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HomeMy WebLinkAboutAgenda Packet - EVWD Board of Directors - 06/25/2002East Valley Water District 1155 DEL ROSA AVENUE, SAN BERNARDINO, CA. REGULAR BOARD MEETING June 25, 2002 2:00 p.m. AGENDA "In order to comply with legal requirements for posting of the agenda, only those items filed with the District Secretary by 10:00 a.m. on Wednesday prior to the following Tuesday meeting not requiring departmental investigation will be considered by the Board of Directors." CALL TO ORDER PLEDGE OF ALLEGIANCE 1. Approval of Agenda 2. Public Comments CONSENT CALENDAR 3. Approval of Board Meeting Minutes for June 11, 2002. 4. Approval of Liens for Delinquent Water and Sewer Accounts. 5. Approval of Development Agreement between East Valley Water District and Suncor Development to provide sewer service to One (1) Commercial Unit located at 1634 E. Highland Avenue (northeast corner of Highland Avenue and Del Rosa Avenue, in the City of San Bernardino). 6. Resolution 2002.26 - Dedication of Water Distribution System within Tract 15985 -1 in the City of Highland. 7. Resolution 2002.27 - Authorize Execution of a Grant Deed from S -P East Highlands, LLC. 8. Resolution 2002.28 - Accept Conveyance of Non - Exclusive Easement from S -P East Highland, LLC for Plant 148. 9. Resolution 2002.29 - Accept Conveyance of Non - Exclusive Easement from S -P East Highland, LLC for Plant 140. 10. Review and Accept Financial Statements for the period ended May 31, 2002. 11. Accounts Payable Disbursements: Accounts Payable Checks #189394 through #189734 were distributed June 5, 2002 through June 20, 2002 in the amount of $1,858,359.29; Payroll Checks for period ended June 7, 2002 in the amount of $80,283.79. Total Disbursements for the period were $1,938,643.08. OLD BUSINESS 12. Radon Rule Update 13. Discussion and possible action regarding the MOU between EVWD and the SBPEA. NEW BUSINESS 14. Claim for damages at 27247 Pacific, Highland, CA. by Ethel M. Mickel. 15. Discussion and possible action regarding proposed 2002 -2003 Budget. 16. Discussion and possible action regarding request from H & H Citrus and David Eady to extend lease and sublease on the Webster Street Property. 17. Agreement to form the Upper Santa Ana River Wash Land Management and Habitat Conservation Plan Task Force. Discussion and possible action. 18. Discussion and possible action regarding Directors participation in PERS. REPORTS 19. June 17, 2002 - Releases of Lien for Delinquent Water and Sewer Accounts. 20. General Manager's Report 21. Oral Comments from Board of Directors. ADJOURN DRAFT SUBJECT TO APPROVAL EAST VALLEY WATER DISTRICT REGULAR BOARD MEETING JUNE 11, 2002 MINUTES The meeting was called to order at 2:02 p.m. by President Goodin. Director Wilson led the flag salute. PRESENT: Directors Lightfoot, Sturgeon, Negrete, Wilson, Goodin ABSENT: None STAFF: Robert Martin, General Manager; Paul Dolter, District Engineer; Brian Tompkins, Chief Financial Officer; Mary Wallace, Administrative Assistant. LEGAL CQUNSEL: Steve Kennedy GUEST(s): Richard Castillo (City of Highland), Laurie Gunn (Arroyo Verde), Camille Bahri (Spring Pacific Properties), Steve Copelan (SBVMWD), Jo McAndrews. APPROVAL OF AGENDA The General Manager requested that the following CLOSED SESSION item (No. 27) : CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Initiation of litigation pursuant to Government Code Section 54956.9(c): One Potential Case be added Item to the Agenda as the need to add the item arose after the Agenda had been posted. M/S/C (Wilson-Sturgeon) that the June 11, 2002 Agenda be approved with revision as noted. PUBLIC PARTICIPATION President Goodin declared the public participation section of the meeting open at 2:05 p.m. There being no written or verbal comments, the public participation section was closed. APPROVAL OF MAY 28, 2002 BOARD MEETING MINUTES. Director Lightfoot noted that the President's name was incorrect as stated in the PUBLIC PARTICIPATION Section of the minutes. The minutes should be amended to read that President Goodin declared the public participation section of the meeting opened, not President Lightfoot. M/S/C (Lightfoot-Wilson) that the May 28, 2002 Board Meeting Minutes be approved with the revision as noted. APPROVAL OF SPECIAL MEETING MINUTES (BOARD WORKSHOP) FOR JUNE 5, 2002. M/S/C (Lightfoot-Wilson) that the June 5, 2002 Special Meeting Minutes be approved as submitted. APPROVAL OF LIENS FOR DELINQUENT WATER AND SEWER ACCOUNTS. The General Manager noted that the liens identified by Account Numbers 094-0037-5 and 165-0178-1 had been paid and should be removed from the lien list. M/S/C (Lighffoot-Wilson) that the liens for delinquent water and sewer accounts be approved for processing with the exceptions as noted by the General Manager. 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 was presented to the Board for approval. M/S/C (Lightfoot-Wilson) that the Development Agreement between East Valley Water District and Centex Homes to provide water and sewer service to 34 dwelling units within Tract 15825 in the City of Highland be approved. 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 was presented to the Board for approval. 2 MINUTES:06/I 1/02 M/S/C (Lightfoot-Wilson) that the Development Agreement between East Valley Water District and Centex Homes to provide water and sewer service to 37 dwelling units within Tract 15954 in the City of Highland be approved. DISBURSEMENTS M/S/C (Lightfoot-Wilson) that General Fund Disbursements #189262 through #189393 in the amount of $541,152.70 and Payroll Fund Disbursements for period ended May 24, 2002 in the amount of $81,912.40, totaling $623,065.10 be approved. RADON RULE UPDATE The General Manager reported on the District's progress with the Rule to date; that there had been letters of support for the District's position on the Radon issue; that we were waiting to see if the proposed language, submitted to the VA-HUD Appropriations Committee, on the issue is approved. Information only. DISCUSSION AND POSSIBLE ACTION REGARDING PROPOSED RE- DEVELOPMENT PROJECT FOR THE AREA LOCATED ON THE EAST SIDE OF CHURCH AVENUE, NORTH OF FIFTH STREET. M/S/C (Wilson-Sturgeon) that participation in the Highland Redevelopment planning effort be approved. REPORT ON THE ARROYO VERDE MUTUAL WATER COMPANY WATER SYSTEM IMPROVEMENT PROJECT was presented to the Board for review and approval. M/S/C (Lightfoot-Sturgeon) that the Report from McKeever Engineering on the Water System Improvement Project for the Arroyo Verde Mutual Water Company be approved. RESOLUTION 2002.25 - RESOLUTION OF INTENTION TO FORM ARROYO VERDE ASSESSMENT DISTRICT was presented to the Board for adoption. Director Wilson acknowledged Ms. Laurie Gunn's efforts and commended her for contribution and hard work towards a successful completion of the project. Legal Counsel stated that the Resolution of Intention is the beginning of the Assessment proceeding process. M/S/C (Wilson-Negrete) that Resolution 2002.25 be adopted. DIRECTOR'S FEES AND EXPENSES FOR MAY 2002 were presented to the Board for approval. 3 MINUTES:06/! 1/02 M/SIC (Lightfoot-Negrete) that the Director's fees and expenses for May 2002 be approved. REQUEST FROM CHRIS GRIBAS TO ADDRESS THE BOARD AND ASK QUESTIONS ABOUT VARIOUS ISSUES. Mr. Gribas was not present. No action was taken. REQUEST FROM LORIE ALLEN TO ADDRESS THE BOARD ABOUT VARIOUS ISSUES OF CONCERN. Ms. Allen was not present. No action was taken. RESOLUTION 2002.24 - PIPELINE LICENSE AGREEMENT FROM SAN MANUEL BAND OF SERRANO MISSION INDIANS was presented to the Board for acceptance. The General Manager and Legal Counsel recommended approval of Pipeline License Agreement. M/S/C (Wilson-Negrete) that Resolution 2002.24 be accepted. DISCUSSION AND POSSIBLE ACTION REGARDING S-P EAST HIGHLANDS, LLC AGREEMENT TO ADJUST BOUNDARIES AND RELOCATE WATER FACILITIES. Mr. Camille Bahri of Spring Pacific Properties was present to address concerns about the project. M/S/C (Wilson-Negrete) that the Agreement be approved in concept, subject to concurrence by the General Manager and Legal Counsel, and that the Board President be authorized to sign the final amended Agreement. REVIEW OF BOARD POLICY ON DIRECTORS' REIMBURSEMENT OF FEES AND EXPENSES. Director Lightfoot stated that he did not agree with the need for a "special fund" and emphasized that all expenditures should be clearly defined. Director Sturgeon stated that he was comfortable with the current Board Policy on Director's Expenses. Director Negrete stated that he would support the distribution of $5,000 to each Director for expenses per fiscal year for travel, meals, lodging and registration fees. Director Wilson suggested an increase of $1,000 be authorized to a maximum of $7,000 for each Board Member and a maximum of $8,000 for the Board President per fiscal year for travel, meals, lodging and registration fees. 4 MINUTES:06/11/02 President Goodin stated that he considered the allowance under the current Board Policy to be adequate. M/S/C (Wilson-Negrete) that the expenses for each Board Member be increased by $1,000 to a maximum of $7,000 for each Board Member and $8,000 for the Board President. DIRECTOR STURGEON VOTED NO. PRESIDENT GOODIN VOTED NO. THE MOTION WAS CARRIED BY A 3-2 VOTE DISCUSSION AND POSSIBLE ACTION REGARDING REMOVING PIPE EASEMENT AT 28342 BURNS STREET, HIGHLAND, CA. M/S/C (Sturgeon-Lightfoot) that Legal Counsel be authorized to prepare a resolution to vacate and that the General Manager be authorized to sign the document for processing. MAY 3'1, 2002 RELEASES OF LIEN FOR DELINQUENT WATER AND SEWER ACCOUNTS. List of liens released on May 31,2002 was reviewed. Information only. GENERAL MANAGER'S REPORT The General Manager reported on district operations to date; that training with the new billing software was in process; that the Perchlorate Conference preparation is ongoing; that presentations by the Board President had been made for the winners of the District's first Poster Contest; that some of the winning posters will be placed on the District's Web Site and reproduced onto T-Shirts to promote the District's Water Conservation Program. Information only. ORAL COMMENTS FROM BOARD OF DIRECTORS. Director Wilson expressed appreciation and recognition for the work by Jo McAndrews on the Poster Contest. Information only. President Goodin introduced Steve Copelan, SBVMWD, who handed out information regarding the State Water Project and related costs. Information only. There being no further verbal or written comments from the Directors, this section of the meeting was closed. MINUTES:06/I 1/02 STATE OF THE COUNTY ADDRESS - RADISSON HOTEL & CONVENTION CENTER, JUNE '13, 2002. Information only.. ASBCSD MEMBERSHIP MEETING - WOODY'S COCKY BULL, VICTORVILLE, CA., JUNE 17, 2002. Information only. SAN BERNARDINO AREA CHAMBER OF COMMERCE "BUSINESS AFTER HOURS", INLAND EMPIRE JOB CORPS CENTER, 3173 KERRY STREET, SAN BERNARDINO, CA. Information only. CLOSED SESSION M/S/C (Wilson-Lighffoot) that the meeting adjourn to Closed Session. The Board entered into session at 3:10 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. ANNOUNCEMENT OF CLOSED SESSION ACTIONS The Board returned to session at 3:40 p.m. The items listed on the Agenda were discussed in closed session with no reportable action being taken except: With respect to Item #27 - Authorize Legal counsel to send out a thirty (30) day Notice of Default. No other reportable action was taken. ADJOURN The meeting was adjourned at 3:45 p.m. Donald D. Goodin, President Robert E. Martin, Secretary MINUTES:06/11/02 CERTIFICATE OF LIEN JUNE 25, 2002 ACCOUNT OWNERS PROPERTY AMOUNT NUMBER NAME ADDRESS OWED I. 014-0075-0 $48.60 2. 015-0074-7' $95.17 3. 021-0185-4' $29.75 4, 034-0037-1' $100.52 5. 035-0146-0' $'153.34 6. 052-0030-3 $66.08 7, 052-0068-2* $26.50 8. 153-0355-1' ~ ~ p~i4 ,~1~.~ b,~ ~ ~l:~d $82.52 TOTAL ~ $ 602.48 ~ * STILL OWNS PROPERTY + MULTIPLE UNITS Page 1 of 1 DEVELOPMENT AGREEMENT THIS AGREEMENT is made this day of ., __., by and between EAST VALLEY WATER DISTRICT, a public agency (hereinafter "the DISTRICT"), and SUNCOR DEVELOPMENT (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 1634 E. Highland Avenue (northeast comer of Highland Avenue and Del Rosa Avenue, in the City of San Bemardino, County of San Bemardino, State of California, and is generally identified as APN 0150-462-01 (hereinafter "the PROPERTY"). A copy of the Site 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 1 Commercial Unit, and the DEVELOPER desires that the DISTRICT provide sewer service to the PROPERTY. The DEVELOPER intends to design and construct the facilities necessary for sewer service to be furnished to the PROPERTY. D. The DISTRICT supplies 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 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 sewer facilities for the PROPERTY in the following manner and according to the Rules and Regulations of the DISTRICT: a. The DEVELOPER agrees to design the sewer facilities for the PROPERTY in accordance with the DISTRICT'S Standards for Design and Processing of Sewer Plans. 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. b. The DISTRICT may request certain changes in the plans, which DEVELOPER agrees to incorporate into the plans and specifications for the PROPERTY. c. The DEVELOPER shall furnish the DISTRICT with any and all easements necessary for the construction, operation, maintenance, and repair of any and all sewer facilities to be installed and/or used for the PROJECT. Ail 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. d. The DEVELOPER. shall submit all plans, drawings, specifications, and contract documents, for all work to be performed pursuant to this AGREEMENT, to the DISTRICT for review and approval, if acceptable to the DISTRICT. The DISTRICT agrees to review all such documents in a timely manner and, upon inclusion of all changes thereto requested by the DISTRICT in a manner satisfactory to the DISTRICT, the DISTRICT will provide the DEVELOPER with authorization to proceed. The DEVELOPER shall not proceed with the construction of the PROJECT and any other 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 sewer facilities necessary for the PROPERTY in the following manner subject to the DISTRICT'S approval: a. The DEVELOPER shall obtain all necessary permits from the City of San Bernardino 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, roles, 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 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 th/s 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 applicable connection fees for the PROPERTY at the time of application for sewer service therefor. The DISTRICT will provide 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 roles, 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 ang objection, to the exercise of any and all collection remedies that are available to the DISTRICT under the law upon the PROPERTY and/or the person and/or property of DEVELOPER and its shareholders and partners. Section 4. SECURITY. a. The DEVELOPER shall provide performance, completion, and/or payment bonds for the PROJECT in the minimum amount of not less than 100 percent of the estimated construction costs containing covenants which are acceptable to the DISTRICT and the City of San Bemardno, b. The DEVELOPER shall provide a maintenance bond for the PROJECT in the amount of 100 percent of the construction cost, which shaI1 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 ail exposure to loss and/or liability. Section 5. DEDICATION OF FACILITIES. a. The DEVELOPER shall, upon completion of the construction of ail 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 sewer system. The DISTRICT shall not accept dedication of said sewer facilities until all connection fees have been paid unless otherwise allowed under Section 3.a. heroin. Section 6. SERVICE RESTRICTIONS. Any obligation on the part of the DISTRICT to provide sewer service 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 rims, and other labor disturbances and other catastrophic events which are beyond the reasonable control the DISTRICT. Notwithstanding any other provision to the contrary, the DISTRICT may suspect or refuse sewer 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 7. 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 8. 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 ctaims, actions, and/or losses set forth in Section 8 above, that may arise in the future whether such claims are currently foreseen or unforeseen. Section 9. 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, role, 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 10. 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: SunCor Development 9700 Richmond Avenue Houston, TX 77042 Atto: Stuart Goldman Section 11. 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 12. 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 13. 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 14. ASSIGNMENT. This AGREEMENT may not be assigned to any individual or entity without the written consent of the parties hereto. Section 15. 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 16. 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 17. 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 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. Section 18. 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 19. 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 20. 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. i0 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 President, Board of Directors ATTEST: Secretary DEVELOPER: By: ~-- ~art GOldman Vice President, SunCor Development A~EST: N°tary Public ,~ !)' '~/~ ~ 5/31/02jw 262.112 W/S2236 11 .EXHIBIT "A" [Site Plan for the PROPERTY] 12 EXHIBIT "A' ~ESOLUTION 2002.26 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT ACCEPTING DEDICATION OF WATER DISTRIBUTION SYSTEM S-P EAST HIGHLANDS, LLC TRACT 15985-1 LOTS X AND Z BE IT HEREBY RESOLVED by the Board of Directors of the East Valley Water District, as follows: WHEREAS, the water line relocation system and appurtenant structures constructed within Tract 15985-1, lots X and Z for public use in the City of City of Highland, have been dedicated to East Valley Water District by William J. Griffith, President for S-P East Highlands, LLC. NOW THEREFORE, BE IT HEREBY RESOLVED, that the Dedication of Water Distribution System dated April 25, 2002 and executed by William J. Griffith on April 25, 2002 be accepted and all rights, title and interest in and to said water System be vested in the East Valley Water District, and that the Secretary of this District be, and is hereby authorized and directed to record this Resolution with said Dedication of Water Distribution system attached hereto, in the office of the County Recorder of the County of San Bemardino, State of California. The foregoing resolution was duly adopted at a meeting of the Board of Directors of the East Valley Water District, upon motion duly made, seconded and carried on June 25, 2002. AYES: Directors NOES: ABSENT: EAST VALLEY WATER DISTRICT Donald D. Goodin, President Attest: Robert E. Martin Board Secretary W2156 Tract 15985-1 Jw 6/19/02 RECORDING REQUESTED BY: ~,v V East Valley Water District WHEN RECORDED MAIL TO: East Valley Water District Post Office Box 3427 San Bernardino, California 92413 CERTIFICATE OF DEDICATION OF WATER SYSTEM Board of Directors East Valley Water District San Bernardino, California 92413 "T-t'T~ ,We hereby declare that~ the, w,~ter system and appurtenant structures to be constructed in ~ I~'~,~'- t 1,.~ "~ E¢I~".~I in .accordance with all the requirements of the East Valley Water Distdct are intended for public use and that upon their acceptance by said District, all dghts, title and interest of the undersigned in and to said water system shall thereupon vest in the District. the within dedi~tion shall be binding upon heirs, successom, assignees, executors, or administrators of the undersigned. The undersigned fuKher declares and hereby ceAifies that there are no liens or debts of any nature presently due or outstanding against or upon said water system and appuAenant structures for labor or materials or for any other cause, and that ~e undemigned will hold East Valley Water District free and harmless from any and all such claims of liens asse~ed upon said water system and appu~enant st~ctures shoutd they be claimed or arise provided such claims or liens arose Eom acts which occu~ed on or before the date listed above. (Corporate Seal) STATE OF CALIFORNIA ) cou, o ) On ~ ~ .20 ~ before me, the undersigned, a Nota~ Public in and for the said Coun~ and 'l State, personally appeared . personally known to me (~, p~. ~tlsfcctc~/~v[dencc} to be the person~ whose name~ is/~subscdbed to the same in his/~r authorized capaci~ ~s), and that by his/~clr signatum~ on the instrument ~e person (~or the enfi~ upon behalf of which the perso~ ~acted, executed the instrument. WITNESS my hand and officiat seal. Signature ~ (Seal) (Rev: ~6/02)Drawer No,3 Exhibit "A" Ail that portion of Lots "X" and "Z" of Tract No. 15985-1 in the City of Highland, County of San Bemardino, State of California as per plat recorded in Book 284 of Maps, Pages 37 to 43, inclusive, records of San Bemardino County, lying within a strip of land 20.00 feet wide, the centerline of said strip of land being more particularly described as follows: Commencing at the most Southerly common point of Lots "X" and "Z" of said Tract 15985-1; Thence South 67000'00'' East along the Southwesterly line of said Lot "Z", a distance of 638.