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Agenda Packet - EVWD Board of Directors - 09/11/2007
East Val ley Water District 3654 HIGHLAND AVE., SUITE #12, HIGHLAND, CA REGULAR BOARD MEETING AGENDA September 11, 2007 8:30 A.M. --------------------------------------------------------------------- "In order to comply with legal requirements for posting of agenda, only those items filed with the District Secretary by 10:00 a.m. on Wednesday prior to the following Tuesday meeting not requiring departmental investigation, will be considered by the Board of Directors ". .-------------•-------------------------------------------- ---- - - -- -- CALL TO ORDER PLEDGE OF ALLEGIANCE -----••---------------------------------------------- ------ ------ - - - - -- Public Comments 2. Approval of Agenda CONSEPI T CALENDAR 3. Approval of Board Meeting Minutes for August 28, 2007 Zl. Resolution 2007.21 — A Resolution of the Board of Directors of the East Valley Water District accepting conveyance of pipeline easement from the City of Highland 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 San Bernardino, County of San Bernardino, State of California :i. Resolution 2007.22 — A Resolution of the Board of Directors of the East Valley Water District accepting dedication of sewers, Highland Corporation Yard (7935 Central Avenue) located in the City of Highland by the City of Highland 6. Accounts Payable Disbursements: Accounts Payable Checks 211750 through 211899 were distributed August 27, 2007 thorough September 5, 2007 in the amount of $987,691.19. Payroll Checks for period ended August 17, 2007 and included checks and direct deposits, in the amount of $182,086.51. Total Disbursements for the period were $1,169,777.70. OLD BUSINESS T Headquarters Project Review and Update 8. Discussion and possible action regarding the California Water Public Education Program 0 9. Discussion and possible action regarding the City of San Bernardino Chamber of Commerce reward fund fir metal thefts 10. Discussion and possible action regarding the Delta Conveyance Litigation NEW BUSINESS 11. Directors' Fees and Expenses for August 2007 12. Discussion and possible action regarding proposal from Basin Water for Perchlorate & Nitrate Treatment Units at Well 107 13. :Discussion and possible action regarding approval of Environmental Systems Research Institute, Inc. (ESRI) Master Service Agreement 1.4. Discussion and possible action regarding proposals submitted from the Gualco Group, Inc. and Reeb Government Relations, LLC for Lobbying services 1.5. Discussion and possible action regarding easement request from Jae K. Kim for the property adjacent to Well 146 REPORTS 16. General Manager / Staff Reports 17. Consultant Reports a. General Manager's Contract (AD -Hoc) b. Board. Policy Update (AD -Hoc) c. Labor Negotiations (AD -Hoc) d. Headquarters Project (AD -Hoc) e.:. Outreach (Standing) f. Budget (Standing) 18. Oral comments from Board of Directors CORRESPONDENCE 19. Letter of appreciation to the District from Paul Adkins (Riverside National Cemetery Support Committee) for the District's bottled water donation MEETINGS 20. Stater Bros. Ribbon Cutting Ceremony & Open House Celebration, San Bernardino, October 24, 2007 2 0 CLOSED SESSION 21. CONFERENCE WITH REAL PROPERTY NEGOTIATOR Government Code Section 54956.81 Property: Parry with whom District will negotiate: 22 +/- Acres of Vacant Land North of Third Street, East of Sterling Ave., South of 56' Street State of California APN(s): 1192 - 241 -01, 1192- 231 -01 Barbara E. McDaniel Party who will be negotiating on behalf of the District: Robert E. Martin / Jim Cimino Under Negotiation: Price and Terms of Payment 22. CONFEIENCE WITH REAL PROPERTY NEGOTIATOR [Government: Code Section 54956.81 Property: Party with whom the District will negotiate: Party who will be negotiating on behalf of the District: Under Negotiation: Vacant Land Satinwood Court City of Highland San Bernardino County, State of California APN(s): 1201 - 191 -01 Sarah Capalla Robert Martin/Jim Cimino Price and Terms of Payment 23. ' CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Government Code Section 54956.9(b) One Potential Case ANNOUNCEMENT OF CLOSED SESSION ACTIONS I:�ihLiiil�►`I -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Pursuant to Government Code Section 54954.2(a), any request for a disability- related modification or accommodation, including auxiliary aids or services, that is sought in order to participate in the above - agendized public meeting should be directed to the District's Administrative Manager at (909) 885 -4900 at least 72 hours prior to said meeting. ------------------------------------------- ----------- ---- ------ -- - - ---- O Subject to auuroval EAST VALLEY WATER DISTRICT August 28, 2007 REGULAR BOARD MEETING MINUTES Vice President 1Vegrete called the meeting to order at 8:30 a.m. Director Wilson led the flag salute. PRESENT: Directors Negrete, Goodin, Wilson A13SENT: Le Vesque, Sturgeon STAFF: Robert Martin, General Manager; Brian Tompkins, Chief Financial Officer; Ron Buchwald, District Engineer; Eileen Bateman, Executive Assistant; Gary Sturdivan, Safety & Regulatory Affairs Coordinator; Justine Hendricksen, Administrative Manager LEGAL COUNSEL: Steve Kennedy GUEST (S): Charles Roberts (Highland Community News), Jo Mc Andrews (Me Andrews & Boyd), Jim Cimino (Cimino Realty), Mark Vargas (Cordoba Corporation), Angel Alvarez, P.E. (Cordoba Corporation) APPROVAL OF AGENDA M/S /C (Wilson- Goodin) that the August 28, 2007 agenda be approved as submitted. PUBLIC PARTICIPATION Vice President Negrete declared the public participation section of the meeting open at 8:31 a.m. There being no verbal or written comments the public participation section was closed. APPROVAL OF BOARD MEE'T'ING MINUTES FOR AUGUST I4, 2007 M /S /C (Wilson- Goodin) that the August 14, 2007 Board Meeting Minutes be approved as submitted. DISBURSEMENTS M /S /C (Wilson- Goodin) that General Fund Disbursements 4211588 through #211749 were distributed during the period of August 15, 2007 through August 22, 2007 in the amount of $458,199.70 and Payroll Fund Disbursements for the period ended July 31, 2007 and August 3, 2007 in the amount(s) of $5,170.24 and $132,920.58 totaling $596,290.52 be approved. HEADQUARTERS PROJECT REVIEW AND UPDATE The General Manager stated that escrow has closed on the McDaniel's property located at 3`d & Sterling Avenue parcel #'s (1192- 241 - 01,1192- 231 -01) and that the final closing price was $6,713,149.00. RESOLUTION 2007.17 — A RESOLUTION OF THE BOARD OF DIRECTORS OF THE :EAST VALLEY WATER DISTRICT ESTABLISHING AN INVESTMENT POLICY FOR PUBLIC FUNDS M/S /C (Wilson- Goodin) that Resolution 2007.17 be approved. DISCUSSION AND POSSIBLE ACTION REGARDING ACWA'S REGION 9 ELECTION 13ALLOT FOR THE 2008 -2009 TERM M/S /C (Wilson- Goodin) that the Board concur with the Region 9 Nominating Committee's recommended slate. DISCUSSION AND POSSIBLE ACTION REGARDING ACWA'S COMMITTEE APPOINTMENT NOMINEES FOR THE 2008 -2009 TERM No action taken. DISCUSSION AND POSSIBLE ACTION REGARDING CSDA'S COMMITTEE APPOINTMENTS No action taken. DISCUSSION AND POSSIBLE ACTION REGARDING THE CALIFORNIA WATER PUBLIC EDUCATION PROGRAM The General Manager provided information regarding the California Water Public Education Program; that the Governor is very involved with the program and has approached ACWA for funding support; that they are looking for additional support in order to fund the campaign and educate Califomia consumers. Minutes A¢2usi 28.2007 0 Director Goodin requested that this item be referred to the Budget Committee for further review. No action taken. DISCUSSION AND POSSIBLE ACTION REGARDING THE CITE' OF SAN BERNARDINO CHAMBER OF COMMERCE REWARD FUND FOR METAL THEFTS Mr. Sturdivan provided information to the Board regarding metal thefts affecting the Inland Empire and surrounding areas; that the San Bernardino Chamber of Commerce has started a task force and reward fund to deal with this issue; that the City of San Bernardino is looking for agencies to support the reward fund. No action takers. This item has been referred to the Budget Committee for review. GENERAL MANAGER / STAFF REPORTS The General Manager reported on the District's operations to date; that he and Ms Hendricksen had met with two Lobbying firms last week and are awaiting proposals from each of the firms to review with the Legislative Committee; that he is attending the San Bernardino Valley Municipal Water District's weekly meetings regarding water conservation and programs to educate consumers on water conservation; that a draft notice regarding the proposed water /sewer rate increase is complete. The Board has scheduled a Public Hearing for November 1, 2007 at 6:00 p.m. Information only. CONSULTANT REPORTS No reports at this time. COMMITTEE REPORTS Yucaipa Ordinance Review (Ad -Hoc) — No report Board Policy Update (Ad -Hoc) — No report Labor Negotiations (Ad -Hoc) — No report Headquarters Project (Ad -Hoc) —No report General Manager's Contract (Ad -Hoc) — No report Budget Committee (Standing) — No report Director Goodin stated that the two guests attending the Board meeting today are from the Cordoba Corporation, and that they have been asked to review the Headquarters building plans. Information only. l Minutes Auaust 28.2907 ORAL COMMENTS FROM BOARD OF DIRECTORS Director Wilson stated that he had met with Congressman Jerry Lewis last week. Information only. LETTER FROM LE HAYES (GENERAL MANAGER OF BAKER COMMUNITY" SERVICES DISTRICT) REGARDING LAFCO HIGHLAND CHAMBER MONTHLY LUNCHEON, ELK'S LODGE, SAN BERNARDINO, AUGUST 28, 2007 VIP AND SPONSOR RECEPTION HOSTED BY IST VALLEY CREDIT UNION, SEPTEMBER 14, 2007 ASSOCIATION OF THE SAN BERNARDINO COUNTY SPECIAL DISTRICTS MEMBERSHIP MEETING HOSTED BY YUCAIPA VALLEY WATER DISTRICT, YUUCAIPA VALLEY REGIONAL WATER FILTRATION FACILITY "CRYSTAL CREEK ", YUCAIPA, SEPTEMBER 17, 2007 CALIFORNIA SPECIAL DISTRICT ASSOCIATION'S 38TH ANNUAL CONFERENCE & EXHIBITOR SHOWCASE, PORTOLA PLAZA HOTEL & MONTEREY CONFERENCE CENTER, MONTEREY, OCTOBER 1-4,2007 WATER EDUCATION FOUNDATION'S "CLIMATE CHANGE WATER ADAPTATION SUMMIT ", DOUBLETREE HOTEL, SANTA MONICA, OCTOBER 3, 2007 SAN BERNARDINO AREA CHAMBER OF COMMERCE °`2007 BUSINESS SYMPOSIUM ", FEATURING HUELL HOWSER NATIONAL ORANGE SHOW, DAMUS BUILDING, NOVEMBER 2, 2007 ACWA'S 2007 FALL CONFERENCE & EXHIBITION, INDIAN WELLS, NOVEMBER 27-30,2007 CLOSED SESSION The Board entered into Closed Session at 9:05 a.m. as provided for in the California Open Meeting Law, Government Code Section 54945.9 (a), to discuss those items listed on the Agenda. ADJOURN TO REGULAR SESSION Vice °resident NeQrete declared that the meeting adjourn to regular session. A-'NTNOUNI CEMENT O;Ea CLOSED SESSSONT yCT70NS n Y M:imum Aqua 28. 2007 0 The Board returned to session at 10:36 a.m. The items listed on the agenda were discussed in closed session with the no action being taken. ADJOURN The meeting was adjourned at 10:37 a.m. until the next regularly scheduled Board Meeting on September 11, 2007. Robert E. Martin, Secretary 0 Kip E. Sturgeon, President Minutes August 28.200 EXHIBIT "C RESOLUTION 2007.21 A Resolution Of The Board Of Directors Of The East Valley Water District Accepting Conveyance Of Pipeline Easement from City of Highland, as Grantor of an easement as described in Exhibit "B" and listed in Easement For The Right To Construct, Use, Maintain, After, Add To, Repair, Replace and/or Remove Pipeline Appunenances, Under, Through And Across The Real Property Located In The City Of San Bernardino, County Of San Bernardino, State Of California. BE IT HEREBY RESOLVED AND ORDERED that the Conveyance of Pipeline Easement dated August 22, 2007, and signed by Joseph A. Hughes City Manager for City of Highland 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 September 11, 2007. Ayes: Directors: Noes: Absent: ATTEST: .lob No. 52385 EAST VALLEY WATER DISTRICT Kip Sturgeon, Board President Robert E. Martin, Board Secretary RECORDING REQUESTED BY: East Valley Water District WHEN RECORDED MAIL TO: East Valley W ater District Post Office Box 3427 San Bernardino, California 92413 FEE EXEMPT PURSUANT 'TO GOVERNMENT CODE SECTION 6103 CERTIFICATE OF DEDICATION CONVEYANCE OF PIPELINE EASEMENT _ Ciby of Highland , 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, an easement and right -of -way in, over, upon, under and across the lands hereinafter described to construct, use, maintain, alter, add to, inspect, repair, replace and/or remove pipeline or pipelines together with all necessary appurtenances within the right -of -way and for the ingress and egress throughout the entire easement and right -of -way in connection with the exercise of any of the foregoing rights. The property subject to this easement, located in the County of San Bernardino, State of California, is described as follows: See Exhibit "N' and "B" attached hereto and made a part hereof Resolution attached as Exhibit "C" Grantor(s) and his successors and assigns agree to notify EAST VALLEY WATER DISTRICT of any future use across said easement and to coordinate with EAST VALLEY WATER DISTRICT the installation of any future facilities within said easement. Grantor(s) and his successors and assigns further agree that no buildings, fences, walls, structures of any kind, and no trees, shrubs or other plants or vegetation, shall be installed, constructed, erected, placed, planted or maintained in the easement and right -of -way and that the existing ground elevation will not be increased or decreased, without the prior written consent of the Grantee. Grantee shall have the right to use gates in all fences which now cross said easement, and to trim, cut down or clear away any trees, shrubs or other plants or vegetation whenever, in the Grantee's judgement, it is necessary for the convenient and safe exercise of the rights hereby granted. This instrument shall be binding upon and inure to the benefit of the successors and assigns of the Grantor(s). IN WITNESS WHEREOF, the Grantor(s) has executed this instrument this 22nd day of August, 2007. ;"/X� Joseph A. Hughes, City Manager (Attach Notary Cert.) I = 3t Revised: 08 -15 -07 Ck CORPORATE YARD EXHIBIT "A" PROPERTY DESCRIPTION TO ACCOMPANY AGREEMENT BETWEEN EAST VALLEY WATER DISTRICT AND CITY OF HIGHLAND A PUBLIC UTILITY EASEMENT FOR A SEWER MAIN AND APPURTENANCES. OVERALL THAT CERTAIN REAL PROPERTY IN THE CITY OF HIGHLAND BEING THAT PORTION OF THE SOUTHWEST 1/4 OF THE SOUTHEAST ' /< OF SECTION 5, TOWNSHIP 1 SOUTH, RANGE 3 WEST, SAN BERNARDINO MERIDIAN, LYING NORTHERLY OF THE 200 FOOT WIDE SAN BERNARDINO COUNTY FLOOD CONTROL DISTRICT EASEMENT AS SHOWN ON RECORD OF SURVEY 00 -041, RECORDED IIV BOOK 114 OF RECORDS OF SURVEY, PAGES 26 THROUGH 28, RECORDS OF SAN BERNARDINO COUNTY, CALIFORNIA. PARCEL "A" COMMENCING AT THE CENTER SOUTH ONE SIXTEENTH CORNER OF SAID SECTION 5, THENCE SOUTH ALONG THE CENTERLINE OF CENTRAL AVENUE S 00 °04'35 "W 45.97', TO A POINT. THENCE PERPENDICULAR TO LAST LINE S 89 °55'25" E 47.05' TO A POINT ON THE RIGHT OF WAY LINE OF SAID CENTRAL AVENUE AND BEING S 01 °44'08" W 43.78' FROM THE NORTHWEST CORNER OF SAID REAL PROPERTY DESCRIBED ABOVE, AND ALSO BEING THE TRUE POINT OF BEGINNING (T.P.O.B.) OF THIS EASEMENT, THENCE N 88 024'54 "E 516.92' TO AN ANGLE POINT, THENCE S 89 049'49" E 20.00' TO THE NORTHEAST CORNER OF THIS EASEMENT, THENCE S 00 °10'11" W 20.00' TO THE SOUTHEAST CORNER OF THIS EASEMENT, THENCE N 89 049'49" W 19AT TO AN ANGLE POINT, THENCE S 88 024'54" W 517.54' TO A POINT ON THE RIGHT OF WAY LINE OF SAID CENTRAL AVENUE, THENCE N 01 044'08" E 20.03' ALONG SAID RIGHT OF WAY TO THE T.P.O.B. CONTAINS 10,739 SQ. FT. (0.247 ACRE) /I✓& 0 LL. W 1 uS FO S to C5 � I O v I o C) I III I V N w N W 00 LL 00 z wl z <o z of z cn iu 00l > cn to i� v o� 3 c 0 O o CD _ w a \ U ON 0 \ o\ 4 -T LOOS£ D- 90.VINON � O x M.S£.b0.00S �nNJAd -M�J i Nnn w z: WaLo J z o, LE N" fj US0 �0� :.I. W w N a w Q d w 0 z w a w w iu a 0 F a LD 0 r U a C2 I ub '7 o a D" w �- � LO z zz a v O :z a lW LL l z Go ry 0 I � 0 0 o N c� -T LOOS£ D- 90.VINON � O x M.S£.b0.00S �nNJAd -M�J i Nnn w z: WaLo J z o, LE N" fj US0 �0� :.I. W w N a w Q d w 0 z w a w w iu a 0 F a LD 0 r U a EXHIBIT "A' RESOLUTION 2007.22 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT ACCEPTING DEDICATION OF SEWERS Highland Corporation Yard (7935 Central Avenue) BE IT HEREBY RESOLVED by the Board of Directors of the East Valley Water District, as follows: WHEREAS, the sanitary sewers and appurtenant structures constructed in accordance with specifications of the East Valley Water District at 7935 Central Avenue for public use in the City of Highland, have been dedicated to East Valley Water District by the City of Highland. NOW THEREFORE, BE IT HEREBY RESOLVED, that the Dedication of Sewers dated August 22, 2007 and executed by Joseph A. Hughes on August 22, 2007 be accepted and all rights, title and interest in and to said sewers be vested in the East Valley Water District, and that the Secretary of this District be, and is hereby authorized and directed to record this Resolution with said Dedication of Sewers attached hereto, in the office of the County Recorder of the County of San Bernardino, State of California. The foregoing resolution was duly adopted at a meeting of the Board of Directors of the East Valley Water District, upon motion duly made, seconded and carried on September 11, 2007. AYES: Directors NOES: ABSENT: Attest: EAST VALLEY WATER DISTRICT Kip Sturgeon, Board President Robert E. Martin Board Secretary RECORDING REQUESTI°_D BY: East Valley Water District WHEN RECORDED MAIL TO: East Valley Water District Post Office Box 3427 Sean Bernardino, California 92413 FEE EXEMPT PURSUANT TO GOVERNMENT CODE SECTION 6103 IRREVOCABLE OFFER OF DEDICATION OF SEWER SYSTEM Board of Directors East Valley Water District San Bernardino, California 92413 DATE: August 22 2007 We __ City of Highland hereby declare that the sewer system and appurtenant structures to be constructed in the City of Highland California Aend Corporation Yard 7935 Central Ave Highland Ca in accordance with all the requirements of the East Valley Water District are intended for public use and that upon their acceptance by said District, all rights, title and interest of the undersigned in and to said sewer system shall thereupon vest in the District. The within dedication shall be binding upon heirs, successors, assignees, executors, or administrators of the undersigned. OFFICIAL CALIFORNIA NOTARIAL CERTIFICATE Acknowledgment State of California ) County of ybn-�Y)rayckl no On 72 14Uc QSt 712pefore me Brc� iAV L 1 160 Y1 , a notary public, personally appeared A . oc� 1nPr personally known to me (or proved to me on the basis of satisfactory evidence) to be the persop whose name is�al4 subscribed to the within instrument and acknowledged to me tha he /s /t y executed the same i his /thNA -r authorized capacity('), and that by(hisyI�Vkh �r signatures on the ��J r instrument the personj , or the entity upon behalf of which the person' acted, executed the i instrument. WITNESS my hand and official seal. tlr u l Signature `--h`41zllldy - Conm*stWr 9 1729157 9 iffellm l:WWV PubBO • CaKwrhe San Naardino Cowdy ���.wf+(i7YS1Avr3.2011 ADDITIONAL INFORMATION Document Date Plumber of Pages ............... ............................... EMBOSSMENT (➢'Personal K nowle 969 of the NotM PuHc \� 3 Satisfactory 4 v4de ace - identification card One Cret2W IrMtnness acknoMedginoj i rlsn`ity c" Cooyri_L: 199 -. All Ris':'r Resen ad. Ca'. foiaa School Q`No, P:bli,. T.n;. East, Valley t"OWater District Board Memorandum Prom: Brian W. Tompkins / Chief Fina jal QS:ficer Subject, Disbursements. Recommendation: Approve the attached list of accounts payable checks and payroll issued during the period August 27, 2007 through September 5, 2007. Background: DATE: SEPTEMBER 11, 2007 Accounts payable checks are shown on the attached listing and include numbers 211750 to 211899 for A total of $987,691.19. The source of funds for this amount is as follows: Unrestricted Funds $987,691.19 Payroll disbursed was for the period ended August 17, 2007 and included checks and direct deposits totaling $182,086.51. Total disbursements $1,169,777.70. Date: Wednesday, September 05, 2( Time: 02:16PM User. KATHY Bank Account: Citizens Business Bank East Valley ater District y Check Register - Standard As of: 9/5/2007 13110 00 -00- 000 -0- 000.00 -00 Page: Report: Company: 1 of 3 20600.rpt EVWD Check JI Tn Check Payee Clear Period Nbr Tp Tp Date ID Payee Name Date Post Amount 000001 - 211749 Missing 211750 AP CK 8/2712007 WRI014 WRIGHT- MEAGAN 8/28/2007 02 -07 3,259.67 211751 AP CK 8/29/2007 ADP002 ADP 02 -07 665.08 211752 AP CK 8/29/2007 ADVO07 ADVANTAGE RED 02 -07 59.01 211753 AP CK 8/29/2007 ATT007 AT &T 02 -07 144.34 211754 AP CK 8/29/2007 AVA005 AVAYA FINANICIAL SERVICE 02 -07 5,155.40 211755 AP CK 8/2912007 AVA008 AVAYAICUSTOMER CARE Cl 02 -07 783.53 211756 AP CK 8/29/2007 BAS009 BASIN WATER TECHNOLOG' 914/2007 02 -07 19,588.24 211757 AP CK 8/2:/2007 800002 BODELL -LINDA J & BRAD 02 -07 21.47 211758 AP CK 812£/2007 BOL007 BOLTON - JEANETTE 1 02 -07 56.44 211759 AP CK 8/29/2007 BUE001 BUENROSTRO - DOMITILA 02 -07 35.27 211760 AP CK 8/29/2007 BUR022 BURGESS MOVING & STORk 9/4/2007 02 -07 573.67 211761 AP CK 8/29/2007 CAL072 CALDWELL- DANIEL E 02 -07 42.31 211762 AP CK 8/29/2007 CAR003 CARBIDE SAW &TOOL INC 9/4/2007 02 -07 286.48 211763 AP CK 8/29/2007 CHE007 CHEM -TECH INTERNATIONA 02 -07 2,560.35 211764 AP CK 8/219/2007 COL001 COLTON TRUCK SUPPLY 02 -07 24.43 211765 AP CK 8/29/2007 COM016 GIANTS - COMPUTER 02 -07 1,489.38 211766 AP CK 8/29/2007 CO0025 COUNTY OF SAN BERNARDI 02 -07 1,050.00 211767 AP CK 8/29/2007 DAT002 DATAPROSE, INC. 02 -07 13,524.51 2117618 AP CK 8/29/2007 DOS002 DOSHI -SID R. 9/4/2007 02 -07 85.38 211769 AP CK 8/29/2007 ELF001 INC -E L FISHER CONSTRUC 9/4/2007 02 -07 1,713.83 211770 AP CK 8/29/2007 EPA001 ePARTNERS INC 02.07 1,348.05 211771 AP CK 8/29/2007 FA1002 FAIRVIEW FORD SALES,INC 02 -07 382.98 211772 AP CK 8/29/2007 FAR023 FARRELL -JAMES 02-07 40.51 211773 AP CK 8/29/2007 FRA026 FRANKS FENCE & SUPPLY C 9/4/2007 02 -07 1,750.00 211774 AP CK 8/29/2007 GAB001 GABRIEL EQUIPMENT CO 9/4/2007 02 -07 1,264.39 211775 AP CK 8/29/2007 GEL001 GELLER -ALLEN 02 -07 70.46 211776 AP CK 8/2912007 GEN007 GENUINE PARTS COMPANY 9/4/2007 02 -07 369.63 211777 AP CK 81:9/2007 GO1001 GOINS JANITORIAL SERVICE 9/4/2007 02 -07 2,135.00 211778 AP CK 6/£:9/2007 GOL003 GOLDAK INC. 9/4/2007 02 -07 389.37 211779 AP CK 8/29/2007 GOM028 GOMEZ- MARIAT 02 -07 42.08 211780 AP CK 8/29/2007 HAL016 HALL -KEVIN 02 -07 64.15 211781 AP CK 8/29/2007 HER015 HERWIG -BRUCE 02 -07 59.49 211782 AP CK 81:19/2007 HER093 HERNANDEZ- SANTIAGO 02 -07 63.13 211783 AP CK 8/29/2007 HIG018 HIGHLANDS STAR CENTER, 02 -07 11,804.00 211784 AP CK 8/29/2007 HIW001 HI WAY SAFETY 9/4/2007 02 -07 1,513.56 211785 AP CK 8/29/2007 HUB001 HUB CONSTRUCTION SPEC! 9/4/2007 02 -07 76.73 211786 AP CK 8/29/2007 HYD001 HYDRO -SCAPE PROD. INC. 9/4/2007 02 -07 366.08 211787 AP CK 8/29/2007 IDE003 PROPERTIES -IDEAL 02 -07 13,066.33 211788 AP CK 8/29/2007 INL005 INLAND WATERWORKS SUF 9 /4/2007 02 -07 1,874.75 211789 AP CK 8/29/2007 INT005 INTERSTATE BATTERY 9/4/2007 02 -07 203.42 211 790 AP CK 8/29/2007 JRF001 J.R. FREEMAN CO., INC 9/4/2007 02 -07 73.63 211791 AP CK 8/29/2007 JRH001 CO INC -JRH CONSTRUCTIO 02 -07 1,463.27 211792 AP CK 8/2912007 KAT001 KATZ LANDSCAPING 02 -07 8,636.00 211793 AP CK 8129/2007 KEN018 KENNEDY -MICAH 02 -07 415.00 211794 AP CK 8129 /2007 LAN023 LANGHORNE -EARL W 02 -07 81.16 211795 AP CK 8/2912007 MACO20 MACIAS- VICTOR 02 -07 117.80 211796 AP CK 8i29/2007 MCA001 MC ANDREWS & BOYD 8/31/2007 02 -07 9,600.00 211797 AP CK 8(29/2007 MCG004 MC GEE -STEVE 02 -07 129.30 211798 AP CK 8,129/2007 MCGO05 MCGRAW HILL CONSTRUCT 02 -07 336.00 211799 AP CK 8!29/2007 MCM002 MCMASTER -CARR 02 -07 20.24 211300 AP CK 8/29/2007 MIL001 MILOBEDZKI -JACEK 02 -07 1,200.00 211801 AP CK 8/29/2007 MIR007 MIRAMAR FORD TRUCK SAL 02 -07 74,945.24 211802 AP CK 8/2912007 MOR069 MORALES- MARIA. 