in a timely and workmanlike manner by a party or entity acceptable to the DISTRICT. All such facilities shall conform to the DISTRICT's Standard Specifications for the Furnishing of Materials and the Construction of Water and Sewer Pipelines. All costs and liabilities in connection with the design and construction of the PROJECT shall be borne solely by the DEVELOPER. c. The DISTRICT shall inspect and approve all work to be performed under this AGREEMENT. However, any approval by the DISTRICT of such work, or of the designs, specifications, reports, and/or materials furnished hereunder, is understood to be conceptual approval only and will not operate to relieve the DEVELOPER or its contractors, consultants, or subcontractors of responsibility for complying with all laws, codes, industry standards, and liability for damages caused by negligent acts, errors, omissions, noncompliance with industry standards, or their own willful misconduct. Further, neither the DISTRICT's review, approval, or acceptance of any of the work or services performed in connection with this AGREEMENT shall be construed as a waiver of any rights hereunder or of any defense or cause of action which the DISTRICT may have arising out of the performance of this AGREEMENT or any previous or subsequent agreements. The DEVELOPER shall cause the facilities constructed under this AGREEMENT to be inspected as required by any and all other public or private agencies. Section 3. DEVELOPER'S COSTS. In addition to all other obligations imposed upon the DEVELOPER under this AGREEMENT, the DEVELOPER shall be responsible for the payment of all of the following: a. The DEVELOPER shall pay to the DISTRICT all, or any portion, of the connection fees for the PROPERTY at the time of application for water and sewer service therefor. The DISTRICT will provide water and sewer service only to those specific subdivision lots within the PROPERTY for which payment in full has been made to the DISTRICT. b. The DEVELOPER shall be solely responsible for the payment of all costs, fees, and expenses associated with the construction, inspection, operation, maintenance, repair, and relocation of the PROJECT, including all costs, fees, and expenses incurred for the environmental analysis, engineering, and design of the PROJECT. c. The DEVELOPER shall comply with all rules, regulations, resolutions, and ordinances of the DISTRICT that are currently in place or may hereafter be adopted, and shall pay when due any and all fees, deposits, charges, rates, fines, penalties, taxes, and/or assessments that may be levied by the DISTRICT. d. The DEVELOPER hereby consents, and waives any objection, to the exercise of any and all collection remedies that are available to the DISTRICT under the law upon the PROPERTY and/or the person and/or property of DEVELOPER and its shareholders and partners. Section 4. SECURITY. a. The DEVELOPER shall provide performance, completion, and/or payment bonds for the PROJECT in the minimum amount of not less than 100 percent of the estimated construction costs containing covenants which are acceptable to the DISTRICT and the (city or count3') b. The DEVELOPER shall provide a maintenance bond for the PROJECT in the amount of 100 percent of the construction cost, which shall contain covenants which are satisfactory to the DISTRICT. Such bond shall remain in force for at least twelve (12) months from the date of acceptance by the DISTRICT of the dedication of said facilities. c. The DEVELOPER shall also procure and maintain during the performance of this AGREEMENT such policies of insurance, bonds from an acceptable surety, cash deposits, escrow accounts, letters of credit, and other forms of security, in amounts and upon terms deemed sufficient by the DISTRICT in its sole discretion to protect the DISTRICT from any and all exposure to loss and/or liability. Section 5. COSTS FOR OVERSIZING. Pursuant to Section 1.c. of this AGREEMENT, the DISTRICT agrees to pay to the DEVELOPER the incremental cost of oversizing any PROJECT facilities greater than twelve inches (12") in diameter for water distribution pipelines and ten inches (10") in diameter for sewage collection pipes. The DISTRICT shall determine the amount of the incremental cost of oversizing and the method of payment in the exercise of its sole discretion prior to its acceptance of the PROJECT facilities. Section 6. DEDICATION OF FACILITIES. a. The DEVELOPER shall, upon completion of the construction of all facilities to be installed hereunder to the satisfaction of the DISTRICT, dedicate said facilities to the DISTRICT by a deed of dedication or such other instrument as the DISTRICT may prescribe, and the DISTRICT agrees to accept the dedication thereof by formal action of its Board of Directors. Thereafter, such dedicated facilities shall become and be operated and maintained by the DISTRICT as part of the DISTRICT's water and sewer system. The DISTRICT shall not accept dedication of said water or sewer facilities until all connection fees have been paid unless otherwise allowed under Section 3.a. herein. b. The DEVELOPER hereby grants the DISTRICT full access to the PROPERTY for the purpose of installing, operating, inspecting, maintaining, and repairing all meters, valves, and other appurtenances necessary for the DISTRICT to record, regulate, and control the amount of water pumped therefrom. Section 7. SERVICE RESTRICTIONS. Any obligation on the part of the DISTRICT to supply water to the PROPERTY pursuant to the terms of this AGREEMENT shall be excused in the event that the performance thereof is interrupted for any of the following reasons: dots, wars, sabotage, civil disturbances, insurrection, explosion, court order, natural disasters such as floods, earthquakes, landslides, and fires, and other labor disturbances and other catastrophic events which are beyond the reasonable control of the DISTRICT. Notwithstanding any other provision to the contrary, the DISTRICT may suspend or refuse water service to the PROPERTY if the DEVELOPER is in breach, default, or violation of this AGREEMENT or any rule, regulation, resolution, and/or ordinance of the DISTRICT that is currently in place or may hereafter be adopted, or if such service would adversely affect the health, safety, or welfare of the DISTRICT's customers, or for any other reason deemed paramount by the DISTRICT in its sole discretion. Section 8. NO REPRESENTATIONS, WARRANTIES, OR CLAIM OF WATER RIGHTS. The DISTRICT makes no express or implied representations or warranties conceming the quality, pressure, or temperature of any water delivered pursuant to the terms of this AGREEMENT, or the manner in which the water is provided, or its fitness for any particular purpose, and the DISTRICT shall not be held liable for any losses incurred or damages sustained as a direct or indirect result thereof, nor shall the DISTRICT be held liable for any losses incurred or damages sustained after the water furnished hereunder is transferred to the PROJECT facilities. Any water conveyed by the DISTRICT under this AGREEMENT shall not serve as the basis of, or otherwise support, any water rights claim that may be asserted by the DEVELOPER. Section 9. LIABILITY FOR DAMAGES. The DISTRICT shall not be held liable or responsible for any debts or claims that may arise from the operation of this AGREEMENT, or for any damage claims for injury to persons, including the DEVELOPER and/or its officers, directors, shareholders, guests, invitees, trespassers, agents, contractors, consultants, and employees, or for property damage, from any cause arising out of or in any way related to the PROPERTY, the PROJECT, and/or the DEVELOPER's obligations hereunder. Section 10. RELEASE. The DEVELOPER hereby expressly waives and releases the DISTRICT and its agents, officers, directors, and employees from any and all liability for the claims, actions, and/or losses set forth in Section 9 above and for any costs and expenses incurred in connection therewith. The DEVELOPER, notwithstanding the provisions of California Civil Code § 1542, which provides as follows: "A general release does not extend to claims which the creditor did not know or suspect to exist in his or her favor at the time of the executed release which if known by him or her must have materially affected his or her settlement with the debtor." expressly waives and relinquishes all rights and benefits afforded to the DEVELOPER thereunder and under any and all similar laws of any state or territory of the United States with respect to the claims, actions, and/or losses referenced above. This AGREEMENT shall act as a release of any claims that may arise from the aforementioned whether such claims are currently known or unknown. The DEVELOPER understands and acknowledges the significance and consequences such specific waiver of Civil Code § 1542 and hereby assumes full responsibility for any injuries, damages, losses, or liability that may result from the claims identified above. This AGREEMENT shall also act as a release of any claims, actions, and/or losses set forth in Section 9 above, that may arise in the future whether such claims are currently foreseen or unforeseen. Section 1 I. HOLD HARMLESS. Excepting the sole or active negligence or willful misconduct of the DISTRICT, the DEVELOPER shall indemnify and hold the DISTRICT and its officers, directors, agents, and employees harmless from and against all claims and liabilities of any kind arising out of, in connection with, or resulting from, any and all acts or omissions on the part of the DEVELOPER and/or its officers, directors, shareholders, partners, assignees, guests, invitees, trespassers, agents, contractors, consultants, and employees in connection with the PROPERTY, the PROJECT, and the performance of their obligations under this AGREEMENT, including design defects, even if occurring after the completion of the PROJECT, and defend the DISTRICT and its officers, directors, agents, and employees from any suits or actions at law or in equity for damages, and pay all court costs and counsel fees in connection therewith. In addition, the DEVELOPER agrees to defend, indemnify, and hold the DISTRICT harmless from and against all claims, losses, liabilities, damages, demands, actions, judgments, causes of action, assessments, penalties, costs, expenses (including, without limitation, the reasonable fees and disbursements of legal counsel, expert witnesses, and accountants), and all foreseeable and unforeseeable consequential damages which might arise or be asserted against the DISTRICT and/or the DEVELOPER with regard to the PROPERTY and/or the PROJECT which are alleged and/or determined to be tortious, and/or in violation of present and future federal, state, and local laws (whether under common law, statute, rule, regulation, or otherwise), including, but not limited to, the California Environmental Quality Act, Public Resources Code Section 21000 et seq., and the Guidelines adopted thereunder, California Code of Regulations Section 15000 et seq., all as the same may be amended from time to time. Section 12. NOTICES. Any notice, tender, or delivery to be given hereunder by either party to the other shall be effected by personal delivery in writing or by registered or certified mail, postage prepaid, return receipt requested, and shall be deemed communicated as of mailing or in the case of personal delivery, as of actual receipt. Mailed notices shall be addressed as set forth below, but each party may change its address by written notice in accordance with this section. If to the DISTRICT: East Valley Water District P.O. Box 3427 1155 Del Rosa Avenue San Bernardino, CA 92413 Attn: General Manager If to the DEVELOPER: Centex Homes 2280 Wardlow Circle, Ste. 150 Corona, CA 92880-2896 Atto: Don James Section 13. DISPUTES. Any dispute or controversy arising out of, under, or in connection with, or in relation to this AGREEMENT, and any amendments thereto, or the breach thereof, which is not resolved informally by prior mutual agreement of the parties hereto, shall be submitted to arbitration in accordance with the California Arbitration Act, Sections 1280 through 1294.2 of the Code of Civil Procedure. The cost of such arbitration shall be paid by the parties equally; however, the prevailing party in the arbitration shall be entitled to reimbursement of its attorneys fees and other costs incurred in connection therewith. Section 14. ATTORNEYS FEES. If a dispute arises which cannot be resolved by arbitration, regarding the breach or enforcement of the provisions of this AGREEMENT, the prevailing party therein shall be entitled to recover all attorneys fees and other costs actually incurred in connection with reaching a resolution of the dispute whether or not an action, claim, or lawsuit is filed. In any action brought, the entitlement to recover attorneys fees and costs will be considered an element of costs and not of damages. Section 15. INUREMENT. This AGREEMENT and all provisions hereof shall be jointly and severally binding upon, and inure to the benefit of, the parties hereto, their respective heirs, successors, legal representatives, and assigns, and each of the shareholders and partners of the DEVELOPER in their individual, separate, and/or other capacities. Section 16. ASSIGNMENT. This AGREEMENT may not be assigned to any individual or entity without the written consent of the parties hereto. Section 17. INTEGRATION AND AMENDMENT. This AGREEMENT constitutes the entire understanding of the parties hereto with respect to the subject matter hereof and supersedes any and all pr/or agreements, whether oral or written, between the parties in connection therewith. This AGREEMENT may not be amended unless in writing and signed by the parties hereto. Section 18. CAPTIONS. The captions of sections and subsections of this AGREEMENT are for reference only and are not to be construed in any way as a part of this AGREEMENT. Section 19. INTERPRETATION AND ENFORCEMENT. This AGREEMENT shall not be construed against the party preparing it, but shall be construed as if both parties jointly prepared this AGREEMENT and any uncertainty or ambiguity contained herein shall not be interpreted against any one party. Failure by either party to enforce any provision of this AGREEMENT, or any waiver thereof by such party, shall not constitute a waiver of said party's fight to enforce subsequent violations of the same or any other terms or conditions herein. This AGREEMENT shall be enforced and governed by and under the laws of the State of California, and venue for any action brought to interpret and/or enforce any provision of this AGREEMENT shall be in a state or federal court located in the State of California that would generally have in rem jurisdiction over the PROPERTY. 10 Section 20. SEVERABILITY. If any portion of this AGREEMENT is declared by a court of competent jurisdiction to be illegal, invalid, or unenforceable, the remaining provisions of this AGREEMENT shall continue in full force and effect. Section 21. TIME OF THE ESSENCE. Time is of the essence in this AGREEMENT, and the parties hereto agree to proceed in good faith, with due diligence, to complete all covenants and conditions set forth herein and to perform such further acts as is reasonably necessary to effectuate the purpose of this AGREEMENT. Section 22. AUTHORITY. Each individual executing this AGREEMENT on behalf of a party hereto represents and warrants that he or she is fully and duly authorized and empowered to so execute on behalf of such party, and that this AGREEMENT is binding in the manner set forth in Section 15 hereof. IN WITNESS WHEREOF, the parties hereto have caused this AGREEMENT to be executed by their respective officers as of the date first above written. DISTRICT By: East Valley Water District I)oaald D. Goodin, President, BoardofDirectors ATTEST: Robert E. Martin Secretary ~ DEVELOPER: By: ~ David Hahn President, Centex Homes ATTEST: 11 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California cou. of ss. On ~d-~ ~,O~_ ,beforeme, ~)'n~ ~nally known to me D proved to me on the basis of satisfacto~ evidence to be the perone' whose namo~ subscdgod to the within instrumont and acknowlod~od to me that ho/~ the samo in his/~ authodzod capacity~ and that by his/~ ~' 'AUdi 'U~ '~i~6Mi~6' ') signature(~on the instrument the person(~, or ~ C0mm. ! t309234 ul~ NOTARY PUgLIC.CALIFORNrA ~ the entity upon behalf of which the person~ ~ ~/ 0~,,~ co,,~v acted, executed the inst~ment. ~ Uy Comm. Expires Junl 6.2005 ~ t WlTNES~ my hand and o~cial seal. OPTIONAL Though the info~atio~ below is not requital by law, it ~ay p~ve valuable to ~on~ ~lying on the d~u~ent and could prevent f~udulenl ~o~1 and ~a~achment of this fo~ to another d~umen[ Description of A~ached Document ~Ue or Type of Document: Signer(s) Other Than Named Above: Capacily(ies) Claimed by Signer Signer's Name: ...... D Individual ~ Gor~mto Officor~' D Pa~ner-- ~ ~ General or Conse~ator Signer Is Representing: Notary Public 12 EXHIBIT "A" [Tentative Tract Map for the PROPERTY] 13 HIGHLAND AVE RESERVOIR ST. ST. : ROAD ,VICINITY M/~ . TRACT· 15954 ' "'""' East Va ey Wate istrict Board Memorandum Date: JUNE 3, 2002 From: Brian W. Tompkins / Chief Financial Officer~ Subject: Disbursements. Recommendation: Approve the attached list of accounts payable checks and payroll issued during the period May 22nd through May 29th, 2002. Background: Accounts payable checks are shown on the atta.ched listing and inc{ude numbers 189262 to 189393 for a total of $541,152.70. The source of funds for this amount is as follows: COP Construction Funds $316,675.80 EPA Grant Funds $ .0 Unrestricted Funds $224,476.90 Payroll disbursed was for the period ended May 24, 2002 and included checks and direct deposits Totaling $81,912.40. Fiscal Impact: Total disbursements- $623,065.10. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ~ o ~ ~ ~ ~ o ~ oooooo ~ ~~~ s~ ~ ~ ~ o ~ oooooo o o ~ ~ o ~ ~ 0 o ~ ~ ~ ~ ~ ~ E ~ o ~ ~ ooooo o o o o o ~ ~ ° u 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 oo City o_f ~t~ Sentl/iaCertiJffedU'S'Mail I~G~~ 1987 May 16, 2002 Robe~ Matin, General Manager East Valley Water District P.O. Box 3427 San Bemardino, CA 92413 Dear Mr. M~in: ~e Highland Redevelopment Agency is considering the merits of a proposed redevelopment prQect for the ~ea located on the east side of Church Avenue, no~h of Fifth 27215 Base Hne Sh-eet in which you owu · ' '" · ' ' "- p{ope ty sit. el ousinebb. Thc redevelopment project ~ proposed H}gh{and, CA 92346 (~9) s64-~6~ is consistent wi~ the implementmion of the Agency's Highl~d Redevelopment Project F~ (909)862-3~ 80 No. 1. m.ci.highland.ca.us c{~ Coun~U As established by California Redevelopment law ~d set fo~h in the Hi,land Redevelopment Plan, the Highland Redevelopment Agency encourages p~icipation by ~ayor owners/tenants in the Highl~d Redevelopment Project No. 1. The purpose of this le~er is ~r~ Brown to advise you of your pa~icipation rights .~d dete~ine ~y interest in pa~icipating in Mayor Pro-Tern John R ~mmer Highland Redevelopment Plan. P~icipation for erects/tenants of real prope~ ~clude reasonable oppo~uni~ to pa~icipate in all or ~y p~ of potential development, suggesting P 'ucke[ Jr. J~. Starbuck alternatives, or selling ~eir prope~ies to the Redevelopment Agency and purchasing other Br~ Sundquist prope~ies within the Project ~ea. The Redevelopment Agency shall also extend reasonable preferences to existing businesses ~d/or ten~ operating ~ a business to cl~ Manager p~icipate in ~e Redevelopment Project or to re-enter their business to another location Sam J. Racadio within ~e Highland Redevelopment PI~ Project ~ea. Enclosed with this le~er is a fo~ entitled "Statement of Interest in Pa~icipation" (see Exhibit "A"). If you are interested in p~icipating in ~e Highland Redevelopment Plan, plebe fully complete ~e fern ~d ream so that it is received by Rick Hamann, Communi~ Development Director, at Ci~ Hall, 27215 Baseline, Highl~d on or before 5:00 p.m., Monday, June 17, 2002. The Agency will review a submi~ statement of Interest to determine the extent to which it could relate to Redevelopment Plan's objectives. If you have any questions, please feel free to call me at (909) 864-8732 extension 213. Rick C. Hartmann Community Development Director Enclosure: Exhibit "A" C:\MyFiles\Owner participation letter. DOC EXHIBIT "A" HIGHLAND REDEVELOPMENT AGENCY HIGHLAND REDEVELOPMENT PROJECT NO. 1 STATEMENT OF INTEREST TO PARTICIPATE I hereby express my interest in participation in the Highland Redevelopment Project No. 1 and submit the following information: 1. Name: Telephone: 2. Home Address: 3. Name of Business: 4. Address of Business: 5. My present involvement in the Project Area is: I own ( ); am a Tenant ( ); and wish to rehabilitate ( ); build ( ); sell ( ) my present property. If Tenant, indicate: month-to-month ( ); lease ( ); Expiration date of lease is: . Options extend lease to If lease includes an option to purchase, so indicate Comments: 6. I am interested in participating: As a Property Owner: As a Tenant: Other (.please describe): 7. My present type of business is: 8. IfI participate: I would like to continue at the same location: I would like to change my present location: C:kMyFilcs\Owncr participation letter. DOC I would like to acquire real property for expansion (indicate approximate requirement) 9. Background, experience, and information conceming your proposal (you may include further information on tiffs page or attach additional sheets if you desire to do so): (a) Generally describe background and experience: (b) Describe the activities you propose and indicate your experience relevant to your proposal: (c) If you enclose a business plan or construction and operating pro forma relative to your proposed activity these will be considered with your statement of interest. Remarks: 10. I understand that submission of this Statement of Interest does not in any way obligate me to participate in the Project. Signed: Date: Pr'mt Name: Title (if applicable): Please return to: Rick C. Hartmaun, Community Development Director City of Highland, 27215 Base Line, Highland, CA 92346 C:'~MyFilcs\Owner participation letter. DOC _RESOL_UTION NO. A RESOLUTION OF INTENTION OF THE BOARD OF DIRECTORS O1/TIlE E~T VALLEY WATKR DIS~ICT TO INIT~TE PROCKED~GS TO FO~ A~OYO ~E ASSESSMENT DIST~CT ~ EV~ ~ ~r~ ~ or~ p~t to the Co~y ~a~r D~ ~w~ Wat~ C~ Se~n 3~ et ~q. B, The ~yo Ve~e Mu~ W~ ~y ("AV~) ~ a p~e ~ration o~ ~ o~t~ ~ a mu~ w~or ~ ~rated ~d e~i~ ~ ~ h~ oft~ State of C~o~. A~C's ~ ~ h ~ t~ j~ ~ of EV~. C. AV~C's ~ ~~s ora wel~ ~o~er p~, ~ v~o~t~ ofp~g ~t ~ ~ope~le ~or ~t ~ comp~ ~th ~ leg~ s~ds edo~ ~ t~ S~le of C~ffo~ ~m~t of H~ S~s (~he Water S~t~'~. ~ a ~ A~C's ~l~ ~e c~nt~ r~i~g do~ia w~ m~ D. AV~C's ~ehol~ ~ve folly ~q~ t~ o~ion ~d ~1 of ~ Wai~ S~m ~d ~t ~ ~o~ ofEVWD's o~ ~ ~. E. ~VWD ~ a~ Io co~der ~id ~o~ ~outsi~ ~ ~ ~ ob~ to 1 Ctum~i,,g mecbn,~,z d~med approp~m by EV~ to rely t~ ~s t~reo~ F. ~ De~ 11, 2000, E~D's Bored of ~to~ ~pt~ Rem~tion No. D~g Watcr Stme ~vol~8 F~ (~ F~ for ~ p~ of~ ~s to ~ ~ for the ~r~tion of ~ies ~e~ ~ b~g ~e W~ Sy~m ~ to a co.trion ap~opr~te ~ EV~ to ~s~ ~ op~t~n ~ ~ntrol ~f('~ G. ~ or a~m J~ of 2002, EV~ ~d A~C ent~ ~m a Notice of A~li~ion ~ hs~ by the State ofC~o~ ~nt ofWat~ ~ on or ~ut D~ 19, 2001, for ~j~t No. 361~-01, ~e~ the F~ wo~ pto~e a ~ctlon 1o~ ~ t~ ~unt orS136,034.00 C~ ~ ~d a ~ruction ~ ('~he ~'~ ~ of$~,136.00. ~r a m~ con.ion by ~ F~ of $680,170.00 to ~ a~lied to t~ ~ oft~ ~oj~t, ~ tot~ ~ ofw~h ~ c~t~ est~ted to ~ &e s~ of $810.1 H. In o~ ~ repay the ~ ~d re~b~ EVWD for ~ ~ion of~ ~oject ~gs not ~v~ed ~ t~ F~, EV~ ~te~ ~ ~m pro~s ~ f~m ~ ~oyo Ver~ ~m DL~ ~ ~or~e ~ ~ hw ~d ~ te~ ~ ~n~om ~n~M ~re~. NOW, ~REFORE, BE IT ~SOL~D. ~l ~o Bo~d of D~tors of E~ does SEC~ON 1. Star.eat oflateat. A, ~ment D~riet Formation. T~ ~d o~be~o~ o~V~ ~y ~es Rs ~tem~n to fo~ ~ ~oyo V~de ~ Dgt~ for ~ p~ ofte~y~g t~ Lo~ g~g EV~ ~r ~y ~ion oft~ p~gd ~je~ ~gs not ~v~ ~ the 2 B. Levy of .a~saesameet. The Board of Directors of EVWD formally declares its inle~t~n to provide for Ihe ~l~aYm~ of the Loa~ and lhe reimb~sem~nt of any proposed Projcct costs pa~ ~y ~., V~'~ ~ v~ue oi~t.~ }e~,7 ot~an assessment on each propetriy v4thin the Arroyo Verde Assessment DL~'trict. C. Compliaaee wltl~ Law. It is the intent of thc Board of Dirc-ctors of EVWD in adopting thLs Reaolutin~, to adopt assessment ballot proceedings which a~e consistent and ~n compliance with A~i¢les XIHC and XIIID oftl~ California Co~stkufion and with the Proposition 218 Omm'bus Implementalion Act. It is llot Ihe illietlt of the l~loa~d ofDkeotors of EVWD to vary in any way fi.om the re~!ukcmenis of A~|¢les XIIIC and 'XIIID or the Proposition 218 Omnibus Implementation Act. SECTION 2. D, eseripfloe. A. Peoject. Thc proposed Pro, ct is brit~fly dcscnq:~..d in the document atlached hereto as 15xhibit "A" arid i~corporated herein by thLs reference. B. Bouadsrles. The exterior botmdazies of the proposed Arroyo Verde Assessment Distrioi is also described in the document attached her~o as Exhibit "A" and in~orporatad her~in by thLs reference. ,SECTION 3. Eagla~er'! Reoort. A. Preparatioa. The Board of Direr. tots of th~ EVWD hereby directs William J. Mclieever, a registered profe..ssbnal engineer cert~ by lhe State of Californla, to prepare a report that contains ali oflhe ~ollowing: (1) Phtns and specifications ofthe preposed Project. TI~ pla~ a~l speciiicatio~ ~eed mt be.deta~d aad arc suffici~ i~th~ show or de.~n~ the generaII~ature., location, and extent ot'fl~ impm¥cmer~ts. Tf~e assessn~ district re~ m a ~mbi~ (2) A generst d~dpfion of wor~ or appl~ces pro~y ~ or ~nv~em for ~ o~mtion of or pro~y me to ~ ~q~d m p~ oft~ hl~,ove~nt. (3) ~ e~te of t~ ~st of t~ pm~ Pmje~ ~hts-of-~y, ~n~, ~d ~i~nt~ ex~s ~ ~ect~n t~re~ ~l~g ~ ~st of res~~ (4) ~ e~e of ~ ~te u~ ~g~ as~l~d w~th ~e ~gd ~oject. (5) ~ ~e of~ ~o~ of~ ~ssment for t~ ~t~, ~, or ~ov~ of~ pro~ Pro~ for ~ of~e would ~ ~. (6) A ~a~ sho~, ~i~ ~c~g e~ ~te ~o~r~ ~. ~ ~ ~y ~ m ~ ~ ~d d~o~ of~y p~ls, ~ w~ch ~ t~ 4 (7) A proposed ,_s_ _~.~sm~ of the total amount oftbe cost and cxp~.n~s of the l:mOposed Project upon fl~e s~veral subdivisions of laud in the dlsu';,a in proportion to thc ~dma/ed i~ncllis {o ~ r~elvM ~ each s~Mivi~i6~, r~tively, t~om th~ im!orovement. In the cas~ oran as~ssmant for immallalion ofplann~ local drainage facilliles which are ~nanced, in whole or in part, pursuant to Section 66483 of thc Government Code, thc assessment levied against each parcel of subdivided land may be levied on the basis of thc p~oponionate morro water ranofl'froro each parcel. When any portion or percentage of thc cost and expott~s of thc improvement is ordered to be paid out ofEVWD's treastu~d, the nro~unt of that portion or percentage shall first be deducted f~oro the total ~stimatcd cost and expeases of thc proposed Project, ~ncl t~ as~ssment upon property proposed in tbe report shall include only the remainder of the estimated cost and expands. The assessment shall refer to tl~ subdivisions by their respective nombers as assigned pursuant lo subdivision (6). (8) A proposed maximum annual assessment upon each of the sgveral subdivisions ot3and in the dislrict to pa), costs incurred by EYWD and not otherwise reimbmsed which result froro th~ administration and collection of assessments or from the administration or registration of any associated borgts and re~crv¢ or oilier related fullds. (9) A maximum annual ~ent to pay for EVWD's administrative cests which shall not exceed a reasonable estimate ofcosts actually incurred or likely to be iacttrred, B. Filing. ThcEngivecr'sRcport mustthcnbe filed and presented ittoEVWD'sBoard of Directors for confinmiion, modification, and/or correction. SECTION 4. Assessment Ballot p .reqecdlnl. The following procedures shall be used in an ~ ballot proc~ding required by Article XIIID, Section 4, of the California Constitution: 5 A. Amo~JntofA.q.q~ment. Onlyspccial~r~fitsaf~ assessabk~. Th~amount ore,ch ~ s~ ~ ~h~M~ ~l's ~o~io~e ~c oft~ p~ ~rov~t or pro~ ~ ~o~ to ~ no ~at~ t~ ~ ~fi~ ~ on ~ pro~rty. B. S~c~I Benefit. ~or p~ of~tc~8 thc ~ of the ~: - ~cfits co~ on r~ pro~y loc~ ~ ~ ~nt d~ or to the pub5c at ~ a ~r or les~ e~c~ ~y ~ted ~ ~c p~s~ ~j~ct, ~ not ~v~ the ~t of (4) S~ ~ ~ ~.~te ~ o~such a c~ter ~ c~ D~e~o~ ~l ~mply ~ thc app~b~ ~c ~tute au~or~g ~ ~ ~ ~h ~tic~ ~n~, ~ de~ ~ S~tion 4B of t~s R~iutio~ ~c~ ~ ~ p~d Pro~. ~ g~ ~ncfit ~ exp~ ~w it ~1 ~ ~. 6 D. Not/ce. The foliowhg guidelines shall apply to giving notice of an assessment. {I) Thc r~cord owner(s) of each parcel to be assessed shell be determined fi-om t~e ~st exl?~ze~ property lax roll. I~t~te properbw 1l~ r011 incli~tes more thim one owner, each owner shall receive notice. Only property owoers shall receive notice. (2) The form of notice is atlacb_ed to this Resolution as Exhibit "B". (3) The notice shall be ~ at least fony-tlve (45) days prior to the date set for %he public heari~ on the assessment. (4) 'Ilia notice provided by this section and in accordm~e with A~ticle XIIID, S~tinn 4, of the California Constitution, shall supersede and be in lleu of any other stazutes ~:Iuiring notice to levy or in~e.~e an ~ssrmsnt, loci-ding I~t r~l limited to the notice r~lolred by ~ state s%utute au%hori~.h~ the assessment and Government Code Section 54954.6. (5) Failm'a of any p~son to receive notice shall nol invalidaI~ th~ procecdings. (6) The cost of providing notice shall b~ included as a cos% of the assessment E. As~smeat Ballot. The following guidelines shall apply to til~ assessme~ ballot: (1) Thc ballot required by Articl~ XIIlD, Section 4{d), of the Callfomia Consthution shall be ~,i1,~1 to all properly owners of record within %he assessment district at least forty-§ye (45) days prior lo the datc oftha public hl:mr~g on the proposed ass~'sment. (2) The form oftl~ h~!l,~t is aCiached to this ResolutiOn as Exlu'bit "C". (3) All ballots must be reimmed to I!VWD's General Manager by mall or in person, sealed in tl~ cnvclop~ provided, not laier than th~ date for return ofballots stated on the notice ~ ia ~ct~n 4D of this R~olution. 7 (4) A ~l]ot mus~ I~ signed u~der penalty of per~.u7. For p~s ~ ~re o~ o~ of~ ~ ~1 ~ ~ ~om ~ch o~ or.ord. ~h o~ of~ord ~ u~n thC re~tive r~rd ~e~s ~ EVe's ~ ~ger d~ appmpr~te. Howe., ffo~ o~ o~¢t of record votes, EVe's Ge~ ~gcr ~ ~te ~te on ~of~e entre ~l. (5) A t¢~ ofrc~ pm~ s~l ~t ha~ 1he ~wer or ~ ~ot. (6) O~y ~ ~h ofigi~I ~g~m, ~t p~t~plc~ ~l ~ accord. (~ EVe's ~ ~a-*g~ ~y hsae a dup~t to ~ pro~o~er s~ ~ ~ ~ su~icnt ~ror~lion ~ ~V~'s Goal lo~ion ~d o~ oft~ ~o~ ~ q~n ~d t~ ~ent~ of thc o~ to v~i~ ~s a~hc~city. (8) ~ -~m ~t ~c~g ~ ~t ~ c~edon. ~ts: EVWD'sGc~ ~g~ ~ d~ ~hyo fall ~llots. EVWD's Ge~ M~cr s~li ~t ~ ~ ~ ~ots exit ~ ~ thc foUow~ (a) A p~t~py ora ~o1 w~ch docs ~ (d) A ballot whleh appears mmpered with or otherwise invalid ba~d upon its zppeamnce or nmthod o£detlvery or other Circles. (~) T[te t~ee~e~on Of [~VWD's C~ ~g~ that a ballot is invalid, ~er consultation with £VWD's General Coumel, shall be final and may not be appealed to EVWD'B Board of Directors. (~) EVWD's General Manager may hegin tabulating th~ ballots prior to tl~ d~te set for the pubic hearing. (4) A property owner who has submitled un ~sessmem _~_~l~t may withdraw the ballot a.nd submit a new or changed ballot up until the conclllzion of the public hearing on the (5) A PrOl~rty owner's fail,are to receive art n.s~ssment ballot shall not invalidate the proceedings conducted und~ this section and Section 4, Article XIIID, of the Cniifornia Constitution. G. PIblie Henring. (1) At the public hearing, EVWD's Board of Directors 'shall hear nil public testimony rOgatdin8 the proposed ~-,t,~_ ssmer~ n~l accept ballots until the close ofthe public hearing. (2) EVWD's Board of Directors may impose reasonable time Emits on both the length of'the entire hearing sad the ~ngth of each speaker's teslimony. (3) A~ the conclusion of the hearing, EVWD's General Manager shall complete tabulation of lhe ballots, including those received during thc public hearing, (4) If it is not pos.~ble to tabulate the ballots on thc day of the public hear'rog, or ff ad~lhional t~ is necessary for public testimony, EVWD's Board of Directors may cominue the V pub~ l~ating to a later da~e to re.c~ive addkional testimony. ~o~o~ or to ~ment e~eed t~ ~ots su~tt~ ~ ~vot of ~c ~t, wclght~ a~ordi~ to pro~nio~ ~ obfigafion of~ ~ted ~, a '~o~y pro~t' c~ts ~ EVe's B~d ofD~to~ ~h~ll not ~ Or ~ ~ ~. (6) EVe's ~ard ofD~to~ ~es the rig~ to ~[d ~pro~l of~ ~ojc~ or ~ fo~t~n of~ ~t ~t for ~y to o~ co~ ~w, without q-.!~tio~ o~tio~ or ]e~ re~, ~om ove~ ~n ~or ent~ [o w~h ~ ~ would k ~ ~ EV~. SEC~ON 5. Payment of Un-Funded Projeet C~ts, If E~D's ~d off.tots, ~ the ~royo V~de ~t D~im ~lut~ tk Ge~ ~get ofEV~ w~l ~ au~o~ m ~y the ~fon of the pro~ ~j~[ co~s ~t ~v~ by ~ F~ 'Eom such ~ ~ of Di~om. SEC'YiON 6. Dispo~i of Surpl~ FUnds. ~n[ di~t r~ ~ t~ ~o~nt f~d ~r compEt~n of the Proj~ k d~ of in a ~r de~d ~prop~e by EVe's ~d /// /// /// 10 .aDOPTED thia I I th day of June, 2002. AYES: NOES: ABSENT: Donald D. Ooodin, President ATTF. ST: Martin, S¢cnna~y Attachmants: Exhibit "A" - Preliminary Project Report Exln'bit "B" - Form of Notice Exlfibit "C" - Form of Aase~.