$2 feet to the TRUE POINT OF BEGINNING being the beginning of a non-tangent curve concave Easterly having a radius of 310.50 feet fi.om which a radial line of said curve bears South 82 °16'$6" East; Thence Northeasterly along said curve through a central angle of 15°16'56'', an arc distance of g2.82 feet; Thence North 23000'00'' East, a distance of 54.66 feet; Thence North 67000'00'' West, a distance of 29.50 feet; to the beginning of a tangent curve concave Northeasterly, having a radius of 1008.50 feet; Thence Northwesterly along said curve through a central angle of 7°47'00'', an arc distance of 137.00 feet; to the beginning of a reverse curve concave Southwesterly, having a radius of 991.50 feet; Thence Northwesterly along said curve through a central angle of 7°52'42'', an arc distance of 136.34 feet; Thence North 23°00'00'' East, a distance of 350.88 feet; Thence North 26°31'15" West, a distance of 53.51 feet; Thence North 49°56'24'' West, a distance of 115.22 feet; Thence North 16°14'38" West, a distance of 240.27 feet; Thence South 74°50'18" East, a distance of 99.59 feet to a point on the lot line of said Lot "X" and the terminus of said strip of land, said point being North 16° 14'38" West, a distance of 162.63 feet from the most Northerly common point of Lots "X" and "Z" of said Tract 15985-I. ~No. L '7064~,/~ 2\C:~MyFiles~Specs\Spfin g Pa¢ific\SP-0819 HOT WATER LINE PLANTI40.gd.wpd v S74 50'18"E 99.59' ~ OF E.¥.W.O. ACCESS ROAD, REFER TO PLANT t4S RESERVOIR g PLANT BOOSTER STATION PLANS SHEET BA OF [ FOR 16" LOW PRESSURE WATERLINE. N0.2002-002836~ \ 162.63' \ LOT'X' U.B,284/aT..4~, M.B.284/37-43. PRESSURE WATERLINE / POINT OF N22'54' ~8'E (R) $o. ~ ~.~ [ t6" LOW ~.~ PRESSURE WATERLI~ S82'16'§6'E (R) GRAPHIC SCALE 1"=100' TRUE POINT OF ~mI i BEGINNING m m I 0 lO0 200 300 ~ COa?OnATZON L ~,~/' sa. e.,-..,-,~.~, c~ ~:o v~c~.n]., c~ ~ RESOLUTION 2002.27 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT AUTHORIZING EXECUTION OF A GRANT DEED FROM S-P FAST HIGHLANDS, LLC. BE IT HEREBY RESOLVED AND ORDERED that the Corporation Grant Deed dated April 25, 2002 and signed by William J. Gdffith, President for S-P East Highlands, LLC, as Grantors, grants to the East VaIley Water District, its successors and assigns, as Grantee, real property located in the County of San Bernardino, State of California, more particularly described in Exhibit "A" and the same is hereby accepted for and on behalf of the said Water District. NOW, THEREFORE, BE IT RESOLVED that the attached Grant Deed be accepted and all dghts, title and interest in and to said property be vested in the East Valley Water District, and that the Secretary of said District be and is hereby authorized and directed to record this Resolution with the said Grant Deed attached hereto, in the office of the County Recorder of the County of San Bemardino, State of California. The foregoing resolution was duly adopted at a meeting of the Board of Directors of the East Valley Water District, by motion made, duly seconded and carried unanimously on June 25, 2002 AYES: DIRECTORS: NOES: ABSENT: EAST VALLEY WATER DISTRICT Donald D. Goodin, President ATTEST: Robert E. Martin, Board Secretary W2156 Plant 148 6/~ 9/02 jw Recording Requested By and When Recorded Mail To: V East Valley Water District P. O. Box 3427 San Bernardino, CA 92413 Space Above This Line For Recorders Use GRANT DEED The Undersigned Grantor(s) Declare(s) Documentary Transfer Tax is $ [] unincorporated area ~ City of Parcel No. [3 computed on full value of property conveyed, or [] computed on full value less value of liens or encumbrances remaining at time of sale, and 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 the following described real property in the City of Highland, County of San Bernardino, State of California: See Attached Exhibit "A" Liability Company by: Underhill Properties, LLC, A California Limited · Liability Company, Its Member Rivendell Land Company, Inc., A California Corporation, [ts Member STATE OF CALIFORNIA ) On ~f~ ~. ~00~ .... WilliamJ. Griffith, P~esident pemonally kno~ to me (o~m~ ~ s~sf~ ev[~c;;c) to be the pemon~who name~) is/~subscHbed to the ~in insEument and ackno~ged to me that he/~ execu~d ~e same in hi~r autho~zed capaci~ and that by hls~rS~=ir signa~re~ on ~e ins~ment ~e pemon(~, or ~e enfi~ upon behalf of which the pemon(~ a~ed, executed the ins~ument. WITNESS my hand and official seal ~Signatu~ ~~ ~ Exhibit "A" Reservoir 148 Site All that portion of the Northeast quarter of Section 35, Township 1 North, Range 3 West, S.B.M., ia the City of Highland, County of San Bemardiao, State of California, more particularly described as follows: Commencing at the Northwest comer of said Northeast quarter; thence South 88 ° 19' 03" East along the Northerly line of said Northeast quarter, a distance of 2601.23 feet to the Northeast comer of said Northeast quarter; Thence South 66° 48' 33" West, a distance of 985.35 feet; Thence North 60 ° 12' 21" West, a distance of 2.00 feet to the TRUE POINT OF BEGINNING and the beginning ora non-tangent curve concave Southeasterly, having a radius of 132.00 feet, from which a radial line of said curve bears South 60° 12' 21" East; Thence Northeasterly along said curve through a central angle of 08° 14' 10", an arc distance of 18.97 feet; Thence North 38 ° 0 l' 49" East, a distance of 57.65 feet to the beginning of a tangent curve concave Northwesterly, having a radius of 148.00 feet; Thence Northeasterly along said curve through a central angle of 13 ° 29' 24", an arc distance of 34.85 feet to the beginning ora reverse curve concave Southeasterly, having a radius of 262.00 feet; Thence Northeasterly along said curve through a central angle of 18 ° 57' 05 ", an arc distance of 86.66 feet; Thence North 46° 30' 29" West, a distance of 43.23 feet; Thence North 84° 1 l' 29" West, a distance of 66.46 feet; Thence South 55° 51' 04" West, a distance ofg1.09 feet; Thence South 11 ° 23' 11" West, a distance of 136.27 feet; Thence South 68 ° 27' 38" East, a distance of 75.08 feet to the beginning of a non-tangent curve concave Southeasterly, having a radius of 142.00 feet from which a radial line of said curve bears South 68° 27' 38" East; Thence Northeasterly along said curve through a central angle of 08° 15' 17", an arc distance of 20.46 feet; Thence South 60 ° 12' 21" East, a distance of 10.00 feet to the TRUE POINT OF BEGINNING. 2\C:~vlyFiles~Legals\SP-0815 Tank 148.jjd RESOLUTION 2002.28 A Resolution Of The Board Of Directors Of The East Valley Water District Accepting Conveyance Of Non-Exclusive Easement from S-P East Highland, LLC, a California Limited Liability Company shown in Exhibit "A" and listed in Easement For The Right To Construct, Use, Maintain, Alter, Add To, Repair, Replace and/or Remove Pipeline Appurtenances, Under, Through And Across The Real Property Located In The City Of Highland, County Of San Bemardino, State Of California. BE IT HEREBY RESOLVED AND ORDERED that the Conveyance of Non-Exclusive Easement dated April 25, 2002, and signed by William J. Griffith, President for S-P East Highlands, LLC, a California Limited Liability Company as grantor (s) grants to the East Valley Water District, its successors and assigns a Pipeline Easement over, under, through and across the real property described therein, 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 Conveyance of Pipeline Easement, and that the same be recorded in the Office of the County Recorder, County of San Bernardino, State of California, and flied 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 25, 2002. Ayes: Directors: Noes: Absent: EAST VALLEY WATER DISTRICT Donald D. Goodin, Board President ATTEST: Robert E. Martin, Board Secretary Job No. W2156 Plant t48 6/19/02 jw "~ecord Request of and Mail to: East Valley Water District P.. Box 3427 San Bemardino, CA 92413 ,CQNVEYANCE OF NON-EXCLUSIVE EASEMENT S-P East Highlands, LLC, as Grantor(s), for valuable consideration, receipt of which is hereby acknowledged, does hereby grant, bargain, sell and convey to the EAST VALLEY WATER DISTRICT, a County Water District, its successors and assigns, as Grantee, a non-exclusive easement for the right to construct, use, maintain, alter, add to, repair, replace and/or remove pipelines roads, water reservoirs and telemetry systems together with all necessary appurtenances over, under, through and across the real property located in the County of San Bemardino, State of California, described as follows: See Exhibit "A" attached hereto and made a part hereof Grantor(s) further agrees to notify EAST VALLEY WATER DISTRICT of any future use across said easement and to coordinate with EAST VALLEY WATEK DISTRICT the installation of any future facilities within said easement. IN WrrI~sS WI-IEREOF, the Grantor(s) has executed this instrument this ~r.~L~. day of ,20o_3_ Dated ~l'fTf','/ c~ ~', r'~ (jO ~ S-P EAST HIGHLANDS, LLC, A California Limited I ~ Liability Company by: Underhill Properties, LLC, A California Limited Liability Company, Its Member R/vendell Land Company, Inc., A California Corporation, Its Iv~mber STATE OF CALIFORNIA ~'3 ) COUNTY OF SAN ~ StI~,D~ ,'O ) ~ ?'~' William L Griffith, President o, r¢l 25-, .goo m .. . bcforeme,' 'Tlqu~./ M~.¢O3 , personally appeared -~' {l'~ll~tll~ ~'T personally known to me (or pm;".d m me ~n satis~:e~ ~:!.~..-;n~) to be the persoa(s).who name(s) is/a~subs~ibed to the within inslruraent and a~knowledged to me that he/she/they executed the same in h is/t~g4thei~ au~orized c. apa~ity(i*~, and that by h~ir signatory(r0 on the instrument the person(s~, or the entity upon bchalf of which the person¢,.) acgd, executed the in~Irurnant. WITNESS my hand md official seal Signature cn~is ~:rta for official notarial s~al) Exhibit "A" Non-Exclusive Easement for Access Road Parcel 1 All that portion of the Northeast quarter of Section 35, Township 1 North, Range 3 West, SBM, in the City of Highland, County of San Beroardino, State of Califoroia, lying within a 24.00 foot strip of land, the centerline of said strip being more particularly described as follows; Commencing at the Northwest coroer of said Northeast quarter; thence South 37° 32' 05" West, a distance of 1795.33 feet to the TRUE POINT OF BEGINNING and the beginning ora non-tangent curve concave Northeasterly having a radius of 248.00 feet from which a radial line of said curve bears North 38° 51' 55" East; Thence Northwesterly and Northerly along said curve through a central angle of 55° 15' 53", an arc distance of 239.21 feet; Thence North 04 ° 07' 48" East, a distance of 47.74 feet to the beginning of a tangent curve concave Southeasterly, having a radius of 115.00 feet; Thence Northerly and Northeasterly along said curve through a central angle of 54° 40' 58", an arc distance of 109.76 feet to the beginning of a reverse curve concave Northwesterly, having a radius of 165.00 feet; Thence Northeasterly along said curve through a central angle of 25° 55' 40", an arc distance of 74.67 feet to the beginning of a reverse curve concave Southeasterly, having a radius of 115.00 feet; Thence Northeasterly and Easterly along said curve through a central angle of 47° 44' 40", an arc distance of 95.83 feet to the beginning of a reverse curve concave Northwesterly, having a radius of 60.00 feet; Thence Easterly and Northeasterly along said curve through a central angle of 63 ° 02' 20", an arc distance of 66.01 feet to the beginning of a non-tangent curve concave Westerly, having a radius of 114.18 feet from which a radial line of said curve bears North 72° 24' 23" West; Thence Northerly and Northwesterly along said curve through a central angle of 59° 52' 43", an arc distance of 119.33 feet to the beginning ora compound curve concave Southerly, having a radius of 60.14 feet; Thence Westerly along said curve through a central angle of 64° 05' 11 ", an arc distance of 67.27 feet to the beginning of a reverse curve concave Northeasterly, having a radius of 62.41 feet; Thence Westerly and Northwesterly along said curve through a centrg! ~tngles~f 82° 46' 10", an arc distance of 90.16 feet to the beginning of a compound curve concave Easterly, having a.radius of 91.41 feet; 2\C:~vlyFiles~Legals\SP-0$1? Rd Plant 14gdjd Page 1 of 2 Thence Northwesterly, Northerly and Northeasterly along said curve through a central angle of 83 ° 3T 57", an arc distance of 133.43 feet to the beginning of a reverse curve concave Northwesterly, having a radius of 200.00 feet; Thence Northeasterly along said curve through a central angle of 29° 21' 00", an arc distance of 102.45 feet; Thence North 30 o 40' 51" East, a distance of 97.52 feet to the beginning of a tangent curve concave Westerly, having a radius of 260.00 feet; Thence Northeasterly along said curve through a central angle of 17° 35' 57", an arc distance of 79.86 feet to the beginning ora reverse curve concave Southeasterly, having a radius of 130.00 feet; Thence Northeasterly along said curve through a central angle of 16° 42' 46", an arc distance of 37.92 feet to a point hereinafter referred to as Point "A" and the terminus of said 24.00 foot strip of land. Parcel 2 All that portion of the Northeast quarter of said Section 35 lying within a 14.00 foot strip of land lying 2.00 feet Northwesterly and 12.00 feet Southeasterly of the following described line; Beginning at herein above described Point "A" being the beginning of a curve concave Southeasterly having a radius of 130.00 feet from which a radial line of said curve bears South 60° 12' 21" East; Thence Northeasterly along said curve through a central angle of 08° 14' 10", an am distance of 18.69 feet; Thence North 38° 01' 49" East, a distance of 57.65 feet to the beginning ora tangent curve concave Northwesterly, having a radius of 150.00 feet; Thence Northeasterly along said curve through a central angle of 13° 29' 24", an arc distance of 35.32 feet to the beginning of a reverse curve concave Southeasterly, having a radius of 260.00 feet; Thence Northeasterly along said curve through a central angle of 18° 57' 05", an arc distance of 86.00 feet to the terminus of said 14.00 foot strip of land. RESOLUTION 2002.29 A Resolution Of The Board Of Directors Of The East Valley Water District Accepting Conveyance Of Non-Exclusive Easement-from S-P East Highland, LLC, a California Limited Liability Company shown in Exhibit "A" and listed in Easement For The Right To Construct, Use, Maintain, Alter, Add To, Repair, Replace and/or Remove Pipeline Appurtenances, Under, Through And Across The Real Property Located In The City Of Highland, County Of San Bernardino, State Of California. BE IT HEREBY RESOLVED AND ORDERED that the Conveyance of Non-Exclusive Easement dated April 25, 2002, and signed by William J. Griffith, President for S-P East Highlands, LLC, a California Limited Liability Company as grantor (s) grants to the East Valley Water District, its successors and assigns a Pipeline Easement over, under, through and across the real property described therein, 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 Conveyance of Pipeline Easement, 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 25, 2002. Ayes: Directors: Noes: Absent: EAST VALLEY WATER DISTRICT Donald D. Goodin, Board President ATTEST: Robert E. Martin, Board Secretary Job No. W2t56 Plant ~ 40 6/19/02 jw Record Request of and Mail to: East Valley Water District P. O. Box 3427 San Bemardino, CA 92413 CONVEYANCE OF NON-EXCLUSIVE EASEMENT S-P East Highlands, LLC, as Grantor(s), for valuable consideration, receipt of which is hereby acknowledged, does hereby grant, bargain, sell and convey to the EAST VAI J ~Y WATER DISTRICT, a County Water District, its successors and assigns, as Grantee, a non-exclusive easement for the right to construct, use, maintain, alter, add to, repair, replace and/or remove pipelines together with all necessary appurtenances over, under, through and across the real property located in the County of San Bemardino, State of California, described as follows: See Exhibit "A" attached hereto and made a part hereof Grantor(s) further agrees to notify EAST VALLEY WATER DISTRICT of any future use across said easement and to coordinate with EASI VALLEY WATER DISTRICT the installation of any future facilities within said easement. IN Wrr~ss Wl-mlmOF, the Grantor(s) has executed this instrument this c~ '~ day of .)cfc; Dated ~IC,')~'-/ ~1)~-~ S-P EAST HIGHLANDS, LLC, ACalifomiaLimited Liability Company by: Underhill Properties, LLC, A California Limited Liability Company, Its Member Pdvendell Land Company, Inc., A California Corporation, Its Member STATE OF CALIFORNIA ~ ) WTfliam J. Grif~th, President personallyappeared I..JJfl['~_K)l') ',_~w~. personally known to me ( ' ' em) to be the pcrsonC,.)-who nameC.)-isA~-~-~ubscribed to the within instrument md aclmowledged to me that hdsh -J'_hey executed the s~trne in his/bm., t_.~ir authorized capacity(i~, and that by sig~aturc(e)-on the instrument the person{oCr or the entity upon behalf of which the person(~) acted, executed the ins~ument WITNESS my hand md official seal (This area for official natafial seal) Exhibit "A" All that portion of the Southeast quarter of Section 35, Township 1 North, Range 3 West, S.B.M. in the City of Highland, County o£San Bcmardino, State ot California, more particularly described as £ollows; Commencing at a point located at the ccnterline intersection of Highland Avenue and Pleasant View Lane, as shown on a map of Tract No. 13469 as recorded in Book 205 of Maps, Pages 78-g3, County of San Bemardino, State of California; thence North 46 ° 26' 21" East, a distance of ! 142.30 feet to the TRUE POINT OF BEGINNING, said TKUE POINT OF BEGINNING also being South 69° 10' 02" East, a distance of 2132.74 feet from the center of Section 35 as shown on Record of Survey on file in Book 42, Pages 5-20 of said County; also being the TRUE POINT OF BEGINNING of the parcel of land described in the deed to East Valley Water District recorded December 31, 1992 as Instrument No. 92-543649; Thence along said Southeasterly line of said parcel of land the following courses and distances; North 69° 22' 43" East, a distance of 150.00 feet to the beginning ora tangent cra'ye concave Northwesterly having a radius of 78.50 feet; Thence Northeasterly along said curve through a central angle of 38 ° 13' 57", an arc distance of 52.38 feet; Thence North 31 ° 0g' 46" East, a distance of 155.91 feat to an angle point in said parcel of land; Thence leaving said Southeasterly line South 34° 46' 19" East, a distance o£3.48 feet to a line parallel with and 3.17 feet Southeasterly of said Southeasterly line; Thence along the said parallel line the following courses and distances; South 31 ° 08' 46" West, a distance of 154.49 feet to the beginning of a tangent curve concave Northwesterly having a radius of 81.67 feet; Thence Southwesterly along said curve through a central angle 0£35° 13' 57" an arc distance o£ 54.50 feet; Thence South 69° 22' 43" West, a distance of 150.00 feet; Thence leaving said parallel line North 20 ° 37' 17" West, a distance of 3.17 feet to the TRUE POINT OF BEGINNING. I GRAPF~C SCALE ~."