9!4!200' 02 -07 112.64 21180° AP CK 612912007 OFF007 OFFICETEAM 914i2007 02 -C7 791 60 211804 AP CK 8129 /2007 PAC038 REALTY - PACIFIC COAST. 9/4/2007 02 -07 7 -.23 211805 AP CK 6/29/2007 PAC039 PACIFIC GENTRY HOiNES 02.07 2,000.00 211306 AP CK 8/29/2007 PIT001 PITNEY BOWES 02 -07 25537 0 Date: Wednesday, September 05, 21 Time: 02:16PM User: KATHY Bank Account: Citizens Business Bank East Valle y Water District Check Realster - Standard As of: 915/2007 13110 00 -00- 000 -0.00 -00 -00 Report: Company: 20 00.rpt EVWD Check JI Tn Check Payee Clear Period Nbr Tp Tp Date ID Payee Name Date Post Amount 211807 AP CK 8/29,12007 ROB044 ROBINS - VALENCIA 02 -07 18.58 211608 AP CK 8129,12007 ROD061 RODRIGUEZ -JESUS 02 -07 163.22 21180:1 AP CK 8/29./2007 R00001 ROQUEf PAVING 02 -07 11,364.56 211810 AP CK 8/29/2007 SAF005 COMPANY - SAFETY COMPLI 9/4/2007 02 -07 500.00 211811 AP CK 8/29/2007 SAL033 SALGADO- RAFAEL 02 -07 70.10 211812 AP CK 8/29/2007 SANO13.1 JAMES STEVEN SANTINI 02 -07 1,595.00 211813 AP CK 8/29/2007 SAN015 SAN BDNO CO FIRE DEPT 02 -07 388.00 211814 AP CK 8/29/2007 SAN206 CO- SANTORO LIMITED 02 -07 127.70 21181:1 AP CK 8/29/2007 SAN207 LIMITED - SANTORO 02 -07 25.26 211816 AP CK 8/29/2007 SAN214 DEV AGENCY -SAN BERN EC 02 -07 274.80 211817 AP CK 8/2£/2007 SAN215 PAINT -SAN BERNARDINO 9/412007 02 -07 163.94 211818 AP CK 8/2£3/2007 SHE017 SHEHUB- ISMAEL 02 -07 13.18 211819 AP CK 8/29/2007 SITY001 SITYPTYCKI- RAYMOND 02 -07 1,120.00 211820 AP CK 8/29/2007 S00003 SO CAL PUMP & WELL SER\, 02 -07 7,375.60 211821 AP CK 8/29/2007 500019 SOUTHERN CALIFORNIA WA 02 -07 850.00 211822 AP CK 8/29/2007 SPE015 SPECIAL DISTRICT RISK MG 02 -07 3,289.89 211823 AP CK 6/29/2007 TH0039 THOMAS - DEBBIE L 02 -07 155.68 211824 AP CK 8/214/2007 UN1021 UNITED SITE SERVICES OF 1 9/4/2007 02 -07 221.50 211825 AP CK 8/29/2007 URE003 URENA- GRISELDON 02 -07 58.75 211826 AP CK 8/29/2007 VAL049 VALADEZ - ROBERTA 02 -07 28.28 211827 AP CK 8/2912007 VER004 VERIZON CALIFORNIA 02 -07 162.35 211828 AP CK 8/29/2007 V0005 VU -QUAN 02 -07 33.78 211829 AP CK 8129/2007 VUL001 VULCAN MATERIALS COMPF 9/412007 02 -07 440.21 211830 AP CK 6/3012007 ADVO12 ADVANTAGE MAILING 02 -07 10,956.83 211831 AP CK 9/5/2007 AND036 ANDESON -SERIA 03 -07 69.80 211832 AP CK 9/512007, ARRO09 ARROWHEAD UNITED WAY 03 -07 100.00 211833 AP CK 915/2007 BAT002 BATTEEN -JOHN W 03 -07 850.00 211834 AP CK 9/5/2007 BAT003 BATDORF -EARL 03.07 275.37 211835 AP CK 9/5/2007 BEA016 BEACH -GLEN 03 -07 67.80 211836 AP CK 9/5/2007 BOA001 BOARD OF WATER COMMIS: 03 -07 4,108.00 211837 AP CK 9/5/2007 BRIO09 BRITHINEE ELECTRIC 03 -07 4,210.46 211838 AP CK 9/5/2007 CAL087 CALIVER -ROBYN 03 -07 1.95 211839 AP CK 9/5/2007 CAM036 CAMBEROS- MICHAEL 03 -07 90.71 211840 AP CK 9/6/2007 CIT018 CITISTREET 03 -07 8,055.50 211841 AP CK 91:1/2007 DES008 DESAI -VIREN 03 -07 59.62 211842 AP CK 9/:1/2007 DR0001 DRURY -JOHN 03 -07 90.00 211843 AP CK 9/:5/2007 EDWO07 EDWARDS - CLINTON 03 -07 58.75 211844 AP CK 9/:112007 EW1001 EWING IRRIGATION PRODU( 03 -07 501.72 211845 AP CK 9/:5/2007 FOX001 FOX -JANA 03 -07 371.74 211846 AP CK 9/:1/2007 GA0001 GABRIEL EQUIPMENT CO 03 -07 39.69 211847 AP CK 9/'5/2007 GEN007 GENUINE PARTS COMPANY 03 -07 108.47 211848 AP CK 9/5/2007 GON066 GONALEZ -JUANA 03 -07 22.13 211849 AP CK 91512007 HAC001 HACH COMPANY 03 -07 1,130.54 211650 AP CK 9/5/2007 HAL017 HALL -AMY J 03 -07 33.70 211851 AP CK 9/5/2007 HER011 HERMAN WEISSKER INC 03 -07 1,261.53 211 E152 AP CK 9/5/2007 HER094 HERRERA - ARMANDO 03 -07 28.85 211853 AP CK 915/2007 H00019 AUTHORITY - HOUSING 03 -07 33.14 211854 AP CK 9/5/2007 INLOO5 INLAND WATER WORKS SU4 03 -07 436.17 211855 AP CK 9i5/2007 KESOOI SANDER A. KESSLER & ASS, 03 -07 10,274.00 2111356 AP CK 9/512007 KUH002 KUHL - THOMAS 03 -07 400.00 211857 AP CK 915/2007 LAW003 LAWSON PRODUCTSJNC 03 -07 138.01 211858 AP CK 9/5/2007 LEOO14 LEONARDI -JOE 03 -07 66.54 211359 AP CK 9/5/2007 LLUOO 1 L.L.U. RADIOLOGY MED GRP 03 -07 46.00 21136£. AP CK 9/5'2007 LOP047 LOPEZ - GUADALUPE 03 -07 31.30 211361 AP CK 9/5/2007 MAR127 MARABLE -MIKE 03 -07 73.73 211362 AP CK 9/5/2007 MAT012 MATICH CORP 03 -07 1:60852 21186° AP CK 9/5512007 METO02 METROPOLITAN LIFE INS CC 03 -07 409.59 211,866 AP CK 9115/2007 MILO18 GARY W. MILL ER /CMID 03 -07 735.62 Date: Wednesday, September 05, 2( Page: 3 of 3 Time: 02:16PM East Valley Water District Report: 20600.rpt User. KATHY Check Register - Standard Company: EVWD As of: 9/5/2007 Bank Account: Citizens Business Bank 13110 00 -00. 000 -0- 000.00 -00 MORTON SALT Check Nbr JI Tn Check Payee Tp Tp Date to Payee Name Clear Date Period Post Amount 211865 AP CK 9/5/2007 MOR020 MORTON SALT 03 -07 1,886.74 211866 AP CK 9/5/2007 NET005 NETCOMP TECHNOLOGIES, 03 -07 495.00 211867 AP CK 9/5/2007 OFF007 OFFICETEAM 03 -07 2,358.40 2118613 AP CK 9/5/2007 OL1001 OLIVE- KENNETH 03 -07 291.82 211869 AP CK 9/5/2007 ORT019 ORTEGA- GAVINO 03 -07 92.59 211870 AP CK 9/5/2007 OSGO02 OSGOOD PROPERTY MGMT 03 -07 74.72 211871 AP CK 9/5%2007 PAT005 PATfERSON -ROY 03 -07 350.00 211872 AP CK 9/5/2007 PH0001 PHOENIX HOME LIFE 03 -07 191.94 21187:3 AP CK 9/5/2007 RIV027 RIVERA -DAVID D 03 -07 39.71 211874 AP CK 9/5/: 2007 ROB045 ROBLES -AIDE 03 -07 79.02 211875 AP CK 9/512007 ROD062 RODRIGUEZ- KARINA 03 -07 16.08 211876 AP CK 9/5/2007 ROS035 ROSEMOUNT ANALYTICAL, 1 03 -07 3,298.23 211877 AP CK 9/5/2007 SAN004 SAN BERNARDINO -CITY OF 03 -07 499,544.68 211878 AP CK 9/5/2007 SAN006 SAN BERNARDINO VALLEY f 03 -07 1,742.05 211879 AP CK 915/2007 SAN007 SAN BONO PUBLIC EMPLOY 03 -07 482.74 211880 AP CK 9/5/2007 SAN013 SANTINI -STEVE 03 -07 275.37 211881 AP CK 9/5/2007 SEV001 SEVERSON -RON 03 -07 216.24 211882 AP CK 9/512007 S00003 SO CAL PUMP & WELL SER14 03 -07 6,255.42 211883 AP CK 9/5/2007 S00004 SO CAL EDISON COMPANY 03 -07 63,474.13 211884 AP CK 9/5/2007 STA054 HOMES - STANDARD PACIFIC 03 -07 172.01 211885 AP CK 9/5,12007 STA055 STATE DISBURSEMENT UNI- 03 -07 929.00 211886 AP CK 9/512007 SWA006 SWAN - REBECCA JO 03 -07 2.75 211867 AP CK 915./2007 TES003 TESO -MAR10 03 -07 32.26 211868 AP CK 9/512007 UN1002 UNITED PARCEL SERVICE 03 -07 72.64 211869 AP CK 9/5/2007 UN1013 UNION BANK OF CALIFORNI, 03 -07 137,059.80 211890 AP CK 9/5/2007 UN1023 United States Treasury 03 -07 100.00 211891 AP CK 9/5/2007 VAL050 VALDOVINES- IGNACK) 03 -07 46.44 211892 AP CK 9/5/2007 VER004 VERIZON CALIFORNIA 03 -07 29.97 211893 AP CK 9/5/2007 VIL025 WHOLESALE,L- VILLAGE NU 03 -07 560.98 211894 AP CK 9/5/2007 VUL001 VULCAN MATERIALS COMPF 03 -07 477.21 211895 AP CK 9/5/2007 WAX001 WAXIE SANITARY SUPPLY 03 -07 839.95 211896 AP CK 9/512007 WHI005 WHITEHEAD -ROGER 03 -07 342.83 211897 AP CK 9/5/2007 WIL087 SARAH WILLIFORD 03 -07 325.00 211898 AP CK 9/5/2007 WIR003 WIRELESS WATCHDOG, LLC 03 -07 6.50 211899 AP CK 9/:112007 WWG001 GRAINGER 03 -07 85.38 Check Count: 150 Bank Account Total 987,691.19 Count Amount Paid Regular 150 987,691.19 Hand 0 0.00 Void 0 0.00 Stub 0 0.00 Zero 0 0,00 Mask 0 0.00 Outstanding 0 0.00 Unused 0 0.00 150 987,691.19 Association of California Water Agencies = .•.�`.VC�C iknna-ti n since 1910 8/6/2007 Mr. Robert E. Martin East Valley WD PO Box 3427 San Bernardino, CA 92413 Dear Mr. Martin: Anyone reading the headlines knows this is a critical time for California water. Though tremendous investments havc been made in facilities and programs on a local and regional basis, improvements in our statewide water infrastructure have lagged behind. Wavle we have made headway in engaging policy makers and the media through our outreach efforts to date under our "Time is Now" effort, recent polling shows that most Californians do not realize we are facing a water crisis. They turn on the tap, and the water is there. But research also shows that when people are educated. about the state's water problems, they want their leaders to take action to solve them. It is clear that we need to raise the public's awareness of problems facing our water system. Simply put, we need to educate; Californians about our current and future water problems and the need for action to address them. At its July 27 meeting, the ACWA Board of Directors approved a multi - level, statewide public education effort that will provide the public with accurate and concise information about our water system and the problems confronting it. To reach the public most effectively, ACWA will be using paid media advertising (television, radio and print) along with traditional outreach and earned media methods to reach the public. This program is admittedly ambitious in size and scope and will require substantial resources to make: it happen. We are asking our members to join in this effort by providing voluntary contributions. The program will be launched in mid- August. A program description is attached. This program is a logical outgrowth of the priorities we identified in ACWA's 2005 water policy document, -No Time to Waste: A Blueprint for California Water," and is a key step in its implementation. We believe there is no better time — and no better organization — to carry out this critical educational effort. Commitments already have been made by some member agencies around the state. We invite you to help support ACWA's statewide public education effort on water. Contact Jennifer Persike, ACWA 's Director of Strategic Coordination and Public Affairs, at 916-441-4545 or via email, ietua1 fero,n2a wa.corn. Sincerely, iJ� i Prepared by the Association of California Water Agencies —August 2007 calffornia Water. Public Education Program A Statewide Efoil to RaiseAwovMss ofProblems Facing (alifomias Water System The Association of California Water Agencies (ACWA) will soon launch a statewide effort to educate Califomians about the water crisis now confronting the state. With water in the news nearly every day and key members of the Legislature beginning to pay attention, there has never been a more important time to elevate these -issues with the public. While tremendous headway has been made to engage policy makers and the media through previous outreach efforts, the public remains largely unaware of the critical problems we face today. In fact, recent polling shows that Californians are unaware of the significant challenges facing our water system and what they mean for our economy, environment and quality of life. 'Thanks to a string of relatively wet years and the fact that water flows whenever the tap is tuned on, the public is generally complacent about our water. But it's a new day in water. The most significant challenges since the mid -20`h century are confronting our water system. Court rulings and regulatory actions are creating new uncertainties, with State Water Project pumps already shut down once this year and further restrictions likely. Since the effects of these challenges could ripple across the entire state, there is a clear need for the public to understand the issues and what's at stake. Since May, ACWA and its members have been working to educate legislators and opinion leaders about these problems and the need for action as part of a grassroots -style effort called "The Time is Now." ACWA's leadership believes the timing is right to broaden and e; pand this effort to communicate directly with the public on our current and future water problems. D a1 n ram -r rrrlira�' = nc .ti .��C�=� :� �n 'h= 'Jr.,_ i;i..,T..! „_- ��r.0 - ^_fy ,'1'_hli ':irP > °- ?Oe ^..i __'}., . _C_._`-�r! L - 0 Calffornia Water Public Education Program appropriate and. vital role for ACWA members to take on at this critical juncture. Such a program is a timely and logical outgrowth of the important issues and priorities identified by the water community in ACWA's 2005 water policy document, "No Time to Waste: A Blueprint for California Water" and is a key step in its implementation. Purpose and' cope The overall goal of this statewide public education program is to increase awareness among Californians of the current and future problems with our statewide water infrastructure •- including the deepening crisis in the Delta. Compelling descriptions of tlae environmental, water supply and water quality challenges facing the state's water system will be developed and provided to the public through a variety of effective. . methods. Materials developed for the program will make it clear that if left unaddressed, these challenges will affect every Californian in every region of the state; some could be affected in the coming months. Drawing on successful models for similar efforts, the program will utilize paid advertising through television, radio and print media, as well as earned media (generated through public relations) and special events. Billboards and theater ads may also be considered. .ACWA will lead the effort in coordination with its member agencies. Issue Overview In California, it's easy to take the state's most precious natural resource for granted. Surrounded by coastline and snowcapped mountains and sustained by a vibrant economy, many of the ;state's residents are unaware that most of California is semi -arid. Few understand that the water they drink and use often travels hundreds of miles to reach them. Thanks to significant investments by local and regional water agencies in recent decades, strategies such as water recycling, water use efficiency, conjunctive use of surface water and groundwater and regional water storage have allowed California to meet, most of its water needs to this point. But while these regional investments have helped stave off water shortages, the state has failed to make the necessary investments in our statewide "backbone" water infrastructure to keep pace with our growing population. When the last large reservoir was added to the statewide system in 1979, there were 23 million people in California; by 2032; Califomia's population will be ove. 50 million. As most Californans remember, the state faced an energy crisis in the 1990s because it failed to build power plants to keep up with demand. Making that same mistake with water would be a disaster. ..a ad= i:i °St :^ a _ -,'„ ^�_o D°��_':z:_0 Bali` ° -- -- --aces an =,a�, �� _.`?'.:c -:_ == _C s'. _.._ -•._aht j a ^^ ='_o a Cna'. g'1-1 ? Ci "ti_: -at e co LlQ T Jean i.. -'Zcr d7ou n; s anc `_or. ScVCtc "_Si nr- o California Water Public Education Program floods, and recent court rulings have created uncertainties for California's ability to deliver water when it's needed from the Delta. The bottom line issue is that the state's water system no longer works because the Sacramento -San Joaquin Delta is broken, plain and simple. Water conveyed through the Delta is relied upon by two- thirds of the state's population for Eal or part of their drinking water. Water used to irrigate hundreds of thousands of agricultural acres is also moved through the Delta. The recent 10 -day shutdown of the State Water Project's Delta pumps is a stark warning of the deepening crisis in the Delta. The shutdown may be a preview of things to come if we do not fundamentally change the way we convey water across the Delta, and the effects could be felt in every part of the state. As the ongoing Delta crisis shows, it is time. to rebuild and re- invest in our backbone statewide water infrastructure. Local and regional projects are tremendously valuable, but they alone are not enough to meet California's water needs and at the same time protect the environment. Research Effort Points to Need for Education Earlier this year, leaders of the state's business community embarked on an extensive research project to assess the public's knowledge of water issues and gauge support for potential projects to improve the state's water infrastructure to address these problems. The research rdvealed that there was very little understanding of or concern over the L� problems facing the state's water supply and quality. Quite simply, when Californians go to turn on the tap, water comes out. There is a clear need to educate the public about current and Rkture water problems. Next Step: A. Program to Educate Californians ACWA is the logical group to lead a statewide public education effort on water. Once initial funding is secured, ACWA will move swiftly to retain a consultant and begin immediate development of the education program's key messages and materials. Using the latest research findings, messages will be tailored regionally. Likely themes include the following: a Our statewide water storage and delivery system hasn't been improved in 30 years. o Canals and levees are aging and need improvements. o Climate change, population growth and natural disasters pose challenges. o The Delta is broken. m Water quality needs are not being met for people or the environment. a We ;rust make sure we can store and deliver the clean water we need -- now and in the future. California Water Public Education Program Timeline and Budget Levels ACWA plans to launch this education program statewide in August. Messages will be communicated through a variety of means — paid media (advertising), earned media (public relations), and outreach with key organizations throughout the state. The key cost driver; as in all public outreach efforts, is the use of paid media, which includes the buying of television, radio and print advertising. Earned media includes editorial boards, reporter briefings, organizing press events and "rapid response" to developing and breaking news stories. The actual budget will be based on the amount of funds raised for the program, and a final budget will be developed and submitted for approval to the program's contributors prior to launch. Conclusion This statewide public education program is one of the largest and most important efforts undertaken by California's public water agencies in recent decades. It is admittedly ambitious in size and scope. But the challenges facing California's water supply system are perhaps the greatest they have been since the mid -2e century. The current focus on water in the headlines and at the Capitol indicate that opinion leaders and a growing number of elected officials see the importance of these challenges and the need for solutions. But the public's understanding clearly lags behind. We believe that there is no better time than now to implement a public education program of this nature, and we sincerely hope to have the financial, managerial and strategic participation of all ACWA members in this important effort. As ACWA has recently reminded our industry and all Californians, The Time is Now. ACWA's leaders are confident that our public agency members recognize the enormous stakes involved for our entire state and will be eager to support this statewide public education program on water. I i� O 1w w V) Ntazt�' ^1 VW Q lori- P� 5 m m m 0 a N a9F C m • �( c �}� a Y ew r. iqa mS vs ° •a � °d 'S •'a� � m Y T Y yEn �r?pn m g � e � rcii 3 e{ 2e1O° �° J y OT Yygg.� min e °n e of ° a ii sE := aE' m<i � �1g�m s? eu d SE le a Y� Fc E >.F'° vE ttl C 3:a L C �$`m !r ■0 m no 1w w V) Ntazt�' ^1 VW Q lori- P� 5 m m m 0 a N a9F C m • �( c �}� a Y ew r. iqa mS vs ° •a � °d 'S •'a� � m Y T Y yEn �r?pn m g «BL � rcii 3 e{ 2e1O° �° J y OT Yygg.� min e e of ° a •C L34 3gi8 := aE' m<i � �1g�m m le M. E le a Y� Fc E >.F'° vE o o =� E `m Y �°• T Y �= m3 cC�EW aO? 61 :n ? nm5 E °cv > Ou �O •3ZCY $�mY a. qoF b �� q � pmC r:Em le DO m Yd C I °pC'S C 6 wmL 4'^O E C: sr2 � Yp' EE4n 3E � " A y�Cg n °gN r°e -Ec n i `1J m3�^°T•'Y° •Sm o «s ' yum =° F v a °• ° d S w F = S m � o'E �� y°_ o w E� E o t�m F... 06yL•' Y' Fyy O 1p'3 tg n 3 a m •rjo Y °Sv- �r?pn got g � rcii pqO �° J y OT Yygg.� min e '� i E v 'O E M. E v >.F'° vE F 4 rx^.y�y It °en 88 �a ��•�a M Cg�� y p& amVLE 8� i� S C E.°+ fy u O:� p�j��m '�Y"d %J BOO E �•a� °e uud «� Ya o m�e a acm q 42y8 c Jz d `..r TT�ii o g Sod E3 ce •°q_n �Y Cpp 0 'N c-mo a s'S cL� oISM M%B ° ?� 0.4 vy _ �L HS m'20 a� �iE :.°Co jt33 9g -.=-=0 e`3 �i, � mmv u im E mm g° o L v' U EF C Eo5 ,�°cc V� 3E >'i umH o°°, (.amo i v°+a °;�'� c- '_e'cc ?J 3cc SCAT Meeting August 17, 2007 TaskForce :issue: Copper theft, fire hydrant theft, backflow valve device theft, wire theft, air conditioner unit theft, and graffiti Self introductions of the following meeting attendees included purpose for individuals interest in the issue. Bobby Hawkins, San Manuel Band of Mission Indians Harold Willis, Commercial Real Estate Melvin Bailey, Protection Management Tom Shorett, Crown Printers Robert Gastel, Arrowhead Mechanical Gary Sturdivan, East Valley Water Matt Litchfield, City of San Bernardino Water Scott Landen, SB County Sheriff Frances Vasquez, Supervisor Josie Gonzales's Office Larry Quiel, Quiel Bros. Signs Ray Gonzalez, Southern California Edison Cornpany Gary Underwood, Chief San Bernardino City School Police Department Joshua Duke, Community Hospital of San Bernardino Danny :singleton, DB Singleton James Penman, SB City Attorney Wendy McCammack, Express Signs & Ts, SB City Councilwoman Luisa Ross, Neighborhood Housing Service of the Inland Empire Shawn Pennell, Davis Camera & SB Loan & Jewelry Laurie Stalnaker, AFL -CIO Central Labor Council Beverly & Bill Bird, Bird Refrigeration Jack Katz, Arrowhead Business Offices Joey Blanco, National Charity Support Tom Brickley, Brickley Environmental Kim MacMillan, American Pacific Mortgage Diana Sanchez, Neighborhood Housing Service of the Inland Empire Fred Buhl, Neighborhood Housing Service of the Inland Empire Doug Hubbard, SB County Sheriff Evlyn Wilcox, Manpower Staffing Services Mitch Kimball, SB Police Department Scott Paterson, SB Police Department Ron Maass, SB Police Department Jerry Uhler, Southern California Edison Company Rocio Rodriguez, Southern California Colltge Chris Dymess, ;Highland Comm -ur_'� v :" ats :a 1 LZHram, Target Ka-11 SCi'i2ver; SB -D' - t C!'t f � Shool s ic. SeliciaKemnedyRoss. heS. ^n Babbara Ferguson, SID County Sher- �.