~mc~ Ballot Il Exhibit A EAST VALLEY WATER DISTRICT ARROYO VERDE MUTUAL WATER COMPANY WATER SYSTEM IMPROVEMENT PROJECT TABLE OF CONTENTS 1. Background 2. Area 3. Project Description 4. Improvements 5. Proposed Financing 6. Assessments 7. Legal Requirements / Procedures 8. Tentative Schedule 9. Exhibits a) Improvement District Boundary Map b) Plat showing Existing Water and Sewer Systems c) Plat showing Proposed Water System Improvements d) Preliminary Project Cost Estimate e) Preliminary Assessment Diagram f) Preliminary Assessment Roll SECTION 1: BACKGROUND The Arroyo Verde Mutual Water Company was formed on January 19, 1932 for the purpose of "organizing, establishing, maintaining, conducting and carrying on a mutual water company to sell, distribute, supply and deliver water for irrigation purposes and domestic use to the members of this water company". The service area was del'reed, in a resolution dated February 10, 1932, "shares shall be issued to the owners of land situated in the County of San Bernardino, State of California, lying south of Base Line, and located in Tracts Nos. 1979 and 2289". The service area boundary remains the same to this date. At the time of Arroyo Verde Mutual Water Company's incorporation, a water system already existed on the property. It is not clear exactly of what this system consisted. By resolution dated February 10, 1932, the water company accepted the offer of G.W. Wolf and O.W. Yates to transfer all pumps, wells, pipelines, and other equipment for the pumping and distribution of water to the company. Currently the system serves 105 stockholders. The system consists of a well, booster pump and various types of piping in the distribution system. There is no above ground storage for fire protection or domestic supply. The system has not met State Department of Health standards for some time. In October of 1999, the company's well became inoperable; the system is currently functioning with an emergency connection to the East Valley Water District's system, which is adjacent to the Arroyo Verde Mutual Water Company's service area. SECTION 2: AREA The area generally encompassed by the boundaries of the Arroyo Verde Mutual Water Company, (Tract No. 1979 & 2289) consists of approximately 38.5 acres. Within this area there are 134 existing parcels. The existing land uses are: 1. Commercial 4 Parcels 2. Single Family Residences 81 Parcels 3. Multi Family Residences 20 Parcels 4. Vacant- 17 Parcels 5. Currently Served by EVWD 6 Parcels 6. Owned by EVV~D (not included in project) 6 Parcels Total 134 Parcels The three parcels fronting on Baseline Street west of Alamo Road are located within the city limits of the City of San Bernardino, the balance of the parcels within the project are located within the city limits of the City of Highland. The six parcels owned by the East Valley Water District located on both sides of the southerly extension of Alamo Road are currently being used as part of the corporate yard and are not included in the improvement project. Existing improvements within the project area consist of: 1. Street paving, 24' +/- wide with no curb, sidewalks or street lights; 2. Driveway approaches are A.C paving or dirt, no concrete; 3. Sewer system, East Valley Water District owns and operates a sewer collection system within the project area; and 4. Water system, the currently existing water system within the project area is substandard. SECTION 3: PROJECT DESCRIPTION The Project consists of replacing the existing water distribution system ~vithin the company's service area with a system constructed to current East Valley Water 3 District standards. The proposed system will be connected to the existing East Valley Water District system at the west end of Paloma Road, within Baseline Street at Golondrina Drive, and in 9th Street at Golondrina Drive and at Bonnie Street. The proposed system will include Water Mains, Fire Hydrants, Water Service Laterals and Water Meters. All proposed water mains will be located within the public streets. SECTION 4: IMPROVEMENTS The proposed water distribution system will consist of the following: 1. Water Mains - 8" Ductile Iron Pipe per EVWD Standard Specification 2.04; 2. Fire Hydrants - per EVWD standard W - 11; 3. Gate Valves - per EVWD Standard Specification 2.06; 4. Water Service Lines - per EVWD Standard Specification 2.15; and 5. Water Meters - per EVWD Standard Specification 2.17. SECTION 5: PROPOSED FINANCING Typically an assessment project would be funded by the sale of tax exempt municipal improvement bonds. This project, however, lacks the size required to make a bond issue feasible. The East Valley Water District has arranged for a grant and 0% interest loan from the state of California for a portion of the cost of the project. The grant would cover 80% of the allowable costs under the state funding program. The 0% interest loan would cover the remaining 20% of the allowable costs. The East Valley Water District is proposing to loan the assessment district the funds to cover the non-allowable costs of the project. These funds would be loaned at an interest rate of 10% for a term of 10 years. The following is a summary of the "Allowable" and "Non-allowable" costs involved in the project. Allowable Costs: 1. Construction Cost of new distribution system including service laterals to right-of-way, abandonment of existing wells and 15% contingency; 2. Capacity Fees and meter set fees for existing developed lots; 3. Consultant Fees; and 4. East Valley Water District Fees. 4 Non-allowable Costs: 1. On lot service lateral and 15% contingency. Preliminary quantities taken from aerial photograph. Summary: Grant = 80% of allowable costs. 0% Loan = Remaining 20% of allowable costs. 10% Loan from East Valley Water District -- 100% of non-allowable costs. SECTION 6: ASSESSMENTS The total assessment for each parcel generally consist of the following: 1. 20% of allowable costs; 2. 20% of capacity fee and meter set fee; and 3. Non-allowable costs. Note: Vacant parcels are not assessed capacity and meter fees or non-allowable costs. The assessment of the 20% of allowable cost is determined by 2 factors, 50% is based on the average dally demand for the land used as a percentage of the average daily demand for the entire project. 50% is determined by the front footage of the parcel used as a percentage of the total front footage of the project. The assessment of 20% of the capacity and meter set fee ($ 3,013.00) is applied to each parcel now requiring a water service. The non-allowable costs, cost of on-lot piping required to connect each existing unit to the new service lateral at the street right-of-way line, was determined by using an aerial photograph. The actual length of the line was scaled off the photograph, a cost of $25.00 per lineal foot plus a 15% contingency was used to determine the total cost. The Preliminary Assessment Roll shows the total assessment for each parcel. It was assumed that the 0% interest loan was for a term of 10 years and the District loaned the funds for the non-allowable costs at 10% interest with a 10 year term. The monthly payments would be calculated as follows: Monthly Payment-- 20% of Ape + 20% ofCap. Ch + 0.01322 (onsite set lat.) 120 120 For example, the monthly payment for Assessment Parcel No. 1 would be: $1,467.45 + $ 602.60 + 0.01322 ($ 5,520.05) = $ 90.22 The monthly payment for each parcel is shown on the Assessment Roll. Section 7: LEGAL REQUIREMENTS / PROCEDURES One of the requirements of creating an assessment district is that a direct benefit must be shown to each parcel proposed to be assessed a portion of the cost of the project. In this case, the properties within the project area no longer have the benefit of a functioning water distribution system. Even with the temporary connection to the East Valley Water District system, the existing distribution system does not meet current standards. If this situation is allowed to continue, the owners of properties being serviced by the system face the possibility of the properties being condenmed by the Health Department. SECTION 8: TENTATIVE SCHEDULE Using 1911 Act Procedures: 1. Engineer prepares preliminary study; 2. Meetings with EVWD & Arroyo Verde MWC stockholders; 3. Project approved by EVWD Board of Directors & Arroyo Verde stockholders representatives; 4. Engineer prepares Water System Improvement Plans and Engineer's Report; 5. EVWD Board of Directors adopts Resolution of Intention and approves Preliminary Engineer's Report; 6. Record Boundary Map; 7. Advertise for Bids; 8. Disclosures a. Mailing (20 days prior to hearing) b. Advertise c. Posting- Notice on property 9. Accept Bids; 10. Revise Engineer's Report; 11. Conduct Public Hearing of Arroyo Verde Stockholders (min. 30 days from Resolution of Intention); 12. Record Assessment Diagram & Notice of Assessments (may not be necessary when not selling bonds); 13.30 Day Appeal Period; 14. Hold Proposition 218 Election (East Valley Water District customers); and 15. Award Construction Contract for Water System. 6 CITY OF ~ ~ CITY OF HIGHLAND SAN BEI~NAHDINO BASELINE STREET BASELINE STREET EAST VALLEY W~TER DISTRICT ~--~ x o-. ~-- BASELINE STREET Sampl~ Notice of Publlc Hearing TO: Prol~rty OwRt. r of Record Ge~ ~ ~t v~ Wa~r D~ct DA~: S~CT: ~se~t B~t Prating ~g p~ of ~s noti~ ~ to pro,de you ~h the ~o~fion pr~g ~g ~ted by t~ E~ V~ Wat~ D~ ('~V~~) ~ ~ o~t on r~ Wo~Y t~t you o~ ~ ~t~ ~ ~ ~t tO you ~ ~r~ ~th EV~ ~ion 2002.25, S~ion 53753 of~ ~o~ ~o~t ~ode, ~d S~tlon 4(~). ~c~ ~HD ofth~ PI~ ~ ~ed ofth~ fo~ow~: · T~ ~ ~ ~ on ~ fo~g day at time of he~ing on the ~o~sed ~'sessment; hole t~t notice by mail m~l he g~n at le~t 45 ~ys prior to the ~te afl. public hearing on t~ pro~sed ~sessmen~ · ~ ~ of ~ ~g ~: [describe location ofhearin~ ~ rein[al for t~ ~ ~: [explain r~aso~] · Proposed ~ year [insert date] a~essngnt for your parcel: [insert amount] Tht total amount chargeablt to cn6r¢ as~.~aw.~ d~r~t: [insert total amount of a~qe.~smentJ · A.~ssw-~nt duration: [insert duration of assessment payments] · How the a.~n~nt was c,~dculnted: [explain ~asa upon which the amount of the proposed assessment was calculated] E~los~{ v,~kb this uo~.e, you will 6.d an asr,~ssm~n[ To. lot. P~p?. ~ollow t~ dix~cfions on the ~ ~,{!o~ lo express you~ view on ihe proposed I. You ~y mail or d~ver on~ your own ~t to E~D's Gene~l ~anng~ at w~ ~d ~ ~ot ~ ~t ~ ~ [~tio~l: E~h person with a record of ownership Impost in th~ p~per~ m~t ~omplete a separole ballot.] MUST ~ ~iv~ ~t ~ t~ t~ cohesion of the public ~ng on [in. ri d~e of ke~in~ at [l~ert tim~ ofhearln~ p.~ m ~ he~ at [location of hearing. ~yti~ prior ~ t~ ~ion of the pubic ~ you ~y wi~mw you ~ot ~d ~ a ch~ or ~w ~t ~ p~ of~ ~t ~us~ ~b~t~. Only ~llo~ ~ofig~lsi~t~-not p~to~pics of~g~c~ ~1 ~ ~pt~. 4. EVWD's Gen~ ~ ~ not ~t ~r tab. re a ~ot: · w~h ~ a p~t~py ~ut ~ o~ s~e; · ~h ~ 5. ~ ~t ~lot [all~z~tvt ]: ~ a public xecord whi~ ~ll ~ ~m~able foz r~cord whl~ will be ~Jlabl~ for public i~pect~o~ after th~ cool.on of the ballo~ ~oc~tdin~: [alteraa~ve 3: will not be o~n fo~ public inspec~o~ ~ any 6. ~WD's ~ne~ ~n2~ ~ ~ tab-l~t~g ~ts ~or m ~e pu~c ~. ~ ~ ~l~ion of~ pub~ ~ EVe's ~o~ ~er will comp~ of t~ ~ols, ~d&g t~ re~iv~ d~g ~ p~c ~g. If ~ n~ of~ ~ived a ~e ~g ~ such t~ ~ ~ ~t ~ib~ to ~ate~ tab,re the ~is e~, E~D's ~ ofD~to~ ~y ~ the ~g to a ~ ~le for t~ ~ of obt~g the ~ ~t~ 7. EVWD ~ not ~po~ ~e ~t ~ thee ~ a ~ri~ prote~. A pro~e~ ex,ts ~ ~n ~ co~n of~ h~, ~o~ su~ ~ opposh~n to ~t ex~ ~ ~ols mb~ ~ ~or of~ ~. ~ ~ ~ wg~ ~rd~ to ~ pro~io~ ~ oblation of~ ~ffe~ ~o~y. Should you have any quution~ p~ call or w~le to: [n~eJ, [~tle], ~ [address f, [telep~n~ .~r]. Sample Official Ballot Arroyo Verde Assessment Dbtykt A.~essor's Parcel Numl~*r: Property Owaet's N~: ~ope~ O~r's A~: ~opo~d ~t for ~ P~ ~gi~ [i~e~ relevant year] F~I Y~: ~o~ ~e or I~tlon Adjust Fo~: ....... [lf~ed] laatruetion. For Comp~ing and Do~odng Th~ Bal~t To ~pr~ yo~ view on ~ ~o~ ~m ~ ~ ~d [OpHonal: g~h per~n ~th an ~ership ~terest in this pro~ t~t complete a ~ate ballot.] ~t V~ W~ ~t ~tM ~ 1155 ~1 ~ Avenue, ~ Bc~o, ~413. B~ts ~y ~ ~m or de~ed m ~e clerk m ~y t~, ~ ~ST ~ r~e~ ~t I~ ~ ~ml~bn of~ public ~g on ~ pro~ ~s~m ~ ~m ~e set for [dat~. time, and place of public hearing. PL~E E~SS YO~ ~EW BY ~ ~ SI~ B~OW Yo, 1 ap~ove ~e pro~ ~nt ~fi~ a~ve for ~ ~el id~ No, I do not a~ro~ ~ p~ ~m dea~ a~ for ~ p~cel ~ ~ ~ot. ~ $~mlun: o~l~nt O~r Date 00~1 ~ W cq t..,O i. Lirr' ¢~ 03 -q,< ><~0 0 18 o° o° o° § o° o° o° o° OX ~ 18 o° o° o° 8 o° o© o° 8 o° ~ < ~ o = ~ - ~ :~ Z 0 0 o oo ~ o o o ~ o ~o °°° ~ ~ ~o0~ ~ o~0~< O 0 O--z(.D Uj0 ~ 0z Or', ~00 ,, ~ OOw z ~u_ O'r'z -Z~o00 ZZ ZZ Z Z~.~OZZZ ZZ*~Z 0 ~ ~ O0 O0 0 O 0 0 O0 0 0000 ILl Z <~ 0 EAST VALLEY WATER DISTRICT DI _~,,.~,CTOR'S FEES AND EXPENSE P~,rd Meetings: ~,-/., Conferences and Other Meefinqs Date: Organization Description Date: Organization Description Date: Organization Description Date: Organization Description Date: Organization Description Date: Organization Description Date: Organization Description Date: .Organization Description Ill'Date: Organization Description Date: Organization Description Date: Organization Description Date: Organization Description Date:. Organization Description. TOTAL # OF MEETINGS /'iL @125.00 each Personal Auto: Miles x .325 per mile Parking Fees Total Lodqings, Meals & Other: (Details on Back) Total Director's Expenses ~/, ~,~ ~ ./¢//~¢ ,~.,~,/¢ -, Total Director's Meetings & Expenses $ Si¢~d .¢~ Less any Advance Payments Date of Board Approval TOTAL DUE DIRECTOR EAST VALLEY v DIREr'~OR'S FEES AND EXPENSE REPC'-'T ~ V DIRECTOR: sturgeon MONTH OF: May 2002 Mee~nqs Claimed 3,,~.,,Meetlng (Dates). 05/28 Conferences and Other Meetinqs Date: 1 Organization ',4Ri Location San Bernardino Hilton Date: 8 10 Organization ACWA Location Monterey Marriott Date: 22-24 Organization wgP Location Sacramento Airport Date: 7 Orgamzation ACNA Location Monterey Marriott Date: 20 Organization Customer Insight Location San Diego CC Date: Orgamzation Location TOTAL # OF' ME .... ,uS @125.00 each Personal Auto: Date: 10 Function Attended ACWA Miles x per mile $ 23 ·50 Date: 10 Function Attended ACWA Milesx per mile $. 92·68 TOTAL $. 116.18 ~g~.: (Receipts attached) Date: 10 Function Attended ACWA $ 682.66 Date: Function Attended $. TOTAL $ 682.66 Meals: (Receipts attached) Date: Function Attended $ Date: Function Attended $ TOTAL $ Other: --Date: 11/20/O2 Function Attended ACWA ¢"f ¢C>~:'~L/;P--tX.~-_~ $ 250.00 Date: 7 Function Attended ACtA $ 103.50 Date: lO Function Attended ACtA $ 105.00 TOTAL $_ 458.50 SUMMARY: Total Director's Fees (Meetings) $. 1,25o .o~ Total Director's Expenses $. 1,257 · 3, Less any Advance Payments -- $. ~1~ TOTAL DUE DIRECTOR $. 2,b0i.34 Approved Date of Board Meeting M~;~ ~ O~ 08~Sa Ea*t V~l~ ~Jmter Di~s Boa-? ~ ~A~T VALLEY WATER ~6~D ~XpENS~ RBPORT ~n~rmnc~ and O~her M~etino~ D~t,: Oro~niz~lion ........... D~,oripllon ........ ~tm: Organization ........... Description Oa~: Organization ...... Description Data: _ Organization D~crlpiion ........ Dele: ~ ~ Orgen~a~ion Oes~tpli~ Da~: ..... Organ~tlon_ , ..... Oescripti~, Da~: Organization ..... Description Pem~alAuto: ..... Miles x 325 ~arklqg Fees _ ~~ Other: (DelSilS cn Back) ..... Total DPector's Expenses ...' ~_ ~ . . Total Oirec[or's EAST VAI,LEY WA~ DISTRICT DZI~ECTOR'.S FEES AND EXPEIqDE REPORT DIRECTOR: SKIP WILSON ~ OF: ~ ~ 2~2 ~~0~ ....... PEKS A~O,~S~RTA~ON ~: Fu~ S .... ~ .,. ~" S ~., LO~ ........ F~~ .......... ~: .F~fi~ ..... S- - $ $ ~ ~of~M~ ~- ~/-~,,. A~ved ,, EAST VALLEY WATER DISTRICT DIRECTOR'S FEE AND EXPENSES REPORT DIRECTOR: DON GOODIN MONTH May, 2002 Meetin.qs Claimed: Board MeetinRs (Dates) 14,28 Conferences and Other Meetin.qs Date: I Organization: Water Resource M~t Location: CSUB Date: 15 Organization: Water Resource M~t Location: CSUB Date: 19 to 22 Organization: Radon Location: Washington DC Date: 23 Organization: mtg/Bob Location: Tartan Date: 3O Organization: Mtg/Congressman Lewis Location: Lewis Office, Redlands Date: Organization: Location: Date: Organization: Location: Date: Organization: Location: TOTAL MEETINGS 10 X $125.00= $ 1,250.00 Personal Auto Date: Function: Date: Function: Total $ Lod.qin.q Date: Function: Date: Function: Total $ Meals (Receipts) Date: Function: Date: Function: Total $ Other Date: Function: Date: Function: Total $ Total Directors Expenses $ Total Directors Fees (Meetings) $ 1,250.00 Less Advance Payments TOT^, DUE DIRECTOR $ 1,250.00 Signed Approved Date of Board Meeting June 11~ 2001 EAST VALLEY WATER DISTRICT REQUEST TO SPEAK at the BOARD MEETING on Date of Meeting Mrs. Please Print Name A~liation ~ ~ I wish to: [ ] speakin favorof [ ' s,~ '~'~ ~ ask que~ns ~mak~ other comments about~ Following is a ~ho~ explanation for mv request: Q - Please have this form delivered to the Board Secmta~. The Board President will call upon you to speak at the appropriate time. Thank you for your cooperation. EAST VALLEY WATER DISTRICT REQUEST TO SPEAK at the BOARD MEETING on Date of Meeting Address City Zip Code Affiliation I wish 'o: [~ sp e ak in favor of //t/~/~,'"~.