=60 ' 0 60 120 180 P~NT 140 92-543649 3'± PIPELINE EASEHENT ~ T.P,O.B. N~O · k.N~ L ~8.00~ '~'~"w 3.17' / / / / / / / / EASERENT PER ~ ~' .,~ DOC.NO.200~-O02836~// //  ///----d'//// I:: - ' - Va~ey Donald D. Goodin East Water District .,es,dent George E. "Skip" Wilson ~/Ice President 1155 Del Rosa Avenue., P.O. Box 3427 Glenn R. Ughffoot Director San Bernardino, California 92413 Kip E. Sturgeon (909) 889-9501 Director Edward S. Negrete Director Robert E. Martin General Manager Brian W. Tompkins Chief Financial Officer Paul R. Dolter District Engineer June 20,2002 The accompanying financial statements for the period ended May 31, 2002, have been prepared solely by the staff of the East Valley Water District and have not been audited, reviewed, or compiled by an independent certified public accountant. Management has elected to omit substantially all of the disclosures and the statement of cash flows required by generally accepted accounting principles. If the omitted disclosures were included in the financial statements, they might influence the user's conclusions about the District's financial position, results of operations and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters. Administration (909) 885-4900, Fax (909) 889-5732 · Engineering (909) 888-8986, Fax (909) 383-1481 Customer Service & Finance (909) 889-9501, Fax (909) 888-6741 East Valley Water District Balance Sheet May 31, 2002 ASSETS Utility plant in service - water department $66,836,639.57 Utility plant in service - sewer department 19,554,869.80 86,391,509.37 Less: Accumulated depreciation (27~781,196.96) 58,610,312.41 Construction in progress 7,240,900.48 65~851,212.89 Water department - bond funds - cash in bank 6,475.00 Certificate of Participation reserved funds - cash in bank 5,865,229.59 Reserved funds - designations - cash in bank 2~186~450.00 %058~154.59 Cash and Investments 18, 502,951.57 Less: Restricted Cash and Investments 8~058~154.59 10,444,796.98 AccoanB receivable (net of allowance) 922,983.96 Other receivables (net of allowance) 139,287.18 Inventory 756,723.75 Prepaid expenses 151 ~470.15 12~415~262.02 Bond discount and incidental bond expenses 28,980.06 Deferred financing charges 445,469.47 474~449.53 TOTAL ASSETS $86~799~079.03 East Valley Water District Balance Sheet May 31, 2002 LIABILITIES AND EQUITY Certificates of Participation due after one year $14,948,350.29 Less: Deferred amount on refunding of Certificates of Participation (797~406.17) 14,150,944.12 Accounts Payable 1,921,645.71 Accrued payroll and benefits 341,401.88 Customer service deposits 1,039,772.42 Deferred Rental Income 55,833.00 Accrued interest payable 6,474.74 Deposits - refundable 236,210.09 Certificates of Participation due within one year 1~726,266.00 5,327,603.84 TOTAL LIABILITIES 19r478~547.96 Contributed capitaI: Invested in utility plant 23,113,858.57 Other contributed capital 3,665,614.18 Retained earnings: Reserved for water bond funds 6,475.00 Reserved for emergencies 2,170,000.00 Reserved' for unemployment insurance 16,450.00 Unreserved 35,333,593.67 Net Income for current year 3,014,539.65 TOTAL EQUITY 67,320,531.07 TOTAL LIABILITIES AND EQUITY $86~799~079.03 V i East Va ey Wate istrict Board Memorandum Date: JUNE 25, 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 June 5th through June 20th, 2002. Background: Accounts payable checks are shown on the attached listing and include numbers 189394 to 189734 for a total of $1,858,359.29. The source of funds for this amount is as follows: COP Construction Funds $565,213.74 EPA Grant Funds $209,061.00 Unrestricted Funds $1,084,084.55 Payroll disbursed was for the period ended June 7, 2002 and included checks and direct deposits Totaling $80,283.79. Fiscal Impact: Total disbursements- $1,938,643.08. o 0 0 0 0 0000 0 0 ~ 0000 0 0 '~ ~ ~ ~ ~ ~ o ooo ~oo ~ o o o o ~ o o oo o o o o oo ~ o o ooo ~ oo ~ o o o o ~ o ~ oo o o ~ ~ ~ o ~ o o ~ ~ ~ ~ o ~ o 0 0 0 0 O0 0 0 000 O0 0 0 0 0 ~ ~ o oo ~ ~ o ~ oo oo ~ o o o o o oo .... ~~ ~ oo ~ ~ oo o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 V o oo oo oo oo ~ oo oo o o oo ~ ~ °° oo o o ~ ~ ~ ~ oo ~ oo ~ oo o oo ~ ~ ~ uuuo aa ~ ~ .... °°~° ~ ~1 ~ . o~ ~ ~§ oooo~oo ~ ~ oo ~ oooo~ oo oo o~ oo oo ~o ~ ~ ~ ~ ~ ~o~ ~ o~ o~ ~ o~ o~ o~ 0 ~~~ ~oooo ~ oo ~~ ~ oooooo ~ ~ ~ ~oo o o o 0 0 0 O0 0 0 O0 ~ oo o 0 0 0 0 0 OO o~ , , ? , ? ? , , , , ? , MEMORANDUM OF UNDERSTANDING BETWEEN THE EAST VALLEY WATER DISTRICT THE SAN BERNARDINO PUBLIC EMPLOYEES ASSOCIATION Term 1000 (~*-,~,~r,-1-, T, rn~. '9~ '91'~(~'~ ~u~e.'29~:'2002~ t~ro~gli~.~d~itne 22,.2007 TABLE OF CONTENTS ARTICLE TITLE PAGE NO. I Designation of Parties 1 II Purpose 1 III Term 1 IV Compensation 2 V Organizational Security & Check Off2 VI Working Out of Classification 3 VII Flexible Benefit Plan 4 VIII Standby 6 IX Call Back 6 X Differential Pay 6 XI Hours of Work 7 XII Overtime 7 XIII Leave 7 XIV Vacation 12 XV Holidays 14 XVI Absence Without Pay 14 XVII Authorized Leave 15 XVIII Probationary Period 15 XIX Separability 15 XX Uniforms 16 XXI Employee Retention Incentive Program 16 XXII Retiree Health Insurance 16 XXIII Retirement - PERS Contract 16 MOU :07/03/99-06/28/02 MEMORANDUM OF UNDERSTANDING BETWEEN THE EAST VALLEY WATER DISTRICT AND THE SAN BERNARDINO PUBLIC EMPLOYEES ASSOCIATION ARTICLE I DESIGNATION OF PARTIES This Memorandum of Understanding (MOU) constitutes an agreement between the designated representatives of the East Valley Water District (District) and representatives of the San Bemardino Public Employees Association (Association). The Association is the recognized employee organization which represents the unit of representation established by the District Board of Directors pursuant to the District's Employee Relations Resolution. ARTICLE II PURPOSE The parties to this Memorandum of Understanding (MOU) agree that its purpose is to confirm and maintain a spirit of cooperation between the District and the general employees of the District. The District and the Association will strive to promote a harmonious relationship between the parties, through this MOU that will result in benefits for the District and provisions of continuous and uninterrupted services. ARTICLE HI TERM This MOU shall be effective as oflad-y--3r-l-999 ~.29.,:.2~002 upon ratification of the membership and approval by the full District's Board of Directors. It shall remain in full force and effect through~a~?,grgg0~ ~u~d~2~?~? and from month to month thereafter or until such time as agreement has been reached on a successor MOU. Either party may serve on the other, written notice of its intent to negotiate a successor MOU at least sixty (60) days in advance ARTICLE IV COMPENSATION A. Sal___aries: Effective the payroll period beginningJu!y ~, !999~~O~,the District agrees to increase salaries by t.uzee ~}~;~ percent B. Effective the_pa~oll_ _Period begl~lng .... ~ , ...., ~.~ .......... ....,:~,.~.~.'g.0Jq , the D smct aees to increase salines b .....~a ~e~ hat er(q~ ...... 2~5~). C Effec~ve thepa~oll period begl~mg ......, .... ,~ ~6~,,.~ 4, the Dis~ct a~ees to ~ncrease salaries by ,h,~ ..... ~.~.p~:~.~,~,~qu~ ercent percent (3 .... no/.~.,.(~.q~. ~. ag?ee'to re-o'p,,en'..n ~4tl at' ~lie a'cttial and1 l~. ~ The District's basic salary schedule will be revised in conjunction with salary increases for each year. ARTICLE V ORGANIZATIONAL SECURITY AND CHECK OFF Cheek Off- The Association shall have the sole and exclusive right to have membership dues deducted for employees covered by this Agreement by the District, upon appropriate written authorization from such employees. Remittance shall be made by the District to the Association within ten (10) working days from the end of the last pay period of each month. Dues Deduction - The District shall deduct, upon receipt of a duly executed form properly signed by a member of the bargaining unit, either dues to the Association for members or a service fee to the Association for non-members, as appropriate. The Association shall advise the District, in writing, of the dues amount to be deducted for each member. Any change in dues will be submitted to the District in writing, thirty (30) days prior to the effective date of such change. Employees in the bargaining unit who are not members of the Association on the effective date of this Agreement, and employees who, hereinafter, come into the bargaining trait shall either within thirty (30) days of the date of this Agreement or their employment, apply for membership. The District shall deduct from any permanent employee who is not a member of the Association, as a condition of employment, a monthly service charge equal to the monthly Association dues as a contribution toward the administration of this agreement. Employees who fail to meet this requirement shall be discharged. The right of non-association employees, is based on bona fide religious tenets or teachings of a church or religious body of which such employee is a member are safeguarded. Such employees shall pay an amount of money equivalent to regular Association dues to a non-religious, non-labor charitable fund exempt from taxation under Section 501(c)(3) of the Internal Revenue Code chosen by the employee from the following three (3) funds: American Cancer Society, American Humane Society and Goodwill Industries. Proof of such payment shall be made on a monthly basis to the District as a condition of continued exemption from the requirement of financial support to the Association. Membership dues shall be deducted for employees covered by the Agreement who are members of the Association at the time of execution of this Agreement, or who thereafter become members, subject to the above. The District shall, as soon as possible, notify the Association General Manager if any member of the bargaining unit revokes a dues/fee authorization. Hold Harmless Clause - In consideration of the above noted services, the Association agrees to release, indemnify and discharge the District from any liability or expenses whatsoever as a result of any action taken pursuant to the provisions of this article. Additionally, the Association agrees to waive any real or perceived claims aga'mst the District incurred prior to the effective date of this MOU. ARTICLE VI WORKING OUT OF CLASSIFICATION Employees in the unit assigned to work in a higher classification in excess of ten (10) consecutive working days will be granted a five percent (5%) salary increase or the "A" step of the higher classification, whichever is greater, for all time worked in the higher classification beginning with the eleventh (1 lth) work day, except for an employee in a trainee status. Increases in pay may be granted to recognize the temporary assignment of more difficult duties requiring a greater level of skills. "Selected positions may be authorized additional compensation, rather than being reclassified to a higher level". Temporary assignments as provided herein will not exceed one (1) year and shall not be used to avoid reclassification of the affected position. Increases in pay shall be temporary so long as the higher level duties are assigned and performed. All such increases shall be authorized by the General Manager and shall not affect an employee's step advancement in the base range. ARTICLE VII FLEXIBLE BENEFIT PLAN SECTION 1 Effective with the payroll period beginningJ~bjr-Cr-l-O~,~h'/~}~9)~q2, the District agrees to contribute the amount of$5!O.OO "*'~- ~'~3~.~ per month, per employee to a Flexible Benefit Plan. Effective with the payroll period beglnnmgJala24,-~, ~fi~.n~e~:~8~i..0.~, the District agrees to contribute the amount of $520.00 ~(~i~ per month, per employee to a Flexible Benefit Plan. Effective with the payroll period beginning ~,'J.q~q~;/2~,~:20~04, the District agrees to contribute the amount of Ss~o.ee $~¢~'*p~non~ per employee to a Flexible Benefit Plan. All employees in regular positions shall be eligible to participate in the Flexible Benefit Plan described herein. Each employee may select among the options indicated and specify what portion of plan monies will be applied to selected options. Selection must be in increments of one dollar ($1.00). SECTION 2 The Flexible Benefit Plan shall include the following options: Health and Dental Insurance Life Insurance SECTION 3 a. Health and Dental Insurance - Under this option, the District will make available an existing health and dental insurance program currently maintained for trait employees or any other program(s) mutually agreed upon by the parties. This option allows for a monthly allowance toward the combined total premium for such insurance. Employees must enroll in one of the health and dental programs offered by the District at least to the level that provides such insurance coverage for the individual employees and family respectively. Premiums for such coverage may be paid in whole or in part by selecting this option. Any portion of premiums not covered by selection of this option shall be automatically deducted from the employee's paycheck. b. Life Insurance - Under this option, the District will provide an allowance to an employee for life insurance. SECTION 4 Any portion of the benefit plan allowance dispersed to the employee shall be treated as cash. SECTION 5 All eligible full-time employees must receive a minimum of forty-one (41) hours per pay period to be eligible to receive the benefit of this Article. All eligible permanent part-time employees must receive a minimum of one-half (1/2) of their regularly MOU :06~29/02-06r22/07 scheduled hours plus one (1) per pay period. Permanent part-time employees shall receive pro-rated benefits as follows: 1/2 - 3/4 = 50% 3/4 - 1/1 = 75% Employees who are on leave of absence without pay shall not be eligible to receive the benefit of this Article. ARTICLE VIII STANDBY Employees assigned to standby status shall be compensated at the rate of $!29.00 ~0~ per week. Standby duty requires that employees so assigned shall: (1) be ready to respond immediately; (2) be reachable by telephone or other communicating devices; (3) be able to report to active duty not later than one (1) hour from time of contact and (4) refrain from activities which might impair their ability to perform assigned duties. Employees not assigned to standby duty have no obligation to meet these requirements. ARTICLE IX CALL BACK District employees called back to active duty after completing their normal tour of duty and leaving the work site shall be entitled to call back compensation. Call back compensation in an amount of thirteen dollars ($13.00) shall be paid for each call back occurrence exclusive of any other premium pay provisions. Call back compensation shall not apply to employees assigned to standby duty pursuant to Article VIII, Standby. ARTICLE X DIFFERENTIAL PAY Sewe~ Resmmse': I'eatn ~' .D~,strlt t. ei,ldOl,ees, w~R.' arer a.s'.s~gped, tflj, t]~e .District, s .~ ewer~Res~onse~[~a~n iffY. required to complete D~stnct~.~llonsoreR;trqm~(g classes and ~o part~cq~ate ,~ ongoing m.s'[~uct~on and exerc~ses.~ L~on saqs~act~on of these req~iremettts, fitch ~tn~do)'ee.g shall be, ~ntitled to a salao:'diffqreittial: of two attd one-half percent .(2.5%) during the period t~' time in which th? .Di~'trict ~qq~(r, es the,employee to se~e as~a member of the Dtstrtct s Sewer Res~onse Tedm. Commercial Drivers - Dis~ct employees who are required, in accord~ce with their no~al duties ofemplo~ent, to possess a Co~ercial D~vers License (Class A or Class B) shall be entitled to a sata~ differential of one percent (1%). ~e differential shall remain in effect for the pehod of time in which the Dis~ct requires the employee to ma~tain the Class A or Class B Co~ercial License. ~TICLE ~ HO~S OF WO~ Standard Work Week - The st~dard work week for regul~ ~ll-time employees of the Dis~ct is fo~ (40) ho~s. ~e standard work week for re~lar pa~-time positions shall be less than ~enW-one (21) ho~s per week. Standard Work Day - The st~dard work day for re~l~ employees of the Disffict shall consist of a consecutive block of eight (8) ho~s, in a ~enW-four hour period, that an employee is no,ally scheduled to work. ~y change in (~ stand~d work weekday shall be subject to meet and confer. ~TICLE ~I O~R~ All time worked in excess of the established standard work week shall be considered as approved overtime. Overtime will be compensated at one and one-half (1-1/2) times the employee's base hourly rate. Overtime shall be reported and compensated in fifteen (15) minute increments. MOU :06~29/02-06t2~07 ARTICLE XIII SICK LEAVE A. Definition - Sick leave is an insurance or protection to be granted in circumstances of adversity to promote the health and welfare of the individual employee. It is not an earned fight to time off from work. Sick leave permits the employee to be absent from duty without the loss of pay when they are incapacitated by reason of illness, injury or pregnancy and confinement or when a member of the immediate family must be attended to by the employee; or when an employee has been exposed to a contagious disease and his presence on the job might endanger fellow workers. When approved in advance, sick leave may also be used for medical, dental or optical examinations or treatments. Absence from duty not to exceed six months for maternity reasons may be authorized. Maternity leave is chargeable to sick leave, annual vacation and leave without pay as appropriate. To support a request for maternity sick leave, the employee must submit a statement by her attending physician showing the expected period during which she will be incapacitated from the performance of official duties. For purposes of "attended to" (cared for) as defined herein, immediate family means husband, wife, mother, father, son, daughter, step relations, ward and, when residing in the employee's home, sister and brother. Time off for attendance shall be limited to a maximum of six and one-half (6.5) days (52 hours) per calendar year. Additional time may be authorized by the General Manager based on a case by case review of the employees sick leave usage. B. Bereavement - Sick leave granted in each case of bereavement shall not exceed the equivalent of one standard work week of accumulated leave per occurrence, which allowance shall include all travel time. For purposes of bereavement, immediate family shall include parent, spouse, child, brother, sister, mother-in-law, father-in-law, grandparents, grandchild, step relations and wards. C. Initial Credit and Accumulation- Sick leave is earned at the rate of one half day (four (4) hours) for each full bi-weekly pay period (13 days per year), and it can be accumulated without limitation. D. Notice of Sickness - When the employee is incapacitated from the performance of his or her duties for reasons that entitle him the use of sick leave, he or she must notify his or her department head between the hours of 8:00 a.m. and 8:30 a.m. MOU :06/29/024)6/22/~7 E. Review - An absence of sick leave for more than five (5) work days must be supported by a medical certificate. F. Improper Use - If, after reviewing an employee's record of sick leave usage, the District believes sufficient cause exists to suspect abuse of sick leave, a medical certificate may be required for any subsequent use of sick leave. G. Sick Leave Cash Out ~ Employees may cash out accrued sick leave balances as follows: 1. Employees may request reimbursement for up to forty (40) hours of accrued sick leave per year provided, however, that (a) a minimum of 156 hours (18 months) accrual is retained after said reimbursement and (b) request for reimbursement must be submitted, in writing, no later than December 1 st of each year. 2. Employees who retire from the District may apply all accrued sick leave balances toward PERS for retirement credit. 3. After ten (10) years of continuous service with the District, employees who terminate their employment shall be compensated for accrued sick leave balances as follows: Sick Leave Balance as of Cash Payment % of Hours Date of Separation Sick Leave Balance 480 hours or less 481 hours to 600 hours 601 hours to 720 hours 40°,4 721 hours to 840 hours 841 hours to 960 hours 961 hours to 1,080 hours 1,081 or more Employees who receive a disability retirement due to permanent incapacity to work shall be entitled to one hundred percent (100%) cash payment of any unused sick leave balances, computed at their then current base hourly rate, if they elect an early retirement in lieu of exhausting such accrued sick leave balances. In the event of death resulting from occupational injury, cash payment shall be made to the employee's estate. H. Worker's Compensation - Employees shall beprovided with up to a maximum of three consecutive days of unchargeable leave following an occupational injury ...... un!~g~'ot~.~i~i~ req~tr~d~y the We Compensation Act of the State of California. The deduction by the District from the employee's accumulated sick leave shall be limited to the same percentage as the amount due from Worker's Compensation bears to the amount paid by the District. For example, an employee of the District entitled to $12.00 per day from the District received $9.00 per day from Worker's Compensation and the difference of $3.00 per day being paid by the District. In deducting from such employee's accumulated sick leave, such deduction shall be made daily on the same basis (i.e.; 1/4 of a day). Example and Intent - When an employee is out on an industrial injury, no charge will be made to leave benefits for the first three days. Any payments from the State Fund will be applied first to re-purchase sick leave or vacation used, next to reimburse the District for the first three days and any balance would go to the employee. It is the intent to provide full benefits where possible and is not construed to allow the employee windfall income but to keep them whole. I. Catastrophic Leave: 0 MOU :06/29102,-06/22/07 g) The e,~,-1 .... e '"" an ................ rece!v!Eg .... ,.._j ..... awrcved Medical Leave ^t ^~ ........ ~ ;o · · .... r p~ded requirement .c ,~ ~en:fit Plan A~!c!e VI! c.~,;.. ~ ~. ~,,~ differentials ~.a the ';'-~ as ,h~ sin~zhr ........ r +h; ....... ;~ ,~ ............. r--r .......... r--o ....... provide financi~! assistance. remain in *!e denee's accma!s te be utilized as fellows: Leave Article of the Memor~-ndum of Understanding. a,,,,,,~-~ ~,-,~ +,- be confidential, +h~ pn'vaey _"igkts ,,r +h. a,,,~ upheld ~ Al! dencrs o"~ `4 ...... 'J.,~11 s;.gn re!ease r,..,.-.o `4 o ,. ; ,-.. .. `4 ...,.,;..,`4 ~.,,~ ,:.+-,'....,.,`4 by the Persenne! Dep~_.-!rp...ent. !ez:'e be!anco drops be!ow !56 he,ars. n) The "~"~"o to meet ~nd "'--'*'" ...... `4;.