% Neil Derry, SCE, SB City Council Added after or were unable to attend the meeting: Doug Dupree, SB Fire Marshal Ron Sellers, Seltronix Gary Bobbitt, Bobbitt Chapel Following individual statements of the problem the following ideas were discussed: Solutions: Offer a reward for the arrest and conviction of offenders. The city should not be involved in the reward process. How much and for how long should the process be in place? The Chamber can facilitate collecting and distributing the reward funding Donations can be made to fund the reward process. Rules, disclaimers and guidelines need to be prepared. Chamber will be involved in notifying businesses and citizens of the program. Tbis can be a featured item on bill boards. Heavy duty cages can be installed over valves. individual solution suggestions: �i Jack — "Henry's" (a tar —like substance) patch coating covering valves He is familiar with a company that sells non -brass valves (less expensive than brass) Businesses co-op security patrols Wendy — Utilize "Public Benefit Improvement" Bill — Require recycle dealers take photos of people turning in items for cash and securing information that would assist in tracking them. Harold — 24 hour surveillance/seaurity Larry — His company no longer offers crane rental services. Weld the valves in place. Joshua — Suggested purchasing DeWalt vibration/motion monitors. Sheriff — Use quick dry cement on copper wire. 1.14att — Use "Low Jack" system on back flow valves. Cage valves and use coatings. Jerry — Data dot systems — spray micro dots on valves. Can be seen with blue or black lights. Post a sign "this valve is protected" Shawn — Regulate recycling centers. Sheriff — Digital surveillance equipment, signage, lights, mark equipment. Legislation There ;.s a preernption issue with putting a local ordinanc- or law into place as t':ie -edes an'v =y or county-eguia ?io . C'_.cv+'ld° ieg_ ?Statlo .:S:IMDi'i Bi11 041 — :? n ac; adding t0 d I Business and Prc ?SSion, Code. rcl =iinc T i Vias discussed. It was decided That Lie Cha -i-, e:; n"leeung a-ende-e5 and T5L'.�sS9s ld n0 i1 the members o the Senate Co =' .te or, Sus: an,., ._ Econo -mic Dev,lo-oment that they SuDpon tills 711. - -o The bill has passed the Assembly. The bill was pulled by the author Assemblymember Tom Berryhill, 25"' District, due to the lobbying against the bill by the recyclers. Phone calls and letters supporting the bill will be helpful. Following; are the Senate Committee on Business, Professions and Economic Development members (these are the legislators that should be contacted): The Honorable Mark Ridley- Thomas, Chair (26'h Senate District) State Capitol, Room 4061 Sacramento, CA 95814 (916) 651 -4026 The Honorable Sam Aanestad, Vice Chair (4h Senate District) State Capitol, Room 2054 Sacramento, CA 95814 (916) 651 -4004 The Honorable Ron Calderon (30ei Senate District) State Capitol, Room508O i Sacramento, CA 95814 (916) 651 -4030 The Honorable Ellen Corbett (10e Senate District) State Capitol, Room 3092 Sacramento, CA 95814 (916) 651 -4010 The Honorable Jeff Denham (12`h Senate District) State Capitol, Room 3076 Sacramento, CA 95814 (916) 651 -4012 The Honorable Dean Florez (16'h Senate District) State Capitol, Room 5061 Sacramento, CA 9581.4 (916) 651 -4016 The Honorable Tom Harman (35'h Senate District) State Capitol, Room 2052 Sacramento, CA 95814 (916) 651 -4035 l he Honorable Joe Sirnitia _ ; : _ S =nat_ Dis.r :c:; State Caoito'_. Room 2080 Sacramento, CA 95814 (91 6') 651_cpl The Honorable Leland Lee (8`t' Senate District) State Capitol, Room 4048 Sacramento, CA 95814 (916) 651 -4008 Also contact local representatives with your concerns: Honorable Bob Dutton (31St Senate District) State Capitol, Room 2068 Sacramento, CA 95814 (916) 445 -3688 Honorable Gloria Negrete McLeod (32 "d Senate District) State Capitol, Room 2059 Sacramento, CA 95814 (916) 651 -4032 Honorable Nell Soto (61St Assembly District) State Capitol, Room 3091 Sacramento, CA 95814 (916) 319 -2061 Honorable Wilmer Amina Carter (62 "d Assembly District) 11. O. Box 942849 Sacramento, CA 94249 -0062 (916) 319 -2062 'Ihe Honorable Bill Emmerson (63`d Assembly District) State Capitol, Room 3149 Sacramento, CA 94249 -0063 (916) 319 -2063 The Honorable Dennis Hansberger (3`d District San Bernardino County Board of Supervisors 385 North Arrowhead Avenue, Fifth Floor San Bernardino, CA 92415 -0110 (909) 387 -4855 The Honorable Josie Gonzalez (5h District) San Bernardino County Board of Superiisors 385 North Arrowhead Avenue, Fifth Floor San Bernardino, CA 92415 -0110 (909) 387-a5651 em today with From: Sent: Tuesday, September 04, 2007 8:49 AM To: Subject: F'W: ACWA Member Advisory -- Court Ruling to Have Sweeping Waterimpacts cad_07 -26 wanger07- 26_statement o _rules.doc n_Wanger_ruli... JPH - please print out all materials here and include in next weeks agenda under old business. Thanks, Bob - - - -- Original Message---- - From: Sent: Saturday, September 01, 2007 3:31 PM To: Subject: ACWA Member Advisory -- Court Ruling to Have Sweeping WaterImpacts August 31, 2007 Court: Ruling to Have Sweeping Water Impacts Cuts in Deliveries Loom in Wake of Court - Ordered Reduction in Delta Pumping U.S. District Court Judge Oliver Wanger today ordered a cut of up to one -third of previously available water supplies, or as much as two million acre -feet, by the state's two largest water projects to protect a threatened fish species, the Delta smelt. The actions will begin to take effect this winger. The State Water Project and the federal Central Valley Project funnel. water through the Sacramento -San Joaquin River Delta to more than 25 million Californians and 2.5 million acres of productive farmland. The highly anticipated ruling marks the single largest court - ordered redirection of water in state history and potentially the largest action ever taken under the federal Endangered Species Act (ESA). Sweeping impacts are expected, especially in hard -hit agricultural areas from the San Joaquin Valley to San Diego where lack of water will affect jobs and productivity. New development in urban areas also could feel the effects in the near term. wanger's ruling will compel many local water agencies to rely on alternative or reserve water supplies, including local groundwater. Water use restrictions - including rationing - are expected in some areas, particularly where dry conditions already have affected water availability. The situation could be dire if drought conditions continue next. year. "This puts in vivid and real terms the deepening crisis we are seeing in the Delta," ACWA Executive Director Timothy Quinn said. "It's an ecological crisis ar..d it's a water supply crisis. While many factors are affecting the ecosystem, this reinforces the fact that our Delta water infrastructure doesn't work for the environment or for the state's economy." Background on the Ruling Thee ruling followed several days of evidentiary hearings before Wanger on what actions s=ale be taken by the LWO Arojects _, better 1 N the smelt, a native Delta fish whose decline earlier this year triggered a voluntary shutdown of the State Water Project's Delta pumps for 10 days in June. Pumping by the Central Valley Project also was limited during that time. Wange:r ruled in May that permits under which the two projects export water from the Delta are inadequate and do not comply with the federal Endangered Species Act. The ruling came in a case brought by the Natural Resources Defense Council and five other groups. Reductions in pumping ordered today are part of interim actions to protect the fish while state and federal agencies develop a long -term plan. It is anticipated, however, that the long -term plan will call for similar reductions in. deliveries. The vulnerability of the Delta was also the focus of a high -level summit Aug. 21 in. Los Angeles featuring U.S. Senator Dianne Feinstein and Governor Schwarzenegger. That session highlighted problems such as declining species and risks posed by earthquakes, climate change and aging levees. For further information, contact ACWA Director of Strategic Coordination and Public Affairs Jennifer Persike at (916) 4414545 or jenniferpUacwa.com. Director of Strategic Coordination and Public Affairs Association of California Water Agencies ( You have received this e -mail from the Association of California Water Agencies (ACWA) on behalf of its members, supporters, and allied interests. To protect their privacy, ACWA policy prohibits the unauthorized reuse, redistribution, reproduction or•retransmittal of this material or the distribution list. 2 r ACWA COMMUNICATIONS OUTREACH ADVISORY Association of California Water Agencies • 916.441.4545 • fax 916.325.2316 • www.acwa.com August 31, 2007 ACWA Communications Outreach Advisory 07 -26 Court Ruling to Have Sweeping Water Impacts Cuts in Deliveries Loom in Wake of Court - Ordered Reduction in Delta Pumping U.S. District Court Judge Oliver Wanger today ordered a cut of up to one -third of previously available water supplies, or as much as two million acre feet, by the state's two largest water projects to protect a threatened fish species, the Delta smelt. The actions will begin to take effect this winter. The State Water Project and the federal Central Valley Project funnel water through the Sacramento -San Joaquin River Delta to more than 25 million Californians and 2.5 million acres of productive farmland. The highly anticipated ruling marks the single largest court- ordered redirection of water in state history and potentially the largest action ever taken under the federal Endangered Species Act (ESA). Sweeping impacts are expected, especially in hard -hit agricultural areas from the San Joaquin Valley to San Diego where lack of water will affect jobs and productivity. New development in urban areas also could feel the effects in the near term. Wanger's ruling will compel many local water agencies to rely on alternative or reserve water supplies, including local groundwater. Water use restrictions — including rationing — are expected in some areas, particularly where dry conditions already have affected water availability. The situation could be dire if drought conditions continue next year. "This puts in vivid and real terms the deepening crisis we are seeing in the Delta," ACWA Executive Director Timothy Quinn said. "It's an ecological crisis and it's a water supply crisis. While many factors are affecting the ecosystem, this reinforces the fact that our Delta water infrastructure doesn't work for the environment or for the state's economy." Background on the Ruling The ruling followed several days of evidentiary hearings before Wanger on what actions should be taken by thy° two projects to berter protect the smelt, a native Delta fish whose decline earlier this year triggered a voluntary shutdown of the State Water Project's Delta pumps for 10 days in June. Pumping by the Central Valley Project also was limited during that time. Wanger ruled in May that permits under which the two projects export water from the Delta are inadequate and do not comply with the federal Endangered Species Act. The ruling came in a case brought by the Natural Resources Defense Council and five other groups. Reductions in pumping ordered today are part of interim actions to protect the fish while state and federal agencies develop a long -term plan. It is anticipated, however, that the long -term plan will call for similar reductions in deliveries. The vulnerability of the Delta was also the focus of a high -level summit Aug. 21 in Los Angeles featuring U.S. Senator Dianne Feinstein and Governor Schwarzenegger. That session highlighted problems such as declining species and risks posed by earthquakes, climate change and aging levees. An update will be provided on Sept. 4. For further information, contact ACWA Director of Strategic Coordination and Public Affairs Jennifer Persike at (916) 4414545 or iem?ifem(wacwa.com. 0 ACWA News Release 07 -26 NEWS RELEASE Association of California Water Agencies 910 K Street, Suite 100 • Sacramento, California 95814 -3512 9116/441 -4545 • FAX 916/441-7893 • http- iiwww.acwa.com FOR IMMEDIATE RELEASE August 31, 2007 Contact: Tim Quinn, ACWA Executive Director, 916/606 -3124 (cell) Jennifer Persike, ACWA Director of Strategic Coordination and Public Affairs, 916/441 -4545, or 916/296 -3981 (cell) Court Ruling to Have Sweeping Water Impacts Cuts in Deliveries Loom in Wake of Court - Ordered Reduction in Delta Pumping Sacramento -- The Association of California Water Agencies (ACWA) today said court- ordered reductions in deliveries by the State Water Project and federal Central Valley Project would have sweeping impacts across the state. "The scope of this decision will be felt in nearly every region of California, in some cases within a few weeks," ACWA Executive Director Timothy Quinn said. "These reductions represent the single largest court- ordered redirection of water in state history. It truly hammers home the serious challenges facing our statewide water system." In a highly anticipated ruling today, U.S. District Court Judge Oliver Wanger ordered the two projects to reduce ;pumping in the Sacramento -San Joaquin River Delta to protect a threatened fish species, the Delta smelt. The reduced pumping translates into a loss of as much as one -third or more of previously available water supplies — or a cut of up to two million acre -feet. Quinn said the cuts would affect jobs and productivity, especially in the hard -hit agricultural areas from San Joaquin Valley to San Diego. New development in urban areas also could feel the effects in the near term. "This puts in vivid and real terms the deepening crisis we are seeing in the Delta. It's an ecological crisis and it's a water supply crisis. While many factors are affecting the ecosystem, this reinforces the fact that our Delta water infrastructure doesn't work for the environment or for the state's economy," Quinn said. Wanger's decision compounds challenges already facing water suppliers this year due to dry conditions. Many agencies have been drawing on emergency or reserve supplies and asking their customers to voluntarily reduce water use. More stringent restrictions — including rationing — are expected as a result of the ruling, and the situation could be dire if dry conditions continue. "If anyone needed a wake -up call, this is it," Quinn said. "We need to address fundamental problems in the Delta so we can better protect the environment and the water supplies so critical to our state" ACYYA is a staielvide association of public agencies whose 450 inenibers are responsible for about 90% of the tivater delivered in California. For more iifortnation; visit YI'bPYP. aclya. con, . r r 0 The Metropolitan Water District of Southern California lE EEAE E 0. Box 54153, Los Angeles, California 90054.0153 • (213) 217 -6485 • toww.nnodh2o.com Contact: Bob Muir, (213) 217 -6930; (213) 324 -5213, mobile Aug. 31, 2007 METROPOLITAN BOARD TO ASSESS WATER MANAGEMENT OPTIONS IN 2008, AFTER JUDGE ORDERS HISTORIC REDUCTIONS IN SUPPLIES FROM DELTA Southern California loses up to 30 percent of its supplies from Delta nest year and possibly longer The reliability of water supplies from Northern California's Sacramento -San Joaquin Delta was cast in doubt today, as a U.S. District Court judge set into motion one of the single largest court- ordered water curtailments in state history. Based on initial estimates supplied by the state, the Metropolitan Water District—the primary water importer for urban Southern California —stands to lose as much as 30 percent of its supplies from Northern California next year and possibly longer, under Judge Oliver W. Wanger's preliminary ruling in Fresno. In addressing declining populations of the endangered Delta smelt, Wanger pieced together a series of restrictions on state and federal water project operations in the Sacramento - San Joaquin Delta, a supply source for 25 million Californians in the Bay Area, San Joaquin Valley, Central Coast and Southern California. Wanger's decision, selected from remedies submitted by environmental groups as well as state and federal resource agencies, does not immediately impact Metropolitan's state supplies this year. "California simply cannot lose important water supplies without real consequences throughout the state," said Metropolitan General Manager Jeff Kightlinger. "This historic court decision affirms what the water community has realized for some time, but the general public may not fully appreciate,--the Delta, both as a valuable ecosystem and essential water supply, is broken. This court ruling did not fix it," Kightlinger said. Wanger's decision stemmed from a lawsuit brought by the Natural Resources Defense Council against the federal Department of the interior, challenging operations of the State Water Project and federal Central Valley Project in the Delta. The projects —which together manage more..... -z- moire than 40 reservoirs that can store nearly 17 million acre -feet of water —rely on pumps and aqueducts to move Northern California water supplies through the Delta. In an earlier decision, Wanger ruled that the federal government's "biological opinion" that guides water operations in the Delta was deficient in its protections for endangered fish, particularly the Delta smelt. Today's ruling clarifies the interim operating rules until a new biological opinion is in place. Wanger based his decision on recommendations filed by the state Department of Water Resources and the U.S. Fish and Wildlife Service. In remedies submitted to Wanger this summer, the respective state and federal resource agencies separately proposed a series of plumping curtailments in the winter and spring for Delta smelt, which spawn throughout the Delta in the winter and then migrate westward in the spring to Suisun Bay. Actual water supply curtailments for Metropolitan will depend on fish, weather and flow conditions in the Delta and how curtailments are divided between the state and federal projects. In addition, actual impacts also will be contingent upon Wanger's formal, signed ruling, a process that could take up to two months. "Judge Wanger's ruling only lasts for a year, until a new biological opinion is in place to guide the operation of the two water projects. But its impacts could be felt statewide for many years to come," Kightlinger said. "The question is whether these cutbacks will continue in the new biological opinion. Some possible short-term actions in the Delta coiild lessen the impact in the years ahead until a long term solution is put in place. However, unless the Delta is fixed, these temporary cutbacks could become permanent," he added. Because of the mounting challenges, Metropolitan's board is refining and strengthening its long -term Delta policies and potential actions. At the same time, Gov. Arnold Schwarzenegger's "Delta Vision" task force is expected to make recommendations this November. "Judge Wanger's decision to cut back water supplies doesn't address various other Delta problems and issues. Invasive species will continue to deplete food supplies for Delta smelt, pesticide runoff that can harm the estuary will persist, and the levee system will remain vulnerable to earthquakes and rising sea levels caused by climate change," said Kiahtlineer, more..... -3- "The Delta needs a comprehensive solution that addresses all of its problems. Part of that solution must include new ways to isolate the impacts of water diversions from the estuary," Kightlinger said. The Metropolitan Water Disb-ict ofSoutl?err: California is a cooperative of 26 cities and water agencies serving 18 million people in six counties. The district imports water from the Colorado River and Northern California to supplement local supplies, and helps its members to develop increased water conservation, recycling storage and other resource- managementprogranzs. Page 1 of 3 From: Sent: - ruesday, September 04, 2007 10:48 AM To: Subject: FIN: Governor's Office: Briefing Call Invitation - - --- Original Message---- - From: Sent: Tuesday, September 04, 2007 9:09 AM Yo: Subject: FW: Govemor's Office: Briefing Call Invitation Sorry for the late notice, please join us if you can. Larry Grable Director Inland Empire Office of the Governor 3737 Main St Suite 201 Riverside, CA 92.501 office - 951- 680 -6860 fax- 951 -680 -6863 From: Governor's Office of F-xternal Affairs Sent: Friday, August 31, 2007 7:05 PM Subject: Governor's Office: Briefing Call Invitation August 31, 2007 Dear Water Stakeholder: Below you will find a statement from the Governor regarding today's ruling by S. District Judge Oliver Wange: on a week -long hearing on the proposed remedies of DWR, the Federal Bureau of Reclamation, and environmental organizations in connection with a lawsuit challenging Delta operations by the state's two largest water projects. Given that the ruling came late on Friday evening, we were unable to hold a briefing call v,vith Administration Officials today. T hus, we want, to invite you to participate in an invitation -only brieiin- call on Monday, September 4, 2907, at 13.00 AT03, for a discussion on the court's ruling on the San Joaqui!:- Sacramento River Delta pumps. Please join senior members of the Governor's Administration for an .. 94/2007 �rnlative discussion on an issue that we know is of importance to you. This will be a listen -only call followed by a question- and - answer session. Tuesday, September 4, 2007 Time: 10:00 AM Call -In Number: 1- 800 - 857 -4233 Pass Code: Water Sincerely, Bismarck Obando Acting Director of External Affairs Office of Governor Arnold Schwarzenegger GAAS:69`5:07 For Immediate Release: Friday, August 31, 2007 Contact: Aaron McLear Bill Maile 916- 445 -4571 Page 2 of 3 Gov. Schwarzenegger Issues Statement on Federal Court Ruling to Restrict Water Supply throughout California Governor Arnold Schwarzenegger today issued the following statement after Federal Court Judge Oliver Wanger ruled to significantly restrict water deliveries from the Sacramento - San Joaquin Delta to the Bay Area, Central Valley and Southern California: . "'Today's federal court ruling to drastically curt Delta water exports is further proof that our water system is broken, unreliable and in crisis. Judge Oliver Wanger's decision is a devastating blow to our water supply system and state economy. We must act now to ensure the safety and reliability of California's water system while we work to protect the environment. "This decision is also going to have a devastating impact on the state's economy and the 25 million Californians who depend on Delta water. "Earlier this year, I proposed a comprehensive water plan to ensure that California has enough clean, safe water for our people, businesses, farms and for the environment. 1've also established the Delta Vision Task Force to provide recommendations and help us find solutions to fix the Delta. We need to invest in a better conveyance system so we have reliable water supplies and are able to protect the Delta's fragile ecosystem. Following today's ruling. there can be no doubt, we need more water storage and greater conservation efforts to meet the needs of our rowing ooputation. respond to The challenge climate change presents and meet the requirements of what the court has imposed." 9/4/2007 ` Page 3 of 3 Building on his Strategic Growth Plan from last year, the Governor introduced a $5.9 billion comprehensive water plan in :f anuary. 