~ .&~ ~.~ [ ] speakin opposition of [ ] ask questions or make other comments about Following is a short explanation for my request: Please have this form delivered to the Board Secretary. The Board President will call upon you to speak at the appropriate time. Thank you for your cooperation.,,'~/~~ RESOLUTION 2002.24 A Resolution Of The Board Of Directors Of The East Valley Water District Accepting Pipeline License Agreement from San Manuel Band of Serrano Mission Indians as described in Exhibit "A" and listed in Pipeline License Agreement to obtain water and sewer services from District for certain improvements on property located In The City Of San Bernardino, County Of San Bernardino, State Of California. BE IT HEREBY RESOLVED AND ORDERED that the Pipeline License Agreement dated May 21, 2002, and signed Dy Deron Marquez, Tribal Chairman for San Manuel Band of Serrano Mission Indians as grantor(s) grants to the East Valley Water District, its successors and assigns a Pipeline License Agreement, over, under, through and across the real property described in Exhibit "A", be and the same is hereby accepted for and on behalf of said Water Company. BE IT FURTHER RESOLVED, that a copy of this resolution be attached to said Pipeline License Agreement, and that the same be recorded in the Office of the County Recorder, County of San Bernardino, State of California, and filed in the records of said Board. The foregoing resolution was duly adopted at a meeting of the Board of Directors of the East Valley Water District by motion duly made, seconded and carried on June 11,2002. Ayes: Directors: Noes: Absent: EAST VALLEY WATER DISTRICT Donald D. Goodin, Board President ATTEST: Robert E. Martin, Board Secretary Job No. W2197 jw 6/5/02 REQUESTED BY AND WHEN RECORDED MAIL THIS AGREEMENT AND ALL TAX STATEMENTS TO: San Manuel Band of Serrano Mission Indians 26524 Indian Service Road Highland, CA 92346 Attention: Gil Oviedo Director of Project Development {Above Space for Recorder's Use Only) PIPELINE LICENSE AGREEMENT THIS PIPELINE LICENSE AGREEMENT ("Agreement") is made this day of P.?~?2, 2002, by THE SAN MANUEL BAND OF SERRANO MISSION INDIANS {"Tribe"}, in favor of EAST VALLEY WATER DISTRICT, a public agency ("District"). RECITALS WHEREAS, the Tribe desires to obtain water and sewer services from District for certain improvements located on its property described as stated on Exhibit A {the "Property"); and WHEREAS, District is willing to provide such service and to allow Tribe to have connections for such water and sewer services to those pipelines maintained by the District; and WHEREAS, District requires that Tribe provide it with access to the pipelines after the same are connected to the District's water system so that District may install, maintain, repair, replace, relocate and service the pipelines attached to its water supply and sewer system; and WHEREAS, Tribe's interest in the Property is beneficial, and fee title to the Property is held by the United States of America for benefit of the Tribe; and WHEREAS, as the cestui qui use, Tribe has no power to convey any interest, such as typical utility easements, in the Property to District; NOW, THEREFORE, in consideration of the promises set forth herein, and for other good and valuable consideration the parties agree as follows: TERMS 1. Transfer of License. Tribe hereby transfers to District, its successors and assigns, a non-exclusive irrevocable license coupled with an interest to use the portions of the Property shown on the site plans for Phase I and Phase 2 attached hereto as Exhibits B-1 and B-2 {collectively, the "Site Plan") and incorporated herein by this reference and more particularly described in and shown in the documents attached hereto as Exhibits C-1 and C-2 and incorporated herein by this reference {collectively, the "Pipeline License Area") and a temporary irrevocable license coupled with an interest to use portions of the Property shown in Exhibit "C-3" {the "Temporary Pipeline License Area") to operate, use, reconstruct, remove, replace, alter, add to, repair, and maintain one or more pipelines, together with braces, connections, fastenings, telemetry equipment, and other appliances and fixtures in connection therewith or appurtenant thereto, for the collection of sewage and the transmission and distribution of water and electric power. This irrevocable license coupled with an interest shall include the right of the District to excavate, inspect, and store materials on the surface of the Pipeline License Area, to mark the location of the Pipeline License Area by suitable markers set and maintained in the ground at locations deemed necessary by the District, to temporarily use such lands of the Tribe adjacent to either side of the Pipeline. License Area and the Temporary Pipeline License Area as may reasonably be required by the District in connection with the exercise of the rights granted herein, and to engage in all acts useful or convenient in connection with or incidental to the District's exercise and enjoyment of the rights transferred herein. The rights granted herein to the District are referred to hereinafter as the "License". 2. Term of License. The District and its successors in interest shall have the rights set forth in this Agreement for so long as the License is deemed necessary by the District for its purposes or until this Agreement is terminated by mutual written consent of the parties hereto or their successors in interest; notwithstanding the foregoing, however, the District's License to use the Temporary Pipeline License Area shall expire automatically upon the completion of Phase 2 of the contemplated pipeline (which portion runs under the existing flood control channel). By operation of the express terms of this Agreement and the District's reliance thereon, it is the specific intent of the parties hereto that the License conveyed herein to the District shall be irrevocable such that the Tribe and its successors and assigns are hereby barred and' estopped from taking any action that would revoke or otherwise cause a revocation of the License. Any attempt by the Tribe and/or its successors and assigns to revoke the License shall be void and without any force or effect and shall entitle the District to the recovery of monetary damages therefor and any and all equitable relief deemed necessary to preserve and protect the District's interests herein, including but not limited to the judicial and/or administrative creation of an easement, equitable servitude, and/or covenant running with the land on, under, and/or across the Property. At any 2 time after the completion of Phase 2 of the pipeline, upon request of the Tribe, District shall provide to Tribe written confirmation that the License to use the Temporary Pipeline License Area has terminated and expired pursuant to the terms of this Agreement. 3. Reserved Rights. Tribe's use of the Property, and its grant of any other interest to third parties across, on, or under the Property, shall not hinder, conflict, or interfere with the exercise of the District's rights hereunder, nor shall Grantor engage in any excavation or erect any building, structure, or other obstruction on, under, along, above, or across the Pipeline License Area without the District's written consent, which shall not be unreasonably delayed or withheld 4. Construction of Improvements. At its sole cost, Tribe shall make all of the improvements to the Pipeline Area shown on the list of improvements attached hereto as Exhibit D, which are needed for the District's exercise of the License. 5. Insurance. The District shall procure and maintain in full force and effect public liability and property damage insurance for all of its activities on, under or in the Pipeline Area and all of its improvements constructed thereon. 6. Maintenance. The maintenance and upkeep of the pipeline in the Pipeline License Area shall be performed and paid for by the District. Promptly after performing any excavation, inspection, or other work on District's facilities or equipment located in or on the Pipeline License Area, the District shall restore the surface of the Pipeline License Area to the same condition as existed prior to the District's work, as is reasonably practicable, including, without limitation, cleaning up all equipment and removing all supplies not in use. 7. Entire Agreement. This Agreement contains the entire understanding of the parties hereto with respect to the matters expressly agreed to herein. Any prior oral and written representations or modifications concerning this instrument shall be of no force and effect and are entirely superseded hereby. No written or oral amendment hereto shall bind the parties, excepting a subsequent modification in writing signed by all parties. 8. Attorneys' Fees. In the event any party shall bring legal action to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to recover from the losing party reasonable expenses, attorneys' fees and costs as part of its judgment. 9. Binding Effect. This instrument shall bind and inure to the benefit of the respective heirs, personal representatives, successors and assigns of the parties. 3 10. Not a Public Dedication. Nothing herein contained shall be deemed to be a gift, transfer or dedication of any right to use any portion of the Pipeline Area or of Tribe's property to the general public, other than to the extent the general public may have a claim through its interest in, through and under the District, its successors and assigns, it being the intention of the parties that this Agreement shall be strictly limited to and for the purposes herein expressed. 11. Breach Shall Not Permit Termination. It is expressly agreed that no breach of this Agreement shall entitle either party to cancel, rescind or otherwise to terminate this Agreement, or the License, but such limitation shall not affect in any manner, any other rights or remedies which such party may have hereunder by reason of any breach of this Agreement. 12. Approval and Recordation. This Agreement shall be effective upon execution and delivery by the Tribe and the District regardless of whether it is ever recorded. The Tribe shall exercise all commercially reasonable efforts to obtain written approval of this Agreement by the Bureau of Indian Affairs of the United States of America (the "Bureau"), which is the holder of fee title to, but is not beneficial owner of, the Property. The parties hereto shall exercise all commercially reasonable efforts to cause this Agreement to be recorded in the Official Records of the Office of the Recorder of the County of San' Bernardino, State of California (the "Recorder"). Each party hereto shall indemnify, defend, and hold the other party and its officers, directors, agents, and employees harmless from any and all claims, losses, damages, and liabilities arising out of the acts or omissions of said indemnifying party in connection with its use of the Property. Notwithstanding the above, should the Agreement fail to be recorded with the Recorder, or the Bureau fail to furnish written approval thereof, the Tribe shall indemnify, defend, and hold the District and its officers, directors, agents, and employees harmless from any and all claims, losses, damages, and liabilities arising out of this Agreement, including but not limited to the failure of this Agreement to be approved by the Bureau and/or recorded by the Recorder. 13. Validity and Severance. If any clause, s~ntence or other portion of this Agreement shall become illegal, null or void for any reason, or shall be held by any state or federal court of competent jurisdiction to be so, the remaining portion hereof shall remain in full force and effect. 14. Notices. Notices and demands required or permitted to be given hereunder shall be given by registered or certified mail and shall be addressed as follows: [signatures continued on next page] 4 If to Tribe: San Manuel Band of Serrano Mission Indians 26524 Indian Service Road Highland, CA 92346 Attn: Gil Oviedo Director of Project Development Fax Number: (909) 864-3370 If to District: East Valley Water District P.O. Box 3427 1155 Del Rosa Avenue San Bernardino, CA 92413 Attn: General Manager Fax Number: (909) 889-5732 or at such other address as any party shall designate by written notice to the other. Notices and demands shall be deemed to have been given seventy-two (72) hours after depositing same into the United States Mall, postage prepaid. IN WITNESS WHEREOF, the parties hereto have executed this instrument the day and year first above written. "Tribe": SAN MANUEL BAND OF SERRANO MISSION INDIANS Its: Tribal Chairman "District": EAST VALLEY WATER DISTRICT, a public agency Its: 5 Attachments Exhibit A Legal Description of Tribe's Property Exhibit B-1 Water Improvement Plan Phase 1 Exhibit B-2 Water Improvement Plan Phase 2 Exhibit C-1 Legal Description and Map, Phase 1 Exhibit C-2 Legal Description and Map, Phase 2 Exhibit C-3 Legal Description and Map, Temporary Pipeline License Area Exhibit D List of Improvements [AcknowIedgments follow on next page.] 6 Acknowledgements STATE OF CALIFORNIA ) ) COUNTY OF SAN BERNARDINO ) On~.a---.~', 2002 before me, ~2 ._7.~/~,, _ ~./.-~ , a Notary Public irk and for said County and State, personally appeared ])¢/aOA/ /~tf'~'~_.'z_ , personally known to me (or proved to me on the basis of satisfacttSry evidence) to the be person(s) whose name(s) is/are subscribed to the within Instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the Instrument, the person(s), or the entity on behalf of which the person(s) acted, executed the Instrument. WITNESS my hand and official, seal; [Signature] ~ /~/ ~ [This area for official notarial seal) STATE OF CALIFORNIA ) ) COUNTY OF SAN BERNARDINO ) On April __, 2002 before me, , a Notary Public in and for said County and State, personally appeared ., personally known to me (or proved to me on the basis of satisfactory evidence) to the be person(s) whose name(s) is/are subscribed to the within Instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the Instrument, the person(s), or the entity on behalf of which the person(s) acted, executed the Instrument. WITNESS my hand and official seal; [Signature] (This area for official notarial seall ~, 7 Approved for recordation by the Bureau of Indian Affairs of the United States of America BUREAU OF INDIAN AFFAIRS SOUTHERN CALIFORNIA AGENCY By: Its: STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) On April __, 2002 before me, , a Notary Public in and for said County and State, personally appeared ., personally known to me {or proved to me on the basis of satisfactory evidence) to the be person(s) whose name(s) is/are subscribed to the within Instrument and acknowledged to me that he/she/they. executed the same in his/her/their authorized capacity(les), and that by his/her/their signature(s) on the Instrument, the person(s), or the entity on behalf of which the person(s) acted, executed the Instrument. WITNESS my hand and official seal; [Signature] (This area for official notarial seal) 8 EXHIBIT "A" LEGAL DESCRIPTION OF TRIBE'S PROPERTY SAN MANUEL RESERVATION - ATTACHMENT NO. 1 TITLE DOCUMENTS: (1) Trust Patent issued August 31, 1893, to San Manuel Band for lands described as: All of Section 20, T. 1 N., R. 3 W., SBBM, California, containing 640 acres. (2) Grant Deed executed March 14, 1907, by McClallan and Lillian Yorke to the United States for lands described as: Beginning at the northwest corner of Section 29, T. 1 N., R. 3 W., S.B.B.M., proceed south along the section line between Sections 29 and 30 a distance of 725 feet; thence east 412.5 feet, thence northwesterly 752.2 feet ~o the north line of said Section 29; thence west along said section line 212 feet to point of beginning, containing 5.13 acres. (3) Grant Deed executed April 3, 1908, by R. L. and Laura E. Rutherford to the United States for lands described as: Beginning at a point 212 feet east of the northwest comer of Section 29, T. 1 N., R. 3 W., SBBM, on the line between sections 20 and 29; proceed 8.28°46'E. 131.5 feet; thence S.87°32'E. 580.0 feet; thence S.12°18'E. 150.0 feet; thence 8.63°49'E. 232.0 feet; thence N.66°05'E. 240.0 feet; thence N. l°05'E. 525.0 feet to the north line of said Section 29; thence west along said section line to point of beginning, containing 7.5 acres. (4) Quitclaim Deed executed February 4, 1941, by William E. and Edna May Bromilow to the United States for lands described as: Beginning at a point 174.55 feet south and 259.63 east of the corner of Sections 19, 20, 29 and 30, T. 1 N., R. 3 W., SBBM, proceed N.89°17'E. 170.01 feet, thence S.74°17'38'E., 265.59 feet; thence S.45°32'38"E. 198.70 feet; thence S.33°47'22"W. 10.35 feet; thence S.47°42'38'E. 219.20 feet; thence N.78°23'22"E. 241.70 feet; thence N.14°27'22"E. 507.01 feet; thence N. 89°58'35'W. 1,134.68 feet to a point on the north line of said Section 29; thence S. 15°06'38"E. 181.33 feet to point of beginning, containing 8. 