-. ; ........ ;o;-,- g-r,m the 2 MOU :06/29/02-06/22/07 pr~p~t~a~ sta~i~the ~ts~ict. ~ ,,~ 2.~ ~TO~ q~p~ust~ mee~ aI[~:O~ the :~llowtng~ crtterta, before~ hdshe beb~mes e!i~t~lef~ ~astro~htc Zeave ~6natton. ~ approved medtcal.leave t~ cat~a~r~'aa~s~(~pj~orgtn~ nottrq? excHt~'tve o~ an abXe~rd~ mju~. a~o[ tllness;:and ,~ ~ ~ ~ ¥.:O)j~t~mn. o~a~p~: O~rg ~r~e~ veri~j~g~ the medical : ea alanc d) :~5~ Do nat!on~ and~ ~co~[e~ed to the donee's' hOurlg ~ salart%,, e&c~u~ overt(m~ d~ferenttals5 attd the lile. a~ the stn~ular nurt~ose probidefinancial assistance to the donee :~mplOyea sii~;~,;j~~i~Li~avattal~le~li~ the~ t'~nl, $¢~hhng" to the ol~phc~ble ~'~,: *.* ",,~?~2:~_,e .' ,~',~:.~.'.,. ~,, ., .. - I.~K~-.~: .... ~... .... '.,,...., pro.w: ., n t f'.Sqc W,t.F: q/ the ~ ' ~;~E~ o~ ~~¢~~recetv~th~a~ ,oval ,. ,..~ J.,,. :... ,.:..~i~¢.5~.;,..,~ :,~.5 ...c,,~x, ..,,,: ~.;:,~nl,~v~)~,:,~... ....~, ...::: ;t or~ oil',it p~rt'nmt hasty (l~ Is titan ti~ t mplo) ~e .,; t~ormalll st li~tl~ d ~ r~ . . . ~. . . ~ ...... ~.~ ............. . . .~,. world, t~er pa~.~ertod'9'~ay record, each.pay period a~ombmed total o[ wo~ ttme ond~atastrophtc~ Lea~e not to ~.~.t~d th~ less~.r ot ~ht, (80) ho,rs ~o~ aonanon as~ aeemea~ ~pR[o~rtatei; ana: ma~ cn~rKe~ ~a~s~ropmc zeave aonat~on fo~e acmal~a~tntxt~ave costs tncurrdd: ~:th~;~ict. ~ ~.~.. So!~citatio~. Of donor& shall,, be,~,re~ul~t~O~,. ~he Dtstrict s Personnel De~a~/ffien~:~T~e na~es, oE th~ donors s~aIl: b~onfLd~nttat and the prtva~ rights of ~e dbnee ~halt be~protected tO:}~e ~t~nt~er~t~ ~w. ~,~tH nog~~~ate{B~ur~ Of leave if hts resulting ,9 ' Imtdementatton. I lhe Dts~tct~h~l~ee~an~f~r~tt~ the ~,mptoyees regaramg tss,es anst~g',ff~qm: t~'t~!~enta~on; o~:t~ts ~TICLE ~V VACATION A. Definition - Vacation with pay is a right earned as a condition of employment and made available in the interest of the District for the recreation, health and well being of the employee, subject to approval by the General Manager. B. Annual Vacation Leave Earned - Annual vacation leave earned shall be one hundred and four (104) hours a year up to three (3) years; one hundred sixty (160) hours a year from three (3) years to fifteen (15) years and two hundred eight (208) hours a year from fifteen (15) years or more. Annual vacation leave may be accumulated for use in succeeding years, but the maximum amount that can be carried over from one calendar year to the next is thirty (30) days (240 hours), or the amount that you had to your credit at the beginning of the leave year, whichever is greater. A change in the rate of annual vacation leave accrual shall take effect in the pay period following the one in which the employee completed the required length of service. No annual vacation leave shall accrue for fractional parts of bi-weekly pay periods falling at the beginning or ending of service. C. Accrual - Annual vacation leave is not available to the employee until he has completed his initial probationary period consisting of two hundred seventy (270) days of continuous service with the District. This applies not only to new employees in District service but also to persons re-employed after a break in service. D. Amount of Vacation Leave Earned Accrual for each Full If District Service Is: Annual Leave Accrual Ix p.ay Period Is: Fewer than 3 years 104 hrs/year 4 hours 3-15 years 160 hrs/year 6.1538 hours 15 years or more 208 hrs/year 8 hours E. Approval - Although annual vacation leave occurs as an earned right, the time at which vacation leave may be taken and the amount granted during any particular period are matters of administrative decision, except that no employee shall lose earned vacation leave because of the urgency of work. Observance of an annual vacation leave must be approved in advance by the proper official except in cases of emergency. Work requirements and the interest of the employee are the determining factors in approving vacation scheduled. F. Vacation as Sick Leave - Vacation may be used in lieu of sick leave if the employee desires. G~ Termination - Employees, upon separation f~om the District, shall be paid a cash lump sum at their then current salary rate as set forth in the Basic Salary Schedule for any unused annual vacation credits. H. Sick Leave Transfer - Employees may, at their election, transfer up to forty (40) hours of vacation time to their sick leave account once each year. ARTICLE XV HOLIDAYS A. The following are to be considered as approved holidays for the employees of the District and will be so ordered as follows: January 1 (New Years' Day) Third Monday in January (Martin Luther King's Birthday) Beginning in 1997 Third Monday in February CY.r:sSLng*.on's ' - Last Monday in May (Memorial Day) July 4 (Independence Day) First Monday in September (Labor Day) Second Monday in October (Columbus Day) November 11 (Veteran's Day) Fourth Thursday in November (Thanksgiving Day) December 25 (Christmas Day) When any of the legal holidays, other th~ those specifically set for a Monday, fall on Sunday, they ~11 be obse~ed the folloMng Monday, and if ~y of such holidays fall on a Sa~day, ~ey will be obse~ed the preceding Friday. ~ add!E~n, a ~11 B. Within Vacations - When an approved holiday falls within a vacation period, the employee on vacation shall receive an additional day of vacation with pay. 6 MOU :06t29/02-O6F22/07 C. As Working Days - Whenever a monthly rated employee is required, due to the nature of his occupation, to work an approved holiday, the employee shall be given the equivalent time off at a subsequent date to be determined by the department head and/or General Manager. ARTICLE XVI ABSENCE WITHOUT PAY A. Definition - Absence without pay is leave without pay and shall be granted only upon request of the employee through the recommendation of the General Manager to the Board of Directors. B. The increments of sick leave and vacation time shall not accrue when an employee has been absent without pay. ARTICLE XVII AUTHORIZED LEAVE A. Military Leave - Military leave and regulations for payment pertaining thereto shall be in accordance with the provisions of the Military and Veterans Code of the State of California. B. Court Leave - Court leave is granted for the purpose of attending court as a witness under subpoena of a duly constituted court or for jury duty. They will be required to produce a certificate from the court which shows the dates of attendance and an itemized account of any compensation received by them for such service. Any fees or compensation received by reason of such court attendance in connection with court duty must be delivered to the District through the Treasurer. The employee will then receive his or her regular rate of pay during such time as was required for court attendance. ARTICLE XVIII PROBATIONARY PERIOD Probation period for employees in the Unit of Representation shall b~ ~ ~ ...... two hun~redseventY (270) days (9~ih's). If the probationary 7 MOU :06/29/02-06~22/07 employee is absent during this period, their probationary period is extended by an equivalent amount of time. ARTICLE XIX SEPARABILITY If any portion of this MOU is held to be invalid by a court of competent jurisdiction, the remainder of this MOU shall not be affected thereby. Upon issuance of the final determination of the court, the parties agree to meet and confer concerning only those matters directly affected by the decision. ARTICLE XX UNIFORMS The District will provide uniforms and bear the cost of the regular cleaning, maintenance and replacement of tmiforms. The District will also reimburse up to $ !O9.OO :~:~q per year for the purchase of safety-toed shoes required to be worn by its employees. ARTICLE XXI EMPLOYEE RETENTION INCENTIVE PROGRAM One annual lump sum payment the first pay period in December of each year as follows: After 10 years through the end of 14th year $125 After 15 years through end of the 19th year $250 After 20 years through the end of the 24th year$375 After 25 years $500 In the event an eligible employee retires fi.om District service prior to the first pay period in December of any year, employee will receive the Employee Retention Incentive for that year at the time of retirement. 8 MOU :06t29/O2-O6t22d07 ARTICLE XXII RETIREE HEALTH INSURANCE District employees who retire with a minimum of 20 years of District service will receive health insurance £or themselves and their spouse until such time as the employee is eligible for Medicare. The District will pay the actual premium amount up to a maximum o£ $350 00/ {0 q month.,, ~. ~ ~ Unless it is unavailable, the retired employee shall obtain their health insurance from PERS I.n;~!~ eve~g e~b[~ee diedq~bfor~e reaclim'~eli~ibdt(v for Medicare, the Dtstrwt wdl extend thts benefit to · . ,. ....% ;:....;,, ..,,.,..,~.*,. ..,.~ ..... , · , tn~urvtvtn~sl~ou$~unttt ~te/$ne l$ ett£tote lor ,~zeatcare. 1;:::; £;;;~;:zc :,; t. ~' ........ ix. ..i., ,' · · .i. ~. ~, ] , ~ _. i i . t ., I ARTICLE XXIII RETIREMENT - PERS CONTRACT "~ .... ; .... Level 4 Eenefit". _41! ce:ts ac:edated ,:.dth th~ con,act change shall be berne by the D~sMct. ~i~~~,~E~osti~~Z~f~tin~tht$ contract cnan~e snail ~e MOU TERM: Ju!y a, ~ coo ,n ..... ~, ~ .... ~ ~an~ AG~ED ON: ~ ...... , ,~ ~ aaa June SB P~LIC EMPLOYEES ASSOC: EAST V~LEY WATER DIST~CT: Mary L. Neeper, SBPEA Rep. Ea-_w2rd S. Ne~ete, Donald D. Gdodin, Board President Attest: Mary Baxter, EVWD Rep. Robert E. Martin, Board Secretary Steven Farrington, EVWD Rep. Gary Young, EVWD Rep. 20 Mou : - : / EAST VALLEY WATER DISTRICT ; ~ 1155 DEL ROSA AVENUE JU~ [ ~ ~[?~ (909)889-9501 FAX:(S0S)889-5732 ~ ~.~ , ........ ~ FOR DAMAG~ INSTRUCTIONS: 1. Subject to ceffain statuto~ exceptions, an action for money or damages may not be maintained against the District unless written claim has been timely presented to the District and rejected in whole or in pa~. A claim shall be presented by the claimant or by a person acting on the clsimant's behalf. 3.Answer all questions. Omitting information could make your claim legally insufficient. 4.Name and address of the person to whom you desire notices or communications to be sent regarding this claim. 5. This claim form must be signed on page 2 at bottom. a~ach separate sheets, if necessa~, to give full details. SIGN EACH SHEET 7Claim must be filed with Board Secreta~. Name of Claimant Home Address of Claimant ~ X4~' 7 (~1~'~] , Ci~andS~ate . Home Tolephone Number Business Address of Claimant / Gib/and State Bugines~ Telephone Number Give address to which you desire notices or communications to be sep~ regarding this claim: ~o~did ~A~E or l~ooo~r~ ~iv~ ~11 ~io~l~m. ~ : . ~ _ ~en did DAMAGE or INJURY occur? Give full paniculate, date, time of day: ~ere did DAMAGE or INJURY occu~ Describe fully, and locate on diagram on reverse side of this sheet, where appropriate, give s?et names and add?ss and measurements from landmarks: ~at p~ieular AG~ or OMISSIO~ do you el~im caused th~ inju~ or ~ama~e? Give names of District employees cau~in~ the ~nju~ or d~ma~o, if known: ~at DAMAGE or INJURIES do you claim resulted? Give full extent of injuries or damages claimed: What AMOUNT do you claim on account of each item of injury or damage as of date of presentation of this claim, giving basis of computation: ~//~¥ ~) d~ ~ve ESTIMATED AMOUNT as far as known you claim on account of each item of prospective injury or damage, giving basis Insurance payments received, if any, and names of Insurance Company: ~E PAGE 2 (OVER) THIS CLAIM MUST BE SIGNED ON REVERSE SIDE Expend'itures made on account of accident or injury: (Date - Item) (Amount) Name and Address of V~tness, Doctors and Hospitals: READ CAREFULLY For all accident claims pface on following diagram names of streets, inclbding North, East, South, and West: indicate place of accident by" X" and by shewing house numbers of distance to street corners. If District Vehicle was involved, designate by letter "A" location of District vehicle when you first saw it, and by" B" location of yourself or your vehicle when you first saw District vehicle: location of District vehicle at time of accident by" A-1" and location of yourself or your vehicle at the time of the accident by "B-l" and the point of impact by "X". NOTE: If diagrams below do not fit the situation, attach hereto a proper diagram signed by claimant. SIDEWALK ~. gnatu e e CJa~man or person fi ~ng on his Typed Name Da~e behalf giving relationship to C I a i~z"~'"_J (~) ~,,~_~/x~.~,- ./,,~,~ 7~C,, ¢_~.f(.,~,~,' r NOTE: Ail claimants may be required to be examined as to their claim under oath. Presenta[ion of a false claim is a felony (Calif. Penal Code Sec. 72) CLAIMS MUST BE FILED WITH E~OARD SECRETARY. ~7247 Pac~c St. Highland, CA 92346-2535 ~ /h. /~~ Montane. Inc. State Uc No, 753963 Phone (900) 882-1748 · Fax: (909) 884-8378  25260~. Baseline · San Bernardino, California 92410 NAME ~ ,' DATE ~'~ ~ 20~ ~N OF J~B ~ ~,~ ~ PHONE CHARGE TO ADDRESS TERMS / REMARKS: // "[: Contractors are required by law to be license~ and regulated by the Contractors' State License Board. Any questions concernin9 a contractor may by referred to ~e regis~r of the board whose address is: Contractors' State License Bo~d, 1020 N Street, Sacramento, CA 95814 Signature ~ 195 ~2359-0195 // ~ ~ $885 phons '7755 Websit~, ,,-hcitms.com June l 1, 2002 To Whom It May Concern: H & Iff Citrus, Inc. and David Eady would like to be able to harvest the crops eurrentiy planted at ,,.,' HigMand Harvest Barn until October 31, 2002. COPY THIS AGREEMENT is made this ~--day of ~--~W , 2000, by and between EAST VALLEY WATER DISTRICT, a ~ublic a~ency · (hereinafter "the District"), and HIGHLAND HARVEST BAR/~, LLC, a limited liability company (hereinafter "tha Company"). P~ECITALS A. The District is a County Water District organized and operating pursuant to California Water Code Section 30000 et seq. B. The Company is a limited liability company organized and operatin~ pursuant to the laws of the State of California. C. As of the effective date of this Lease, the District purchased from the Company fee title tO approximately ten (10) acres of vacant real property located on Fifth Street in the City of Kighland, County of San Bernardino, State of California, which ' is more particularly described as Assessors Parcel Nurabers 1201- 361-01 and 1201-361-02, and as further set forth in the legal description attached hereto as Exhibit "One" and incorporated herein by this reference ("the Property"). D. The Company wishes 'to leas~ the Property from the District for the purpose of continuin~ the Company's existin~ farming operations thereon. ~. The purpose of this Agreement is to set forth the terms and conditions under which the District will lease the Property to the Company. COVENANTS ~0W THEREFOKE, in consideration of the preceding Recitals and the mutual Covenants contained herein, the parties hereto agree as follows: Section l, DESCRIPTION OF PREMISES The District hereby leases to the Company, and the Company hereby hires from the District, the Property in the limited manner as strictly provided herein. The Company has inspected the Property and agrees that the acreage stated herein is only approximate and the District does not hereby warrant or 9uarantee the actual amount of acreage stated in this Lease. Section 2. TERM (a) Firm Term, The term of this Lease shall cor0raence on the date that Escrow No. ~5410-MR with the Eerita~e Escrow Company closes on the sale of the Property from the Company to the District, and shall expire two (2) years after said date ("the Firm Term"), unless earlier terminated by the Company upon thirty (30) days prior written notice to the District, or unless earlier terminated by th~ District pursuant to Sections 18 and/or ~ of this Lease. If said escrow on the sale of the Property from the Company to the District does not close, this Lease shall automatically be deemed null and void and of no force or effect. (b) Notice and Extension. Pursuant to Section 23 of this L~ase, the District shall provide the Company with a written courtesy notice of the impendin~ expiration of the Firm Term approximately six (6) months in advance thereof. The Firm Termmay be extended only by mutual written agreement executed by all parties hereto. (c) HDl~ing Qver. Any holding over after the expiration or termination of the Firm Term, with the consent of the District expressed or implied, shall be deemed only a month-to-month tenancy and shall otherwise be on the same terms and conditions set forth in this Lease; except that, if a holdover occurs, the Company shall pay to the District rent in the amount of $6,000.00 for each month basis during the period of holdover. Section 3. RENT In consideration for leasing the Property, the Company shall pay rent to the District in the amount of $2,000.00 per month on the first day of each month during the Firm Term, which payment shall be deemed delinquent if unpaid on the fifteenth day of the rmDnth. Section 4. USE.OF PREMISES The Company's use of the Property shall be strictly limited to the strawberry, vegetable, produce, and related farming and marketing operations currently existing thereon and the reasonable use of the water well affixed thereto. The Company agrees not to use or permit the use of the Property for any purpose not specifically allowed in this Lease and any amendments thereto without first obtaining prior written consent from the District. The Company also agrees to exercise due diligence in the protection of the Property from damage or destruction by fire, vandalism, earthquake, floods, or other cause. Section 5. NO WASTE. NUISANCE. DR UNLAWFUL USE The Company shall not co~it, or allow to be committed, on the Property any waste thereon, nor the presence, use, manufacture, handling, generation, storage, treatment, discharge, release, 3 burial, or disposal of any hazardous substance which is or becomes listed, regulated, or addressed under any federal, state, or local statute, law, ordinance, resolution, code, rule, regulation, order or decree, nor create or allow any nuisance to exist on the Property, nor use or allow the Property to be used for any unlawful or unconstitutional purpose. The Company, at its sole cost and expense, shall be solely responsible' for ensuring that the Property, and the Company's use and occupancy thereof, complies with all of the requirements of all local, state, and federal authorities now in force, or which may be in force, including but not limited to those identified in Section 15 of this Lease. Section 6. ~ (a) Construction. Ail improvements, repairs, and construction performed on the Property by the Company or its employees, agents, Contractors, consultants, or subcontractors shall comply with the applicable rules, regulations, laws, statutes, and standards of the District and any other entity with jurisdiction over the activities conducted thereon. No alteration of the Property or constr~ction of improvements thereon shall be permitted until the District has approved the complete plans and specifications therefor as prepared by an architect duly-registered by the State of California. Where approval or acceptance by the District is indicated in this Lease, it is understood to be conceptual approval only and will not operate to relieve the Company 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 Lease shall be construed as a waiver of any rights hereunder or of any defense or cause of action which it may have arising out' of the performance of this Lease or any previous or subsequent agreements. (b) R~location. If the District or any other duly- empowered entity determines that the improvements constr~cted by the Company, or any part thereof, require repair, replacement, protection, removal, and/or relocation, suck action shall be performed by the Company, at its sole expense, and in the manner required by the District, approved by the District, and sub, eat to Section 21 hereof and the protections otherwise afforded to the District under this Lease. To the extent of its authority, the District agrees to reasonably cooperate with the Company in directing the manner of any suck repair, replacement, protection, removal, and/or relocation. (c) Ownership. At the expiration or termination of this Lease, the ownership of the fruit stand building currently located on the Property and all of the movable contents contained therein shall vest in the Company. The Company shall be responsible for the dismantling and removal of said building and its contents within 45 days of the expiration or termination of this Lease. The ownership of all other buildings, structures,~ fixtures, and 5 improvements constructed on the Property shall vest in the District. The Company shall deliver said buildings, structures, fixtures, and improvements to the District in ~ood condition and repair, reasonable wear and tear excepted, without compensation to the Company, and free and clear of any and all liens and/or claims. Section 7. REPAIRS AND MAINTENANCE The Company, at its own expense, shall have full and sole responsibility for all maintenance, repair, and remediation of, on, or about the Property, and shall maintain, preserve, and keep the Property and the water well affixed thereto in good repair, workin~ order, and lawful state, and shall from time to time make all repairs, replacements, and improvements necessary to keep the Property and the water well affixed thereto in such condition. Section 8. FEES. TAXES. CEARGES..Ai~D ASSESSMENTS The Company shall install on the Property current meters to measure the amount of gas, electricity~ water, phone, or other utility service consumed by the Company, and the cost of such metering and the installation, maintenance, and repair thereof shall be paid for by the Company. The Company shall also pay when due all gas, water, steam, electricity, heat, power, telephone, refuse, and other charges incurred in the operation, maintenance, use, occupancy, abatement, and upkeep of the Property. The Company shall also pay when due all property and excise t~xes and governmental charges of any kind whatsoever which may at any time be lawfully assessed or levied against or with respect to the Property or any part thereof, and all special assessments and 6 charges lawfully madebyany governmental body for any improvements on the Property. Section 9. LIENS The Company shall not, directly or indirectly, create, incur, assume, or suffer to exist any mortgage, pledge, lien, charge, citation, abatement order, encumbrance, or claim on or with respect to the Property, other than the respective rights of the District and the Company as provided in this Lease and any amendments thereto~ The Company shall promptly, at its own expense, take such action as may be necessary to immediately discharge or remove any such mortgage, pledge, lien, charge, citation, order, encumbrance, or claim as the same shall arise at 'any time. The Company shall reimburse the District for any eXpense incurred by the District to discharge or remove any such mortgage, pledge, lien, charge, citation, order, encumbrance, or claim. Section ~0. ACCESS TO PREMISES The District shall have reasonable access to the Property at all times during the term of this Lease. Section 11. OTHER PROPERTY INTERESTS The Company's rights under this Lease are subject to all applicable easements, licenses, rights of way, and mineral rights currently in existence. The Company shall not interfere, in any way, with the interests of any person or entity that may presently, or in tke future, hold any easement, license, right of way, or oil, gas, or other mineral interest, upon, across, above, or under the Property; nor shall the Company interfere, in any way, with the 7 rights of ingress and egress of such interest holders. The District further reserves the right to grant additional easements, licenses, and/or rights of way to other parties as may be deemed necessary by the District in its sole discretion. Section 12. NON-DISCrimINATION The Company shall not permit any practice of discrimination against, or segregation of, any Person or group, of persons on account of sex, race, color, creed, ~arital status, age, sex, religion, handicap, national origin, or ancestry in its ownership, employment, selection of contractors, sktbeontractors, and vendees, or in the enjoyment, use, and occupancy of the Property. Sectionl3.