'The Governor's plan invests $4.5 billion to develop additional surface and groundwater storage, so we can protect communities against flooding and capture water from storms and snowmelt run -off to supply cities, farmers and business with water during drought conditions. The plan also includes $1 billion toward restoration of the Delta, including development of a new conveyance system, $250 million to support restoration projects on the Klamath, San Joaquin and Sacramento rivers and the Salton Sea project and $200 million for grants to California communities to help conserve water for about 400,000 families. The Governor has directed the Delta Vision Blue Ribbon Task Force to develop a Delta management plan. The task force will present its findings and recommendations by January 1, 2008 and its Strategic Plan by October 31, 2008. The Bay Delta Conservation Plan is also underway, being developed with broad participation from water agencies, environmental organizations and local representatives. The $1 billion proposed in the Governor's comprehensive plan will be used to fund their recommendations. 9/4/200 ACWA COMMUNICATIONS OUTREACH ADVISORY Association of California Water Agencies • 916.441.4545 • fax 916.325.2316 • www.acwa.com September 5, 2007 ACWA Communications Outreach Advisory 07 -27 Schwarzenegger Administration, ACWA, Others Hold Post - Wanger Press Briefing ACWA Warns of Ruling's High Cost Appearing today at a press conference with Schwarzenegger Administration officials and others, ACWA Executive Director Tim Quinn outlined dire conditions in the Sacramento -San Joaquin Delta and consequences of a recent court ruling that will reduce water deliveries by as much as one - third. The governor's press secretary set the stage by reinforcing the historic nature of the ruling and the importance of understanding the impacts and the need for the Governor's comprehensive water package this year. U.S. District Court Judge Oliver Wanger on August 31 ordered the State Water Project and federal Central Valley Project to reduce; pumping in the Delta to protect a threatened fish species, the Delta smelt. The reduced pumping translates into an average loss of as much as one -third of previously available water supplies — or a cut of up to 2 million acre -feet, depending on year type. During wet years, losses would be greater. "California has a fundamental infrastructure problem that threatens the environment and our economy," said Quinn. "This situation will not be resolved until we address the Delta's physical problems in a way that meets the needs of the environment and the economy. At present, this is not possible. We are trapped in a system that doesn't work." "This ruling takes away more than just acre -feet of water. It takes away the water management toolbox we've created over the past 20 years through public investment in everything from local water storage to water transfers. All of these are at risk." Appearing alongside Executive Director Quinn were Mike Chrisman, secretary, California Resources Agency; Lester Snow, director, California Department of Water Resources; Cneg Zlotnick, special counsel, Santa Clara Valley Water Agency; Roger Patterson, assistant general manager, Metropolitan Water District of Southern California; A.G. Kawamura, secretary, California Department of Food and Agriculture; Stephen Patricio, chair, Western Growers Association; Timothy Coyle, vice president, California Building Industry Association; Bob Balgenorth, president, State Building and Construction Trades Council of California; Rex Hime, president, California Business Properties Association; and Armando Lopez, mayor, City of Parlier. A selection of their comments follows: "This decision is proof that the Delta is broken," said Resources Secretary Chrisman. DWR Director Snow said, "The Delta is in crisis. Our export system is just one stressor, but there are many other stressors, no matter what has or hasn't been said by the judge." Greg Zlotnick pointed out that overlaid with current drought conditions, this ruling could lead to a "...multi - vear drought scenario. regardless of precipitation. This decision will have environmental impacts. and will [cut] water to wildlife refuges, creeks. some that protect endangered species. _'his is not just a Southern California issue or agricultural problem. This is a Bay Area issue." more- ACWA Communications Advisory 07 -27 Page 2 Roger Patterson predicted calls for "unprecedented levels of conservation" from MWD's member agencies, and that they would "rely on programs put in place to deal with extensive drought." A mandatory allocation plan could be in place as early as 2008. Secretary Kawamura tied the crisis back to the problems the agricultural sector will face with this ruling, saying, "'Unpredictable weather means an unpredictable harvest. This is a timely lesson when we have a man- made drought driven by an endangered species." Stephen Patricio agreed, saying that the agricultural sector will be the "first to feel the impacts. When farmers stop farming, the economy. is affected." Bob Balgenorth reminded Californians that "...it is time to quit arguing, roll up our sleeves, and fix the state's wager system..." He said at least 20,000 jobs will be created by the governor's plan. Promising to be a "contrarian," Timothy Coyle illustrated the many opportunities that this ruling creates, saying, "Our needs are compelling, let this be our wake -up call!" After questioning from reporters in the room, Director Snow reminded those present that the solution for the Delta has not yet been specified. "It is up to the Delta Vision Task Force." Governor Schwarzenegger's Strategic Growth Plan includes investments in additional surface water storage, a comprehensive Delta fix, water use efficiency and ecosystem protection, and was unveiled during his "State of the State" speech in January. For further information., contact ACWA Director of Strategic Coordination and Public Affairs Jennifer Pe:rsike at (916) 4414545 or jenniferp @acwa.com. \ * ( ) ) a ( _ ( \ LU ) \ ( ) ( \ ; cli (» k ® ([ LLJ ) \( )Z \ ;=E D / P° 6k - > \ u G /\ LIJ E3L� / \ \ \ \ j \ f § \ � ( \ : ` $ \ LU \ § IN LU LU ( z 0 O O 0 z O ❑ w w oLL w N cm o [C ON H w¢ ¢w O r LL OU ❑ ¢ LL Q O 21 U�❑ Z O F U w U J w 2 Z z ❑ 0 J ui ('3 Z_ W� J Q CL. w wl cc ;� u ¢ T. 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CSI O z m w F- u1 ¢w LL w n, z 0 0 EAST VALLEY WATER DISTRICT DIRECTOR'S FEES AND EXPENSE REPORT DIRECTOR _ r,J t[ri_s o.t.) MONTH OF: 2007 Board Meeings: 8 ry ' a 114, Conferences and Other Meetings Datf,: 8 4 Organization S A c-- n 7 Description tia%ey C &¥ %r Datf =: $ i Organization S g V m w D Description /30 id fi4 Date: l 11(4 Organization u s A w r ;ra Description /1ow�G Datie:_t i r,7 Organ Date: Date: Date:` Date: Date: i Date: Description f e,,, 15 ,att4t'n 1�lj Description Description Date:_ Organization Description Date:_ Organization Description Date:_ Organization Description Date:_ Organization Description Date:_ Organization Description TOTAL # OF MEETINGS -7 @125.00 each_ $ <9 7.s' Total L Agings Meals & Other: (Details on Sack) $ Signed Date o° Board Approval _ Total Director's Expenses $ Total Director's Meetings & Expenses $ 5; 7 Less any Advance Payments $ 16= "<0 AL DUE DIRECT OR $ Z ?5 EAST VALLEY WATER DISTRICT DIRECTOR'S FEES AND EXPENSE REPORT DIRECTOR Sturgeon Organization Environ. Motors MONTH OF: August 2007 Board Meetings: 14 Integrate Regional Water Date: 2 _Organization SBVMWD Conferences and Other Meetings Organization Description Date: Date: 1 Organization SBVWCD Description Board Meeting Date:? Organization WVWD Description Board Meeting Date: 6-.Organization SBVC Description Instruction Date: 6 Organization Leg. Sub Comm. Description Meet w/ Bob, Matt, Justi: nnfo- 7 _—k Organization. SAWPA Description Administrative Committee Date: III Description Legislative Committee Description Seminar PSems riptib e Date: 15 Organization Environ. Motors Description Clean Fuel Test Drives Integrate Regional Water Date: 2 _Organization SBVMWD Description Management Plan Date: Organization Description Date: _Organization Description Date:_ _Organization Description Date: Organization Description TOTAL # OF MEETINGS 10 0125.00 each_ $ 1,250.00 Total Lodgings Meals & Other: (Details on Back) 08/14 Real Share Fee $---L6 5 .00 signed Date of Board Approval 09/11/2007 Total Director's Expenses $ 165.00 Total Director's Meetings & = xpenses $ 1,415 , 00 Less any Advance Payments T ®T AL DUE DIRECTOR 1 415.00 EAST VALLEY WATER DISTRICT DIRECTOR'S FEES AND EXPENSE REPORT DIRECTOR: Matt Le Vesque MONTH OF: AUGUST 2007 Board Meetings: August 14 Conferences and Other Meetings Date: Aug 1_ Organization SBVCD Description Board Mt-q. Date: Auq 2 Organization WVWD Description Board Mt-q. Date: Auq 6 Organization EVWD Description Mtq. - CA Representation Date:Aw 9 - Organization SB Cnty. Description Water Conference Date: Au 1� 0 _Organization EVWD Description HQ Comm. - plan review Date: Auq 13:_OrganizationS13V Muni WD Description High Groundwater Description Environmental Motors Description Integrated Water Mgt. Plan Date:_ Organization Description Date:_ _Organization Description Date: Organization Description Date:_ Organization Description Date:_ _Organization Description Date:_ _Organization Description TOTAL # OF MEETINGS 10 @125.00 each_ $--1250.00 Total Lodgings, Meals & Other: (Details on Signed Date iat 1306 Total Director's Expenses $ $--L250 00 Total Director's Meetings & Expenses $ Less any Advance Payments T07AL DUE D6REC70R $ 1250.00 DIRECTOR: _ Don Goodin Board Meetings: 14.28 EAST VALLEY WATER DISTRICT DIRECTOR'S FEES AND EXPENSE REPORT MONTH OF: August 2007 Conferences and Other Meetin s Dater 10 Organization EVWD Description HQ Comm Mta Date:_ 16 Organization EVWD Description Ho Comm Mtg Dater Organization Description Date:_ _Organization Description Date: Description Description Description Description Description Date:_ _Organization Description Dater Organization Description Date:__ _Organization Description Date:_ Organization Description TOTAL # OF MEETINGS 4 @125.00 each_ $.00 00 Total Lodgings, Meals &: Other: (Details on Back) $ Signed be 1 e D ®-4=, Date of Board Approval September 11. 2007 Total Director's Expenses $ Total Director's Meetings & Expenses $ 500.00 Less any Advance Payments TOTAL DUE DIRECTOR $ 500.00 -0 -,t Lq ,T 't 't ,�r -,zr P,� I, V Lr) V N/ V V V O CY) V V V V Z v00 >1 C*4 ON O (q 0 in 0 � Lo Z :7 Z co LO in p p (p L6 :7 z z Lr) Imo- In 0 M Lo cl L6 z z Lo -T Lo 0 r rn (0 •7 to Z in L)(0 r m MP M 7 O Z co C-j CO co ro V? rn 4 (3i :z dt Li 04 U IR Z )n v Z Lo 'N CD CO 00 CO z z t L6 c6 Li co CN m (D 0 04 -0 0 � cc: Z Z 't Z Z co N 4: 0 N Z (o (D Z Lo "T 7 to 0 (c :r LO m -'T V Z 'o i,- N O N 0 04 00 L) z m Z Z Z Z Z CO < < 1, It * 1, 00 0 N 04 N I 'It cq 0 0 0 Z Z I C) in 0 N 1p w Cl) r-- ZZ Z lq* 00 t Lf) q •zr 't v 00 V V. V V V V: v v v co Lo Cl) f... Z z It CC) (D M; 0) 0 Lq L6 Z -t z 4 N .1: 0 in M LO w Z >1 C*4 ON O (q 0 in 0 � Lo Z :7 Z co LO in p p (p L6 :7 z z Lr) Imo- In 0 M Lo cl L6 z z Lo -T Lo 0 r rn (0 •7 to Z in L)(0 r m MP M 7 O Z co C-j CO co ro V? rn 4 (3i :z dt Li 04 U IR Z )n v Z Lo 'N CD CO 00 CO z z t L6 c6 Li co CN m (D 0 04 -0 0 � cc: Z Z 't Z Z co N 4: 0 N Z (o (D Z Lo "T 7 to 0 (c :r LO m -'T V Z 'o i,- N O N 0 04 00 L) z m Z Z Z Z Z CO < < 1, It * 1, 00 0 N 04 N I I A/ater September 5, 2007 Mr. Bob Martin General Manager East Valley Water District 3854 E. Highland Avenue Suite 18 Highland, CA 92346 Re: Demobilization of the Cull Well #132 Nitrate Treatment System and the Mobilization/ Installation of a new 1300 GPM Perchlorate and a new 1300 GPM Nitrate Treatment System at Well #107 Dear Mr. Martin: Basin Water, Inc. (''`Basin Water ") is pleased to submit to East Valley Water District ( "EVWD ") for consideration the following proposal letter. This letter details the demobilization and refurbishment of the Cull Well #132 Nitrate Ion Exchange ( "DX ") Treatment System and the mobilization, installation and start-up a new 1300 GPM Perchlorate and 1300 GPM Nitrate Treatment System to be located at the well site #107. Basin Water and EVWD would amend the existing Water Services Agreement ( "WSA ") to take into consideration all of the changes to the existing WSA including the extended term, changes in feed water chemistry, additional capital equipment and other changes. The WSA continues to include preventative maintenance and operations during the remaining life of the agreement. The WSA will continue to provide the District with a guaranteed asset life, operating cost and system performance. Based upon your existing need and assuming the timely execution of a notice to proceed, we are confident that this system installation could be completed by mid- November 2007. 1300 GPM Perchlorate & Nitrate Treatment System Scope of Work The well site is located on Citrus Avenue in San Bernardino, CA, between Mountain and Loma Avenue. Highway 30 borders the south side of the site. Directly to the north of the site on Citrus Avenue are multi- family dwellings (apartments). Access to the site will be via Del Rosa Ave. to East Lynwood and to Mountain Ave. EVWD will provide an access gate to the site from Mountain Ave sized for salt and waste trucks. EVWD will upgrade the existing well pump to provide 1,700 -gpm flow of which Basin Water will treat 1,300 -gpm and direct the treated water to the EV WD's existing blending system. 8731 Prestige Court, Rancho Cucamonga, CA 91730, Phone 909 - 481 -6800, Fax 909 -481 -6801, Web i� �% �%.basi,nn i,tc,.eoni (The above drawing; is a preliminary site layout, for reference only. Final to follow.) The system will consist of the following: • One 1,300 -GPM non - regenerable perchlorate treatment unit, • One 1,300 -GPM regenerable nitrate treatment unit, • One 30 -ton salt tank and salt pump and filter assembly, • Two waste tanks with a waste transfer pump, • One stainless steel pre - filter assembly, and • All interconnecting piping as required, to and from EV WD connections. Scope of Work: (Please see the attached Preliminary Site Engineering Guide for additional scope of work requirements for both Basin Water, Inc. and EV WD) Basin Water's scope of work will consist of the following: • Project Management for installation, start-up, and testing of system, • Provide contractor(s) as required for installation, start-up, and testing of system, Installation of one 1300 GPM Perchlorate Unit and one 1300 GPM Nitrate Treatment Unit, • Installation of interconnecting piping, filtration, to and from EVWD supplied connections, • Electrical conduit from EV WD connections to IX Treatment Unit(s), • Installation of two (2) Waste Tanks, related piping, and ancillary equipment, • Installation of Salt Tank, related piping, and ancillary equipment, • Electrical conduit, wiring, and termination to all Basin Water supplied equipment. EVWD will complete termination of wiring to EV WD SCADA/RTU, and • All testing, loading of media and start-up of Treatment Unit(s). CBY 4WER N z TBFAIE➢ %t1ER uv1 PuIP NMSE W&M mn VVE H41L B - N•VFT WlSR: ®� '� g g 5 � S (The above drawing; is a preliminary site layout, for reference only. Final to follow.) The system will consist of the following: • One 1,300 -GPM non - regenerable perchlorate treatment unit, • One 1,300 -GPM regenerable nitrate treatment unit, • One 30 -ton salt tank and salt pump and filter assembly, • Two waste tanks with a waste transfer pump, • One stainless steel pre - filter assembly, and • All interconnecting piping as required, to and from EV WD connections. Scope of Work: (Please see the attached Preliminary Site Engineering Guide for additional scope of work requirements for both Basin Water, Inc. and EV WD) Basin Water's scope of work will consist of the following: • Project Management for installation, start-up, and testing of system, • Provide contractor(s) as required for installation, start-up, and testing of system, Installation of one 1300 GPM Perchlorate Unit and one 1300 GPM Nitrate Treatment Unit, • Installation of interconnecting piping, filtration, to and from EVWD supplied connections, • Electrical conduit from EV WD connections to IX Treatment Unit(s), • Installation of two (2) Waste Tanks, related piping, and ancillary equipment, • Installation of Salt Tank, related piping, and ancillary equipment, • Electrical conduit, wiring, and termination to all Basin Water supplied equipment. EVWD will complete termination of wiring to EV WD SCADA/RTU, and • All testing, loading of media and start-up of Treatment Unit(s). EVWD Responsibilities include the following: • Access for waste hauler truck, • Access for salt delivery truck, • Concrete pad for treatment unit and tanks, • Trenching / backfilling for all conduit, • Trenching / backfilling for all piping, • Dig hole for IX unit sump, • Utility Water Connection - Hose bib connection at salt tank, • Drainage for bag filters, • Drainage far analyzer and air -vac drains, • Fencing and security of treatment unit perimeter, • Fenced enclosure, locking gate and barriers for waste box, • Gate access for salt delivery connection, • Piping Connection between well head and IX unit feed, • Piping between IX unit product and distribution system, • Piping and valving to allow IX product to flow to waste, • Piping and valving to allow IX product to flow to distribution system, • Piping and valving to allow well flow to bypass around treatment unit to distribution system, • Piping and valving to allow bypass around treatment unit to waste, • Check valve between well head and IX unit feed, • Air release valves on well piping, • Automatic blow -off valve to run well to waste well during well start up, • Flow to waste connection to allow full flow of IX unit for regulatory testing period, • Backpressure control device for IX unit treated water, • Treated water sample tap, • Treated water conductivity probe tap, • Chlorine irjection point - downstream of treatment unit, • Power service /transformer to supply treatment unit, • Power supply conduit and wire to IX unit, • Flow meta, signal to IX unit, • Flow meter conduit and signal wire to IX unit, • Control interface between well pump and IX unit, • Control interface conduit and wire between well control panel and Df unit, • Signal interface between owner RTU /SCADA and IX unit, • Signal interface conduit and wire between owner RTU /SCADA panel and IX unit, • Phone connection to treatment unit (data quality), and • Phone conduit and wire to treatment unit. 1300 GPM Perchlorate & Nitrate Treatment System Price Schedule The amendment to the existing WSA for Well 132 would describe all changes to the existing project including butt not limited to, the following: • Demobilization of 1000 GPM Nitrate system located at the Cull Well #132 Site, • In -house refurbishment of 1000 GPM system, • Mobilization and Deployment of a new 1300 GPM Perchlorate and a new 1300 GPM Nitrate system to Well Site 4107, • System Installation, and • System Start -up. *Payment Terms for Demobilization and Mobilization: $95,000 upon Notice to Proceed, $95,000 upon equipment delivery, and $95,000 upon system start-up. *The three $95,000 payments listed above include the costs for the demobilization and refurbishment of the treatment system at Well #132, and the installation, start-up, and commissioning of the new treatment system at Well #107. Revised WSA. Pricin Based upon the changes in water chemistry from the two well sites, the acre -foot price for the total treated/blended water will be adjusted to $453.00 /acre foot ( "AF "), based upon the treatment of 1500 AF /year. The existing WSA will be amended to reflect these changes. The existing WSA will include an additional four (4) year extension from the existing agreement end date. The existing WSA will be amended to include all changes to the existing project. All terms of the WSA not specifically amended or modified shall remain unmodified and in full force and effect. In the future, we are looking to implement the Basin Water BION resin treatment process at Well #107, which will provide reduced "life cycle" costs over the term of the agreement. Once this process is in operation, both parties will meet to discuss the appropriate adjustments of the AF treatment fee. On the condition that EV WD agrees to the installation of the new treatment system at Well # 107, the four (4) year extension, and other changes to the existing WSA, there will be no termination or cancellation fees to EVWD related to Well #132. If EV WD agrees with the proposed changes to the existing WSA, and to the proposed new scope of work, would you please indicated your acceptance by countersigning this proposal letter in the space indicated below. At that time Basin Water will move forward immediately to provide the EV WD with detailed submittals. The submittals will include updated site drawings and a detailed construction schedule. Please: feel free to contact Larry Rowe or me directly if you have any questions regarding this proposal letter. Thank you for the opportunity to be of service. Best Regards, �RPMW C. Cyssm1e Ron Gamble Account Manager Basin Water, Inc. #909 - 227 -3180 cell rgamhleLcobasinwat:er.com For EAST VALLEY WATER DISTRICT Name: Title: Date: 0 September 5, 2007 AMENDMENT NO.1 TO EAST VALLEY WATER DISTRICT WATER SERVICES AGREEMENT (WSA) CULL WELL #2 (AKA Cull Well #132) Project: Well. 9107 -1300 GPM Perchlorate/Nitrate System Installation Client: East Valley Water District Notice: is hereby given that the above - mentioned agreement (Water Services Agreement) has been modified as hereinafter set forth. This amendment shall be made part of the agreement documents. This amendment No. 1 shall form a part of the Water Services Agreement and take precedence over the original Water Services Agreement. Recitals 1. Opening Paragraph: Replace California with Delaware. 2. Section A: Replace Cull Well 2 with Well 9107. In addition, add perchlorate to list of contaminants. Operative Provisions 3. Section 2.1 Term: Change of Effective Date. The agreement term will be 10 years from the last date upon which a Party hereto has executed this Amendment to the Agreement. (Page 17) 4. Section 3: Effective Date changed to reflect new execution date of Amendment to the Agreement. 