197 acres. (THIS IS A QUITCLAIM TO ALL OF THE LANDS DESCRIBED IN ITEM (3) ABOVE, PLUS AN ADDITIONAL 0.522 ACRE.) (5) Quitclaim Deed executed February 5, 1941, by Joseph E. and Lew E. Trueler to the United States for the same lands described in Item (4) above. EXHIBIT "A" (6) Grant Deed executed February 4, 1985 by Thomas d. Miller to the United States of America in trust for San Manuel Band of Mission Indians for lands described as: The east 1/2 of Lot 6, Block 16, West Highland, as per plat recorded in Book 5 of Maps, Page 77, records of said County. Excepting therefrom that portion conveyed to the San Bernardino Valley Municipal Water District by Deed recorded November 12, 1974 in Book 8555, Page 260, Official Records, described as follows: Commencing at a 2" Iron Pipe tagged R. E. 9876 at the northwest corner of Tract No. 6513, as per plat recorded in Book 84 of Maps, Pages 35 and 36, records of said County; thence north 89°37'35" east, 429.98 feet along the north line of said Tract No. 6513 to a 2" Iron Pipe tagged R. E. 9876 at the northeast corner of said tract; thence south 0°29'55'' east 30.98 feet to point "A"; thence south 56°47'25" east, 409.97 feet to the beginning of a tangent curve, concave southwesterly, and having a radius of 1000.00 feet; thence southeasterly 327.95 feet along the arc of said curve through a central angle of 18°47'25"; thence tangent to said curve south 38°00'00'' east, 39.19 feet to Point "B'; thence continuing south 38°00'00" east, 44.55 feet to Point "C"; thence continuing south 38000'00'' east 564.76 feet to Point "D"; thence continuing south 38°00'00'' east 104.22 feet to Point "E"; thence continuing south 38°00'00'' east 144.20 feet to Point "F"; thence continuing south 38°00'00'' east, 20.47 feet to the true point of beginning; thence south 52°00'00" west, 15.99 feet to the west line of said Smiderle et ux.,. land; thence south 0°00'07'' east 95.18 feet along said west line; thence north 52°00'00'' east, 84.59 feet; thence north 38°00'00" west, 75.00 feet; thence south 52o00'00'' west, 10.00 feet to the true point of beginning, containing 4.78 acres. (7) Quitclaim Deed executed February 11, 1994 by Norma Manzano, Tribal Chairperson to The United States of America, in trust for the San Manuel Band of Mission Indians for lands described as: PARCEL NO. 1: Parcels 1 through 19, inclusive and Lots A through G, inclusive, and Lot I and d of Parcel Map No. 11819, in the City of San Bernardino, County of San Bernardino, State of California, as per Plat recorded in Book 130 of Parcel Maps, Pages 100 through 107, inclusive of Parcel Maps, records of said County and amended by Plat recorded in Book 150 of Parcel Maps, Pages 58 through 65, inclusive, records of said County. EXCEPT all mineral deposits as defined in Section 6407 of the Public Resources Code below a depth of 500 feet, without surface rights of entry, as reserved by the State of California, in deed recorded May 28, 1985, Instrument No. 85-126147, Official records. EXCEPTING therefrom that portion conveyed to Jack Widmeyer, Trustee of the Jack R. Widmeyer separate property revocable trust, established December 7, 1991, by deed recorded March 31, 1993, Instrument No. 93-040057, Official records, described as follows: All that portion of Parcels 15, 18 and Lot "E' of amending Map of Parcel Map No. 11819, in the County of San Bernardino, EXHIBIT "A' State of California, as per Plat recorded in Book 150 of Parcel Maps, Pages 58 to 65, inclusive, records of said County, described as follows: Beginning at a point on the east line of said Parcel Map No. 11819, said point being North 00 Deg. 37' 24" East, 220.00 feet from the southeast corner of said Parcel Map No. 11819; thence North 07 Deg. 05' 26" West, 700.31 feet; thence North 07 Deg. 04' 22" East, 231.46 feet; thence North 30 Deg. 09' 44" East, 137.93 feet to a point on the east line of said Parcel Map, said point being North 00 Deg. 37' 24" East, 1043.97 feet from the point of beginning; thence South 00 Deg. 37' 24" West, 1043.97 feet to the point of beginning. PARCEL NO. 2: Lot B, Tract No. 12949, in the City of San Bernardino, County of San Bernardino, State of California, as per Plat recorded in Book 189 of Maps, Pages 94 through 97, inclusive, records of said County. EXCEPTING therefrom Lot B of Parcel Map. No. 11819, as per Map recorded in Book 130, Pages 100 through 107, inclusive of Parcel Maps, records of said County. EXCEPT all mineral deposits as defined in Section 6407 of the Public Resources Code below a depth of 500 feet, without surface rights of entry, as reserved by the State of California, in deed recorded May 28, 1985, Instrument No. 85-126147, Official records. PARCEL NO. 3: Parcel 1 of Parcel Map No. 14006, in the City of San Bernardino, County of San Bemardino, State of California, as per Plat recorded in Book 164 of Parcel Maps, Pages 76 and 77, records of said County. PARCEL NO. 4: An easement for ingress and egress, described as follows: That portion of the Northeast 1/4 of the Northwest 1/4 of Section 29, Township 1 North, Range 3 West, San Bernardino Base and Meridian, described as follows: Beginning at the Southeast corner of said Northeast 1/4 of the Northwest 1/4 of Section 29; thence along the east line of said Northeast 1/4 of the Northwest 1/4 of Section 29, North 00 Deg. 44'30" East, a distance of 118.23 feet; thence southerly along the arc of a curve southeasterly, having a radius of 225.00 feet concave through a central angle of' 23 Deg. 23'05", a distance of 91.83 feet; thence tangent to said curve South 00 Deg. 06'40" West, a distance of 28.75 feet to a point on the south line of the Northeast 1/4 of the Northwest 1/4 of Section 29; thence along the south line of said Northeast I/4 of the Northwest 1/4 of Section 29, South 89 Deg. 18'28" East, a distance of 17.18 feet to the Point of Beginning. Containing 40.95 Acres. EXHIBIT "A" ADDITIONS TO RESERVATION: Authority: Grant Deed (Seller: McClellan and Lillian Yorke) Date: March 14, 1907. Acreage: 5.13 Description: (See Item (2) of Attachment No. 1.) Authority: Grant Deed (Seller: R. L. and Laura B. Rutherford) Date: April 3, 1908. Acreage: 7.5 Description: (See Item (3) of Attachment No. 1) Authority: Quitclaim Deeds (Executed by William E. and Edna May Bromilow, and Joseph E. and Lew E. Trueler.) Date: February 4 and 5, 1941. Acreage: 0.522 Description: (See Item (4) and (5) of Attachment No. 1) Authority: Grant Deed (Grantor: Thomas J. Miller) Date: February 4, 1985 Acreage: 4.78 Description: (See Item (6) of Attachment No. 1) Authority: Quitclaim Deed (Grantor: San Manuel Band of Mission Indians) Date: February 11, 1994 Acreage: 40.95 Description: (See Item (7) of Attachment No. 1) EXHIBIT "A' 212 LF EX. EVWD 12" WATERLINE TO BE ABANDONED v EXHII~I' B-1 PROPOSED PHASE 1 WATER IMPROVEMENT PLAN WATERLINE PI-I~$E 1 278 ~ __ __ 150 LF 16' DIP WA1ERUNE TO BE ABANDONED ~,, EXHIBIT B-2 ......w^~,U,E WATER IMPROVEMENT PLAN PHASE 1 ~.,o, osE[~ w~,u.~ PHASE 2 PHASE 2 · EXHIBIT "C- 1" LEGAL DESCRIPTION A 30 FOOT WIDE EASEMENT FOR WATERLINE PL~POSES OVER A PORTION OF TIlE EAST ONE-HALF OF LOT 6. BLOCK 16 OF THE MAP OF WEST HIGHLANDS, [N THE CITY OF SAN BERNARD[NO, COUNTY OF SAN BERNARD[NO, STATE OF CALIFORNIA, AS PER PLAT FILED IN BOOK 5, PAGE 77 OF MAPS, IN THE OFFICE OF THE COU~'NTY RECORDER OF SAID COUNTY, TIKE NORTHEASTERLY LINE OF SAID EASEMENT BELNG PARALLEL WITH AND DISTANT 55.00 FEET NORTHEASTERLY FROM THE CENTERL[NE OF THAT CERTAIN 50.00 FOOT WIDE WATERLI?4E EASEMENT GRANTED TO SAN BERNARD[NO VALLEY MU'NIC~AL WATER DISTRICT IN BOOK 8265, PAGE [20 OF OFFICIAL RECORDS OF SAID COUNTY. TFIE SIDELEVES OF SAID EASE~V[ENT ARE TO BE SHORTENED OR LENGTHENED TO TERM[NATE NORTHWESTERLY AT THE WESTERLY LINE THE EAST ONE-HALF OF SAID LOT 6 AND SOUTHEASTERLY AT THE EASTERLY LkNE OF SAID LOT 6. CONTAIN[NG: l [,563 SQUARE FEET MORE OR LESS PREPARED BY 1VIE OR UNDER MY SUPERVISION: ANN,~'M. BEAL. P.L.S. 4955 DATE EXPIRES 12/31/01 Page 't of 2 REVISED 1Z/13/01 p:SU RVEY~N NA\HIGH[,.N~ D~ENCUMBRANCES~DWG\E_WATE M ST OOC i ~ ~,u,~s~r.r. SOU,,~V.~D~EXHIBIT "C-i" Ne~'5~W' ~ ~36.~' 198.~' 2~7.57' ,.~ ;~ ,~;. ~ .-~ ", M. ~ ~1.25 ~ No 4~55 / 7.5~ '- ~ ~ 15' ~ ~ ~14'3~ ' ' R=8~.~" ~ ~ ~ L=87.15' ' ~. ~ B~ ~O O~ ~9.17 2~.17' H~EON ~E ~ ~ 57~3(' RE~ ~TA P~ R.S, 78/32. ~,~' ~ 274,~' ~F~'~W 81g.~' SH~ 2 OF 2 L~OOO ~ (~ ~ ~ ~ ~UEL IND~ RESERVATION '~ ~ Rasg~ FOE WA~ P~P0SES ~ a~0~ E I/Z LOT ~, BLOCK 18 TO ~ Y~ WA~ DI~ S~T~ ~ ~ e~7~ ~ 11,5~ ~. ~. ~ (~+) ~ A.P.N. 285-155-16 · EXHIBIT "C-2" LEGAL DESCRIPTION A 30 FOOT WIDE EASEMENT FOR WATERLINE PURPOSES OVER A PORTION OF LOT 6. BLOCK I6 OF THE MAP OF WEST H2GffLANDS, IN THE CITY OF SAN BERNARD[NO, COD,'NTY OF SAN BERNARD[NO. STATE OF CALIFORNIA, AS PER PLAT FILED IN BOOK 5, PAGE 77 OF MAPS. IN THE OFFICE OF THE COUNTY RECORDER OF SAID COb~'qTY. THE NORTHEASTERLY LINE OF SAID EASEMENT BEING PARALLEL WITH Ab,rD DISTANT 55.00 FEET NORTHEASTERLY FROM THE CENTERLILNE OF THAT CERTAIN 50.00 FOOT WIDE WATERLff4E EASEM:ENT GRANTED TO SAa"q BERNARD[NO VALLEY MUNICIPAL WATER DISTRICT IN BOOK 8265, PAGE t20 OF OFFICIAL RECORDS OF SAID COUNTY. EXCEPTLNG THEREFROM THE EAST ONE-HALF OF SAID LOT 6. THE SIDELINES OF SAID EASEMENT ARE TO BE SHORTENED OR LENGTHENED TO TERMINATE NORTHWESTERLY AT THE NORTHERLY LINE OF SAID LOT 6, AND SOUTHEASTERLY AT THE WESTERLY LINE OF THE EAST ONE-HALF OF SAID LOT 6. CONTAINING: 1,957 SQUARE FEET MORE OR LESS PREPARED BY ME OR UNDER MY SUPERVISION: ANNA M. BEAL, P.L.S. 4955 DATE EXPIRES 12/31/01 E..,..L // Page 1 of 2 REVISED 12J13101 p SURVE'i~ANNA\HIGHLANO\ENCUMBRANCE$\OWG\W_WATEMST OOC · .. k, k k  ~ ~ FOR UA~ P~POSES ~ O~BED~ ~ I/2 LOT 8, BLOCK 16 · EXHIBIT "C-Y' LEGAL DESCRIPTION A 20.00 FOOT WIDE EASEMENT FOR WATERLINE PURPOSES OVER A PORTION OF THE EAST O~XfE-HALF OF LOT 6, BLOCK 16 OFTHE MAP OF WEST F[IGHLANDS. IN Tt-[E COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA. AS PER PLAT FILED IN BOOK 5, PAGE ?? OF MAPS, IN THE OFFICE OF TF[E COUNTY RECORDER OF SAID COU~NTY, THE CENTERLkN'E OF WI[ICH IS DESCRIBED AS FOLLOWS: COMMENCD~G AT THE NORTHEAST CORNER OF THE LOT 6 OF SAID BLOCK 16; THENCE ,&LONG THE NORTF[ERLY LINE OF SAID LOT SOUTH 89046'50'' WEST 18'/.50 FEET TO THE TRUE POINT OF CO~IENCEbIENT; THENCE LEAVING SAID NORTHERLY LINE SOUTH 0033'06TM WEST 91.30 FEET MORE OR LESS TO ITS INTERSECTION WITH A LINE THAT IS PARALLEL WITH AND DISTANT 55.00 FEET NORTHEASTERLY FROM THE CENTERLINE OF THAT CERTAIN 50.00 FOOT WIDE WATERLI1NE EASEMENT GRANTED TO SAN BERNARDINO VALLEY MUNICIPAL WATER DISTRICT IN BOOK 13265, PAGE 120 OF OFFICIAL RECORDS OF SAID COUNTY. THE SIDELINES ARE TO BE SHORTENED OR LENGTHENED TO TERMINATE" NORTHERLY AT THE NORTHERLY LINE OF SAID LOT 6, AND SOUTHERLY AT A LINE THAT IS PARALLEL AND DISTANT 55.00 NORTHEASTERLY FROM THE CENTERLINE OF THAT CERTAIN 50.00 FOOT WIDE WATERLINE EASEMENT GRANTED TO SAN BERNARDINO VALLEY MUNICIPAL WATER DISTRICT IN BOOK 8265, PAGE 120 OF OFFICIAL RECORDS OF SAID COUNTY. CONTAINING: 1,826 SQUARE FEET MORE OR LESS PREPARED BY ME OR UNDER MY SUPERVISION: ANNA M. BEAL. P.L.S. 4955 DATE Page I of 2 REVISED 12/13/01 p: SU RVE¥~ANNA',HIGHL,~ND\ENCU MBRANCES~OwG\T~M F'WAT~ MST DOC ~ MARSI-I.~LL BOULEVARD ~ EXHIBIT "C- 3 NSg'48'50'W ~ 401.,.q.' ~ .4.1.7§'~ 192.00 T.P. ~ 27g.02 lg8.~3' N 237.57' 15' % ~14'~ ~ ~ R=~.~' ~' ~ ~ .~x~' ~ ~ ~ ~ ~ ~1'=1~ H~ ~ ~ U~ C~O00 TO ~ V~ WA~ ~ (?~4) ~7~ AP.N. 285-153-16 EXHIBIT "D" LIST OF IMPROVEMENTS PROJECT DESCRIPTION The proposed project will comprise of two phases construction, as follows: Phase 1: Construction of approximately 512 linear feet of 16 inch diameter ductile iron pipe (DIP) waterline and appurtenances, connecting the existing 12- inch waterline in Marshall Boulevard, east of Sand Creek Channel, to the existing 12-inch waterline in Victoria Avenue north of Piedmont. From the 12-inch waterline in Marshall Boulevard, the proposed 16-inch DIP will extend south for approximately 150 feet, in a 20-foot wide easement, thence, turn and extend in a southeast direction in a 30-foot wide easement to join the existing 12-inch waterline in Victoria Avenue. After completion and acceptance of the 16-inch DIP, approximately 212 linear feet of the existing 12-inch water in Marshall Boulevard between the 16-inch DIP and Victoria Avenue, will be abandoned. Phase 2: Construction of approximately 165 linear feet of 16-inch DIP and appurtenances in Marshall Boulevard, and abandonment of approximately 150 linear feet of 12-inch waterline in order to provide clearance for the construction of a new concrete lined channel (realignment of Sand Creek Channel). Then after completion of the new channel construction, construction of approximately 185 linear feet of 16-inch DIP and appurtenances in the proposed 30-foot easement across the existing Sand Creek Channel, and the abandonment of approximately 128 feet of 12-inch waterline at the dip crossing under the existing Sand Creek channel. EXHIBIT "D" East V ° ey Water District M oh =ooo MEMO~NDUM ~ ~ To; Board of Directors ~ From: Robe~ E. Matin / r- ~ Subject: Bo~d Policy on Dkectors Reimbursement of Fees and Expenses The following is sta~s underst~ding of the Board's current policy reg~ding reimbursement for Board members meeting fees ~d expenses: Fees 1. Each Board Member is authorized to charge up to $ I00 per meeting, up to a maximum of ten meetings per month. If more than one meeting occurs during one day they are treated as one meeting. 2. Reimbursable meetings may include, but are not limited, to the following: Regular Board Meetings, Special Board Meetings and/or Public Hearings conducted by the EVWD Board of Directors. Attendance at Board authorized seminars, short courses, workshops, conferences and institutes. Other Agency meetings at which Board Members attend on behalf of East Valley Water District, i.e., Exchange Plan, LAFCO, San Bernardino County Special Districts, Muni, Board of Supervisors, etc. EVWD Committee Meetings or Special Workshops/Tours Attendance at Conferences, Committee Meetings or Workshops conducted by organizations to which the District belongs (ACWA, AWWA, CMUA, Special Districts, etc.) Meetings with the General Manager by individual Board Members to discuss specific projects being conducted by the District or other issues of concern by that Board Member. The President of the Board of Directors is understood to have broad discretion in the attendance of meetings with staff or other agencies for the purpose of representing the District's interests. March 30, 2000 Board Policy Page Two Expenses 1. Each Board Member, excepting the Board President, is authorized a maximum of $5,000 per fiscal year for travel, meals, lodging and registration fees. 2. The Board President is authorized a maximum of $6,000 per fiscal year for travel, meals, lodging and registration fees. 3. In the event the Director assumes his seat during any part of the fiscal year the full respective limit shall apply~ Director's fees are not included in these specified expense limits. 5. The District pays for all memberships, dues and subscriptions approved by the Board. These costs are not chargeable as Directors expenses. 6. Directors may participate in the District's Health, Dental, and Life insurance pro,ams. These costs are not chargeable as Directors expenses. 7. Board Members may participate in the Public Employees Retirement System. These costs are not chargeable as Director's expenses. 8. The Board can approve expenditures above the authorized limit on a case by case basis. 9. Travel expenses for Special Projects identified as the District's Perchlorate Research Program and its regulatory efforts involving the Radon Rule are exempt from Board Members individual expense allocations. 