- NO.RE.PRESENTATIONS~ WARRANTIES. OR WATER RIGHTS It is expressly understood by the parties hereto that the physical condition of the Property and the water well affixed thereto as of the. effective.date of this Agreement is such that it is leased to the Company as-is without any representation or warranty. The District makes no express or implied representations or warranties concerning the Property or the water well affixed thereto, or their fitness for any particular purpose. The Company shall bear the costs of any action necessary to place the Property in a condition that meets the requirements of law or that is otherwise suitable for the use contemplated herein. The District shall not be held liable to the Company or to any other party for any losses incurred or damages sustained as a direct or indirect result of the condition of the Property or the water well affixed thereto or any use or failure thereof. Any water produced on or 8 extracted from the Property shall not serve as the basis of, or otherwise support, any water rights claim that may be asserted by the Company. Section 14. LIABILITY FOR DAMAGES The Distriot shall not be held liable or responsible for any debts or claims that may arise from the operation of this Lease, or for any damage claims for injury to persons, including the company and its agents or employees, or for property damage, or for other 10ss to any vehicle or the contents thereof, from any cause arising out of or in any way related to the Company's obligations hereunder or its use or occupancy of the Property and/or the water well affixed thereto, including those damages or losses arising out of said causes that occur on areas adjacent to the Property. Section 15. HOLD HARMLESS Excepting the sole or active negligence or willful misconduct of the District, the Company agrees to 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 Company and/or its agents, guests, invitees, trespassers, contractors, consultants, and employees in connection with the performance of their obligations under this Lease or their use and/or occupancy of the Property and/or the water well affixed thereto, and defend the District 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 9 fees incurred in connection therewith. In addition, the Company agrees to defend, indemnify, and hold the District and its officers, directors, agents, and employees harmless from and against and 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 Company, with regard to the condition of the Property or the activities conducted thereon during the term of this Lease-, 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, case law, statute, rule, regulation, or otherwise)-.- Section 16. ~ (a) ~ecurity. The District reserves the right to demand at any time durin~ the term of this Lease and any extensions thereof that the Company procure and maintain bonds from an acceptable surety, cash deposits, or other form 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 or liability. (b) Coverage During Term. In addition, the Company shall procure and maintain during the term of this Lease and any extensions thereof policies of insurance as follows: 10 Workers' Compensation: The Company shall maintain Workers' Compensation insurance, as required by law in the State of California, and Employers' Liability Insurance (including disease coverage) in an amount not less than $1,000,000.00 per occurrence. This insurance shall also waive all right to subrogation against the District, its Board of Directors, officers, employees, representatives and agents. General Commercial Liability: The Company shall maintain general liability insurance which shall include coverage for contractual liability, independent contractors, products and completed operations, broad form property damage, explosions, collapse, underground hazards, and acts or omissions committed by the Company in the course of performing any activities on the Property. This insurance shall be on a comprehensive, occurrence basis form with a standard cross liability clause and endorsement (ISO CG 2010 or equivalent). The District shall be named as an additional insured, and the limit for this insurance shall be not less than $2,000,000.00 per occurrence, combined single limit for bodily injury andpropertydamage. Real Property Insurance: The Company shall maintain real property insurance and fire legal liability covering any and all buildings, improvements, and property against loss or damage by fire, lightning, extended coverage, vandalism, malicious mischief, ~and earthquake. This insurance shall have an endorsement naming the District as an additional insured and with a standard cross liability clause and endorsement (ISO CG 2010 or equivalent). The limit amount for this insurance shall be not less than $2,000,000.00 per occurrence, combined single limit for bodily injury and property damage. Environmental Liability Insurance: The Company shall maintain environmental liability insurance to the extent available by industry standards with an endorsement naming the District as an additional insured and with a standard cross liability clause and endorsement (ISO CG 2010 or equivalent). The limit amount for this insurance shall be not less than $2,000,000.00 per occurrence, combined single limit per occurrence. (c) Supplemental Coverage Durin? Construction. During the period of any construction activities on the Property, the Company shall procure and maintain, or cause its contractor or subcontractors to furnish, the following policies of insurance in 11 addition to the requirements set forth above: Builders Ail-Risk Insurance: Builders All-Risk Insurance shall be maintained to cover the Property and all work performed thereon against loss or damage until completion. This insurance shall be on a comprehensive, occurrence basis form with a standard cross liability clause and endorsement (IS0 CG 2010 or eql/ivalent) for broad form property damage. The District shall be named as an additional insured, and the limit fo~ this insurance shall be not less than the replacement cost of all property thereon, per occurrence, combined single limit. Automobile Liability: Comprehensive automobile liability insurance shall be maintained with coverage for any vehicle including those owned, leased, rented or borrowed. This insurance shall have an endorsement naming the District aS an additional insured and with a standard cross liability clause and endorsement (ISO CG 2010 or equivalent). The limit amount for this insurance shall be not less than $1,000,000.00 per occurrence, combined-single limit-' for bodily injur!; and property damage. Professional Liability: Professional liability insurance shall be maintained with coverage for wrongful acts, errors, or omissions committed by any of the Company's contractors and/or subcontractors' in the course of performing any activities, on the Property. This insurance shall include coverage for liability assumed under this Agreement when such liability is caused by the wrongful acts, errors, or omissions of said contractors and/or s~bcontractors. The limit for this insurance shall be not less than $2,000,000.00 per claim. (d) Policy Requirements. The District shall not be liable or responsible for the payment of any premiums or assessments for the insurance coverage required under this Lease. Insurers shall have at least an Al5 policyholder's rating in accordance with the current 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 12 State of California. Certificates of insurance and endorsements, acceptable to the District and verifying the insurance coverage required by this Agreement, shall be filed with the District prior to the effective date of this Lease. The District reserves the right to require complete and accurate copies of all insurance policies required under this Agreement. The 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 coverage held by the District shall not" co~tribute to any ~'loss-under-the Company'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 thlsAgreement and contain a clause which provides that the policy may not be canceled 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 Lease and any extension thereof, the Company 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 the Company to keep in effect at all times the insurance coverage required by this Lease shall constitute a 13 material breach of this Agreement within the meaning of Section 17(f) of this Lease upon which the District may exercise any of its remedies under Section 18 hereof or, in its sole discretion, the DistriCt may instruct 'the Company to immediately suspend all activities on the Property until the Company achieves full compliance with its obligations hereunder. Section 17. DEFAULT The following shall be deemed events of default and cause for termination of this Lease by the District: (a) Rent. The Company fails to pay any installment of the rent when dus, and such failure continues until said payment is deemed delinquent pursuant to Section 3 of-this Lease.-. · (b) Insolvency. The Company becomes'insolvent, or makes a transfer in fraud of creditors, or makes an assignment for the benefit of creditors. (c) Bankruptcy. The Company files a petition under any action or chapter of the Bankruptcy Act, as amended, or under any similar law or statute of the United States or any state thereof; or the Company is adjudged bankrupt or insolvent in'proceedings filed against the Company thereunder. (d) Receivership. A receiver or trustee is appointed for all or substantially all of the assets of the Company. (e) Abandonment. The Company deserts or vacates any substantial portion of the Property. (f) Breach. The Company fails to comply with any term, condition, or covenant of this Lease. Section 18. REMEDIES FOR BREACH Upon the occurrence of any event of default described in Section 17 of this Lease, the District shall give the Company written notice thereof. With respect to an event of default described in Section 17(a) of this Lease, said notice shall be given by the District in the rmanner required by law. With respect tO all other events of default described in Section 17 of this Lease, the District shall give the Company a period of thirty (30) calendar days after the date of said written notice in which to cure said breach or default to the satisfaction of the District, unless the District determines in its sole discretion that the default represents a hazard or emergency that requires immediate action. If the breach or default is not timely cured by the Company to the satisfaction of the District, the District shall have the option to pursue any one or more of the following remedies, with or without the benefit of court order, in addition to its other rights and remedies under the law: (a) Reentry_. Enter upon the Property, by force if necessary, without being liable for prosecution or any claim for damages therefor, and perform whatever act the Company is obligated to perform under the terms of this Lease; and the Company agrees to reimburse the District, on demand, for any expenses which the District may incur in effectuating compliance with the Company's obligations under this Lease, and the Company further agrees that the District shall not be liable for any damages resulting from such actions. 15 (b) Eviction. Enter upon and take possession of the Property and any personal property found thereon, and expel or remove the Company and/or any person who may be occupying the Property, or any part thereof, to the extent allowable under the law, without being liable for prosecution or any claim for damages therefor, and subsequently sublease the Property and receive the rent and receipts therefor; and the comPany agrees to pay to the District, on demand, any deficiency that may arise by reason of such subsequent subleasing. The District may store any personal property removed from the Property in a public warehouse or at another place of its choosing within the County of San Bernardino at the Company'sexpense or to the Company's account. ~ (c) Termination. Termination of this Lease, in which Case the Company shall immediately surrender the Property to the District, and if the Company fails to do so, the District may, without prejudice to any other remedy which it may have for possession or arrearages in rent or receipts, enter upon and take possession of the Property and expel or remove the Company and any other person who may be occupying the Property, or any part thereof, to the extent allowable under the law, without being liable for prosecution or any claim of damages therefor; and the Company agrees to pay to the District, on demand, the full amount of all loss and damage which the District may suffer by reason of such termination, whether through inability to subsequently sublease the Property on satisfactory terms or otherwise. /// 16 Section 19. EFFECT OF DISTRICT'S WAIVER Any failure by the District to enforce any provision of this Agreement, or any waiver thereof by the District, shall not constitute a waiver of its right to enforce subsequent violations of the same or any other terms or conditions herein. Section 20. ~ The Company shall not be in default under this Lease in the event that the performance of its obligations hereunder ars temporarily interrupted for any of the followin~ reasons: riots, wars, sabotage, civil disturbances, insurrection, explosion, natural disasters such as floods, earthquakes, landslides, and fires, and other labor disturbances or other catastrophic events which are beyond the reasonable control of the Company. Other catastrophic events do not include the financial inability of the Company to perform, or failure of the Company to obtain any necessary permits or licenses from other governmental agencies or the right to use the facilities of any public utility. Section 21. CONDEMNATION OF PROPERTY Should all or any part of the Property be taken by any public or quasi-public agency or entity under the power of eminent domain during the term of this Lease, the following shall apply: (a) Termination of Lease. The District may terminate this Lease by givin9 the Company thirty (30) days written notice thereof. (b) Allocation of Damagg~. Any and all damages and compensation awarded or paid because of the taking shall belon9 to 17 the District; except that any and all monetary relief specifically allocated for crop or farming losses shall belong to the Company. (c) Partial Taking. Should only a portion of the Property be taken by eminent domain and this Lease is not terminated by the District, the rent thereafter payable under this Lease shall be abated proportionally as to the portion taken which is then not usable by the Company. Section 22. ATTQRI~EY~' FEES The prevailing party in any arbitration, mediation, court action, or other proceeding involving a dispute or controversy arising out of, under, in connection with, or in relation to this Lease, and any amendments thereto, or the breach thereof, shall be entitled to reimbursement by the other party of all attorneys fees and costs actually incurred by the prevailing party in connection · therewith. In any such action, arbitration, mediation, or other proceeding, the entitlement to recover attorneys fees and costs will be considered an element of costs and not of damages. Section 23. ~QTICE All notices, demands, or other writing in this Lease required to be given or made or sent, or which may be given or made or sent, by either party hereto to the other, shall be deemed to have been fully given or made or sent when in writing and deposited in the United States mail, certified and postage prepaid, and addressed as follows: /// III 18 TO the District: East Valley Water District P.O. BOX 3427 1155 Del Rosa Avenue San Bernardino, CA 92413 Attention: General Manager To the Company: Highland HarVest Barn, LLC 7571 Lochinvar Court Highland, CA 92346 Attention: David J. Eady Law Offices of StephenH. Tyler, P.C. 300'E. State Street Redlands, CA 92373 Attn: Stephen H. Tyler, Esq. The address to which any notice, demand, or other writing may be given or made or sent to any party as above provided may be changed by written notice given by such party as above provided. Section 24. SUCCESSORS AND3ASSIGNS The Company shall not sublet, assign, mortgage, pledge, hypothecate, or otherwise dispose of the Property, or any part thereof, or any right or privilege connected therewith, or to allow any other person, except the Company's agents and-employees, to occupy the Property or any part thereof, without first obtaining the written consent of the DistriCt, which consent shall not be unreasonably withheld. A_ny such consent by the District shall not constitute consent to any subsequent assignment, sublease, or occupation by 'the Company or other persons. The Company's unauthorized assignment, sublease, or license to occupy shall be void, and shall terminate this Lease at the District's option. The Company, s interest in this Lease is not assignable by operation of law, nor is any assignment of its interest herein, without the written consent o[ the District. Further, any change in stock 19 ownership of the Company which results in a transferee, who is other than a stockholder of the Company at the time of executing this Lease, receiving a beneficial ownership of, or interest in, any outstanding stock of the Company, shall be deemed an assignment prohibited by this Section, unless the written consent of the District be obtained. Section 25. INUREMENT This Lease and the covenants and conditions hereof apply to and are binding upon the heirs, successors, legal representatives, and assigns of the parties hereto. Section 26. INTE~RATIONAND 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 si~ned by both parties hereto. Section 27. 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 28. 