5. Section 8.1: Replace $168 with $453.00. (Alpha and Numeric) 6. Section 8.2 Minimum Treatment Fee: Replace 800 AF with 1500 AF. Replace $88 with $158. (Alpha and Numeric) 7. Section 8.3: Replace $125 with $340 (Alpha and Numeric) Exhibits Page 17: Replace with attached once executed by both Parties A: Replace with attached B: Replace with attached C: Replace with attached D: Replace with attached E: Replace with attached H: Replace with attached 8731 Prestige Court, Rancho Cucamonga, CA 91730, Phone 909 - 481 -6800, Fax 909 - 481 -6801, Web BasinWate IN WITNESS WHEREOF, this Amendment to the Agreement has been executed as of the last date below written, Dated: Basin Water, Inc. By: Title: Dated: EAST VALLEY WATER DISTRICT By: Title: 17 8731 Prestige Court, Rancho Cucamonga, CA 91730, Phone 909481.6800. Fax 909481 -6801. Web,,, E)MBIT "A" Description of Wells Well #107 The well site is located on Citrus Avenue in San Bernardino, CA, between Mountain and Loma Avenue. Highway 30 borders the south side of the site. Directly to the north of the site on Citrus Avenue are multi - family dwellings (apartments). Access to the site will be via Del Rosa Ave. to East Lynwood and to Mountain Ave. 6816/2 9341.000 EXHIBIT `B" Description of Facilities The system will consist of the following: One 1,300 -(3PM non - regenerable perchlorate treatment unit One 1,300 -GPM regenerable nitrate treatment unit One 30 -ton salt tank and salt pump and filter assembly • Two waste tanks with a waste transfer pump. One stainless steel pre - filter assembly . All interconnecting piping as required, to and from Customer connections. Scope of Work: Basin Water: • Project Management for Installation, Start-up, and Testing of System • Provide contractor(s) as required for Installation, Start-up, and Testing of System • Installation of one 1300 GPM Perchlorate Unit and one 1300 GPM Nitrate Treatment Unit • Installation of interconnecting piping, between Basin Water supplied equipment and customer's flanged connections • Electrical conduit from Customer connections to IX Treatment Unit(s) • Installation of two (2) Waste Tanks, related piping, and ancillary equipment • Installation of Salt Tank, related piping, and ancillary equipment • Electrical conduit, wiring, and termination to all Basin Water supplied equipment. Customer will complete termination of wiring to Customer SCADA/RTU. • All testing, loading of media and start-up of Treatment Unit(s) EXHIBIT "C" Purchase/Lease Option Terms [NOT USED] 6816/2 9341.000 EXHIBIT "D" Quality Standards for Contaminants Influent Levels for Contaminants Influent Nitrate Concentrations: 49 ppm Treated/Blended Water Nitrate Concentrations: Less than 35 ppm Influent Perchlorate Concentrations: 14 ppb Treated/Blended Water Perchlorate Concentrations: Less than 4.8 ppb All General Physical and Chemical Characteristics to be based on information provide by 13VWD. Key data provided include Chloride, Bicarbonate, Sulfate, Chromium, Vanadium, and Selenium. EXIMIT "E" Payment Schedule [NOT USED] 6916/2 9341.000 EXHIBIT "H" Performance Schedule Week 1 . EVWD begins on -site and off -site preparations . Basin Water begins System assembly . Basin Water begins Well #132 Demobilization Week 6 . EV WD completes on -site and off -site preparations • Basin Water begins on -site mobilization at Well #107 . Basin Water completes Demobilization at Well #132 Week 9 . Basin Water delivers 1300 GPM Nitrate and Perchlorate Units to Well site #107 • Basin Water begin on -site installation Week 12 • Basin Water completes installation of 1300 GPM Nitrate and Perchlorate Units . Basin Water begins startup tests . Basin Water corripletes startup tests • System On -line 6516/2 9341.000 ecf,4 Va I(zo %JqA� D 11 v-�-l! - CKl l We (i z J°( WATER SERVICES AGREEMENT THIS WATER SERVICES AGREEMENT ("Agreemenel entered into as ofthe latest of the dates shown opposite the signatures of the Parties to this Agreement, is made by and between BASIN WATER, INC., a California corporation ("Basin Water°), and EAST VALLEY WATER DISTRICT, a public agency ("District") (Basin Water and District sometimes hereinafter are referred to collectively as the "Parties" and individually as a "Party "). RECITALS A. District owns certain wells, commonly identified as Cull Well 2 (the "Well'), that currently produce groundwater containing levels of nitrate (collectively "the Contaminants) that are in excess of presently acceptable standards for drinking water. The Wells are more particularly described in Exhibit "A " attached hereto and incorporated herein by this reference. B. Basin Water possesses the requisite skill, expertise, technology, and solutions for the development of Facilities (as defined in Exhibit "B" which is attached hereto and incorporated herein by this reference) for the treatment of groundwater containing the Contaminants, so as to enable District to supply potable water from the Wells that meets the desired drinking water standards for said pollutants. C. District: possesses the requisite skill, expertise, and qualifications to operate the Facilities consistent with prudent water utility standards, practices and procedures, and all applicable regulatory requirements. D. The purpose of this Agreement is to set forth the terms and conditions under which Basin Water agrees to assist District in the treatment of water produced from the Wells and disposal of waste derived therefrom and the payment of services therefor by District. NOW, THEREFORE, in consideration of the mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties hereto agree as follows: OPERATIVE PROVISIONS I. Treatment. 1.1 Facilities. Subject to the terms and conditions contained herein, the Parties agree that Basin Water shall design, install, and own the Facilities to treat the water produced by the Wells, and once such water meets the Quality Standard (as defined in Section 5 below), to charge District a treatment fee for such water as set forth in Section 8 below. District shall assume sole responsibility for operating the Facilities and shall supply appropriately qualified and certified personnel to perform said activities in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. 1.2 Other Wells. If District owns other wells that produce water containing levels of the Contaminants, or other pollutants, in excess of the maximum contaminant leveI(s) mandated by the State of California Department of Health Services (OHS"), or at levels that District intends to reduce to more desirable levels, and District wishes to connect to other Basin Water facilities for treatment, then District shall send written notice (the "Supplemental Treatment Request ") to Basin Water requesting Basin Water to treat the water produced by such other wells. The Supplemental Treatment Request shall include all engineering and water quality information that District has in its custody, control, or possession to permit Basin Water to evaluate District's request. Within thirty (30) days of Basin Water's receipt of the Supplemental Treatment Request, Basin Water shall notify District whether it agrees to treat the water produced by the other wells, and if so, the terms and conditions on which Basin Water is willing to do so. If Basin Water fails to respond to District within such thirty (30) day period, then Basin Water shall be deemed to have denied District's request. If Basin Water notifies District that it agrees to treat the water produced by the other wells, and the terms and conditions proposed by Basin Water are acceptable to District, then the Parties shall execute a supplement to this Agreement or a new agreement, so stating and specifying the additional wells to be treated and any other modifications to this Agreement required as a result thereof. 1.3 Relocation ofFacilities. With Basin Water's prior written consent, which shall not be unreasonably withheld, the District may relocate the Facilities to other wells the District owns that produce water containing levels of the Contaminants, or other pollutants, in excess of the maximum contaminant level(s) mandated by DHS, or at levels that District intends to reduce to more desirable levels. If the District desires to relocate the Facilities, then District shall send written notice (the "Relocation Request ") to Basin Water requesting Basin Water to relocate the Facilities to such other wells. The Relocation Request shall include all engineering and water quality information that District has in its custody, control, or possession to permit Basin Water to evaluate District's request. Within thirty (30) days of Basin Water's receipt of the Relocation Request, Basin Water shall notify District whether it agrees to relocate the Facilities to such other wells, and ifso, the terms and conditions on which Basin Water is willing to do so. If Basin Water fails to respond to District within such thirty (30) day period, then Basin Water shall be deemed to have denied District's request. If Basin Water notifies District that it agrees to relocate the Facilities, and the terms and conditions proposed by Basin Water are acceptable to District, then the Parties shall execute a supplement to this Agreement or a new agreement, so stating and specifying the other wells to be treated and any other modifications to this Agreement required as a result thereof, and the District shall pay Basin Water on a time and materials basis for relocating the Facilities. 2. Term. 2.1 Duration of Agreement. Unless this Agreement is earlier terminated pursuant to Section 17 below, the term for treatment of water pursuant to this Agreement shall commence on the date that all required Permits (as defined in Section 14 below) have been obtained and shall continue 17or a period of ten (10) years thereafter (the "Term ") except as noted in Exhibit i "E ". Notwithstanding the above, District shall have the right to terminate this Agreement on the fifth anniversary of the Effective Date by giving written notice thereof to Basin Water pursuant to Section 22.5 of this Agreement at least 180 days prior to said termination date. If said notice is not timely given by Diistrict, District shall not be entitled to terminate this Agreement prior to the end of the Term except as set forth in Section 17.1 below. At the end of the Term, District shall have the option to lease ancVor purchase certain of the Facilities in accordance with the terms attached hereto as Exhibit "C "' and incorporated herein by this reference. Such option shall be exercised by notice given by District to Basin Water no later than sixty (60) days prior to expiration of the Term. If no such notice is given by District prior to the expiration of the Term, Basin Water shall be entitled to extend the end date of the Term for another twelve (12) months at the same terms and conditions set forth in this Agreement. 2.2 Term Year. As used herein, a "Tenn Year" is a period of twelve (12) full calendar months commencing on the fast day of January and ending of the last day of December, except that if the Tenn commences on a date other than January 1 or ends on a date other than December 31, the ;period from the first day of the Term to the following December 31, and the period beginning on January 1 following a preceding Tenn Year and ending on the termination or expiration date, shall also be Tenn Years. If any Term Year shall be less than twelve (12) months, the Minimum Treatment Fee (as defined in Section 8.3 below) shall be proportionately adjusted. 3. Effective Date. As used in this Agreement, the term "Effective Date" shall mean the last date upon which a Party hereto has executed this Agreement. 4. Desin. and Installation of Water Facilities. 4.1 Basin Water Obligations. In accordance with generally accepted engineering standards, Basin Water shall design, construct, and install the Facilities so as to remove the Contaminants from the Wells pursuant to this Agreement, and shall perform all services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Unless otherwise agreed, Basin Water shall be responsible for all costs and expenses necessary to install the Facilities to treat the water produced by the Wells so that it meets the Quality Standard. Basin Water may store equipment or materials on District's property during installation of Facilities, provided that such storage does :not otherwise interfere with District's operations on such property. 4.2 District's Obligations. District shall provide Basin Water with: (a) all design and construction information concerning the Wells or otherwise in District's possession, custody, or control necessary for Basin Water to design the connection of the Facilities to the Wells and from the Facilities to District's water distribution system; (b) District shall bear the capital costs to install all electrical equipment required to operate the Facilities; (c) the license more particularly described in Section 19 hereof; (d) all electrical power required by Basin Water to install the Facilities; (e) the physical property on which Basin Water will install the Facilities; (f) appropriately qualified and certified personnel'. to become trained in the operations of the Facilities, to become familiar with operating policies and procedures of the Facilities as prescribed by the Permits (as defined in Section a, 14.2 below) and the Operations and Maintenance ( "O &M") Manual developed by Basin Water and approved by DHS, and to participate in all training prior to operations; and (g) a written Notice of Acceptance of the Facilities prior to operations. Basin Water shall be entitled to rely on all information and data provided by District in clause (a) of this Section 4.2 without independent verification and/or exposure to liability therefor, and such information and data so provided by District shall be deemed to be complete and accurate in all material respects for Basin Water's purposes. District: shall particularly advise Basin Water of all elements of influent water necessary for the design, construction, and installation of the Facilities. 4.3 Verification Rights. Each Party shall have the right to verify, at its own expense, the amo ant and quality of the water entering and exiting the Facilities and to conduct independent testing thereof. Basin Water shall monitor operating performance of the Facilities and provide comments to District and others as appropriate. 5. Water Ouali . After Basin Water's design and installation ofthe Facilities, and subject to all of the terms and conditions of this Agreement, the Facilities shall reduce the level of the Contaminants in the water produced by the Wells that are connected to the Facilities to the levels listed in Exhibit "D " attached hereto and incorporated herein by this reference ("Quality Standard "). District shall provide Basin Water with annual reports describing influent water quality. District shall bear the cost of complying with changes in water quality standards that require reduction ofthe Contaminants to levels less than the Quality Standard and for pollutant levels of influent water upon which the design amd construction on which the Facilities were based. 6. Payments. District acknowledges and agrees that: (a) District shall be liable for payments to Basin Water of the fees and charges set forth in this Agreement (including but not limited to those Treatment Fees set forth in Section 8 below) for water processed through the Facilities that meets the Quality Standard for the Contaminants even if such water does not meet water quality standtards for other pollutants, regardless ofwhether the water is actually taken or put to beneficial use; and. (b) clause (a) of this Section 6 notwithstanding, District shall pay the Minimum Treatment Fee (as defined in Section 8.2 below) so long as the Facilities are capable of treating the Base Quantity (as defined in Section 8.2 below) of water. 7. Measurement. Once water treated pursuant to this Agreement meets the Quality Standard, the amount thereof shall be properly measured each month by Basin Water and District at the point where such water reenters the District's water distribution system from the Facilities. The Parties shall be bound by the measurements at such point. At least annually, District, at its expense, shall test the meter to verify that such equipment is properly measuring water pumped back into District's water distribution system. These test results shall be made promptly avai ?able to Basin Water. District, at its expense, shall make or cause to be made any repairs to ensure such equipment is measuring properly and shall supply such information to Basin Water, including appropriate certification by equipment testing professionals. 8. Treatment Fee. Beginning on the earlier of (a) the date that DHS approves use by District of the water treated by the Facilities, or (b) the date that the Facilities continuously and consistently process the Base Quantity (as defined in Section 8.3 below) of water at the Quality Standard for seven (7) consecutive days, or (c) sixty (60) days after the Effective Date, District shalt be obligated to make the following payments to Basin Water: 8.1 Per Acre Foot Treatment Fee. District shall be obligated to makepayments to Basin Water for water that meets the Quality Standard. For each acre -foot of water treated by the Facilities that meets the Quality Standard, as reflected by the records of the measurements made as provided in Section 7 above, District shall pay to Basin Water a treatment fee (the "Per Acre Foot Treatment Fee) equal to One Hundred Sixty Eight Dollars ($168) per acre foot. 8.2 Minimum Treatment Fee. The Per Acre Foot Treatment Fee is based upon District's representation that it will deliver for processing and treatment at each of the Facilities Eight Hundred (800) acre -feet per year ofwater at each of the Wells (the "Base Quantity'), and upon Basin Water's representation that its Facilities are capable ofprocessing the Base Quantity oftreated water. Therefore, even if District delivers fo the r processing and treatment less than the Base Quantity, :District shall lay Basin Water a fee of Eighty -Eight Dollars ($88) (the "Minimum Treatment Fee') for the difference between the Base Quantity and the volume of water actually delivered for treatment. Basin Water shall bill District for any payment adjustment within thirty (30) days following the expiration of the Term Year in which District delivers for processing and treatment less than the Base Quantity ofwater so long as Basin Water's Facilities are capable ofproces' the Base Quantity. 8.3 Adjustment for Basin Water's Production of More Than Base Quantity. If District delivers for processing and treatment more than the Base Quantity in any Term Year, and Basin Water's Facilities actually treat more than the Base Quantity in any Term Year, then the price per acre -foot for each acre -foot in excess of the Base Quantity shall be One Hundred Twenty Five Dollars ($125) (the "Additional Treatment Fee "). 8.4 Adiustment for Non-Specification Influent Water. The Minimum Treatment Fee and the Additional Treatment Fee are based upon District's representations to Basin Water that the level of the Contaminants in the water produced by the Wells as of the Effective Date is as set forth in the document attached hereto as Exhibit "D " and incorporated herein by this reference. If after the Effective Date, it is determined that the level of the Contaminants in the water produced by the Wells is greater than the levels represented by District, the Minimum Treatment Fee and the Additional Treatment Fee may be adjusted by Basin Water. 8.5 Adiustment for Changes in Quality Standard. The Minimum Treatment Fee acid the Additic_nal Treatment Fee are based upon the Quality Standard existing as of the Effective Date. If the Quality Standard is changed during the Term, the Minimum Treatment Fee and the Additional Treatment Fee may be adjusted by Basin Water. 8.6 Adiustment for Unqualified Personnel. The Minimum Treatment Fee and the Additional Treatment Fee are based upon District supplying appropriately certified and qualified operators during the Term. If District is unable, or otherwise requests Basin Water, to supply appropriately certified and qualified operators, the Minimum Treatment Fee and the Additional Treatment Fete may be adjusted by Basin Water. 8.7 Adiustment for CPI. The Minimum Treatment Fee and the Additional Treatment Fee shall be adjusted by Basin Water in its invoices to District commencing on January 1, 2004, and on each January 1 thereafter, by the percentage increase, if any, reflected in the January Cost of Living Index measured by the United States Department of Labor revised Consumer Price Index for All Urban Consumers for the Los Angeles- Long Beach - Riverside area (" CPr) for the preceding twelve (12) months as published by the Bureau of Labor Statistics. 9. Unconditional Obligation. After installation of the Facilities by Basin Water so that the water produced from the Wells meets the Quality Standard, District's obligation to pay all amounts due under this Agreement shall be an absolute and unconditional obligation of District, payable as an operating expense: of District, not subject to deduction, set off, prior notice, demand, changes or fluctuations in demand or price of other sources of water, or inability ofDistrict to accept delivery of water, or to use, store, or resell water after delivery from the Facilities. 10. Invoices. After the Facilities are operational and have received all Permits (as defined in Section 14 below), Basin Water shall invoice District within ten (10) days of the last day of the month, beginning with the month in which all applicable Permits have been issued. Such invoice shall recite the amount of water treated during that month, measured in accordance with Section 7 above, multiplied by the Per Acre Foot Treatment Fee and the Additional Treatment Fee, as applicable. Provided that District receives such invoice fiom Basin Water no later than the fifth day of each month, them within thirty (30) days following District's receipt of such invoice from Basin Water, District shall, without deduction or offset, make payment to Basin Water for all amounts then due by directing such payment to the address at which notices are to be delivered pursuant to Section 22.5 of this Agreement. The invoice shall be substantially in the form ofExhibit "F" attached hereto and incorporated herein by this reference. District and Basin Water shall work cooperatively to effect electronic meter reading, billing, and payments to maximize efficiency. 11. Delinttgent Payments. 11.1 From the District. Any payment due from District to Basin Water under this Agreement that is not received within thirty (30) days after the date of the invoice therefor shall bear interest at the lesser of twelve percent (12 %) per annum or at the maximum rate permitted by law, from the date due imtil payment is received by Basin Water. If District fails to pay Basin Water for water treated in accordance with this Agreement within one hundred twenty (120) days after receipt of arty invoice therefor, then; in addition to any other rights that Basin Water may have at law or in equity, Basin Water shall be entitled to terminate this Agreement, shut down or remove all Facilities, and receive a .lump sum payment from District of the entire amount of money that would otherwise be owed to Basin Water had the Agreement been completed through the Term; provided, however, that if a bona fide dispute exists between District and Basin Water, then Basin Water may not be entitled to terminate this Agreement so long as: (a) District has paid the undisputed portion of any amount due, together with any interest thereon in accordance with this Section; and (b) the Parties i are negotiating in good faith toward the resolution of the dispute; provided further, however, that if such resolution does not occur within ninety (90) days ofthe occurrence of the dispute, Basin Water shall have all rights and remedies available to it under this Agreement, by law or equity. 11.2 From Basin Water. Any payment due from Basin Water to the District under this Agreement that is not received within thirty (3 0) days after the date ofthe invoice therefor shall bear interest at the lesser of twelve percent (12 %) per annum or at the maximum rate permitted by law, from the date due until payment is received by the District. If Basin Water fails to pay the District any amount due under this Agreement within one hundred twenty (120) days after receipt of any invoice therefor, then, in addition to any other rights that the District may have at law or in equity, the District shall be entitled to terminate this Agreement; provided, however, that if a bona fide dispute exists between the District and Basin Water, then the District may not be entitled to terminate this Agreement so long as: (a) Basin Water has paid the undisputed portion of any amount due, together with any interest thereon in accordance with this Section; and (b) the Parties are negotiating in good faith toward the resolution of the dispute; provided further, however, that if such resolution does not occur within ninety (90) days of the occurrence of the dispute, the District shall have all rights and remedies available to it under this Agreement, by law or equity. 