10. Alcoholic beverages are not a reimbursable expense. Travel 1. The District will reimburse mileage expenses for travel, not to exceed the cost of direct coach air fare REM: etb East Water District March 31, 2000 MEMORANDUM To: Board of Directors/~ From: Robert E. Martin Subject: Board Expenses and Fees I recently met with an Ad-Hoc Committee of the Board (Directors Goodin and Lightfuo0 to discuss the Board's policies on fees and expenses. The Ad-Hoc Committee reviewed year-to-date summaries of expenses for both Board Members and staff. A broad range of issues were discussed pertaining to Board expenses and fees. The Committee developed five separate recommendations for the Board to consider. A brief summary of these recommendations is as follows: 1. Increase the annual expense for each Board Member to $6,000 per year, with the Board President receiving a budget allocation of $7,000 per year. 2. Increase the Meeting Fee for each Board Member to $125 per meeting. 3. Establish a line item in the Budget for Board of Directors training and education. This budget allocation would be to cover the cost of Directors attending seminars or conferences that are deemed by the Board to provide training and/or education for a Board member. The initial recommendation would be to set this allocation at $5,000 per year which would be available for any Board Member to use. The specific approval for expenditure of these funds would be made by the Board on a case by case basis. 4. The Committee recommended that a mechanism be put in place to allow one Board Member to travel on behalf of a second Board Member in the event scheduling conflicts arise. In other words, if Board Member A has committed to attend a meeting and requests Board Member B to attend in his or her place, then Board Member B's travel expenses would be charged to Board Member A's budget. This type of arrangement would, of course, require the consent of both Board Members prior to initiating any travel arrangements. 5. The Committee also discussed expenses for the Districts Special Projects (Perchlorate and Radon). In essence, the Board has identified these two projects as Special Projects for which a Board Member's travel expenses Expenses and Fees March 31, 2000 Page Two are not charged to their individual expense budgets. The committee's recommendation was to establish a separate budget line item for each of these two projects which would be used for both Board and staff travel expenses. The Committee directed staff to develop an appropriate recommendation to the Board for what this annual budget line item should be. A specific recommendation would be made to you for each project at the time the draft Budget is presented at our annual budget worksh6p. The Committee also discussed specific policy provisions with regards to the special project expenditures. There was some discussion about the number of Directors that should be attending these meetings as well as the mechanism that is needed for authorizing specific expenditures by both the Board and the staff. It is my understanding that the Committee wished to have these items brought before the full Board for review and further discussion. Enclosed for your review is a policy memo summarizing my understanding of the Board's current position on the reimbursement to Directors for fees and expenses. Also included for your review is a copy of Ordinance #346, which was adopted by the Board in February of 1990. This Ordinance sets forth the conditions under which Directors of the District are reimbursed for their meetings. As I have stated in the past, the establishment of expense limits and rules for Board Member travel is strictly a Board Policy matter. You, the Board, have the ability to set your own roles in this matter and to change those rules at any time. REM: etb Enclosed as noted REVIEW OF BOARD POLICY ON DIRECTORS' REIMBURSEMENT OF FEES AND EXPENSES. Director Goodin read and defined each line item set forth in the General Manager's memo on the subject. Director Wilson requested that the District's Budget identify Director's travel as an item and Staff's travel as an item. President Lightfoot stated that Staff's travel was already identified in the Budget but that the Director's was not and agreed that the Director's travel should also be added as a separate item in the Budget. Line Item #3: President Lightfoot stated that certain meetings should not qualify as "educational" and that more emphasis needs to be placed upon Personnel Law education and that training should be kept locally to eliminate hotel, airfare, etc. Line Items #4 & #5: President Lightfoot stated that these could be incorporated into the District's Budget. Line Item #2: Legal Counsel stated that a Public Hearing would be required to alter Board Member's fees. M/S/C (Wilson-Negrete) that Legal Counsel and Staff prepare the necessary documents to increase Board Member's fees to $125.00. DIRECTOR STURGEON VOTED NO. M/S/C (Wilson-Negrete) that the proposed Items 1,3, 4 and 5 be approved and incorporated into the District's Budget. DIRECTOR STURGEON VOTED NO. AGREEMENT TO ADJUST BOUNDARIES AND RELOCATE WATER FACILITIES THIS AGREEMENT TO ADJUST BOUNDARIES AND RELOCATE WATER FACILITIES ("AGREEMENT") is made this day of , 2002, by and between EAST VALLEY WATER DISTRICT, a public agency (hereinafter "the DISTRICT"), and S-P EAST HIGHLANDS, LLC, a limited liability company qualified to do business in the State of California (hereinafter "the DEVELOPER"). RECITALS A. The DISTRICT is organized and operating pursuant to California Water Code Section 30000 et seq. B. The DISTRICT currently owns a site on which a water tank and certain related water facilities are located which site consists of approximately 1.53 acres and is legally described in the quitclaim deed attached hereto as Exhibit "A" ("Plant 108 Parcel"). C. The Plant 108 Parcel is surrounded by land owned by DEVELOPER which is intended for development with residential lots and will be subdivided for that purpose upon recordation of a final subdivision map that is substantially similar to Tentative Tract Map No. 16068, a copy of which is attached hereto as Exhibit "B" ("Tract 16068"). D. DEVELOPER has requested the DISTRICT to agree to adjust certain boundary lines between the Plant 108 Parcel and Tract 16068, and to allow DEVELOPER to conduct grading and the relocation and enhancement of certain utilities, access road, fences and other appurtenant facilities currently located both inside and outside the existing boundaries of the Plant 108 Parcel. Such work (collectively, the "Relocation Work") is more particularly described in Section 2 below. The Relocation Work is anticipated to allow the DISTRICT to operate the Plant 108 Parcel more efficiently, thereby reducing furore maintenance expenses. E. The DISTRICT is willing to adjust the boundaries between the Plant 108 Parcel and Tract 16068 in accordance with the legal description contained in the grant deed attached hereto as Exhibit "C", provided that (i) the boundary adjustment is undertaken and completed by DEVELOPER at its sole expense; (ii) DEVELOPER undertakes and pays for all Relocation Work; and (iii) DEVELOPER conducts the Relocation Work in a manner that does not result in any interruption of service to the customers currently served by the Plant 108 Parcel, or damage to any other improvements within the Plant 108 Parcel. F. The parties acknowledge that DEVELOPER contemplates the sale of its property which comprises Tract 16068 prior to the completion of the Relocation Work hereafter described. In such event, DEVELOPER shall assign its rights and delegate its obligations to exchange deeds under Section 1 of this Agreement to the Buyer of Tract 16068 ("Assignee"), but DEVELOPER shall retain all rights and obligations of DEVELOPER with respect to the Relocation Work under Sections 2 through 9 of this Agreement, and all other obligations of DEVELOPER under this Agreement. Following notice to DISTRICT of DEVELOPER'S sale of Tract 16068 and assignment to Assignee of its rights and obligations under Section 1 of this Agreement, the DISTRICT shall look solely to DEVELOPER (and not to Assignee) for the 094/0t$310-0003 completion of the Relocation Work and DISTRICT agrees that the Assignee shall have no responsibility to perform any of the Relocation Work. COVENANTS NOW, THEREFORE, in consideration of the preceding Recitals and the mutual covenants contained herein, the parties hereto agree as follows: 1. AGREEMENT TO ADJUST BOUNDARY LINES. The adjustment of the boundaries of the Plant 108 Parcel shall be accomplished by means of an escrow to be opened at First American Title Company located at 323 Court Street, San Bernardino, CA 92412 ("Escrow Holder") promptly following both (i) execution by both parties of the Agreement; and (ii) the written notice of DEVELOPER, or its assignee, to DISTRICT advising of the anticipated date for recordation of the "Final Map" (as defined below) and whether DEVELOPER or Assignee will hold fee title to Tract 16068 upon recordation of the final map. Immediately upon the opening of the Escrow, DEVELOPER, or its assignee, shall deposit with Escrow Holder a fully and duly executed original of (a) the Grant Deed attached hereto as Exhibit "C" and any other documents necessary to convey fee title to the reconfigured Plant 108 Parcel to the DISTRICT ("Grant Deed") free and clear of all liens, other than for taxes and assessments not yet payable, and of all easements and encmnbrances not previously approved by the DISTRICT, and (b) the Final Map for Tract 16068 ("Final Map"), which shall be substantially similar in form and content to Tentative Tract Map No. 16068, a copy of which is attached hereto as Exhibit "B", and incorporated herein by this reference. Immediately upon the opening of the Escrow, DISTRICT shall deposit with the Escrow Holder a f~tlly and duly executed original of the quitclaim deed attached hereto as Exhibit "A" transferring to DEVELOPER or its assignee, (whichever entity will be the fee owner of Tract 16068 upon recordation of the Final Map as stated in the notice to DISTRICT provided for in clause (ii) above)), all of DISTRICT'S right, title and imerest in the Plant 108 Parcel as currently configured ("Quitclaim Deed"). Thereafter, Escrow Holder shall cause to be successively recorded in the Official Records of the County of San Bernardino, State of California, the Quitclaim Deed, the Final Map and the Grant Deed in such particular order. The escrow contemplated herein shall close upon final recordation of all of said documents. If any of said documents are not accepted for recordation, DEVELOPER shall reconvey to DISTRICT the property reflected in the Quitclaim Deed through the escrow opened herein. DEVELOPER shall pay all escrow fees, charges, expenses and other costs related to this transaction. 2. PERFORMANCE OF RELOCATION WORK AND ENLARGING WATER LINE. (a) As consideration for DISTRICT's agreement to adjust the boundary lines of the Plant 108 Parcel, DEVELOPER agrees to perform the following work at DEVELOPER'S expense (collectively "Relocation Work"). (i) The construction and/or relocation of utility improvements located within and/or serving the water tank in the Plant 108 Parcel, including but not limited to, electricity and water, the grading, drainage, landscaping, irrigation, and other work in connection therewith, and the restoration of the surface of any part of the Plant 108 Parcel which may be disturbed as a result of DEVELOPER's work in connection therewith; (ii) The replacement of the existing temporary overflow drainage line with permanent drainage facilities designed to avoid future erosion and to connect to the drainage system owned and maintained by the City of Highland ("City"), all in accordance with plans approved by the DISTRICT and the City; (iii) The replacement and enhancement of alt irrigation and landscaping within the Plant 108 Parcel in accordance with plans approved by the DISTRICT; (iv) The replacement by Southern California Edison of the existing temporary electrical lines and service with permanent electrical lines and service; (v) The improvement and extension of the existing access road within the boundary of the Plant 108 Parcel with an asphalt and concrete access road which provides adequate access from the Plant 108 Parcel to a public right of way within Tract 16068 and a permanent gate at the point of access to such right of way; (vi) Upon completion of grading, the erection of a 6 foot high pennnnent fence and/or wall along the boundary of the Plant 108 Parcel which is constructed within the Plant 108 Parcel and owned by the DISTRICT, and which will include masonry block to act as an overflow and drainage contaimnent devise for the Plant 108 Parcel; and (vii) In the course of DEVELOPER'S construction of the Relocation Work, Developer shall preserve DISTRICT'S existing access to the Plant 108 Parcel and shall conduct the Relocation Work in a manner that does not result in any interruption of service to the customers currently served by the Plant 108 Parcel, or damage to any other improvements within the Plant 108 Parcel. (b) In addition to the Relocation Work, DEVELOPER shall contribute to the DISTRICT the total amount of $20,000 which is one-half (1/2) of the approximate cost to recoat the Plant 108 Tank. DISTRICT shall perform the recoating of the Tank using Grause Tan paint by Vista Paint or Devoe or other equivalent paint. Upon completion of the recoating, DISTRICT shall submit a request for the $20,000 contribution from DEVELOPER which amount shall be paid by DEVELOPER to DISTRICT within thirty (30) days of request. (c) In addition to the Relocation Work, DEVELOPER agrees to increase the size of the primary water line installed in Tract 16068 from an 8 inch line to a 12 inch line, provided that DISTRICT pays the additional costs incurred by DEVELOPER to increase the size of the water tine. DEVELOPER shall request the contractor installing the water improvements in Tract 16068 to provide separate bids for installing an 8 inch line, and for installing a 12 inch line. DISTRICT shall pay the difference between those two bids. DEVELOPER agrees to provide to DISTRICT a copy of both bids for DISTRICT'S approval, which approval shall not be unreasonably withheld. DISTRICT shall be presumed to have approved the bids, if DISTRICT fails to notify DEVELOPER within 10 days following receipt of such bids of an objection by the DISTRICT. 3. GRANT OF TEMPORARY LICENSE FOR RELOCATION WORK. DISTRICT hereby grants to DEVELOPER and DEVELOPER hereby accepts from DISTRICT a non-exclusive license over and about those portions of the Plant No. 108 Parcel on which the Relocation Work is to be installed as shown on the plans for the Relocation Work described in Section 4 below ("Construction License Area"), for the purpose of performing the Relocation Work. This License shall commence on the date first written above and shall terminate upon the completion of the Relocation Work, or upon DEVELOPER'S failure to perform its obligations hereunder, other than by reason of a Force Majeure Delay (as defined in Section 6 below), if such hilum should continue for more than thirty (30) days after delivery of written notice by DISTRICT to DEVELOPER identifying the nature of DEVELOPER'S failtu'e to perform. 4. CONSTRUCTION OF RELOCATION WORK. DEVELOPER, at its sole cost and expense, shall construct the Relocation Work within the Construction License Area in a good and workananlike manner in substantial accordance with DEVELOPER's final construction on plans for the Relocation Work, as prepared by SiteTech, Inc. ("Engineer") and listed in Exhibit "D" and incorporated herein by this reference, (the "Plans"). DISTRICT acknowledges its receipt, review and approval of such Plans. Upon completion of DEVELOPER's work hereunder, DISTRICT shall perform a final inspection to determine whether DEVELOPER'S work has been completed to DISTRICT'S satisfaction. To the extent that the DEVELOPER'S work has been completed to DISTRICT'S satisfaction, the Relocation Work shall be conveyed to and accepted by the DISTRICT and become the sole property of DISTRICT and, except for delivery to DISTRICT of a standard warranty bond for the completed water facilities upon completion of construction, DEVELOPER shall have no obligation whatsoever to maintain or repair same or any other portion of the Plant 108 Parcel or any improvements thereon. 