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. This Agreement shall be enforced and governed by and under the laws of 20 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 with in rem jurisdiction over the Property. Section~ 29. TIME OF THE ESSENCE Time is of the essence in this Lease and each and every provision thereof. Section 30. AUTHORITY The persons executing this Agreement hereby represent and warrant that they are fully and duly authorized and empowared to so execute on behalf of each of the respective parties hereto. /// /// [End of Covenants -- Signature Page to Follow] IN WITNESS WHEREOF, the parties hereto have caused this Agreement 'to be executed by their respective officers as of the date first above written. EAST VALLEY WATER DISTRICT BY: Pr~sid~ent, B~6a~ Directors ATTEST: HIGHLAND MARVEST BARN, LLC /~t~hen'E. Tyler, Me~e-r Donna J. Tyler, Mem~r. . D~tua J. Ea M ATTEST: Notary Public 22 CONSENT TO SUBLEASE Pursuant to Section 24 of the Lease entered into between EAST VALLEY WATER DISTRICT ("Master Landlord") and HIGHLAND HARVEST BARN, LLC ("Sublandlord"), on July 25, 2000 ("Master Lease"), Master Landlord hereby consents ~o the foregoing Sublease entered into between Sublandlord and H&H CITRUS, INC. ("Subtenant"), subject to the £ollow/ng conditions: 1. All of the provisions eh~racter~ed as "Recitals" in the Sublease shall be construed as eontraet~lly-operative covenants to which Sublandlord and Subtenant shall be bound. 2. Master Landlord shall be entitled to enforce any provision of the Sublease as a third party beneficiary. 3. Sublandlord shall confmue to be obligated to fully comply with all of the provisions of the Master Lease. 4. Unless earlier terminated by Master Landlord, the term of the Sublease shall be the same as set forth in the Master Lease. 5. Master Landlord shall not be obligated to provide Sublandlord or Subtenant with a six-month written courtesy notice of the expiration oftha term of the Master Lease or the Sublease as otherwise required by Section 2(b) of the Master Lease. Except for Section 3 of the Master Lease, Subtenant shall assume and perform all of the obligations required of Sublandlord under the Master Lease and any amendments thereto. 7. Onthe 15~ day of each month during the term ofthe Sublease, Subtenant ~h~ll pay Master Landlord a sum of money equal to three percent (3%) of the total gross revenues generated by Subte.-ant as result of the Suhiease and Subtenant's use of the subject property during the previous month, with an accounting which provides Master Landlord with proper financial justification for the manner in which said sum was calculated by Subtenant and a report of all business transactions conducted by Subte-,-t during the previous month. 8. Upon five (5) days wr'~en notice, Master Landlord shall hav~ the right to inspect, review, and/or audit Subtenant's records and accounting documents.t If Master Landlord's review and/or audit reveals underpayment by Subtenant of the amount to which Master Landlord should have been paid, the following shall apply: a. Subtenant shall pay to Master Landlord the amount of such underpayment, plus a penalty calculated at ten percent (10%) of the underpayment; b. Subtenant shall reimburse Master Landlord for all costs incurred by the Master Landlord in connection with its audit inspection; c. Master Landlord ~hall be ent~ed to increase th~ amount of the percentage of the monthly gross revenues payable by Subtenant to Master Landlord by an add'rdonal one-h~lt'percent (.5%) during the term of the Sublease; and d. Master Landlord may exercise any of its rights and remedies under the law and Master Lease, including those set forth in Section 18 thereof. 9. Subtenant shall not perform any activity on or affecting the property which is the subject of the Master Lease that is in violation of; inconsistent with, or incompatible witlh any provision of the Master Lease. 10. Nothing in the Sublease or Master Landlord's consent th~eto shall be treated or otherwise construed as a waiver cf Master Landlord's ab'flity to enforce any provision of the Master Lease as agslu~t Sublandlord or Subtensnt. 11. Nothing in the Sublease or Master Landlord's consent thereto shall be treated or otherwise construed as an estoppel to Master Landlord's ability to enforce any provision of the Master Lease as against Sublaudlord or Subtenant. 12. Master Landlord reserves the right to revoke its consent to the Sublease and demand immediate relinquishment of possession ef the subject property by Sublandlord and/or Subtenant at any time if the terms of the Master Lease and the Sublease have been, are be'rog, or will be, breached or not fully performed to the satisfaction of Master Landlord. Dated: l - l [~ - 0~ EAST VALLEY WATEK DISTRICT President, Board of Directors ACCEPTED AND AGREED: ~ Ci~, ~c. ~R coNSERVATIoN · ~,'~ ,o.,'~e,,. S~ERNAR.DINO VALLEY WATE~ONSEtkVATION DISTP, ICT :~:);/~ ~'L~:~g ~ 1630We,t Ikcdlan& Boulevard, Suite a P.O. Box 1839 ~ .~e .;.~g:~/~,~-~, R,~dl~nd$, CA 92373-0581 ~lll~... }~;¢i! . ~[~- .~- Kedlands, CA 92373-8032 ~ "'~'"':*' '.'~;'" · ' Email: in£o~sbvwcd.dst.ca.us ~~ (909) 793-2503 - Oo~xO' Fax: (909) 793-0188 4~ N'qME IS OU~. June 12. 2002 Bob Martin East Valley Water District P.O. Box 3427 San Bemardino, CA 92413 RE: Agreement to Form the Upper Santa Ana River Wash Land Management and Habitat Conservation Plan Task Force Dear Bob Martin: As indicated in our email memo on June 7, 2002, the final Agreement to Form the Upper Santa Aha River Wash Land Management and Habitat Conservation Plan Task Force ('~l'ask Force Agreement") would be distributed upon receipt of any review comments from the City of Highland. That review is now complete. From the redline version you received for the May 17 Wash Committee meeting, the attached clean copy has changed the effective date, and made the following changes to Exhibit D: added Section l(A)(3), added the word "bridges" in Section 1 (A)(4), and Exhibit C-1. In addition, the CEMEX company name has been corrected, and DWR and Orange County mailing addresses have been added to Section 8: Notices. Please obtain the appropriate signatures within your organization and return one copy to us. You may keep the other copy. When signatures are received from the other signing agencies, a copy of those signature pages will be distributed. A meeting of the Task Force will be called in July to discuss the scope of work with the consultant, LSA Associates, Inc, Thank you for your patience during the coordination phase of this work. The Conservation District looks forward to participating with you on this highly important project. Sincerely, D. Bumell Cavender, AICP General Manager ENCL BOAlkJ) Bert Marcum. Jr. Arnold L.Wright Cheryl A.Tubbs GENEIkAL 13. Burnell Caxender. A}C: OF Clare Henry Oay SterlingWoodbury Melody Henriques MANAGEIk DIILECTOKS Manuel Amnda. Jt. AGREEMENT TO FORM THE UPPER SANTA ANA RIVER WASH LAND MANAGEMENT AND HABITAT CONSERVATION PLAN TASK FORCE THIS AGREEMENT is made effective this __ day of , 2002, by and between the following entities (hereinafter individually referred to as a "Party" and collectively referred to as the "Parties"): CEMEX CONSTRUCTION MATERIALS, ROBERTSON'S READY MIX, LTD LP ("CEMEX") ("ROBERTSON'S") [CITY OF HIGHLAND ("HIGHLAND")] EAST VALLEY WATER DISTRICT ("EVWD") CITY OF REDLANDS ("REDLANDS") REDLANDS UTILITIES DEPARTMENT ("RUB") COUNTY OF SAN BERNARDINO ("SAN SAN BERNARDINO COUNTY FLOOD BERNARDINO COUNTY") CONTROL DISTRICT ("SBCFCD") SAN BERNARDINO VALLEY WATER UNITED STATES BUREAU OF LAND CONSERVATION DISTRICT ("SBVWCD" MANAGEMENT ("BLM") OR "CONSERVATION DISTRICT") RECITALS This Agreement is entered into on the basis of the following facts, understandings, and intentions of the Parties: A. Representatives of numerous agencies, including water, mining, flood controt, resource management and conservation, and municipalities, formed the Santa Ana River Wash Area Coordinating Planning Activities Committee ("Wash Committee") to address local mining issues and other land functions on the Upper Santa Ana River Wash ("Wash"). A Policy Action Committee ("PAC") was subsequently established, consisting of elected officials from San Bemardino County, Highland, Redlands, and the Conservation District, as well as the Field Manager of the BLM. A Technical Advisory Committee ("TAC") was also formed with representatives from the PAC agencies, and other water, mining, flood control, and resource protection interests. B. The Wash Committee examined the most appropriate manner in which to use the Wash for the benefit of all landowners without regard to preexisting planning of the Wash or current land ownership. Ultimately, the Wash Committee determined that there should be a balance of land uses to accommodate the needs of mineral extraction, water conservation, habitat protection, and municipal infrastructure 159~]~042-000{ 169068,19 a06/l 2/~32 requirements (i.e. utilities, trails, etc.). To achieve land use balance, current land uses must be reassigned to better accommodate mineral extraction, water conservation, and habitat. To effect such change, an exchange of existing land ownership between BLM and the Conservation District, and a transfer of leasehold interests between the mining companies and the Conservation District will be required. C. The TAC reached a general consensus in early 2000 regarding the designation of specific areas of the Wash for the desired uses. The result of this multi- jurisdictional effort was the creation of a proposed Land Management and Habitat Conservation Plan for the Upper Santa Ana River Wash ("Concept Plan"). The Concept Plan establishes the framework for balancing ongoing and future land activities proposed for the Wash Planning Area ('~VPA"), including habitat protection areas and recreational trail alignments. The Concept Plan was reviewed and endorsed by the governing boards and/or officials with approval authority from each of the Parties, and various other agencies involved in the deliberations on the Concept Plan. D. Each of the Parties have found and determined that it is in their best interests to join together to: manage activities in connection with the necessary refinements, environmental review, and implementation of the Land Management and Habitat Conservation Plan (collectively the "Project"); provide an equitable cost-sharing mechanism for the funding of the Project; and, define the projected schedule and scope of work to execute the Project. E. The Parties hereto now enter into this Agreement to establish a Task Force, consisting of a representative from each party, to oversee and administer the preparation of plans, environmental review documents, public notices and hearings, and other activities requisite to the formulation and, if adopted, execution of the Project. F. In entering into this Agreement, the Parties reserve their discretionary authority with regard to the execution of the Project, including but not limited to, any land use and planning authority under state and local law, authority, designated under the Surface and Mining Recovery Act ("SMARA"), and CEQA approval of their own discretionary decisions executing the Project. TERMS & CONDITIONS SECTION 1: DESCRIPTION OF PROJECT, The Project to be undertaken by the Task Force consists of all of the following: A. Refinement and expansion of the Concept Plan (Exhibit "A") to develop the Component Plans of a "Land Management and Habitat Conservation Plan for the Upper Santa Ana River Wash" ("Plan"), which includes the following: 1. A Mining and Reclamation Plan under the Surface Mining and Reclamation Act ("SMARA") designating the areas as generally depicted in Exhibit "A" to be devoted to sand, gravel, and mineral extraction and the terms and conditions under which such extraction may proceed, which will be provided by CEMEX and 159/015042-000} Robertson's to the appropriate municipality, Highland or Redlands, for review and approval;. 2. A Water Conservation Plan, which describes the scope, extent, and location of water diversions, conveyance, spreading, and monitoring activities, which will be provided by the Conservation District; 3. A Recreation Plan, which coordinates the planning and development of trails, parks, and public recreation areas, which will be provided by Conservation District, San Bernardino County, and Redlands; 4. An Infrastructure Plan, which describes the location of pipelines, utility corridors, roads, highways, and communication facilities, which will be provided by the Conservation District, EVVVD, and Redlands; 5. A Habitat Protection Plan, which will be provided by the Conservation District to identify habitat areas that may be considered to protect threatened and endangered species at such time as other activities within the Wash are presented to the appropriate agency for entitlements, approvals and /or land use permits; and 6. A Flood Control Plan, which describes flood control facilities/activities including detention and retention basins, drains, and storm water conveyance facilities, which will be provided by SBCFCD. B. Preparation of preliminary documents necessary to conduct an environmental analysis, including the following: 1. A Project Description for the environmental analysis based on the Component Plans described above; 2. Alternative land balancing plans to be studied in the environmental analysis; 3. A plan outline, including actions, required funding, and the administrative or legislative measures needed to implement the Project, which will be known as the Implementation Action Plan; and 4. A draft agreement to execute the Implementation Action Plan, which will be known as the Implementation Agreement. C. Preparation of an EIR/EIS for implementation of the Plan, including a mitigation monitoring plan, based on the Component Plans in 1.A. above, and the preliminary documents in 1.B. above. D. Completion of a proposed land exchange between BLM and Conservation District. BLM, working with the Conservation District, shall undertake activities to assess, and if appropriate, implement by way of a Memorandum of Understanding or 159/01S042-0001 other appropriate instrument with the Conservation District, a land exchange. The assessment and potential implementation of the land exchange will analyze whether portions of property currently owned by BLM can feasibly and beneficially be exchanged for portions of property owned by the Conservation District. E. Preparation of the implementation documents based on the completed EIPJEIS, including the following: 1. A certification of the EIR and record of decision for the ElS; 2. An Implementation Action Plan; and 3. A Habitat Conservation Plan, including a programmatic Section lOa Take Permit. F. Task Force submit the EIPJEIS, Implementation Action Plan, and Habitat Conservation Plan to the appropriate agencies for their action and, if adopted, subsequent implementation. SECTION 2: CREATION OF THE TASK FORCE. There is hereby created a task force that shall be known as the Upper Santa Ana River Wash Land Management and Habitat Conservation Plan Task Force ("VVash Task Force" or "Task Force"). The Task Force shall oversee and direct preparation of the Project and shall be comprised of regular and advisory members as follows: A. Regular Members. Each Party who contributes financially to fund the Project in accordance with Exhibit "B" to this Agreement, as may be amended from time to time, or contributes with in-kind services that result in a product for use by the Task Force commensurate with the level of contribution identified in Exhibit "B," shall be deemed a Regular Member of the Task Force. Any dispute regarding whether "in-kind" services contributions by a Party entitles such Party to status as a Regular Member shall be submitted to all then- existing Task Force Regular Members, and will be decided by a majority vote of the Task Force Regular Members. Each Regular Member shall be entitled to appoint two (2) representatives to the Task Force concurrently with the execution of this Agreement. Each Regular Member shall appoint (1) representative to oversee and contribute to the technical/staff aspects of the Task Force's work, and one (1) member of the legislative body, Board of Directors, or other body with ultimate decision making and policy making authority for the Regular Member, who shall be the voting member of the Task Force. Notwithstanding that each Regular Member shall have two (2) representatives to the Task Force, each Regular Member shall have and exercise only one (1) vote. The identity of each of the appointed representatives from each respective Party shall be promptly communicated to the Project Manager. Appointed representatives to the Task Force shall serve at the pleasure of the governing body of the respec!ive appointing Party, and may be removed by them at any time, with or without cause; provided, however, that the Parties acknowledge and agree the continuity of representation on the 159/015042-0001 169068.19 a06112~2 -4- Task Force is important to the overall effectiveness of the Task Force, and the Parties further agree to ensure such continuity whenever possible. B. Advisory Members. 1. Any member of the TAC, which is not a Regular Member of the Task Force, and any other public or governmental agency, may with the approval of a majority of the Regular Members of the Task Force, designate representatives as non- voting advisors to the Task Force ("Advisory Members"). The Task Force will formally recognize these Advisory Members and ensure all materials and products of the Task Fome are provided to the Advisory Members. A list of Advisory Members will be maintained by the Project Manager. 2. The California Department of Water Resources (DWR), the California Department of Fish and Game (DFG), and the United States Fish and Wildlife Service (USFWS), County of Orange, and the City of Highland are hereby designated as Advisory Members to the Task Force. 3. Advisory Members may be admitted as Regular Members, with voting privileges, with approval by a majority vote of Regular Members of the Task Force. C. Function. 1. The Task Force shall oversee and direct the preparation of all of the component elements of the Project. 2. The Task Force shall assist in the selection of a consultant to assist in planning and implementing the Project ("Consultant"). The Consultant selected must be acceptable to the Federal lead agency. 3. The Task Force shall meet periodically for the purpose of reviewing and evaluating the work product of the Task Force and the Consultant. 4. The Task Force shall administer this Agreement, subject to the reserved right of each of the Parties to approve their respective financial appropriations to Task Force budgets. 5. The Task Force shall propose contribution levels for each Party, subject to Section 4.D. herein. The contribution level for each Party shall initially be those set out in Exhibit "B" hereto. 6. The Task Force shall, in consultation with the Consultant, prepare and adopt a project schedule ("Project Schedule"). When 'completed, the Project Schedule will be circulated among all Regular and Advisory Members, and will be maintained by the Project Manager. 