12. mperitien. Maintenance. and Repairs. 12.1 ration. District shall be solely responsible for operating the Facilities as required by law and in accordance with the Permits (as defined in Section 14 below). The ongoing electrical usage costs, including any electrical costs related to the pumps or booster stations, shall be borne by the District. Basin Water, as part ofthe Per Acre Foot Treatment Fee, shall be responsible for all other operating costs of the Facilities, including, without limitation, salt to produce water from the Wells and disposal of District's waste as set forth in Section 12.4 below, but excluding any costs or expenses relating to District's operating or managerial personnel or related overhead. 12.2 Maintenance and Repairs. Subject to the terms and conditions of this Agreement, Basin. Water shall be responsible for all routine maintenance and all ordinary repairs necessary to maintain the Facilities in good condition in accordance with the O &M Manual. 1. 12.3 Third -Party Contacts. Basin Water, at its option, may contract with third parties ( "Third -Party Service Providers "), including without limitation District, to perform routine operational activities and routine maintenance of the Facilities under Basin Water's direct supervision. In connection with performing such routine operational activities and routine maintenance of the Facilities, the District acknowledges that the Facilities and their use to remove a variety of pollutants from water supplies are covered by Basin Water's pending United States and international patent applications. Accordingly, the District is hereby granted a license under these patent applications and patents which may issue thereon to use the Facilities to remove the Contaminants. No license to make or sell or lease Facilities is granted, neither is a license granted to use the Facilities to remove pollutants other than the Contaminants, except as otherwise set forth in this Agreement. i Also in connection with performing such routine operational activities and routine maintenance of the Facilities, the District acknowledges that the Facilities contain copyrighted proprietary operating software of Basin Water. A license is granted to use this software in connection with the operation of the Facilities to remove the Contaminants. No license is granted to adopt, modify or reproduce this proprietary software. The District further acknowledges that the Facilities contain trade secret and other materials that are proprietary to Basin Water. District agrees that it shall not, nor shall it permit any Third -Party Service Providers to, modify, translate, reverse engineer, decompile, disassemble, create derivative works upon, or copy the Facilities without Basin Water's prior, written consent, which Basin Water may withhold in its sole and absolute discretion. The District further agrees that neither it nor any Third -Party Service Providers shall open, examine or otherwise investigate or manipulate any portion of the Facilities that bear the legend "Do Not Open" or any similar legend, without Basin Water's prior written consent, which Basin Water may withhold in its sole and absolute discretion, and that neither the District nor any Third -Party Service Providers shall remove any proprietary notices, labels or marks on any portion of the Facilities. 12.4 Waste. As part of the Per Acre Foot Treatment Fee, Basin Water shall assist District in disposing all of District's brine and other waste resulting from Basin Water's treatment of District's water through the Facilities. Basin Water's participation in this process shall not relieve District of its ultimate obligation to dispose of all brine and other waste in accordance with all federal, state, or local statutes, ordinances, laws, rules, or regulations. Basin Water may request others to assist in these matters, the cost of which shall be home by District The Monthly Treatment Fee is based upon the Waste Disposal Standards existing as of the Effective Date. If the Waste Disposal Standards or disposal costs are changed during the Term, Basin Water may adjust the Monthly Treatment Fee to reflect the direct costs associated with these changes. The District shall approve Basin Water's disposal site. Such approval shall not be unreasonable withheld. 13. Security. 13.1 Facilities. District, at its expense, shall have the sole responsibility for providing security for the Facilities. The level of security shall be determined at the reasonable discretion of the District in accordance with District practices and procedures. 132 Insurance. 13.2.1 Coverage by District. District shall procure and maintain from and after the Effective Date, at its sole expense, such policies of insurance, bonds from an acceptable surely, cash deposits, escrow accounts, letters of credit, and other forms of security, in amounts and upon terms set forth in Exhibit "G" attached hereto and incorporated herein by this reference. 13.2.2 Coverage by Basin Water. With respect to its activities under this Agreement, Basin Water shall maintain or cause to be maintained, and shall provide or cause to be provided, evidence: of general liability, workers' compensation, and automobile insurance coverage in such amounts and on such terms and conditions as are more particularly set forth in Exhibit `G" attached hereto and incorporated herein by this reference. 133 Indemnities. 13.3.1 By Basin Water. Basin Water agrees to save, indemnify, hold harmless and defend the District and its successors, assigns, and affiliates, and their respective officers, directors, controlling persons (if any), employees, staff members, attorneys, agents, consultants, and shareholders (collectively the "District Indemnitees") from, against, and in respect of any and all clainrs, costs, losses, fees, penalties, interest, suits, actions, proceedings (formal and informal), investigations, judgments, deficiencies, damages, settlements, liabilities, and legal and other expenses (including reasonable legal fees and expenses of attorneys chosen by the District Indemnitees) as and when incurred by any of the District Indemnitees arising out of or based upon Basin Water's gross negligence or willful misconduct in the performance of its obligations under this Agreement. 13.3.2 By District. The District agrees to save, indemnify, hold harmless and defend Basin Water and its successors, assigns, and affiliates, and their respective officers, directors, controlling persons (if any), employees, staff members, attorneys, agents, consultants, and shareholders (collectively the "Basin Water Indemnitees") from, against, and in respect ofany and all claims, costs, losses, fees, penalties, interest, suits, actions, proceedings (formal and informal), investigations, judgments, deficiencies, damages, settlements, liabilities, and legal and other expenses (including reasonable legal fees and expenses of attorneys chosen by the Basin Water Indemnitees) as anti when incurred by any of the Basin Water Indemnitees arising out of or based upon the District's gross negligence or willful misconduct in the performance of its obligations under this Agreement. 14. Permits and Authorizations. As soon as practicable following the execution of this Agreement by each of the Parties hereto, Basin Water and District shall cooperate in obtaining all permits, consents, entitlements, and approvals required as of the Effective Date (collectively the "Permits "), including without limitation any and all environmental Permits, necessary to enable Basin Water to install the Facilities and to initiate the treatment of water produced from the Wells to meet the Quality Standard pursuant to this Agreement. Accordingly, Basin Water and District agree: (a) to jointly pursue and support each other in obtaining the Permits necessary to initiate timely installation and operation ofthe Facilities; (b) to make timely submission for such Permits; and (c) to cooperate with each other in implementing terms of this Agreement and achieving its objectives. Each Party shall bear its own costs and expenses for the activities required under this Section 14. Any permit necessary to operate the Facilities shall be drawn in the name of the District. 15. Water FUFhts Not Affected. The treatment ofwater pursuant to this Agreement shall not confer any appropriative, public trust, or other right to water of any nature on any person or entity. Nothing in this Agreement shall act as a forfeiture, diminution, or impairment of any rights District may enjoy to full use of the water from the Wells from and after the execution and subsequent 0 expiration of this Agreement, or shall in any way prejudice any of District's rights, title, or interest thereto. The Parties hereto agree that neither water treated under this Agreement nor the Agreement itself is evidence of lack of beneficial use of the water involved in the treatment hereunder. 16. Time for Performance. Subject to Sections 17 and 22.18 below, each of the Parties hereto shall perform their respective obligations under this Agreement in a prompt, timely, and professional manner and in accordance with the Performance Schedule attached hereto as Exhibit "H" and incorporated herein by this reference. 17. Early Termination. 17.11 District's Termination Options. 17.1.1 Failure to Obtain Permits. If for any reason other than a delay caused by District or by a Force Majeure Event (as defined in Section 22.18 below), all requisite Permits have not been secured and Basin Water has not been able to install the Facilities to treat the water so that it meets the Quality Standard within sixty (60) days after the last day of the Performance Schedule (the "Performance Deadline"), then District, at its option, upon written notice to Basin Water in the manner set forth in Section 22.5 below, may terminate this Agreement, and District and Basin Water shall each be responsible only for their own respective expenditures and out -of- pocket costs incurred in connection with this Agreement. 17.1.2 Change in Quality Standard. If after the Effective Date and before the issuance of the Permits, the Quality Standard is increased for any reason not caused by District, and District does not wish to pay Basin Water the increased Minimum Treatment Fee and Additional Fee, if any, charged by Basin Water pursuant to Section 8.6 hereof, then District, at its option, upon written notice to Basin Water in the manner set forth in Section 22.5 below, may terminate this Agreement, and District and Basin Water shall each have no further responsibilities to the other Party under this Agreement and each shall bear its own expenditures and out -of- pocket costs incurred in connection therewith. 17.2 Basin Water's Termination Options. In addition to the rights and remedies set forth in Section 11 of this Agreement, Basin Water shall be entitled to exercise all of the following: 17.2.1 Failure to Obtain Permits. Iffor any reason other than a Force Majeure Event (as defined in Section 22.18 below), all requisite Permits have not been secured and Basin Water has not been able to install the Facilities to treat the water so that it meets the Quality Standard on or before the date that is sixty (60) days after the Performance Deadline, then, Basin Water, at its option, upon written notice to District in the manner set forth in Section 22.5 below, may terminate this Agreement, and, in lieu of any other remedies at law or in equity to which District otherwise might be entitled, Basin Water shall be responsible only for its own expenditures and out -of- pocket costs incurred in connection with this Agreement. 17.2.2 Breach. If for any reason other than a Force Majeure Event (as defined 10 0 in Section 22.18 below), District fails to fully and completely comply with any of its obligations under this Agreement, or the representations contained in Section 20.1 below are determined to be inaccurate or no longer applicable, or any of the Permits are revoked, then Basin Water, at its option, may deem said act or omission to constitute an event of default and shall give District written notice thereof in the manner set forth in Section 22.5 below, and provide therein that District must cure said default to the satisfaction of Basin Water within fifteen (15) days of said notice. If the default is not timely cured to the satisfaction of Basin Water, then Basin Water may declare a material breach of this Agreement and, upon written notice to District in the manner set forth in Section 22.5 below, terminate this Agreement, and, in addition to any other remedies at law or in equity that might otherwise be available to Basin Water, Basin Water shall be entitled to receive a lump sum payment from District of the entire amount of money that would otherwise be owed to Basin Water had the Agreement been completed through the Tenn. 17.3 District's Termination Option. If for any reason other than a Force Majeure Event (as defined in Section 22.18 below), Basin Water fails to fully and completely comply with any of its oblip,atio.ns under this Agreement, or the representations contained in Section 20.2 below are determined to be inaccurate or no longer applicable, or any of the Permits are revoked, then the District, at its option, may deem said act or omission to constitute an event of default and shall give Basin Water written notice thereof in the manner set forth in Section 22.5 below, and provide therein that Basin Water must cure said default to the satisfaction of the District within fifteen (15) days of said notice. If the default is not timely cured to the satisfaction of the District, then the District may declare a material breach of this Agreement and, upon written notice to District in the manner set forth in Section 225 below, terminate this Agreement, and, in addition to any other remedies at law or in equity that might otherwise be available to the District, Basin Water shall be required to remove the Facilities and restore the District's property to the condition existing immediately prior to Basin Water's installation of the Facilities, reasonable wear and tear excepted. 18. Removal of Facilities. Upon termination ofthis Agreement, Basin Water, at its expense, may remove or shat down any or all Facilities installed and used by Basin Water to treat the water produced by the Wells and/or to monitor compliance of such water with the Quality Standard. Basin Water shall coordinate such removal or shut down with District. Basin Water shall not be responsible for costs required to reinstate District's property to its original condition. 19. License to Enter. By execution of this Agreement, District hereby conveys to Basin Water an exclusive irrevocable license coupled with an interest to full and complete access to the District's property on which the Facilities are located, solely for the purpose of performing its obligations under this Agreement. If Basin Water so requests, the license herein conveyed shall be formalized by a. separate written instrument consistent with the scope of the license set forth above and in a form satisfactory to Basin Water. 20. Remresientations and Warranties. 20.1 Representations and Warranties of District. In addition to the representations reflected in Section 5 above, District makes the following representations, warranties, and covenants 11 to Basin Water, as of the Effective Date: 20.1.1 Power and Authority to Execute and Perform this Agreement District has the right, power, and authority to enter into this Agreement and to perform its obligations hereunder, and the person(s) executing this Agreement on behalf of District has (have) the right, power, and authority to do so. 20.1.2 Enforceability. This Agreement constitutes the legal, valid, and binding obligation. of District, enforceable against District in accordance with its terms. 20.1.3 No Litigation. There is no suit, action, or arbitration or legal, administrative, or other proceeding, formal or informal, pending or threatened; which adversely affects District's ability to enter into and perform its obligations under this Agreement. 20.1.4 No Conflict. The execution and performance of this Agreement by District does not breach or constitute a default by District under any law, regulation, ruling, court order, agreement, indenture, or undertaking or other instrument to which District is a party or by which District or any of its property may be bound or affected and does not constitute a breach or default under any law, regulation, ruling, or court order. 20.1.5 Production Capacity. Upon completion of installation ofthe Facilities, pursuant to Section 16 above, the Wells will be capable of producing and delivering the Base Quantity of water for processing at the Facilities, subject to Section 22.18 hereof. 20.1.6 Operational Capabilities. Upon completion of installation of the Facilities, pursuant to Section 16 above, and for the Term of this Agreement, District will provide appropriately qualified and certified operations personnel so as to properly operate the Facilities in a highly efficient manner and deliver the Base Quantity of water for processing at the Facilities, subject to Section 22.18 hereof. 20.2 Representations or Warranties of Basin Water. Basin Water makes the following representations, warranties, and covenants to District, as of the Effective Date: 20.2.1 Power and Authority to Execute and Perform this Agreement. Basin Water has the right, power, and authority under this Agreement to perform its obligations hereunder, and the person(s) executing this Agreement on behalf of Basin Water has (have) the right, power, and authority to do so. 20.2.2 Enforceability. This Agreement constitutes a legal, valid, and binding obligation of Basin Water, enforceable against Basin Water in accordance with its terms. 20.2.3 No Litigation. There is no suit, action, or arbitration or legal, administrative, or other proceeding, formal or informal, pending or threatened, which adversely affects the ability of Basin Water to enter into and perform its obligations under this Agreement. 12 1 � 20.2.4 No Conflict. The execution, delivery, and performance of this Agreement by Basin Water will not breach or constitute a default under or grounds for the acceleration of maturity of any agreement, indenture, or undertaking or other instrument to which Basin Water is a party or by which Basin Water or any of its property may be bound or affected and does not constitute a breach or default under any law, regulation, ruling, or court order. 20.2.5 Treatment Capacity. The Facilities are capable of treating, at a minimum, the Base Quantity of water, subject to Section 22.18 hereof. 20.2.6 Sunervisory Capabilities. Upon completion of installation of the Facilities, pursuant to Section 16 above, and for the Term of this Agreement, Basin Water will monitor the operation of the Facilities by District and provide technical advice therefor. 21. Taxes. Basin Water shall not be liable for any taxes and governmental charges of any kind whatsoever that may at any time be assessed or levied against, or with respect to, the use, possession, occupation, and/or ownership of any property, or part thereof, involved in the implementation ofthis Agreement (including, but not limited to, the Wells, the Facilities, and the real ,property upon which the Wells and the Facilities are located and upon which Basin Water has a . license to enter pursuant to Section 19 above), or any and all general or special taxes, fees, assessments, and/or charges made by any governmental body for any improvements made to such property, or part thereof, and/or for any services or activities performed hereunder. IfBasin Water is assessed any such taxes, fees, assessments, or charges, said sums shall be paid by District within thirty (30) days after receipt of an invoice therefor from Basin Water. 22. Miscellaneous Provisions. 22.1 Further Assurances. At any time and from time to time after the date hereof, each Party agrees to take such actions and to execute and deliver such documents as the other Party may reasonably request to effectuate the purposes of this Agreement. 22.2 Assignment. Neither Party shall assign any of its rights, interests, or obligations under this Agreement without the prior written consent of the other Party. Subject to the foregoing restriction, this Agreement and all provisions hereof shall be binding upon, and inure to the benefit of, the Parties hereto and their respective heirs, successors, legal representatives, and assigns. 223 Amendment. Except as otherwise provided in this Agreement, neither this Agreement nor any provision hereof may be waived, modified, amended, discharged, or terminated except by an instrument in writing signed by both Parties, and then only to the extent set forth in such writing. 22.4 Entire Agreement. This Agreement and the agreements provided for herein constitute the entire understanding between the Parties with respect to the matters set forth herein, 13 0 and they supercede all prior or contemporaneous understandings or agreements between the Parties with respect to the subject matter hereof, whether oral or written. 22.5 Notices. Any notice, approval, consent, waiver or other communication required or permitted to be given or to be served upon either Party in connection with this Agreement shall be in writing. Such notice shall be personally served, sent by facsimile, telegram, or cable, or sent ;prepaid by registered or certified mail with return receipt requested, or sent by reputable overnight delivery service, such as Federal Express, and shall be deemed given: (a) if personally served, when delivered to the Party to whom such notice is addressed; (b) if given by facsimile, telegram, or cable, when sent; (c) if given by prepaid or certified mail with return receipt requested, on the date of execution of the return receipt; or (d) if sent by reputable overnight delivery service, such as Federal Express, when received. Any notice given by facsimile, telegram, or cable shall be confirmed in writing, and such confirmation shall be sent or delivered by any of the other means of delivery set forth in this Section, within forty-eight (48) hours after notice was sent by facsimile, telegram, or cable. Such notices shall be addressed to the Parry to whom such notice is to be given at the Parry's address set forth below or as such Party shall otherwise direct in a writing to the other Party delivered or sent in accordance with this Section. If to Basin Water: Basin Water, Inc. P.O. Box 70000 San Diego, CA 92167 Attn: Peter L. Jensen, President Fax No.: (619) 222 -3393 If to District: East Valley Water District 1155 Del Rosa Avenue San Bernardino, CA 92410 Attn: RObart Martin FaxNo.: (909) 889 -5732 22.6 Governing Law. This Agreement shall be governed by, and construed and interpreted in accordance with, the laws of the State of California, without giving effect to any choice -of -law or conflicts -of -laws rule or principle that would result in the application of any other laws. 22.7 Headings. Headings, titles, and captions are for convenience only and shall not constitute a portion of this Agreement or be used for the interpretation thereof. 