5. PRESERVATION OF SITE. DISTRICT shall have access to the Plant 108 Parcel at all times during the te~n of the license. The Plant 108 Parcel shall be secured by DEVELOPER at all times during the construction period. If necessary, temporary 6' high fencing will be utilized for temporary site security. DEVELOPER shall maintain the existing pipelines and utility service to the Plant 108 Parcel at all times during the construction period, unless temporary or permanent relocations are completed. This provision shall also apply to the overflow pipe. DEVELOPER shall maintain the existing pipelines, utility service, and overflow pipe in a manner that wilt not result in any interruption of service or damage to any person or property. DEVELOPER shall complete the Relocation Work in a manner that will not cause water run-off front the Plant 108 Parcel to cause interruption of service or damage on other properties. 6. CONSTRUCTION SCHEDULE. DEVELOPER shall use its commercially reasonable efforts, subject to Force Majeure Delays, as hereinafter defined, to complete the Relocation Work within six (6) months following the execution of this Agreement. As used herein, a "Force Majeure Delay" means a delay or hindrance of perfol~nance of any act required pursuant to this Agreement by reason of strikes, lock-outs, failure of power, governmental moratorium or other governmental action or inaction (including failure, refusal or delay in issuing permits, approvals and/or authorizations), injunction or court order, riots, insurrection, war, fire, earthquake, flood or other natural disaster or other reason of a like nature not the fault of the party delaying in perfonning work or doing acts required under the terms of this Agreement. Use of "commercially reasonable efforts" shall include those which are in substantial compliance with approved Plans, in conformance with indusu~ standards with respect to the phasing and scheduling of construction and installation of the various components of the Relocation Work and consistent with DISTRICT'S schedule of inspections. 7. INSPECTION BY DISTRICT. DISTRICT shall conduct and be responsible for inspection of the Relocation Work. The reasonable ont-of-pocket costs incurred by DISTRICT with respect to such inspection shall be reimbursed by DEVELOPER. 8. iNDEMNITY. (a) Indenrnification by DEVELOPER. Excepting the sole or active negligence or willful misconduct of the DISTRICT, DEVELOPER shall indemnify and hold the DISTRICT and its officers, directors, agents, and employees harmless from and against all claims and liabilities of any kind arising out of, in connection with, or resulting from, any and alt acts or omissions on the part of DEVELOPER and/or its officers, directors, shareholders, partners, assignees, guests, invitees, trespassers, agents, contractors, consultants, and employees in connection with the RELOCATION WORK, and the performance of the DEVELOPER's obligations under this AGREEMENT, including but not limited to any damages, fines, penalties, or other costs incurred, sustained, or assessed in connection with the enviromnental impact thereof and the condition of the property acquired by the DISTRICT by operation of Section 1 of the AGREEMENT, even if occurring after the completion of the RELOCATION WORK, and defend the DISTRICT and its officers, directors, agents, and employees from any suits or actions at law or in equity for damages, and pay all court costs and counsel fees in connection therewith. (b) Indemnification of DEVELOPER. Subject to Section 8(a) of this AGREEMENT, and excepting the sole or active negligence or willful misconduct of DEVELOPER, the DISTRICT agrees to indemnify and hold DEVELOPER and its officers, directors, agents, and employees, harmless from and against all claims and liabilities of any kind arising out of, in cormection with, or resulting from, any and ail acts or omissions on the part of the DISTRICT and/or its officers, directors, employees, and agents in connection with the performance of its obligations under this AGREEMENT, and defend DEVELOPER and its officers, directors, agents, and employees from any suits or actions at law or in equity and to pay all court costs and counsel fees incurred in connection therewith. 9. INSURANCE. DEVELOPER shall procure and maintain the following policies of insurance with respect to the Construction License Area from and after the date DEVELOPER commences the Relocation Work until the completion of the Relocation Work: (a) Comprehensive general liability insurance with a general aggregate limit of not less than One Million Dollars ($1,000,000) and auto insttrance and naming DISTRICT as an additional insured and certificate holder; and (b) workers' compensation insurance for all DEVELOPER employees in an amount not less than the limits required by the State of California. DEVELOPER ~hatl require the same insurance requirements from all subcontractors performing work on behalf of DEVELOPER on DISTRICT's property. DISTRICT shall not be liable or responsible for payment of any premiums or assessments for the insurance coverage required under this AGREEMENT. DISTRICT aclmowledges receipt from DEVELOPER of copies of certificates of insurance and/or insurance policies for the above-listed insurance coverages acceptable to DISTRICT. If DEVELOPER changes insurance companies from those issuing the policies previously delivered to DISTRICT, then the insurer shall have at least an Al5 policyholder's rating in accordance with the cmxent Best's Key Rating Guide or equivalent. In addition, any and all insurers must be authorized to conduct business in the State of California, as evidenced by a listing in the official publication of the Department of Insurance of the State of California. The DISTRICT reserves the right to require complete and accurate copies of all insurance policies required under this Agreement. Such policies shall include as additional named insureds: the DISTRICT, its board of directors, officers, employees, representatives and agents when acting in their capacity as such in conjunction with the performance of this Agreement. These policies shall be primary insurance as to the DISTRICT so that any other coverages held by the DISTRICT shall not contribute to any loss under DEVELOPER's insurance, and shall contain language to the effect that the insurer waives the right of subrogation against the DISTRICT and any of its directors, officers, employees, representatives and agents. Each insurance policy shall also specifically identify this Agreement and contain a clause which provides that the policy may not be cancelled or changed without first giving thirty (30) days' advance written notice to the DISTRICT. In the event any policy of insurance expires at any time during the term of this Agreement and any extension thereof, DEVELOPER shall provide the DISTRICT with a new certificate of insurance at least thirty (30) days prior to said expiration date evidencing coverage as required herein for a period of time not less than one (1) year. Failure on the part of DEVELOPER to keep in effect at all times the insurance coverage as required by this Agreement shall constitute a material breach of this Agreement such that the DISTRICT may terminate its obligations thereunder or, in its sole discretion, the DISTRICT may instruct DEVELOPER to immediately suspend all Relocation Work and all other activities under this Agreement until DEVELOPER achieves full compliance with its obligations hereunder. 10. AUTHORITY. Each party hereto represents and warrants that it has the anthority to enter into this Agreement and grant the rights to the other set forth hereunder. 11. ATTORNEYS' FEES. In the event that any action or proceeding is instituted for the interpretation or enforcement of this Agreement, the prevailing party in such action or proceeding shall recover form the other party its reasonable attorneys' fees and other expenses relating to such action or proceeding, as well as its recoverable court costs. 12. SEVERABILITY. The invalidity or unenforceability of any provision of this Agreement with respect to a particular party or set of circumstances shall not in any way affect the validity and enforceability of any other provision hereof, or the same provision when applied to the other party or to a different set of circumstances. 13. GOVERNING LAW. This Agreement shall be construed in accordance with the laws of the State of California. 14. MODIFICATIONS. Any alteration, change or modification of or to this Agreement, in order to become effective, shall be by written instrument executed and acknowledged on behalf of each party hereto. 15. NOTICES. Any notice to be given under this Agreement shall be given by personal delivery, by depositing the same in the United States mail, certified or registered, postage prepaid, or by depositing the same with Federal Express or another reputable overnight delivery service, at the following address: DEVELOPER: S-P East Highlands, LLC 15751 Rockfield Blvd., Suite 100 Irvine, CA 92618 Atto: Camille G. Bahri Telephone: (949) 581-4994 Facsimile: (949) 581-4137 DISTRICT: East Valley Water District 1155 Del Rosa Avenue San Bemardino, CA 92413 Attn: Robert Martin, General Manager Telephone: (909) 885-4900 Facsimile: (909) 889-5732 Any notice delivered personally shall be effective upon delivery. Any notices given by mail as above provided shall be effective forty-eight (48) hours after deposit in the mail. Any notice given by overnight delivery service shall be effective twenty-four (24) hours after deposit with such delivery service. 16. ASSIGNMENT. DEVELOPER may assign its rights to adjust the boundary lines of the Plant 108 Parcel under Section 1 of this Agreement to a builder of residential houses which acquires fee title to all or substantially all of the land included in Tentative Tract 16068, provided such assignment is by written instrument and further provided that a signed copy of such written instruction is delivered to DISTRICT. DEVELOPER shall remain responsible for performing all of Developer's obligations hereunder, notwithstanding any assignment of its rights to adjust boundary lines as provided above, and the obligations of DEVELOPER under this Agreement shall not run with title to Tentative Tract 16068 or bind the builder acquiring title to such property from DEVELOPER. Except as otherwise specifically provided above in this Section 16, the Agreement shall be jointly and severally binding upon and inure to the benefit of each of the parties hereto and their respective heirs, successors, legal representatives and assigns. 17. FACSIMILE/COUNTERPARTS. This Agreement may be executed by facsimile signatures, with originals to follow, in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. 18. ESTOPPEL. Each party agrees to confirm in writing within ten (10) days following written request, whether this Agreement is still in full force and effect and whether the other party is in default under any provision of this Agreement. 19. NO WAIVER. Failure by either party to enforce any provision of this Agreement, or any waiver thereof by such party, wilt non constitute a waiver of said party's right to enforce subsequent violations of the same or any other terms or conditions set forth herein. 20. ENTIRE AGREEMENT. This Agreement contains the entire agreement between the parties respecting the matters herein set forth and supersedes all prior agreements, whether written or oral, between the parties respecting such matters. 21. CONSTRUCTION. This Agreement has been drafted through a joint effort of the parties and their counsel and, therefore, shall not be construed in favor of or against either of the parties. 22. VENUE FOR DISPUTES. The parties hereby agree that the venue of any action shall be San Bemardino, California. 23. TIME IS OF THE ESSENCE. Time is of the essence in the performance of each and every term, condition and covenant of this Agreement. [TH_E REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK. SIGNATURES FOLLOW.] IN WITNESS WHEREOF, the parties have executed this Temporary License Agreement as of the date first set forth above. "DISTRICT" EAST VALLEY WATER DISTRICT By: ~)~t~o~ P,a~ i-d- Goodin Its: Board President By: Robert Martin Its: Board Secretary "DEVELOPER" S-P EAST HIGHLANDS, LLC, a California limited liability company By: UNDERHILL PROPERTIES, LLC, a California limited liability company, its Member By: RIVENDELL LAND COMPANY, INC., a California corporation, its Member By: William J. Griffith Its: President By: BOX CANYON, LLC, a California limited liability company, its Member By:. By:_ STATE OF CALIFORNIA ) ) ss. COUNTY OF ) On 2002, before me, , Notary Public, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. Witness my hand and official seal. Notary Public [SEAL] STATE OF CALIFORNIA ) ) SS. COUNTY OF ) On 2002, before me, , Notary Public, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(les), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. Witness my hand and official seal. Notary Public [SEAL] STATE OF CALIFORNIA ) ) ss. COUNTY OF ) On 2002, before me, ., Notary Public, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. Wimess my hand and official seal. Notary Public [SEAL] EXHIBIT "A" QUITCLAIM DEED WITH LEGAL DESCRIPTION OF PLANT 108 PARCEL (See Attached Document) EXHIBIT "A" to AGREEMENT TO ADJUST o94/o~83~o-ooo3 ............. 1:1131 IND A R Tl~.q RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: SPRING PACIFIC PROPERTIES, LLC. 15751 ROCKFIELD BLVD. IRVINE, CA. 92618 SPACE ABOVE THIS LFNE FOR RECORDER~S USE A.P.N. 288-251-10 QUITCLAIM DEED FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, EAST VALLEY WATER DISTRICT, a County water district, Successor-in-interest to EAST SAN BERNARDINO COUNTY WATER DISTRICT does hereby REMISE, RELEASE AND FOREVER QUITCLAIM to S-P EAST HIGHLANDS, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY the real property in the City of Highland, County of San Bemardino, State of California described as follows: ALL THAT PROPERTY CONVEYED BY GRANT DEED, RECORDED SEPTEMBER 15, 1971, iN BOOK 7753, PAGE 494, OF OFFICIAL RECORDS OF SAN BERNARDINO COUNTY. EAST VALLEY WATER DISTRICT Dated BY: STATE OF CALIFORNIA } COUNTY OF SAN BERNAKDINO ) S.S. BY: On before me, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. 'I[~qlTNESS my hand and official seal. Signature (This area for official notarial seal) EXHIBIT "A" LEGAL DESCRIPTION PLANT NO. 10g: THAT PORTION OF SECTION 35, TOWNSHIP 1 NORTH, RANGE 3 WEST, SAN BERNARDINO BASE AND MERIDIAN, IN THt~ CITY OF HIGHLAND, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING TO GOVERNMENT SURVEY, DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHWEST CORNER OF THE SOUTHEAST 1/4 OF THE SOUTHEAST 1/4 OF SAID SECTION 35, SAID POINT ALSO BEING THE CENTERLINE INTERSECTION OF BASELINE AND WEAVER STREET; THENCE NORTH 40° 20' 06" EAST, A DISTANCE OF 662.46 FEET TO THE POINT OF BEGINNING; TI-I]ENCE NORTH 00° 09' 44" WEST, A DISTANCE OF 104.20 FEET; THENCE NORTH 42° 44' 37" WEST, A DISTANCE OF 22.15 FEET; THENCE NORTH 73° 52' 53" WEST, A DISTANCE OF 84.42 FEET; THENCE NORTH 00° 09' 44" WEST, A DISTANCE OF 47.88 FEET; THENCE NORTH 11 o 54' 47" EAST, A DISTANCE OF $ $.81 FEET; THENCE NORTH 33° 34' 26" EAST, A DISTANCE OF 105.52 FEET; THENCE NORTH 78° 29' 03" EAST, A DISTANCE OF 15.52 FEET; THENCE SOUTH 87° 20' 04" EAST, A DISTANCE OF 12.60 FEET; THENCE SOUTH 80° 20' $1" EAST, A DISTANCE OF 42.36 FEET; THENCE SOUTH 77° 04' 47" EAST, A DISTANCE OF 90.17 FEET; THENCE SOUTH 70° 39' 50" EAST, A DISTANCE OF 31.$0 FEET; THENCE SOUTH 14° 04' $$" WEST, A DISTANCE OF 308.14 FEET; THENCE SOUTH 89° $0' 16" WEST, A DISTANCE OF 85.50 FEET TO THE POINT OF BEGINNING. 512 ' GRANT DEED f! ',' "' 'i FOR VALUABLE CONS~D'RATION, receip~ of which is hereby acknow- Iedged, '~he undersigned, EAgT HIGHLAN~ ORANGE CO~A~, a (Grantor) does hereby.grant ~o EAgT SAN BERNARDINO C~NTY WA~R D~TRICT, a County W~er D~s~ricr, (Grantee) the re~l proper~y in ~he County of S~n ~rn~rdino, Sra~e o~ California, described as ~ollows: ~a~ portion of.~ecdon 35, Township ~ Norris, Range 3 West, San Bernardi~o ~se ~nd Meridian, in ~he County of San ~rnard~no, S~a~e o~ Cal~ornia, according ro Governmen: Survey, descried as CO~ENC~G ar ay iron pipe shown a~ ~he Sou~hwes~ corner ~ the Sou~heas: ~e-Quarrer of ~e Sourheas~ ~e-Quar~er of said Section 35 a~ .shown on the Map the proposed right-of-way ~or BazeLine, ~r0m ~urch S~reer Eas~, filed ~ the ~ice of.;rhe County Su~eyor o~ said C0un~y, as C. S:' NO~.276 and:als0 aS shown in San ~ ~rn~rdino Couh~y SUrveyor S Fie]d.~k 29, s~id iron pi~ ~a~ng SOU~ 89? 