1~9/01 $042-000t 169068.19 a06/l 2/02 -5- D. Committees. The Task Force may establish working committees, which shall be designated from a pool of Regular and Advisory members who shall be selected by and serve at the pleasure of the Task Fome. E. Desi.qnation of Officers. The Task Force shall designate and appoint one of its representatives to act as Chair and another of its members to act as Vice-Chair, both of which shall be selected from the pool of Regular Members. The Conservation District shall perform the functions of project administrator, including secretarial and treasurer duties. F. Meetin,qs Regular meetings of the Task Force shall be held at the Conservation District offices, or such other place as may be agreed upon by the Task Force. At the first meeting, the Task Force shall provide for the time and place of its regular meetings. Special meetings may be called at the request of the Chair or of a majority of Regular Members to the Task Force. A majority of Regular Members of the Task Force shall constitute a quorum for the purposes of transacting business. Except as otherwise provided herein, all actions of the Task Force shall be passed and adopted upon the affirmative vote of a majority of the quorum of Regular Members. All meetings of the Task Force shall be conducted in accordance with California's Open Meeting Laws. The Project Manager shall keep or cause to be kept, minutes of the meetings of the Task Force, copies of which shall be forwarded to each Task Force representative and to each Party. The Task Force may adopt, from time to time, such additional rules and regulations for the conduct of its affairs as may be required. G. Additional Parties. The Parties to this Agreement acknowledge and agree that the effectiveness of the Task Force may be improved by the addition of other entities that have interest in the work of the Task Force. Such entities may join the Task Force upon approval of a majority of the Regular Members of the Task Force, and upon such terms and conditions as are acceptable to such Regular Members, including, but not limited to, cash contributions to past, present, and/or future work of the Task Force. H. City of Highland as Regular Member. At the time of execution of this Agreement, the City of Highland has expressed its interest in joining the Task Force as a Regular Member, and the par[les to this Agreement contemplate and desire that it do so. Provided City of Highland approves and executes this Agreement within One Hundred Eighty (180) days of the Effective Date, and pays its share of the Task Force Contribution Levels as set forth in Exhibit "B- 1," for application to all expenses incurred by the Task Force from the Effective Date and following, City of Highland may join the Task Force, as a Regular Member, without the necessity of an approving vote of the Regular Members. In the event City of 159/015042-0001 Highland so joins the Task Force pursuant to the terms and conditions of this Section 2 (H), and effective immediately and prospectively from the date it does, various provisions of this Agreement shall be thereupon automatically be amended, all as more specifically set out in Exhibit "D" hereto. SECTION 3: LEAD AGENCY DESIGNATION A. Consistent with the First Amendment to the Memorandum of Understanding Regarding Coordinated Planning Activities Pertaining to the Santa Ana River Wash Area dated August 13, 1997, ("MOU") and its designation of the Conservation District as the Permanent Chair of the Policy Action Committee, the Conservation District is hereby designated as the Lead Agency for all non-federal activities associated with the Project under the California Environmental Quality Act ("CEQA"). B. The BLM is hereby designated as the Lead Agency for all federal activities associated with the Project under the National Environmental Policy Act ("NEPA"). SECTION 4: PROJECT MANAGER. A. The Conservation District shall serve as the Project Manager, at the pleasure of the Task Force. The Project Manager shall act as the primary liaison and contact between the Consultant, the Task Force, and the Parties to the Second Amendment. B. The duties of the Project Manager shall include the following: 1. Serve as the Lead Agency under CEQA and as assistant to BLM, which is the Lead Agency under NEPA; provided, however, that on issues relating to definition of level of significance for impacts, existence of and mitigation for significant adverse environmental impacts, and formulation of a mitigation monitoring program for those portions of the Project which involve mining activity within the jurisdictional boundaries of Redlands, and which require permits under SMARA, the Project Manager shall accept and incorporate into the EIR/EIS the determinations of Redlands for such aspects of the Project. 2. Administer the cost-sharing formula, which designates the percentage of the total cost of the Project, as approved by each Party to fund the Project; 3. Coordinate communications between the Consultant and the Parties; 4. Provide the Consultant with copies of all earlier studies and EIRs, which may be helpful to the Consultant to complete the Project; 5. Gather and transmit data to the Consultant from the Parties; 159/015042-0001 6. Provide periodic reports to the Task Force of the progress of the Project; 7. Report to and solicit input from the Task Force regarding policy issues that may arise; 8. Oversee the billing for all aspects of the Project; 9. Receive and pay all appropriate invoices for the Consultant; 10. Review the Consultant's charges and advise the Task Force of any problems associated with the Project; 11. Facilitate meetings of the Task Force and maintain records of the Task Force; 12. The Project Manager shall, through a written Notice to Proceed, cause the Consultant to commence the Project, and shall cause the Consultant to perform all services within the time period(s) established in the Project Schedule, and in conformity with the approved Project Flow Diagram, attached hereto as Exhibit "C"; and, 13. Either approve or deny by way of written response any requests for minor adjustments to the time period(s) specified in the Project Schedule. C. Administration of Task Force Work. The Conservation District shall make its personnel available as reasonably necessary to the Task Force to perform the secretarial, clerical, administrative, legal general counsel, and financial management duties requested by the Task Force. The Task Force shall compensate the Conservation District for the Conservation District's actual costs incurred in providing such services to the Task Force, upon presentation of an invoice detailing the services rendered and costs thereof, and approval of the same by the Task Force. ~ECTION 5: FUNDING MECHANISM. A. The current estimated cost for the preparation of plans and environmental review for the Project is $823,258, or $973,258 if the consultant prepares the implementation Agreement. The Task Force shall periodically approve a contribution amount to be requested of all Regular Members, to be paid to and managed by the Project Manager consistent with the provisions of this Section 4, from which the Project Manager will meet the expenses incurred in implementing the Project. Contributions shall be apportioned among the Parties, as agreed to by the Parties. The initial levels of contribution are identified in Exhibit "B" to this Agreement. B. The Conservation District as Project Manager shall coordinate Consultant retention, direction, coordination, and oversight in the planning and implementation of 169068.19 a06/12/92 -8- the Project, and shall serve as the agency through which funds are to be conveyed and disbursed for the purpose of completing the Project. C. The Conservation District shall establish a fund ("Fund") into which it will cause to be deposited all of the contributions received from the Task Force towards the estimated cost of the Project. It is intended that this Fund finance the Project in its entirety. In establishing the Fund, the Conservation District shall assure that all interest earned by the Fund is to be paid into the Fund, and made solely available for the funding of the Project. The Task Force may from time to time propose a cost-sharing formula differing from that attached as Exhibit "B", which designates the percentage of the total cost of the Project each. Party will be required to contribute to the Fund. Upon approval by the Task Force of a contribution amount to be requested of the Regular Members, the Project Manager shall submit invoices to each Party requesting payment of their respective contributions, pursuant to the formula attached as Exhibit "B," or as otherwise proposed by the Task Force. Payment of these invoices shall be made to the Conservation District within 30 days of receipt of such invoice. If any Regular Member fails to timely remit payment of its share of the invoices in accordance to Exhibit "B" to this Agreement, the voting rights of such Regular Member shall be suspended until such time as the full amount of the invoice is paid, or the final resolution of any dispute regarding the invoice, as provided below. During such period of suspension, the Party shalt enjoy only those rights and privileges as an Advisory Member of the Task Force. D. Each Party reserves the right to approve its own contribution level to the Project, as well as its ultimate payment authority of invoices issued by the Project Manager, in whole or in part, on a per-invoice basis. E. The Project Manager shall have authority and control of disbursements from the Fund. The Project Manager shall provide the Task Force with an accounting on at least a quarterly basis showing all disbursements, accrued interest, and other debits and credits to the Fund for the preceding quarter. Any amounts paid to the Project Manager shall not be subject to refund, except as provided herein. F. Should a dispute arise between the Project Manager and any Party(les) with respect to either an invoice submitted by the Consultant or any other disbursement from the Fund, the complaining Party(les) shall notify the Project Manager in writing, specifying the nature of the objections, the reasons therefor, and the action the complaining Party(les) requests the Project Manager to take in resolution of the dispute. Upon receipt of any such written objection, the Project Manager shall meet or otherwise confer with the complaining Party(ies) in a good faith effort to resolve the dispute. In the event such efforts do not result in resolution of the dispute within ten (10) days of the Project Manager's receipt of the written objection, the Project Manager shall refer the matter to the Task Force, and shall provide it with any and all receipts, invoices, or other documents necessary for the prompt resolution of the dispute. The Task Force shall consider and resolve the matter at its next scheduled meeting, but no later than thirty (30) days following the Project Manager's referral of the dispute to the Task Force. In resolving the dispute, the decision of the majority of the Regular Members of the Task Force shall be final. G. Upon completion of the Project, or earlier termination of this Agreement, any unexpended Funds shall be returned to the Parties in proportion to their financial contribution. SECTION 6: OWNERSHIP OF DOCUMENTS, All work produced in association with the Project (including originals prepared by anyone in connection with, or pertaining to, the work of the Task Force) shall become the property of the Regular Members of the Task Force, and each of them. SECTION 7: INDEMNIFICATION. Neither the Project Manager nor any officer or employee thereof shall be responsible to any other Party for any damage or liability occurring by reason of anything done, or omitted to be done, by the Consultant, or in connection with any work, authority or jurisdiction delegated to the Project Manager under this Agreement. All Parties, and each of them, hold the Project Manager harmless from any claim, demand, suit of law or equity, or other proceeding arising from or relating to the Project Manager's performance of its obligations contemplated by this Agreement. Nothing herein shall be read or understood as indemnifying or holding the Conservation District, or any officer or employee thereof, harmless from any claim, demand, suit on law or equity, or other proceeding arising from or relating from the acts or omissions of the Conservation District while acting as a Party to this Agreement. In addition, each Party agrees to indemnify, defend, and hold harmless each other Party and its officers, employees, agents, and volunteers from any and all claims, actions, losses, damages, and/or liability arising out of its obligations under this Agreement. In the event any Party is found to be comparatively at fault for any claim, action, or loss, or damage that results from their respective obligations under this Agreement, the Party(s) found to be at fault shall indemnify the other(s) to the extent of its comparative fault. Federal agencies' obligations under this Agreement shall be to the extent permitted by the Federal Tort Claims Act. SECTION 8: NOTICES. All notices required to be provided hereunder, except meeting notices, shall be in writing, and either served personally or sent by United States Mail. Meeting notices may be provided by electronic mail correspondence. For these purposes, the addresses for the Parties and Advisory Members are as follows: As to Cemex Construction Materials, LP: As to Robertson's Ready Mix: Regional Environmental Manager Robertson's Ready Mix, Ltd. CEMEX Attention: Rich Robertson P.O. Box 4120 P.O. Box 33140 Ontario, CA 91761-1607 Riverside, CA 92519 159/015042-0001 i69065A9 a06/12/02 - 1 O- [As to Highland: As to EVVVD: Community Development Director General Manager City of Highland East Valley Water District 27215 Base Line P.O. Box 3427 Highland, CA 92346] San Bernardino, CA 92413 As to Redlands: As to RUD: Community Development Director Chief of Water Resources City of Redlands Redlands Utilities Department P.O. Box 3005 P.O. Box 3005 Redlands, CA 92373 Redlands, CA 92373 As to SBCFCD: As to San Bernardino County: Director Land Use Services Department San Bernardino Co. Flood Control DistrictAdvance Planning Division 825 E. Third Street County of San Bernardino San Bernardino, CA 92415-0835 385 North Arrowhead Avenue - 3rd Floor San Bernardino, CA 92415-0182 As to Conservation District: As to BLM: General Manager Field Manager, Palm Springs-South Coast San Bernardino Valley Water District Field Office P.O. Box 1839 Bureau of Land Management Redlands, CA 92373-0581 P.O. Box 581260 North Palm Springs, CA 92258-1260 As to USFWS: As to DFG: Field Supervisor Department of Fish & Game U.S. Fish & Wildlife Service P.O. Box 1217 2730 Loker Avenue West Redlands, CA 92373 Carlsbad, CA 92008 AS to County of Orange: As to DWR: Attn: Mike Wellborn Recreation and Environmental Studies Planning and Development Services Department of Water Resources County of Orange 770 Fairmont P.O. Box 4048 Glendale, CA 91203 Santa Ana, CA 92702-4048 SECTION 9: ENTIRE AGREEMENT. This Task Force Agreement contains the entire agreement of the Parties hereto with respect to the matters contained herein, and supersedes all negotiations, prior discussions, and preliminary agreements or understandings, written or oral relating to 159/015042-0001 169068,19 a06/12/02 -~L~ ! - the Task Force and Project Manager. No waiver or modification of this Agreement shall · ~' be binding unless consented to by all Parties in writing. SECTION 10: WAIVER. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise. SECTION '11: COOPERATION: FURTHER ACTS. All parties agree to use reasonable care and diligence to perform their respective obligations under this Agreement. All parties agree to act in good faith to execute all instruments, prepare all documents, and take all actions as may be reasonably necessary, appropriate or convenient to carry out the purposes of this Agreement. SECTION 12: GOVERNING LAW. This Agreement shall be governed by and construed under the laws of the State of California. Federal agency participation under this Agreement, however, shall be governed by the applicable federal laws. SECTION 13: ATTORNEYS' FEES. In the event the Task Fome initiates or defends any litigation or other judicial or administrative proceeding in connection with the Project or this Agreement, retention of counsel to represent the Task Force, if required, shall be by the Project Manager, subject to the approval of the Task Force. The costs of such retention will be invoiced to the members of the Task Force in the same manner, and subject to the same procedures, as all other consultant costs invoiced to the Task Force. In any action or proceeding involving a dispute between the Parties arising out of this Agreement, the prevailing Party shall be entitled to receive from the other Party, reasonable attorneys' fees. The term "attorneys' fees" shall include reasonable costs for investigating the action, conducting discovery, cost of appeal, costs and fees for expert witnesses, and all other normally allowable costs incurred in such litigation, whether or not such litigation is prosecuted to final judgment. Service of process on any Party shall be made in any manner permitted by law and shall be effective whether served inside or outside of California. Notwithstanding the foregoing, attorneys' fees and costs' recoverable against the United States, however, shall be governed by applicable federal laws. SECTION 14: NO THIRD PARTY BENEFICIARIES. There are no intended third party beneficiaries of any right or obligation assumed by the Parties. No member of, or delegate to, Congress or Federal Resident ]59/015042~)001 169068.19 a06/12~)2 -12- Commissioner, shall be entitled to any share of this Agreement, or to any benefit that may arise from it. SECTION 15: CONSTRUCTION: CAPTIONS. The language of this Agreement shall be construed according to its fair meaning, and not for or against any Party hereto based on authorship. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement. SECTION 16: SEVERABILITY. Each provision of this Agreement shall be severable from the whole. If any provision of this Memorandum shall be found contrary to law, it is the intention of all the Parties, and each of them, that the remainder of this Agreement shall continue in full force and effect. SECTION 17.,: INCORPORATION OF RECITALS. The Recitals are incorporated herein and made an operative part of this Agreement. SECTION t8: AUTHORITY TO ENTER INTO AGREEMENT. All Parties warrant that they have all requisite power and authority to execute and perform this Agreement. Each person executing this Agreement on behalf of their party warrants that he or she has the legal power, right, and authority to make this Agreement and bind his or her respective Party, and that in so doing, such Party is not thereby in breach of any other contract or agreement. SECTION 19: COUNTERPARTS. This Agreement may be signed in counterparts, each of which shall constitute an original SECTION 20: EFFECTIVE DATE The Effective Date of this Agreement shall be latest of the dates set next to the signatures of the parties hereto evidencing signature by all the parties hereto, which latest date shall be inserted into the preamble to this Agreement. ,SECTION 21: NO ASSIGNMENT. The rights and obligations of this Agreement may not be transferred, assigned, or encumbered by any Party hereto without the prior, express, written consent of a majority of the Regular Members of the Task Force. 169068.19 a06/12~)2 '[~ 3 - SECTION 22: DISSOLUTION. The Task Force may be dissolved upon a 2/3 majority vote of the regular members. Upon such dissolution, the Project Manager is entitled to pay all outstanding invoices, and distribute any remaining money in the Fund among the contributing members pro-rata according to each Party's respective financial contribution. SECTION 23: TERMINATION. A. Any Party may voluntarily terminate its participation under the Agreement at any time upon delivery of at least 60 days prior written notice to the Task Force. B. The Task Force may, upon a 2/3 majority vote, terminate any Party's participation under the Agreement upon that Party's failure to make its pro-rata contribution: (1) Within 30 days of the date said Party's contribution becomes due; OR (2) Within 45 days after the Task Force resolves said Party's dispute over the payment of an invoice in favor of payment as set forth in Section 4(F) of this Agreement. C. Upon a Party's termination from participation under the Agreement, the Project Manager shall return the portion of that Party's pro-rata contribution not expended by the Project Manager after paying invoices for all charges incurred during the period that Party served as a Member of the Task Force. D. The termination of any member or members of the Task Force shall not affect the remaining Parties' obligations under this Agreement, except for redistribution of contributions described herein. This Agreement shall remain in effect until such time as 2/3 of the regular members vote to dissolve the Task Force as provided by Section 22 of this Agreement. [SIGNATURES ON FOLLOWING PAGE] 159/015042-0001 16~068.19 a06/12/02 -14- IN WITNESS WHEREOF, the Parties hereto have entered into this Agreement as of the day and year.set forth below, the last of which shall be the effective date of this Agreement. APPROVEDAS TO FORM: CEMEX CONSTRUCTION MATERIALS, LP Counsel for CEMEX APPROVED AS TO FORM: ROBERTSON'S READY MIX, LTD Counsel for Robertson's Ready Mix, Ltd. UNITED STATES BUREAU OF LAND MANAGEMENT Field Manager APPROVEDAS TO FORM: SAN BERNARDINO VALLEY WATER CONSERVATION DISTRICT General Counsel President, Board of Directors Attest: Secretary of the Board APPROVED AS TO FORM: EAST VALLEY WATER DISTRICT General Counsel President, Board of Directors Attest: Secretary of the Board APPROVED AS TO FORM: REDLANDS UTILITIES DEPARTMENT City Attorney Mayor Attest: City Clerk 159/015042-0001 16906g,19 a06/12/02 - 1 5- APPROVED AS TO FORM: COUNTY OF SAN BERNARDINO County Counsel Chairperson, Board of Supervisors Attest: Clerk of the Board APPROVED AS TO FORM: SAN BERNARDINO COUNTY FLOOD CONTROL DISTRICT General Counsel Chairperson, Board of Supervisors Attest: Clerk of the Board APPROVED AS TO FORM: CITY OF REDLANDS City Attorney Mayor Attest: City Clerk [APPROVED AS TO FORM:] [CITY OF HIGHLAND] [ [City Attorney] [Mayor] [Attest: [City Clerk] 159/0]5042-0001 16906g.19 aO6/lZ/02 -16- EXHIBIT "A": CONCEPT PLAN (Executive Summary) AREAS TO BE MINED UNDER SMARA, AREAS FOR WATER CONSERVATION, AND AREAS FOR PROTECTION OF HABITAT lsg/ol $0~2-0001 16go68. lg a06/I2~02 -~'~- PROPOSED LAND MANAGEMF~NT AND HABITAT CONSERVATION PLAN FOR THE UPPER SANTA ANA RIVER WASH EXECUTIVE SUMMARY PREPARED FOR TI-lB SANTA ANA RIVER WASH AREA COORDllXlATED PLANNING ACTMTIE8 COMMITTEE BY STAFF OF TIlE SAN BERNARDINO VALLEY WATER CONSERVATION DISTRICT APRIL 2001 (Figures Revised December 2001) PROPOSED LAND MANAGEMENT AND HABITAT CONSERVATION PLAN FOR THE UPPER SANTA ANA RIVER WASH D. Burnell Cavender, AICP General Manager San Bemardino Valley Water Conservation District Introduction The land area between