22.8 Cumulative Rights: Waiver. The rights created under this Agreement, or by law or equity, shall be cumulative and may be exercised at any time and from time to time. No failure by either Party to exercise, and no delay in exercising any rights, shall be construed or deemed to be a waiver thereof, nor shall any single or partial exercise by any Party preclude any other or future exercise thereof or the exercise of any other right. Any waiver of any provision or of any breach of any provision of this Agreement must be in writing, and any waiver by any Parry of any 14 breach of any provision of this Agreement shall not operate as or be construed to be a waiver of any other breach of that provision or of any breach of any other provision of this Agreement. The failure of any Party to insist upon strict adherence to any term of the Agreement on one or more occasions shall not be considered or construed or deemed a waiver of any provision or any breach of any provision of this Agreement or deprive that Party of the right thereafter to insist upon strict adherence to that term or provision or any other term or provision of this Agreement. No delay or omission on the part of any Party in exercising any right under this Agreement shall operate as a waiver of any such right or any other right under this Agreement. 229 Liberal Construction. This Agreement constitutes a fully- negotiated agreement among commercially sophisticated Parties, each assisted by legal counsel, and the terms of this Agreement: shall not be construed or interpreted for or against any Party hereto because that Party or its legal representative drafted or prepared such provision. 22.10 Severability. If any provision of this Agreement is invalid, illegal, or unenforceable, such provision shall be deemed to be severed or deleted from this Agreement and the balance of this Agreement shall remain in full force and effect notwithstanding such invalidity, illegality, or unenforceability. 22.11 Good Faith and Fair Dealine. The Parties hereto acknowledge and agree that the performances required by the provisions of this Agreement shall be undertaken in good faith, and with each of the Parties dealing fairly with each other. 22.12 No Third -Party Beneficiaries. Subject to Section 22.2 above, this Agreement does not create, and shall not be construed to create, any rights enforceable by any person, partnership, corporation, joint venture, limited liability company or other form of organization or association of any kind that is not a Party to this Agreement, except to the extent that Basin Water's rights may be enforced by a parent company thereof or a subsidiary thereto. 22.13 Counterparts: Facsimile Execution. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. The signature page of any counterpart may be detached therefrom without impairing the legal effect of the signature(s) thereon, provided such signature page is attached to any other counterpart identical thereto except for having an additional signature page executed by any other Parry. Each Party agrees that each other Party may rely upon the facsimile signature of any Parry on this Agreement as constituting a duly authorized, irrevocable, actual, current delivery of this Agreement as fully as if this Agreement contained the original ink signature of the Party supplying a facsimile signature. 22. ).4 Time of the Essence. Time is of the essence of each and every provision of this Agreement. Unless business days are expressly provided for, all references to "days" herein shall refer to consecutive calendar days. If any date or time period provided for in this Agreement is or ends on a Saturday, Sunday or federal, state, or legal holiday, then such date automatically shall be extended to the next day which is not a Saturday, Sunday, or federal, state, or legal holiday. 15 0 22., 15 Number and Gender. As used herein, and as the circumstances require, the plural term shall include the singular, the singular shall include the plural, the neuter term shall include the mascudine and feminine genders, the masculine term shall include the neuter and the feminine genders, and the feminine term shall include the neuter and the masculine genders. 22.16 Disputes. 22.16.1 Arbitration. Any dispute or controversy arising out of, under, or in connection with, or in relation to, this Agreement and/or 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 procedure set forth in the California Arbitration Act, Sections 1280 through 1294.2 of the Code of Civil Procedure, unless otherwise waived and/or modified in writing by the Parties hereto. 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. 22.16.2 Attorneys Fees. If a dispute arises which is not concluded by arbitration pursuant to Section 22.16.1 above, and any Party to this Agreement reasonably retains counsel for the purpose of enforcing any provision of this Agreement, including without limitation the institution of any action or proceeding to enforce any provision of this Agreement, or to recover damages if otherwise available hereunder, or to obtain injunctive or other relief by reason of any alleged breach of .my provision of this Agreement, or for a declaration based on a demonstrated necessity of such Party's rights or obligations under this Agreement, or for any other judicial or equitable remedy, then if the matter is settled by judicial or quasi-judicial determination, the prevailing Party shall be entitled, in addition to such other relief as may be granted, to be reimbursed by the losing Party for all costs and expenses incurred, including without limitation all attorneys' fees and costs for services rendered to the prevailing Party and any attorneys' fees and costs incurred in enforcing any judgment or order entered. The prevailing Party shall be determined by the court in the initial or any subsequent proceeding. 22.1.7 Venue. Venue for any action or proceeding brought pursuant to Section 22.16 above shall be before a state or federal court, tribunal, or magistrate located in the State ofCalifornia that would generally have competent in rem jurisdiction over the Wells. 22.18 Force Majeure. If any performance (other than the payment of money due hereunder) of this Agreement is prevented, delayed, or made impracticable due to extended drought, flood, fire, earthquake, or other natural disaster, lock out, strike, unavailability, of necessary materials, electrical' power or fuel, civil rioting, terrorist attack, war or military conflict, inability of Basin Water to obtain all necessary Permits or approvals (including any and all environmental approvals), or if the cost of complying with environmental requirements renders this transaction economically impractical (collectively a "Force Majeure Event "), then such performance (except for the payment of money due hereunder) of this Agreement shall be excused for the period of prevention, delay, or impracticability resulting from the Force Majeure Event. 16 0 written. IN WITNESS WHEREOF, this Agreement has been executed as of the last date below Dated :3 o v 2) BASIN WATER, INC. n- 1 �1 Peter L. Jensen, Dated: AUIL_ZZ, 2003 EAST VALLEY WATER DISTRICT BY: 0� _ IJ n C , � (Naive, title) Donald D. Goodin, Board President 17 EXHIBIT "A" Description of Wells EXHIBIT "B" Description of Facilities EXHIBIT °'C" Purchase/Lease Option Terms EXHIBIT "D" Quality Standard for Each Contaminant Influent Levels for Each Contaminant EXHIBIT "E" Payment Schedule EXHIBIT "F" Invoice Form EXHIBIT "G" Insurance Requirements EXHIBIT "H" Performance Schedule 18 1 } EXHIBIT "A" East Valley Water District Cull Well Nitrate Removal Facility .b �-S-Z SAN FRANclsc® ST PLANT 132 (CULL PLANT) A p". 1192- 351-PB EXHIBIT `B" East Valley Water District Cull Well 2 Nitrate Removal Facility Facility Description • Treatment Module (1,000 gpm capacity) 0 16 bed configuration o Internal brine system o Process control system • Pre - Treatment filter system • Bag filters • Inlet, outlet, filter header system • Brine filter system • Waste storage tanks 0 2 - polypro tanks 0 4" Waste discharge system (to lockbox) • Salt storage tank 0 1 - polypro tank o 4" transfer system • Utility requirements o Z180vac 3ph 60hz 20 amp max (average 3.0 amps) 0 '" service water connection 0 Well or Pump control interface o 4 -20ma flow signal o 2" Waste drain Dial -up telephone line (for alarms and unit monitoring) 0 I i EXHIBIT "C" East Valley Water District Cull Well 2 Nitrate Removal Facility Purchase Option Prices After 5 years $653,850 After 10 years $512,680 EXHIBIT "D" East Valley Water District Cull Well 2 Nitrate Removal Facility Water Quality Objectives Influent Nitrate Concentration: 50 mg/I Treated Water. Nitrate Concentration: Less than 25 mg/I All General Physical and Chemical Characteristics to be base on water quality at time of well start up. EXHIBIT "E" East Valley Water District Cull Well Nitrate Removal Facility Early Termination The District may elect to terminate this agreement prior to its term only if changes in government regulations require that the Cull Well 2 be removed from service. In the event that the District is required to take such action, Basin shall be compensated as follows: Years 1 -- 3 $375,000 Years 4 -- 6 $250,000 Years 7 -- 9 $125,000 EXHIBIT "F" Basin Water Technology Group 39 Fulton Avenue Pasadena CA, as te>(� .� Phone: (626) 304264-26 60 Fax (626) 3049157 BILL TO: SERVICE ADDRESS: East Valley Water District East Valley Water District P.O. Box 3427 Cull Well 2 San Bernardino, CA 92413 San Bernardino, CA 92410 PO /Contract Number: Previous Meter Reading: 12/30/01 12:00 AM 0.0 Invoice Date: 325/2002 Current Meter Reading: 1/31/02 12:00 AM 0.0 Billing Cycle: ####### tc 1/31/2002 Total Flow (cf): 0.0 Days of Service: 32 Total Flow (Acre -ft.): 0.00000 Previous Charges Amount of Previous Bill 12/302002 $0.00 and Credits: Payment Received $0.00 New Charges Standby Charge ( $0.00 /month) $0.00 and Credits: Operating Charge ( $0.00 /cf x 0.0 of) $0.00 PLEASE REMIT TO: Basin Water Technology Group 39 Fulton Avenue Pasadena, CA 91107 Total Due $0.00 EXHIBIT "G" The Contractor shall maintain throughout the duration of the term of the Agreement, liability insurance covering the Contractor and designating the District including its elected or appointed officiafs, directors, officers, agents, employees, volunteers, or contractors, as additional insured against any and all claims resulting in injury or damage to persons or property (both real and personal) caused by any aspect of the Contractor's work, in amounts no less than the following and with such deductibles as are ordinary and reasonable in keeping with industry standards. It shall be stated, in the Additional insured Endorsement, that the Contractor's insurance policies shall be primary as respects any claims related to or as the result of the Contractor's work. Any insurance, pooled coverage, or self - insurance maintained by the District, its elected or appointed officials, directors, officers, agents, employees, volunteers, or contractors shall be non- contributory. General Liability: a. General Aggregate b. Products Comp /Op Aggregate C, Personal & Advertising Injury d. Each Occurrence e. Fire Damage (any one fire) I'. Medical Expense (any one person) Workers' Compensation: $2,000,000 $2,000,000 $1,000,000 $1,000,000 $ 50,000 $ 5,000 a. Workers' Compensation Statutory Limits b. EL Each Accident $1,000,000 C. EL Disease - Policy Limit $1,000,000 d. EL Disease - Each Employee $1,000,000 Automobile Liability a. Any vehicle, combined single limit $1,000,000 The Contractor shall provide thirty (30) days advance notice to the District in the event of material changes or cancellation of any coverage. Certificates of insurance and additional insured endorsements shall be furnished to the District thirty (30) days prior to the effective elate of this Agreement. Refusal to submit such certificates shall constitute a material breach of this Agreement entitling the District to any and all remedies at law or in equity, including termination of this Agreement. If proof of insurance required under this Agreement is not delivered as required or if such insurance is canceled and not adequately replaced, the District shall have the right but not the duty to obtain replacement insurance and to charge the Contractor for any premium due for such coverage:. The District has the option to deduct any such premium from the sums due to the Contractor. Insurance is to be placed with insurers authorized and admitted to write insurance in California and with a current A.M. Best's rating of A -:VII or better. Acceptance of insurance from a carrier with a rating lower than A -:VII is subject to approval by the District's Risk Manager. Contractor shall immediately advise the District of any litigation i ) that may affect these insurance policies. EXHIBIT "H" East Valley Water District Cull Well Nitrate Removal Facility Performance Schedule • Week l • Owner begins on -site and off -site preparation • BWT begins unit assemble • Week E • Owner completes on -site and off -site preparations • BWT begins on -site mobilization • Week 10 • BWT deliveries Nitrate Removal Facility to Cull Well 2 site • BWT begins installation of Nitrate Removal Facility • Week 12 • BWT completes installation of Nitrate Removal Facility • BWT begins startup tests • BWT completes startup tests • Nitrate Removal Facility ready for permitting Basin Wat�7 BILLING SUMMARY SHEET Account Manager: Ron Gamble nor Name: East Valley Water District Well Name and /or* A Name: Robert Martin, PE General Manager A Email: 7 Fax: Address: 3654 East Highland Avenue Highland, CA 92346 -2607 a Address: 7479 San Francisco St. ❑ Purdxae & Sale Agreement Billing Start Date: Rate: $168 or Pay: Min 800 AF/ yr. $88 /AF /Iment Schedule: lass Price: 21 Water Servims Agreement Billing End Date: Monthly SB Fee: Deposit: 2nd: Flow Rate: ❑ Demo Agreement Tenn of Contract: 10 years Deployment Fees: Delinquent Terms: 12% per annum after 30 days 3rd: Treatment Goal: < 25 mg /L • Excess AF/ Adjusted Rate: 4125 /AF for any AF treated of the base quantity of 800 AF/year. • Excess Influent Contaminant: (above 50 mg /L) If after the effective date, it is detemined that the level of contaminant is greater than the levels represented by the District, then both the Minimum Treatment Fee & Additional Treatment Fee may be adjusted by Basin. Quality Changes: Any changes in qualify standard,will result in an adjustment by Basin in the Minimum Treatment and Additional ' reatment Fees. • Basin O &M (labor): If the District is unable to supply appropriately certified operators, or requests Basin to provide such operators, both the minimum and additional treatment fees may be adjusted by Basin. • CPI Adjustments: Per the contract, the CPI adjustment effective is 111104. Valley Water District has right to terminate by 180 day written notice prior to 5th year anniversary of contract. e After 5 years, right to terminate or purchase option of $653,850 • After 10 years, right to terminate or purchase option of $512,680 Basin Water Ion Exchange Unit Preliminary Site Engineering Guide Revision: Rev A Date: August 27, 2007 Customer Name„ East Valley Water District Site Name: Well 107 Target Contaminants: Perchlorate and Nitrate IX Unit Design Flow rate: 1,300 gpm Introduction: The following document and associated attachments summarize the requirements for the installation of Basin Water Ion Exchange (BWiX) treatment units, tanks, and ancillary equipemnt. This is a general guide intended to help the Customer develop an understanding of the work typically required for the installation of a BWiX, both by Basin and by the Customer. This guide is not for construction. Review all work plans and site layouts for a particular treatment installation with Basin Water before.proceeding with construction. Summary of BWM Components: Basin will provide the following key components with the installation of a BWIX I. One (1) 1,300 - gallon non - Regenerable Perchlorate Treatment Unit 2. One (1) 1,300- gallon Regenerable Nitrate Treatment Unit 3. One Salt Tank: with Salt Pump/Filter Assembly 4. Pre -filter Assembly 5. Two (2) Waste Storage Tanks 6. Waste Transfer Pump 7. Waste hauler connection box 8. All interconnecting piping as required, to and from Customer Connections Summary of Basin Water Work: I. Project Management for Installation, Start-up, and Testing of System 2. :Provide contractor(s) as required for the Installation, Start-up, and Testing of the BWiX systems. 3. Installation of two (2) IX Treatment Systems 4. Installation of interconnecting piping, filtration, to and from Customer supplied connections. 5. Installation of two (2) Waste Tanks, related piping, and ancillary equipment 6. Installation of Salt Tank, related piping, and ancillary equipment 7. :Electrical Conduit from treatment pad to Basin Water supplied equipment. 8. Interconnect all Basin Water supplied equipment (piping and electrical) 9. 'rest and commission treatment units Summary of Customer Provided Work: The Customer will provide the following 1. All site improvements /preparations as required for installation of Basin Water supplied equipment. 2. Access for Salt and Waste Trucks (approximately AASHTO WB -62 classification) Page I of 11 Basin Water Ion Exchange Unit Preliminary Site Engineering Guide 3. Concrete pad for treatment equipment and tanks 4. Piping and supports required to connect the treatment unit to the well pump and existing blending and distribution system 5. All conduit as required from Customer RTU /SCADA and MCC to Treatment System concrete pad as detailed in work plans and site lay -out drawings 6. Power to treatment units and ancillary equipment 7. Control interface with well pump and Customer RTU /SCADA 8. .Dial up phone: 9. Site security and lighting for all phases on construction, installation, testing and operation\ 10. Discharge point of sufficient size to accommodate flow and discharge rates during start -up and testing I L All permits as required to construct, install, start-up, and test IX System The following is a brief discussion of key components and issues related to the installation of a BWiX treatment system. 1. TREATMENT UNIT - The BWiX treatment consists of two 10' x 40' containerized ion exchange systems and associated devices. When illustrating the treatment unit in a site layout drawing it is important to indicate the door location, the bag filter location, and the large piping locations. A Landoll Tilt - deck or other flatbed trailer is used to delver the treatment units and tanks. A crane is use to accomplish the final positioning of the treatment units and tanks. Consider access and obstructions, piping, overhead wires, that could prevent access and/or safe operation of the Landoll/flatbed and the crane when selecting a location for the treatment unit. The following drawing is a proposed layout for the treatment units, tanks, and ancillary equipment for the EVWD 107 Treatment Facility Page 2 of 11 arr tuim w wca vwn souse i M Page 2 of 11 Basin Water Ion Exchange Unit Preliminary Site Engineering Guide Typical ion exchange treatment unit container — Exterior View fi p `i a Container Customer Piping i �= fi✓ t� Concrete Pad Bag Filters ! 5S;N", 2. TREATMENT UNIT PAD The Customer for the treatment unit will provide the concrete pad. Size the treatment unit pad to match the treatment unit container plus a five (5) foot apron around the treatment unit. The pad t4 will accommodate two ion exchange treatments unit, associated filters, tanks, and ancillary equipment. Flanges and supports for connection of raw and treated water are located at the end `a of the container opposite the doors. The pad should be oriented and located to best suit your site requirements. Consider equipment access of the container using a Landoll and crane. Stress the entire pad to handle the treatment unit, which has a fully loaded weight of approximately 50,000 pounds. Confirm the actual installed dimensions of the treatment unit before finalizing pad design and layout. 3. :RAW AND TREATED WATER CONNECTIONS. Raw, interconnecting, and treated water connections to the BWiX are 150# flanged connections. The raw water connect is made at the bag filter assembly influent header and the treated water connection is made at the end of the container, opposite the doors. The unit can be configured to have the raw and treated water connections on either side of the treatment unit. Provide appropriate expansion joints and supports near the interface between the customer piping and the IX unit piping. Below is a sample of an expansion joint the on the feed water header of the BWiX. Page 3 of I I 0 Basin Water Ion Exchange Unit Preliminary Site Engineering Guide Typical ion exchange treatment unit piping connection This shows the connection of Customer piping at the BlVff C 0 0 FYCiJMMII I� i�i�y iCi]:ZK�3�I�Ze1ij 7:V�1 [�3�b9 Configure the valves and piping installed to connect the IX Unit(s), the well pump, the blending system, the distribution system and the flow to waste location to allow the flow configurations described belov,: A. Raw Well Water - Provide the appropriate isolation valves and piping to allow the following flow paths for the raw well water: i. To IX Unit ii. To flow to waste location. iii. Bypass around each IX Unit (all or a portion of flow) when flowing to any of the locations motioned above. B. IX Unit `Created Water - Provide appropriate isobation valves and Diving to allow the following flow paths for the treater' L To blend—la' ' ii. To flow 5. CHECK VAL V t o The Customer shall provide a check valve between the well and the treatment units and between the treated water connection and the blending/distribution system. This check valves prevents the uncontrolled :flow of distribution system water into the treatment unit in the unlikely event of a failure of any of the piping components in the treatment unit. F se4of11 0 Basin Water Ion Exchange Unit Preliminary Site Engineering Guide 6. TREATED WATER BACK PRESSURE REQUIREMENT The BWiX requires a minimum of 30 -psi backpressure on the treated water line leaving the unit. If the unit is pumping directly into a reservoir, it may be necessary to add a backpressure control device to meet this requirement. 7. RESIN TRAP / Y- STRAINER Install a 60 mesh Y- strainer between the Perchlorate unit treated water outlet and the inlet of the Nitrate treatment unit. A second Y- strainer will be required between the Nitrate treatment unit treated water outlet and the Customers distribution system. The strainers are required to capture any resin that might escape from the treatment unit. 8. AUTOMATIC FLUSH TO WASTE OF WELL Providing an automatic flush -to -waste valve on startup for the well is highly recommended. As the well cycles, this valve will reduce the possibility of a pressure surge on the BWiX system and greatly reduce the frequency of bag filter changing. 