59';2~:':West 1321.30 ' fee~ from :he Sou~eas~ corner of said SecA~n 35 as sho~n in S~n ~rnardino Coun:y Su~eyor's Field ~Ok No. 200, pages 7 and ~6; ~hence Wes~ along ~he cen~erhne of said ~se Line 29.4). fee:; ~nce leaving ~he cen~erline o~ said ~se Line North 20 49' 3~' Eas~ 460, 99 ~ee~; thence No~h 31~ 39' 50" Eas~ 172,'0~ ~eet; Ehence North 54~ 20' 1~:' Eas: 86.09 fee~; thence Nord~ 07~ 19' 56" E~s~ ~0.00 f~.~ ro ~he TRUE POINT OF BEGI~H~G; thence Sou~h 82° 40' 04" Eas~ 57.66 ~ee~; ~ence,Sbu~h 28~ 03' 45" East 94. 5'~ ~ee~; r~ence Sou~h 36' 18' 00' ~as~ 64. 99 fee~; · thence Sou~h 08007' 24" East 14.04 ~eer; ~hence North 78~ 23' 5~" Eas~ 77. ~ Ieee; ~hence North ~4° 12' 47" E~s~ 323.76 fee~; ~hence North 76= 57' 05" Wes~ 184.67 ~eer; ~hence South 33~ ~3' 54" Wes~ 253.69 fee~ ~o a which bears North 82= ~' 04" Wes~ f~om rbe T~UE POINT OF BEGINNING; ~ence Sou~ 82° ~' 04": 23.83 ~ee~ ~o the TRUE POINT OF BEGINNING a~d con- EAST HIGHLANDS ORANGE COMPANY, a ~or~oration ~R"i ~ 1971 SS COUNT~ OF SAN BEP'NAi~DIN6 ~ On this .Sth dag of March , 1971 , before me, the undersigned, a Notar~ ~Blic in and for the said County and Stare, residing PAUL R. ~ENNING8 , known to me t0 be the President, and East Highlands Orange Company, a co~oration, ~e co~orarion that exec- within instrument, on ~half of the co~oration therein named, and acknow- ledged to me that such co~rati0n executed the'-~ame. IN WITNESS ~qEREOF, I have hereunto set my hand and aff~xed my official seal the day and year in t~is 6e~fficate first above written.: ' Notary PuBltc mm~d for sa~d County and State P~GOLUTION MO. 1422 A RESOLUTION OF T~E BOARD OF DI~CTOP~ OF THE EAST SA~ BERNARDINO ~CEPTING G~T ~, on ~ho 9th day o~ ~rch 1971~ BAST ~T S~ BE~INO CO~ WA~R DISTRICt, a Co~y Water a Gr~t ~e~ to ~e real pro~rty In the County of S~ Bernardtno, State of Califo~ia, mo=e par~ioularly d~sur~bed in eai~ Grant Deed, be an~ ~e s~ is he=eby accepte~ ~or aha on behal~ o~ sai~ Water District. NOW~ TH~FO~, on ~otion duly ma~e~ seconded aha carried, IT IS H ~BY ~SOL~D %hat the Secreta~ be, ~d he is~ hu=eby~ authorized and directed to at%auh a ce~[ified copy of much re~olution of ~oeptance to ~aid Grant Deed and to trans~it~ to ~e Office of the Co~ty Recorder of Sa~% Be~ardino Cowry for The foregoing reS°l%~ion was duly adopted at a Re~lar~' Meeting of ~e Board of Director~ of the Eas~ County Water District 'Sappier 13' i971u~ moti°n duly:'made,-' BAST S~ BE~A~INO COUNt. WATER"DISTRICT STA~ OF C~IFORNIA ) cowry of San Bernardino EXHIBIT "B" TENTATIVE TRACT MAP NO. 16068 (See Attached Document) EXHIBIT "B" to AGREEMENT TO ADJUST 094/018310-0003 ~}1 I'~r) A R 1]:~ EXHIBIT "C" GRANT DEED WITH LEGAL DESCRIPTION OF ADJUSTED PLANT 108 PARCEL (See Attached'Document) EXHIBIT "C" to AGREEMENT TO ADJUST 09¢/018310-0003 ............. FIC~I INTDAR T~SI RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: EAST VALLEY WATER DISTRICT 1155 DEL ROSA AVE., P.O. BOX 3427 SAN BERNARDINO, CA. 92413 SPACE ABOVE THIS LINE FOR RECORDEWS USE A.P.N. 288-251-10 GRANT DEED FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, S-P EAST HIGHLANDS, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY hereby GRANT(S) to EAST VALLEY WATER DISTRICT, A COUNTY WATER DISTRICT the real property in the City of Highland, County of San Bemardino, State of California described as: See EXHIBIT "A" and EXHIBIT "B" attached hereto and made a part of this document. S-P EAST HIGHLANDS, LLC. A CALIFORNIA LIMITED LIABILITY COMPANY BY: UNDERHILL PROPERTIES, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, AS A MEMBER BY: RIVENDELL LAND COMPANY, INC., A CALIFORNIA CORPORATION, AS MEMBER Dated } BY: STATE OF CALIFORNIA ) WILLIAM J. GRIFFITH, PRESIDENT COUNTY OF SAN BEKNARDINO } On before me, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the ~person(s) acted, executed the instnnnent. WITNESS my hand and official seal. Signature (This area for official notarial seal) EXHIBIT "A" LEGAL DESCRIPTION PLANT NO. 108: THAT PORTION OF SECTION 35, TOWNSHIP 1 NORTH, RANGE 3 WEST, SAN BERNARDINO BASE AND MERIDIAN, IN Tt{B CITY OF HIGHLAND, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING TO GOVERNMENT SURVEY, DESCRIBED AS FOLLOWS: COlVIMENCING AT THE SOUTHWEST CORNER OF THE SOUTHEAST 1/4 OF THE SOUTHEAST 1/4 OF SAID SECTION 35, SAID POINT ALSO BEING THE CENTERLINE INTERSECTION OF BASELINE AND WEAVER STREET; THENCE NORTH 40° 20' 06" EAST, A DISTANCE OF 662.46 FEET TO THE POINT OF BEGINNING; THtgNCE NORTH 00° 09' 44" VgEST, A DISTANCE OF 104.20 FEET; THENCE NORTH 42° 44' 37" WEST, A DISTANCE OF 22.15 FEET; THENCE NORTH 73° 52' 53" WEST, A DISTANCE OF 84.42 FEET; THENCE NORTH 00° 09' 44" WEST, A DISTANCE OF 47.88 FEET; THENCE NORTH 11° 54' 47" EAST, A DISTANCE OF 55.81 FEET; THENCE NORTH 33° 34' 26" EAST, A DISTANCE OF 105.52 FEET; THENCE NORTH 78° 29' 03" EAST, A DISTANCE OF 15.52 FEET; THENCE SOUTH 87° 20' 04" EAST, A DISTANCE OF 12.60 FEET; THENCE SOUTH 80° 20' 51" EAST, A DISTANCE OF 42.36 FEET; THENCE SOUTH 77° 04' 47" EAST, A DISTANCE OF 90.17 FEET; THENCE SOUTH 70° 39' 50" EAST, A DISTANCE OF 31.50 FEET; THENCE SOUTH 14° 04' 55" WEST, A DISTANCE OF 308.14 FEET; TH]~NCE SOUTH 89° 50' 16" WEST, A DISTANCE OF 85,50 FEET TO THE POINT OF BEGINNING. EXHIBIT "B" BOUNDARY PLAT SCALE: 1"=60' UNE TABLE L~E LENGTH I BEARING ~ PLANT 108 15.52'I N78'29'O3"E 56,190 S.F. L2 ] 12.60' N87'20'O4"W L3 .31.50' N70'59'50"W 85.50' cn ~' N 89'50'16" E ~..~P.O.C. BEING '[HE SW coR. oFsE,Z,o BASELINE 13:::: SE ~/¢ OF SEC. 35 EXHIBIT "D" THE PLANS Plant List for Proposed Construction and Relocations within E.V.W.D. Plant 108 1. Tract 16068 Rough Grading Plans, approved by the City of Highland 2. Tract 16068 Street Improvement and Drainage Plans, approved by the City of Highland 3. Tract 16068 Water Improvement Plans, approved by East Valley Water District 4. Tract 16068 Conceptual Landscape Plan, preliminary EXHiBIT "D" to AGREEMENT TO ADJUST 094/0[ 83104]003 ............. glOI INIDAR T12~ SCALE: 1'=60' LOT PROPOSED LINE _/I,, ,_~ BE ADJUSTED 44 4 ~3 I' / TRACT NO. 16068 =/,:3,5 // LOT "A" / §6,1~0 $.F. _4¢ (67,277 S.F.) 4O \ \ TO BE ADJUSTED ~,~'~' . ~ z 5' P.U.E. &; SIDEWALK %~ /¢'EASEMENT ' - ¢-' -~5.so'- - -/ ',~ N89'SO'l 6"'E ...J [ IUNE TABLE ~-'~W UNE LENGTH I BEARING J ~ u '~,~.s2'I NTB':'9'O3"E --6; LANE · 2.~.~,o' N,~?'20'O4"W L3 :,'~.SO N'~O'Z,9'.~O"W ~ ,.58 ,~9 80 6J [GNATZ SEIFERT EAST VALLEY WA I'ER DISTRICT 1155 DEL ROSA AVENUE SAN BERNARDINO CA 92410 May 23, 2002 Re: Removing pipe casement at 28342 Burns Street, Highland. Dear Mr. Seifert, We own the vacant lot at 28342 Burns Street, which has an old 10" irrigation pipe and 20' wide easement running through it. The pipe is useless and the easement will hinder our development plans. We would like to request the removal of this easement and propose the following procedure to eliminate the pipe. We will excavate, remove the pipe and seal the ends if the pipe is not too deep. If the pipe is deep we will cut the ends open fill the pipe with concrete and seal all the ends. We believe this action is beneficial to all parties involved. We will be able to subdivide the lot and sell 8 home lots. [ tomes will be built on the lots and EVWD will have 8 new customers. New Solutions will perform all necessm~ procedures to accomplish this goal and will assume all liabilities, holding t!VWD han-nless to any and all negative ramifications that may arise. Thank you for your continued cooperation. RELEASES OF LIEN MAY 31, 2002 ACCOUNT OWNERS PROPERTY AMOUNT NUMBER NAME ADDRESS OWED 1. 001-0019-0+ 156.92 2. 002-0099-3+ 50.22 3. 007-0021-1+ 72.31 4. 008-0567-4+ 50.95 5. 008-0794-0+ 49.19 6. 008-0844-2+ 47.72 7. 015-0'113-1+ 13.47 8. 022-0073-5+ 38.86 V. 031-0163-2+ 33.26 10. 036-0997-2~' 80.30 11, 042-0062-2 36.31 t2, 042-0183-2+ 54.08 13. 043-0048-3 148.07 14. 044-0187-1+ 446.91 15. 051-0164-4 t89.09 16. 052-0174-1+ 56.48 17. 054-2608-2+ 142.94 18. 06t-0047-3+ 78.58 ~lllv.071-0114-1+ 23.37 Page 1 of 3 20. 072-0060-9+ 58.06 21. 074-2464-4+ 44.88 22. 074-2471-0+ 143.39 23. 081-0136-8 182.08 24. 083-0143-3+ 141.16 25. 084-1097-3+ 61.59 26. 084-2775-2 75.11 27. 094-0165-4+ 72.15 28. 094-0172-3+ 88.95 29. 094-0172-4+ 103.34 ~ 094-0208-1+ 49.80 31. 101-0081-3 128.51 32. 101-0135-4+ 57.78 33, 104-0132-8+ 45.63 34. 111-0300-8+ 43.71 35. 112-0137-0 40.68 36. 113-0217-$+ 54.47 37. 113-0263-9+ 64.14 38. 132-0099-1+ 51.26 39. 133-0081-3+ 78.23 ~ 136-0017-0+ 174.63 Page 2 of 3 41. 144-0004~ 178.01 42. 144-1675-2+ 108.14. 43. 154-0196~+ 39.03 44. 154-0294-2+ 65.96 45. 155-0638-6+ 59.56 46. 156-0909-6+ 43.24 TOTAL $4,022.52 +PAID THROUGH TAX ROLLS Page 3 of 3 Bill Postmus Jon D. Mikels First District Second District Fred Aguiar, Chairman Fourth District Dennis Hansberger Jerry Eaves Vice Chairman, Third Dislrict Fifth District The County of San Bernardino cordially invites you to attend the State of the County Address with Supervisor Fred Aguiar, Chairman Board of Supervisors on Thursday, June 13, 2002 I 1:30 a.m. to 1:00 p.m. Radisson Hotel & Convention Center - Ballroom 295 North "E" Street, San Bernardino R.S.V.P. attendance by Wednesday, June 5th to (909) 387-5180* Cost $35 per person / $300 reserved table for 10 Make checks payable to County of San Bernardino Sorry - credit cards not accepted *Limited Seating AaaociaLion of Lhe din ~,Lfi .... San Bernar o Count S ecial DiaL': ~~~( Ju~e ~7, 2002 ~'~;~ Membe~hip Meeting ~i~or ~11~ ~l~r ~i~ri~ is hosting the June membership meeting ~oody's Cock,-Bull:in VictorOe. :'. The social hour will ~gin, at,6t dinner' Menu: c ~auMed ~ lO, 2002 Attendees: Entr~: * ~M~ER: There is a $2 surcharge per person for re~rvations made a~er the deadline date and coming to ~e dinner ~eeting without having made reservations. You will also be hilled for the dinner if cancellation is not received PRIOR to the deadline date. Woody's Cocky Bull 14181 Highway 395 Victorville, CA 92392 (Just north of Palmdale Road on Highway 395) FROMVICTORVILLE: 15 Fwy to Palmdale Road. West on Palmdale Road to Highway 395. North on Highway, 395 to restaurant. FROM SAN BERN INQ~;~ 15 Fwy to Highway 395. Follow Highway 395 north approximately 7 miles to Palmda!~R~oa~t~ereL~e~, .: .,,. , .... ,..... I..... .... . ). Woody s ~s just past the fourth~at Hwy,!8 '" ~'" ;' ,'.,' o .... ~' .: .:.. . ".. ~:::. _. :.-....! : 02002 Ma[~Quest.com, Inc,; S You are cordially invited to attend the San Bernardino Area Chamber o£ Commerce "Business After Hours" As your host, the Inland Empire Job Corps Center would like to welcome 7ou back. Please join us for hors d'oeuvres and networking at our growing facility. Thursday, June 27, 2002 from 5:00 p.m. until 7:00 p.m. 3173 Kerry Street, San Bemardino, California Cover Charge $5.00 R.S.V.E by June 21 ip San Bernardino Valley Munic al Water District 1350 SOUTH "E" STREET - P. O. BOX 5906 - SAN BERNARDINO, CALIFORNIA 92412-5906 -(909) 387-9213~0 FAX (909) 387-9247 May 30, 2002 TO: Advisory Commission Members and Agencies FROM: Robert L. Reiter, General Manager SUBJECT: Transmittal of information from May 29 Advisory Commission Meeting At the Advisory Commission Meeting last night the Commission received the enclosed information regarding the District's State Water Project supplies along with the energy and operational costs associated with delivering that water to retail agencies within the Disthct. The energy crisis and the State Budget situation have caused the costs for water from the State Water Project to skyrocket and threaten traditional property tax revenues. The Commission requested that this information be presented to the Upper Santa Aha Water Resoumes Association for their review and input to the Commission at its September, 2002 meeting. Over the next three months, District staff will be meeting with interested parties with a goal of developing a revised pricing policy that has broad water community acceptance. The District's Board of Directors has indicated a desire to adopt a revised pricing resolution in the early fall, with an effective target date of January 1, 2003. If you, or your staff, desire to participate in these discussions or need additional information, please contact Randy Van Gelder, 909-387-9218 or me 909-387-9222. Directors and Officers EDWARD B. KILLGORE GEORGE A. AGUILAR PAT M1LLIGAN MARK BULOT STEVE COPELAN ROBERT L. REITER Division I Division II Division III Division IV Division V General Manager and Chief l~ngineer Water Pricing SBVMWD Board of Directors Workshop May 1, 2002 Why review now? · Last minor review 2001 · State Power Crisis · East Branch Extension Phase I nearing completion · Current drought conditions · Agreement with Metropolitan Water · District of Southern California Lessons Learned through 2002 Summer Drought Planning · If price of water from SBVMWD is too high, agencies will turn to other local water sources. How high is too high? · Bear Valley says $119/acre foot. · Redlands says $130/acre foot. · WSBCWD and Rialto say $0 for spread water. · Fontana Water Company willing to pay all costs for "temporary connection". Lessons Learned through 2002 Summer Drought Planning · If price of water from SBVMWD is too low, local agencies will minimize their own costs at expense of others. · East end folks would have been happy for SBVMWD to pay $500 k for a temporary pump station at Greenspot. · West end would be happy to accept spread water at no cost. 2 Current structure Resolution 876 · Commodity Charge for SWP water for use within the District $45/acre foot · Conveyance Charge · Agricultural use $27/acre foot · Non-agricultural use $54/acre foot Desirable attributes of pricing structure · Provide incentive to plan ahead · Provide reward for those able to use imported water when it's more readily available and best quality · Uniform for each class of service, throughout the District · Maximize the District's revenue from sales to MWDSC for water not needed within SBVMWD · Stand the test of time 3 A proposed structure · SWP Capital paid for by all within the District on the same basis · SWP Variable Energy, Operations, Maintenance, Power & Replacement paid by those who order the water (Currently $136/acre foot) · Internal Operations and Maintenance paid by those who order the water ($40) Pricing Proposal Elements · Plan ahead discount-Tier I · Seasonal storage discount-Tier II · Spot market surcharge-Tier III 4 Incentive for planning ahead- Tier 1 pricing discount · For water ordered prior to December 31 for delivery in the next calendar year and paid for in January of the year-15 % discount off of the SWP Variable OMP&R and 15% off of the Internal O&M · Water not taken by the agency placing the order is lost. (no carry over of SWP water) Why Tier 1 Incentive · SBVMWD agreement with MWDSC can only be maximized if we can tell MWDSC on April 1 how much additional water is available. · Obtaining reasonable schedules from agencies within SBVMWD will facilitate that. · Discount for payment up front provides incentive for agencies to determine realistic base load needs. 5 Seasonal Storage Incentive Tier II · For water delivered during January thru March for groundwater recharge in basins within the District a discount of 20% off of the SWP Variable OMP&R Why Seasonal Storage Incentive · Take advantage of greater SWP water availability/quality in the winter. · Groundwater recharge benefits multiple producers within a basin · Groundwater recharge credits accrue under the Western Judgment (for San Bernardino Basin Area) Spot Market Surcharge-Tier III · Surcharge for water needed in the Summer/Fall months outside the Tier I and Tier II pricing structure · Surcharge of 25% added to rate. Automatic adjustment Board could provide for automatic adjustment of the following factors- ' SWP annually publishes Bulletin 132 with power costs · Annual District audit can provide internal O&M adjustment Comparison with MWDSC Agreement · MWDSC pays $150 plus change in energy from the 1999 value · 2002 rate -- $150 + $78 = $228/acre foot · Under this proposal Local agencies would pay at most $136 + $40 = $176/acre foot · Agencies that can take advantage of the incentives would pay up to 30% less. Why shouldn't Yucaipa pay more than others? They are 2 pump lifts higher in elevation. · Since 1965 the policy of the Board has been that the costs of SWP delivery facilities (including pumping and the Devil Canyon power plant, Foothill pipeline, etc.) should be paid for uniformly throughout the District. Yucaipa taxpayers have been paying taxes at the same rate as others throughout the District. ~~~ 8 Possible implementation steps · Combine Rules and Regulations for service with new pricing resolution · Discuss with local agencies · Discuss with Advisory Commission · Adopt structure in fall of 2002, so agencies have time to plan for 2003 deliveries 9