the mouth of the Santa Aha River Canyon, down stream of the new Seven Oaks Dam on the east, Interstate 215 (I-215) on the west, the cities of Higliland and Redlands to the north and south, respectively, is known locally as the Upper Santa Aha River Wash (Wash) (Fig 1). A part of that Wash, containing approximately 5,200 acres, from the canyon mouth to Alabama Street on the west and bounded by the cities, has been the subject of intense planning the past three years. This area is known as the Wash Planning Area or the "WPA" (Fig 2). Historically, the Wash was a natural flood plain and alluvial fan. In the past, the flood plain has provided a place to convey frequently devastating flood waters and deposit sediment. The alluvial deposit provides excellent geologic conditions to establish settling basins for percolating surface water to the groundwater basin, providing a significant part of the water supply for the local region. These same geologic conditions provide regionally significant deposits of sand and gravel as classified by the California Department of Conservation, that are used to support the local economy. In recent years, the value of the Wash as habitat for a variety of sensitive, threatened, and endangered species has become more apparent due to the decrease in this type of habitat throughout Southern California (Fig 3). Because the Wash is a unique open space and corridor, the County of San Bernardino (County) and the cities of Highland and Redlands are also pla~nlng to establish a series of recreational trails in and around the Wash. These important functions within the Wash, flood control, water conservation, mineral extraction, and wildlife habitat, are often in direct competition for much of the same land. It has been apparent since the early 1980s that a land management plan for the future use of the Wash would be needed to maintain other public services (water supply facilities, transportation and utility corridors, and recreation/trails), provide areas for the extraction of valuable construction materials, and preserve declining sensitive habitats. In 1993, representatives of nuraerous agencies, including water, mining, flood control, wildlife and municipal interests, formed a Wash Committee to address local mining issues. Subsequently, the role of the Committee was expanded to address all the land functions in the Wash. The Wash Committee began meeting again in 1997 to determine how to use the WPA to accommodate all the important functions identified above. A Policy Action Committee (FAC) was established consisting of elected officials from the County, cities of Highland and Redlands, and the San Bemardino Valley Water Conservation District (District), and the Field Manager from the U.S. Bureau of Land Management (BLM). A Technical Advisory Committee (TAC) was formed with SA Wash Plan - Reviaed 1 04/11/01 representatives of the PAC agencies and other water, mining, flood conizol, and wildlife interests. The District chairs and provides staff support for the Committees. The TAC, in concept, wiped the WPA clean of land ownership lines (Fig 4) and began anew to decide how the land could best be used. As a result of extensive workshops dur'mg 1998 and 1999, a conceptual Coordinated WPA map has been developed. As expected, the way the land might best be used and the way the land use was planned were not the same, nor does it conform to current land ownership. For example, the TAC found that some land proposed for mining was better suited for joint use by water conservation and wildlife habitat while other areas proposed for habitat preservation could be used better for minihg. It became apparent that to make a plan work, land ownership would have to change, in particular, a land transfer or exchange between the BLM and the District, and areas leased by the District for mining. A general consensus of the TAC was reached in early 2000 on the areas with'm the W-PA designated for the specified land uses, which is the basis of the Land Management and Habitat Conservation Plan (Plan) (Fig 5). As stated, the proposed designations for land use crossed land ownership (3 public and 2 private) and land use authority lines (2 cities and the County). The TAC determined that mining expansion is best addressed by consolidating the future mining activity into one large area adjacent to existing mining operations within the western half of the W-PA. This focuses extraction activities on lands currently disturbed by mining and lands with the least long-term wildlife habitat value. Furthermore, the TAC determined that portions of the BLM land designated as Areas of Critical Environmental Concem (ACEC) were either previously disturbed or were fragmented by adjacent mining activities, and thus would be better suited for mining expansion. Some of the most intact, viable wildlife habitat areas are contained within lands that are leased for future mining and currently used for water conservation. The TAC concluded that some of these lands were best suited for joint use as water and habitat conservation rather than mining. For example, the up-gradiant side of a percolation basin dike could be wetted and periodically contain water for water-dependent species; whereas, the down- gradient side could generally remain undisturbed, except for maintenance and repair of the percolation basin dike and, therefore, could support other wildlife species common to the WPA. Refinements in land use boundaries were made and agency and jurisdictional coord'mation was accomplished. The result of this effort is a proposed Plan that designates areas of the WPA for specific uses. The Plan will allow the existing and future Wash activities and land functions to occur and establish habitat preserves. It is imperative that the principles that will govern the use, management, and conservation of the WPA be set forth in legally binding documents to which all concerned parties can agree. The PAC believes that there are sufficient lands in the WPA that can be divided equitably among the advocates to accommodate the needs for water conservation and supply facilities, aggregate extraction, and flood protection, while providing land for wildlife habitat and recreation. It is equally important to note that if this coordinated Plan is not implemented, the consequences could be very grave for each of the primary use groups. Without the Plan, attempts to expand water conservation to meet future demands, develop additional aggregate resources, or effectively protect habitat will likely be held up by legal proceedings. Such action could result in SA Wash Plan - Revised 2 ~ 04/11/01 piecemeal planning, thus impairing the ability to reach an effective compromise. If local land use agencies make decisions regarding mining development in the WPA, without considering a ._ coordinated plan, 'there could be greater environmental degradation and reduced ability to meet future water supply demands. On the other hand, if local officials make land use decisions that significantly restrict water conservation activities and mining, the reduced availability of water and aggregate resources may impact the economic development of the region. The affect of not implementing this Plan is that none of the groups would be able to accomplish its goals. l~roposed Pro,iect Description Summar~ The proposed project is a Land Management and Habitat Conservation Plan (Plan) for the Upper Santa Aha River Wash Planning Area. The land area addressed in this Plan is part of the overall alluvial fan and flood plain located along the Santa Ama River one mile downstream from the new Seven Oaks Dam between the cities of Highland on the north and Redlands to the south. - The City of San Bemardino, to the northwest, is the largest city in the San Bemardino Valley. The WPA covers approximately 5,200 acres and starts at the canyon mouth at Greenspot Road, extends for some six miles to Alabama Street, and is as much as two miles wide. The Plan will coordinate and accommodate existing ongoing and anticipated future activities planned to occur in the WPA, establish habitat preserve areas, and provide recreational trails. Each function will occupy designated specific areas within the WPA best suited .for that function and will also accommodate the other competing uses for the overall benefit of the WPA. These existing and future activities include the following: · Water conservation of both native and (when necessary) imported water resources for groundwater basin replenishment to augment public water supplies; · Flood control, and management of the Seven Oaks Dam releases; · Aggregate extraction and processing; · Protection and conservation of sensitive and listed native species and habitat; · Recreation planning including a portion of the Santa Aha River trail system; and ~ · Utilities, transportation, and water supply corridors and facilities. The final approved Plan, its associated actions and permits, and environmental review will - provide the necessary information for jurisdictional approvals for the described activities to move forward. The Plan, when implemented will be considered a "Win-Win-Win" for all the water, utility and service functions, mineral resource management, and environmental resource preservation. As staff for the Wash Committee, the District invites your questions and support for this inter- relational concept plan. You may call me at 909-793-2503, or write to me at P.O. Box 1839, Redlands, CA 92373. SA Wash Plan - Revised 3 ~ 04It 1/01 EXHIBIT "B": TASK FORCE CONTRIBUTION LEVELS Allocation to the Parties of their share of the costs associated with the Project is as set forth below in the following proportions: AGENCY RESPONSIBILITY FOR FINANCIAL CONTRIBUTION CEMEX 24.774 ROBERTSON'S READY MIX 24.774 SAN BERNARDINO VALLEY WATER 24.644 CONSERVATION DISTRICT EAST VALLEY WATER DISTRICT 3.226 REDLANDS UTILITIES DEPARTMENT 3.226 COUNTY OF SAN BERNARDINO 6.452 SAN BERNARDINO COUNTY FLOOD 6.452 CONTROL DISTRICT CITY OF REDLANDS 6.452 Should the cost to complete financing of the Project exceed the total current estimated charges set forth above, the Task Force will have the responsibility of obtaining any required additional funding from each of the Parties. Any such additional funding shall be assessed to those Parties in the above-mentioned proportions, or as otherwise determined by the Task Force. Note that in the event the City of Highland joins the Task Force as a Regular Member pursuant to the provisions of Section 2 (H) of this Agreement, the contribution levels set forth here will be superseded by the levels set forth in Exhibit "B-1 ." x6g068.19 z06/12/02 -1~- EXHIBIT "B-'I": TASK FORCE CONTRIBUTION LEVELS IN THE EVENT CITY OF HIGHLAND JOINS AS A REGULAR MEMBER AlIocation to the Parties of their share of the costs associated with the Project is as set forth below in the following proportions: AGENCY RESPONSIBILITY FOR FINANCIAL CONTRIBUTION CEMEX 23,272 ROBERTSON'S READY MIX 23.272 SAN BERNARDINO VALLEY WATER 23.152 CONSERVATION DISTRICT EAST VALLEY WATER DISTRICT 3.030 REDLANDS UTILITIES DEPARTMENT 3.030 COUNTY OF SAN BERNARDINO 6,061 SAN BERNARDINO COUNTY FLOOD 6.061 CONTROL DISTRICT CITY OF HIGHLAND 6.061 CITY OF RED[ANDS 6.061 Should the cost to complete financing of the Project exceed the total current estimated charges set forth above, the Task Force will have the responsibility of obtaining any required additional funding from each of the Parties. Any such additional funding shall be assessed to those Par~ies in the above-mentioned proportions, or as otherwise determined by the Task Force. This schedule of contribution levels shall only become effective if the City of Highland joins the Task Force as a Regular Member pursuant to the provisions of Section 2 (H) of this Agreement. 169068.19 a06/I 2/02 ' J- ~' EXHIBIT "C": PROJECT FLOW DIAGRAM 169068.19 a06/]~02 -.~0- EXHIBIT "C-1": PROJECT FLOW DIAGRAM IN THE EVENT CITY OF HIGHLAND JOINS AS A REGULAR MEMBER 159/015042-0001 169068.19 a06/]2/02 -21- EXHIBIT "D": REVISIONS TO AGREEMENT IN THE EVENT CITY OF HIGHLAND JOINS AS A REGULAR MEMBER In the event the City of Highland joins the Task Force as a Regular Member pursuant to, and in compliance with, the provisions of Section 2 (H) of this agreement, the parties hereto have agreed to certain modifications of the text of the Task Force Agreement, which will serve as amendments thereto, effective immediately and prospectively upon inclusion of the City of Highland as a Regular Member pursuant to Section 2 (H). These amendments are set out below: Section 1 (A) 3): A Recreation Plan, which coordinates the planning and development of trails, parks, and public recreation areas, which will be provided by Conservation District, San Bernardino County, Highland, and Redlands. Section 1 (A)(4): An Infrastructure Plan, which describes the location of pipelines, utility corridors, roads, bridges, highways, and communication facilities, which will be provided by the Conservation District, San Bernardino County, Highland~ and Redlands. Section 1 (F): Task Force submit the EIPJEIS, Implementation Action Plan, and Habitat Conservation Plan to the appropriate agencies for their action and, if adopted, subsequent implementation. The EIPJEIS shall not be certified by the Lead Agency as to those portions of the Project occurring within the jurisdictional boundaries of the City of Highland if, prior to the time the Lead Agency certifies the EIPJEIS, it has been disapproved by the City Council of the City of Highland. The EIR/EIS shall not be certified by the Lead Agency as to those portions of the Project occurring within the jurisdictional boundaries of the City of Redlands if, prior to the time the Lead Agency certifies the EIPJEIS, it has been disapproved by the City Council of the City of Redlands. Section 2 (B)(2): The California Department of Water Resources (DWR), the California Department of Fish and Game (DFG), the United States Fish and Wildlife Service (USFWS), and County of Orange are hereby designated as Advisory members of the Task Force. Section 4 (B)(1}: Revise Section 4 (B)(1). to read as follows: Serve as the Lead Agency under CEQA and as assistant to BLM, which is the Lead Agency under NEPA, provided, however, that on issues relating to definition of level of significance for impacts, existence of and mitigation for significant adverse environmental impacts, and formulation of a mitigation monitoring program for those portions of the Project requiring permits under SMARA, the Project Manager shall accept and incorporate into the EIPJEIS the collective determinations of the applicable agencies with SMARA permitting authority for such aspects of the Project, and in the absence of any agreement by such agencies, shall refer determination of such issues to the Task Force;. Exhibit "B": Replace with Exhibit "B-I." 159/015042~)001 169068.19 a06/12/02 '2.~= EXHIBIT "D": REVISIONS TO AGREEMENT IN THE EVENT CITY OF HIGHLAND JOINS AS A REGULAR MEMBER (CONTINUED) Exhibit "C": Replace with Exhibit "C-1 ." 15910]$042-0001 169068.19 a06/12/02 -2~- DEVELOPMENT AGREEMENT BETWEEN EVWD AND MC CLELLAN DEVELOPMENT M/S/C (Stoops-Schnarre) that the development agreement between EVWD and Mc Clellan Development be accepted; that the Board President be authorized to sign this agreement on behalf of the District. SANTA FE RIGHT OF HAY CROSSING PROPERTY OWNED BY THE STATE OF CALIFORNIA AND EVWD (FORMERLY A PORTION OF THE PATTON STATE HOSPITAL M/S/C (Schnarre-Stoops) that staff be authorized to notify Santa Fe Pacific Realty of it's intent to condem the right of way crossing the District's Patton Farms property. UNCOLLECTABLE DELINQUENT ACCOUNTS M/S/C (schnarre-Disch) that staff be authorized to write off the uncollectable delinquent accounts as provided to the Directors. MEDICAL AND DENTAL COVERAGE FOR DIRECTORS M/ (Disch) that the District retain the current policy that any Director wishing to carry health or dental insurance pay the premium. Motion failed for lack of second. M/S/C (Schnarre-Stoops) that the District begin paying the health and dental costs for Directors only. Director Disch voted no. DISBURSEMENTS General Fund disbursements #130491 to #130665 in the amount of $432,141.75 and Payroll Fund disbursements #15012 to #15056 in the amount of $34,322.63 totaling $466,464.38 were presented to the Board for approval. M/S/C (Disch-Stoops) that the disbursements be approved as submitted. GENERAL MANAGER'S REPORT ON DISTRICT OPERATIONS The General Manager reported on District operations. Information only. URS SITING STUDY M/S/C (Disch-Stoops) that the Siting Study prepared by URS be accepted. ORDINANCE NO. 346, SETTING QOMPENSATION FOR THE BOARD OF DIRECTORS M/S/C (Lightfoot-Schnarre) that Ordinance No. 346 be adopted. Director Disch voted no. APPROVAL AND ACCEPTANCE OF EVWD pLANS, PREPARATION AND CONSTRUCTION STANDARDS FOR INSTALLATION OF WATER MAINS M/S/C (Lightfoot-Schnarre) that the Construction standards be approved as submitted. DISBURSEMENTS M/S/C (Disch-Douglas) that General Fund Disbursements #136838 to #137187 in the amount of $681,096.84 and payroll fund disbursements #3266 to #3310 in the amount of $$38,565.25, %3361 to %3405 in the amount of $39,222.44 and #3406 to %3406 in the amount of $1,394.31 totaling $760,278.84 be approved. GENERAL MANAGERS REPORT The General Manager reported on District operations to date. Information only. RE~OR~ ON AWWA CONFERENCE IN SAN DIEGO Director Disch gave a very informative report on the AWWA Conference held in San Diego in February. Information only. FINANCIAL REPORTS FOR JA}U3ARY Finance reports for January were reviewed. Information only. LOCAL AGENCY INVESTMENT FUND SUMMARY The Local Agency Investment Fund summary was reviewed. Information only. EXECUTIVE SESSION M/S/C (Disch-Douglas) that the Board move into Executive Session at 6:23 p.m. to discuss personnel as provided for in the california Open Meeting Law, Government Code Section 549569. 5 ORDINANCE g0. 346 ORDINANCE OF THE' EAST VALLEY WATER DISTRICT SETTING COMPENSATION FOR THE BOARD OF DIRECTORS WHEREAS, the Board of Directors of the East Valley Water District finds as follows: 1. The compensation of the Board of Directors has been established by Water Code Section 20201 at $100.00 per meeting or dais of service to the District and pursuant to Water Code Section 20202, such compensation was allowed up to a maximum of six days of service to the District per calendar month. 2. In 1989, the legislature amended Section 20202 (Statutes 1989, Chapter 111) to allow and increase in the number .of days for which compensation could be paid to a maximum of ten (10) days in any calendar month. 3. The District by Ordinance desires to change the number of days of service to the District for which a board member could be compensated. THEREFORE, THE BOARD OF DIRECTORS of the East Valley Water District do hereby adopt and ordain as follows: 1. The compensation paid to elected directors of this District shall be set at $100.00 per meeting or day of service to the District and shall be authorized for a total of ten (10) meetings or days of service to the district in any calendar month, after the effective date of this ordinance. 2. Compensation shall be paid only upon submittal of a statement by the Board Member indicating the date and purpose of ROLL CALL: AYES: Directors Disch, Stoops, Sturgeon, Douglas, Lightfoot NOES: None ABSENT: None DISBURSEMENTS M/S/C (Stoops-Douglas) that the General Fund Disbursements #151952 to #152155 in the amount of $757,998.63 and Payroll Fund Disbursements #g174 to #8221 in the amount of $58,405.14 totaling $816,403.77 be approved. ORDINANCE 346 - SETTING COMPENSATION FOR TIlE BOARD OF DIRECTORS Mr. Kenley asked the Board about perks such as free water, etc. President Lighffoot stated that there were no perks given to the Board other than the ability to enroll in the District's health and dental program and retirement plan which the District pays for if the Director chooses. Director Disch pointed out that the a~icle in the Orange County Register about ten District's not paying their directors any fees was derived from a statewide survey done by the Association of California Water Agencies not just Orange County. No action was taken on this item. CLAIM FOR DAMAGE, GLENN MC JENNETT, 28581 VILLAGE LAKE ROAD, FIIGFF[,AND, CA. Legal Counsel informed the Board that this claim has gone beyond the statue of limitations and the Board therefore has no authority to act upon the matter. Legal Counsel will notify the claimant of same. CLAIM FOR SEWER DAMAGE, SAMUEL HUM]PtIRI~,S, 3334 RAINBOW LANE, ]]IG]ILAND, CA. M/S/C 0Disch-Stoops) that the claim for sewer damage to 3334 Rainbow be denied and referred to District Legal Counsel and Insurance Carrier. 5 RELEASES OF LIEN JUNE 17, 2002 ACCOUNT OWNERS PROPERTY AMOUNT NUMBER NAME ADDRESS OWED 1. 004-0080-0 358.37 2. 015-0219-0 53.15 3. 031-0018-2 42.40 4. 043-0032-2+ 63.70 5. 044-0119~, 47.23 6. 052~0073~, 62,30 7. 072-0251-2 49,98 8. 082-0055-2 34.87' V 9. 082-0254-1+ 63.65 10. 102-0160-0 197.9E~ 11. 104-0168.2+ 158.54 12. 156-0609-2 29.16 TOTAL $1,161.33 - +PAID THROUGH TAX ROLLS Page 1 of 1