9. ANTI- SIPHON PROTECTION If the well pump and distribution system piping is configured such that the treatment unit could drain or entrap air when the well is shutdown, automatic control valves should be provided to prevent this. It is critical not to allow the treatment system to drain during normal operations. 10. SALT TANK Each treatment unit typically requires one 6,500 gallon, 10' diameter salt tank. The salt tanks should be located such that a salt truck can conveniently park close to the tanks to connect for loading salt (within twenty feet). A gate is necessary to allow access for the salt truck loading hose the salt tank loading connection. The salt tank requires a hose bib connected to system pressure near the base of the tank, this is for clean up and salt dust control. When full, each salt tank will weigh approximately 65,000 pounds. Also installed adjacent to the salt tank is a salt pump and salt filter. Confirm salt tank size for each site before finalizing pad design and layout. 11. SALT DELIVERY Bulk salt is blown into the salt tank using a blower that is mounted on the delivery truck. Take care when selecting the salt truck access path and salt loading location. Consider truck- turning radius and load capacity of the surfaces in the planned access path. When fully loaded the salt truck may weigh in excess of 50,000 pounds. The salt truck typically consists of a 25 ft tractor and a 45 ft trailer (approximately AASHTO WB -62 classification). Overall length is approximately about 65'. 12. WASTE TANKS Each Treatment system requires two 8,700 - gallon waste tanks. Both waste tanks are in secondary containment tanks with a base diameter of 12 feet. The actual waste tanks are approximately IO feet in diameter. When full, these tanks weigh approximately 80,000 pounds each. Three -inch rains from the waste tanks are connected via a manifold to a waste transfer pump and sent to a locked enclosure with a valve, located near property line or other convenient waste hauling truck connection. Confirm waste tank size and quantity for each site before finalizing pad design and layout. Page 5 of 11 0 Basin Water Ion Exchange Unit Preliminary Site Engineering Guide 13. WASTE TRANSFER PUMP Basin Water will provide a Waste Transfer Pump designed to pump from the waste tanks to the Waste Connection Box. The installation of this pump reduces the noise generated during the emptying of the Waste Tanks. The Waste Transfer Pump also allows for the use of a tanker with greater capacity. This will overtime reduce the quantity of trucks accessing the site to remove waste from the facility. 14. WASTE CONNECTION BOX Basin Water will provide a waste connection box. Periodic removal of the waste is required using a tanker truck. To provide easy connection for the waste hauler a locked box containing 3" male cam -lock connection and an isolation valve installed in an easily accessible waste hauling location. The cu!tomer will select the location of this box. It may be located just outside of the fence line, or may alternatively be behind a locked gate. A two- position switch located inside of the Waste Hauler Connection box to turn the Waste Transfer Pump off and on. Typical Waste Hauler Connection Box — Exterior View Exterior view; note that box is located on the outside of the property line fencing. Typical Waste Hauler Connection Box — Interior View Ir. erior view showing cam -lock connection and isolation valve, switch not shown. n Page 6 of I 1 Basin Water Ion Exchange Unit Preliminary Site Engineering Guide When emptying of the waste tanks is required, the waste hauler will arrive on -site, open the locked box, connect to the cam -lock, open the isolation valve, activate the waste transfer pump, and transfer the contents of the waste tanks into the tanker. It is important that the waste connection box be located on the property such that it provides relatively easy access for the waste truck. Consider truck access, truck turning radius and minimizing necessary hose lengths when selecting a waste box location. All surfaces, bridges, and roads are to be appropriately rated for the waste truck. The waste truck will weigh in excess of 50,000 pounds when fully loaded. The waste truck typically consists of a 25 ft tractor and a 45 ft trailer (approximately AASHTO WB -62 classification). Overall length is approximately about 65'. The waste hauler box be fully enclosed on all sides with fencing. Access to the front of the waste box should be through a locking gate or window in the fence. Protect the area in front of the waste box with barriers to prevent accidental contact with the waste box by a vehicle. Install bollards or other appropriate barriers near the box to prevent accidental collision with the waste box by a vehicle. Typical Waste Hauler Connection Box — Security Enclosure View from inside of site perimeter looking out toward street h d A 15. ELECTRICAL INTERFACE BETWEEN TREATMENT UNIT AND CUSTOMER EQUIPMENT The customer will install all conduit and wire between the treatment unit and any customer - supplied devices. This wiring includes power service to the unit and control interface between the well pump and/or other customer equipment such as an RTU or SCADA system. Tertninations of these wires are by the customer at the customer end and terminated to the BWiX by Basin Water personnel or designated contractor. These interfaces are detailed on the attached conduit and piping schedule. Page 7 of 11 Basin Water Ion Exchange Unit Preliminary Site Engineering Guide 16. ELECTRICAL INTERFACE POINTS ( Each IX Unit) A. The Customer shall provide control, electrical and communications services to the following interface points in the IX system: i. Control interface wiring and termination (see control interface details section) ii. 220/240 -VAC 10 (Single Phase) 50 amp power service to IX Unit circuit breaker panel (1 per IX train) iii. Provide neutral and ground conductors per local code and regulations. iv. 480 -VAC 30 (Three Phase) power service to operate a 2- horsepower salt pump motor, (1 per IX train) v. Power supply to optional air conditioning unit vi. Dial -up telephone line to IX Unit PLC panel (1 per IX train) vii. CAT 5 Ethernet network cable between OWNER network and IX Unit PLC panel (OPTIONAL) viii. Modbus cable between OWNER PLC equipment and at IX Unit PLC. (OPTIONAL) 17. FLOW SIGNAL TO BWIX The Customer must provide a flow meter to measure flow through each treatment unit. This flow meter will need to provide a 4 -20 mA, loop powered signal to the treatment unit. The range of the flow signal, i.e.; 4 mA = 0 gpm, should be provided to Basin Water. It is also important for Basin Water to know if the flow meter will be located on the raw or treated waterside of the IX unit. 18. ELECTRICAL SERVICE See conduit schedule and local regulations for electrical requirements. 19. IX UNIT CONTROL INTERLOCKS Control interlocks between the IX Unit controls system and the OWNER'S equipment will be provided with the IX Unit as described below. The OWNER'S CONTRACTOR will ultimately tie these interlocks to the OWNER'S controls and equipment. Some of these interlocks are required, other are optional as noted below. Review the final control strategy developed for the customer well pump with Basin Water to confirm it is compatible with the BWiX <-nit. A. OUTPUTS FROM IX UNIT TO OWNER EQUIPMENT, DISCRETE i. Well Start Permissive: (required) Dry contact, normally open, held closed to allow well to start/water flow to IX unit. Must shuts down all water flow to IX unit when opened. When installing multiple units, each dry contact indicates that a treatment unit is prepared to receive up to 1,300 gpm. The costumer must provide all necessary controls to receive these dry contact signal(s) and then sequence the wells appropriately. ii. IX Warning Alarm: Dry contact, normally open, held closed, open on alarm. This indicates warning alarm condition active, which may lead to shutdown. Optional. iii. BWiX Shutdown Alarm: Dry contact, normally open, held closed, open on alarm. This indicates that a shutdown alarm has occurred. B. OUTPUTS FROM IX UNIT TO OWNER EQUIPMENT, ANALOG Page 8 of I 1 Basin Water Ion Exchange Unit Preliminary Site Engineering Guide i. Waste Tank Level Signal, 4 -20 milliamp, range = 0 -14 ft. Optional. ii. SIGNALS FROM OWNER TO IX UNIT, DISCRETE. The following signals shall be provided from OWNER equipment to each IX Unit as a dry contact: iii. Well pump run status. (required) Contact closure when well is running to the IX unit. C. SIGNALS FROM OWNER TO IX UNIT, ANALOG i. Well pump flow rate to IX unit, (required) 4 -20 milliamp. D. WELL PUMP CONTROL MODIFICATIONS. Modify the controls for the existing well pump to provide control interlocks with the IX Unit controls and the OWNER'S drinking water controls as described below. None of the modifications made should defeat or otherwise disable any existing protective controls already installed on the well pump. i. Provide and install the following two- position selector switches: a. IX INTERLOCK Mode Selector, "ENABLE / DISABLE" selector switch b. IX INTERLOCK mode /selector switch configures the IX INTERLOCK mode of the well pump control circuit such that: • When the IX INTERLOCK switch is in the "ENABLE" position, the well pump will shutdown anytime the IX unit opens the well permissive contact. This must be active when the well pump is in HAND or AUTO mode. • When the IX INTERLOCK switch is in the "DISABLE" position, the IX unit permissive signal will be ignored by the well pump controls in both in HAND or AUTO mode. The well pump may then run following its normal drinking water automatic start/stop logic. 20. PHONE LINE A dial -up phone fine should be brought to each treatment unit The Customer will be responsible for contacting phone utility to set up service and provide a phone line up to each treatment unit. 21. TREATED WATER SAMPLE AND INSTRUMENTATION TAPS For process monitoring, the following, connections are required and are provided by the Customer downstream of each IX unit for connection to the BWiX. A. One - -'/4 17NPT with %4" brass or S.S isolation valve on the treated water line after the effluent header, for a sample line, which runs back into the BWiX Unit. This sample port is for online nitrate analysis of treated water B. One - %" FNPT for insertion -type conductivity probe, located no more than 20 feet from BWiX connection and prior to the treated water chlorination system. C. One - ''/4" FNPT with '/4" brass or S.S. isolation valve after the blended water point for a sample line, which runs back to the BWiX Unit. This sample port is for online nitrate analysis of blended water. Page 9 of I I Basin Water Ion Exchange Unit Preliminary Site Engineering Guide 22. CHLORINE INJECTION POINTS Chlorine Injection points should be provided to chlorinate both up and downstream of treatment unit. The Customer will provide all chlorination equipment. Do not use upstream chlorination point during normal operations unless confirmed that NDMA formation does not occur in the treated water because of chlorinating the raw water. 23. BAG FILTER DRAINAGE When changing the bag filter media, approximately 3 gallons of water flows to drain when changing the filter media. Direct this water to a French drain, drywell or other discharge point as specified by the customer and local codes. A. BAG FILTER CHANGING FREQUENCY - Bag filter changing frequency is a function of the amount of solids produced by the well. In some locations, the bag filters will run for weeks without changing, in other sites where more solids generated by the well, the bag filters may need more frequent changing. Oftentimes solids generated by the well during start up so frequent starting of the well can also increase the loading of the bag filters. When possible direct any high solids water produced by the well when started to waste before directing to the treatment unit. 24. FENCING Fencing and security appropriate for the site to prevent vandalism. 25. SITE DRAINAGE A location to send the air /vac and filter drains will be required from the customer. This flow is in fractions of a gpm; however, it does need to be disposed of to prevent puddles over time, especially in the winter. If a site drain can be used if available. If a site drain is unavailable a French drain (or dry well) is often a good solution (a French drain is a 6 "perforated pipe buried vertically in the ground, filled with gravel). 26. TREATMENT UNIT SUMP Basin Water will provide a 24" round by 36" deep plastic sump with each unit. This sump is normally located somewhere between the waste tanks and the treatment unit. This sump catches any overflows or leaks into the double containment on the waste tanks. The final location of this sump needs to be shown on the site layout. A hole for this sump, needs to be provided by the contractor prior to the unit installation. 27. UTILITY WATER SERVICE The BWiX requires two I" utility water services. The first service is required at the salt tank at the edge end of the pad. A tee with isolation ball valve for connection to the salt tank and standard hose bits are required. A second utility water connection is located at the edge of the treatment unit pad; again, a tee with isolation ball valve and a hose bib are required. The source of this utility water connection should from the pressurized distribution system and be piped up such that water pressure and flow is available even when the treatment unit and/or wells are shut down. Page 10 of I I Basin Water Ion Exchange Unit Preliminary Site Engineering Guide 28. FUTURE EQUIPMENT Layout locations of all equipment should consider any future equipment the Customer may have planned for this location. This document should provide the basis to develop a detailed site layout and plan for installation of the BWiX. Please contact Basin Water when ready to finalize the site layout for this installation. F4 �LN_ IU Mi'K'Y The following attachments should follow this document; Proposed site layout Typical ion exchange treatment unit mechanical drawing Typical BIMpiping schematic Conduit and wire schedule Revision History Revision I Releme Date Description A 27Attg07 Initial Release Page 11 of 11 MASTER SERVICE AGREEMENT ■ . (E11512/05) ESRI, 380 New York SL, Redlands, CA 92373 -8700 USA • TEL 909.793 -2853 • FAX 909 - 307 -3034 This agreement consists of this Master Service Agreement (E115) and the attached Custom Software, Technical Data, and Assistance License Addendum (E600) (collectively, "Agreement ") and is between Environmental Systems Research Institute, Inc. ( "ESRI "), and East Valley Water District ( "Licensee "). GENERAL PROVISIONS 1. "Software" means the following software products and components, and extensions thereof: ArcGIS, ArcInfo, ArcVicw, ArcIMS, ArrReader, ArcGIS Schematics SDK, ArcGIS Business Analyst, ArcGIS Engine, ArcGIS Server, ArcSDE, PC ARC/M:O, RouteMAP IMS, BusinessMAP, ArcLogistics Route, Maplex, MOLE, Data Automation Kit, ArcPad, MapObjects, ArcExplorer, NetEngine, Production Line Tool Set, GIS Data ReViewer, Job Tracking for AxcGIS, Sequence Engine, StreetEditor Objects (individually and collectively, "Current Products "), and additional or successor products marketed or licensed in a manner similar to Current Products. 2. Protection of Intellectual Property Rights— Licensee shall retain any copyright, patent, or trademark notices on all items licensed under this Agreement and shall take other necessary steps to protect ESRI's or its licensor's intellectual property rights. 3. No Implied Waivers- -The failure of either party to enforce any provision of this Agreement shall not be deemed a waiver of the provisions or of the right of such party thereafter to enforce that or any other provision. 4. Severability —The parties mutually agree that if any provision of this Agreement is held to be unenforceable for any reason, such provision shall be reformed only to the extent necessary to make the intent of the language enforceable. 5. Term and Termination A. ESRI may terminate this Agreement immediately upon written notice to Licensee in the event that one or more of the following occur: i. Licensee engages in the unauthorized use of the Software; and/or ii. There is any material change in the management or control of Licensee, provided Licensee has not, within ten (10) days of demand from ESRI, provided ESRI with adequate assurances in writing that the work being performed wider the Agreement will not be materially affected. B. Either party may terminate this Agreement immediately upon written notice to the other party in the event that one or more of the following occur: i. A provision of this Agreement is breached and there is no possibility of cure; and /or ii. The Custom Software, Technical Data, and Assistance License Addendum (E600) is terminated. 6. Non - Discrimination— Independent contractors doing business with Licensee are expected to be equal opportunity employers who attempt to achieve parity in the representation of women and minorities in their work force. ESRI agrees to provide equal employment opportunity for all persons, regardless of race, color, religion, sex, creed, national origin, ancestry, age, medical condition, physical or mental disability, Vietnam -era veteran or special disabled veteran status, marital status, or citizenship, within the limits imposed by law. These principles are to be applied by ESRI in all employment practices including recruiting, hiring, transfers, promotions, training, compensation, benefits, layoffs, and terminations. ESRI also agrees to comply with Title VII of the Civil Rights Act of 1964, as amended, the California Fair Employment Practia:s Act, the Americans with Disabilities Act of 1990, and other applicable federal and state laws and regulations. 7. Force Majeure —I£ the performance of this Agreement, or any obligation except the making of payments, is prevented, restricted, or interfered with by reason of fire, flood, earthquake, explosion, or other casualty or accident; strikes or labor disputes; inability to procure or obtain delivery o£parts, supplies, or power; war. terrorist act, cyberattack, or other Page I Of 13 ESRI Agreement No. 300607730. SMK E 11 iVi 12'05 violence; any law, order, proclamation, regulation, ordinance, demand, or requirement of any governmental agency; or any act or condition whatsoever beyond the reasonable control of the affected party; the party so affected, upon giving prompt notice to the other party, shall be excused from such performance to the extent of such prevention, restriction, or interference. 8. Counterparts —This Agreement maybe executed in counterparts, all of which, taken together, shall be deemed one (1) original document. 9. Successor and Assigns— Neither ESRI nor Licensee shall assign, sublicense, subcontract, or transfer its rights nor delegate its obligations under this Agreement without the other party's prior written consent, which shall not be unreasonably withheld, and any attempt to do so without consent shall be void. This Agreement shall be binding upon the respective successors and assigns of the parties to this Agreement. 10. Equitable Relief —The parties agrees that any breach of this Agreement by one parry may cause irreparable damage to the non - breaching party and that, in the event of such breach, in addition to any and all remedies at law, the non- breaching party shall have the right to seek an injunction, specific performance, or other equitable relief in any court of competent jurisdiction to prevent violation of these terms and without the requirement of posting a bond or undertaking or proving injury as a condition for relief. 11. Governing Law - -This Agreement shall be governed by and construed in accordance with the laws of the State of California without reference to conflict of laws principles. Either party may give the other party written notice of any dispute not resolved in the normal course of business. The parties shall thereupon attempt in good faith to resolve such a dispute promptly by negotiations between executives who have the authority to settle the dispute. If the dispute has not been resolved within sixty (60) days, after such written notice is given, either party may avail itself of any process or means legally available to it to resolve the dispute. The parties acknowledge that they have read and understand this Agreement and agree to be bound by its terms and conditions. This Agreement constitutes the sole and entire agreement of the parties as to the subject matter set forth herein and supersedes any previous agreements, understandings, and arrangements between the parties relating to such subject matter. Any modifications or amendments to this Agreement must be in writing and signed by an authorized representative of each party. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed and effective as of the last date written below. EAST VALLEY WATER DISTRICT (Licensee) BY' — Authorized Signature Printed Name: Title: Date: _ ENVIRONMENTAL SYSTEMS k CH INSTITUTE, INChor d TS1'g ata horized Signature Printed Name: LAURA DANGERMOND Vice rr si e ,t Title: Date: 7 %'�y f ESRI Agreement Number: 200607720 Attachments Custom Software, Technical Data. and Assistance License Addendum (E600M 10/05) Attachment A— Sample'!ask Order Attachment B —Time and Materials Rate Schedule 13 age 2 of 13 ESRI Agreement No. 2006C77201'SMK ElI5N 12'05 �r CUSTOM I TANC� ENSENADDENDAAUM AND •I' �� (E60010/05) .4 ESRI, 380 New York St., Redlands, CA 92373 -8100 USA • TEL 909 - 793.2853 • FAX 909.307.3034 ARTICLE 1— DEFINITIONS All words, phrases, or terms defined in other parts of this Agreement shall have the same meaning in this Addendum. The following additional words, phrases, or terms shall have the following meaning: i. "Task Order" means a task order issued under this Addendum. (A sample task order form is attached as Attachment A.) ii. "Custom Softwam" means all or any portion of the computer software code, components, dynamic link libraries (DLLs), and programs delivered on any media provided in source, object, or executable code format(s), inclusive of backups, updates, or merged copies permitted hereunder or subsequently supplied under any Task Order, exclusive of Software. iii. "Technical Data" means, without limitation, all technical materials including formula, compilations, software code or programs, methods, techniques, know -how, technical assistance, processes, algorithms, designs, data dictionaries and models, schematics, user documentation, training documentation, specifications, drawings, flowcharts, briefings, test or quality control procedures, or other similar information supplied or disclosed by ESRI under any Task Order. iv. "Map Data" means any digital data set(s) including geographic, vector data coordinates, raster, or associated tabular attributes supplied or used in performance of any Task Order. v. "Deliverables" means Custom Software, Technical Data, or Map Data specified for delivery or use by Licensee under a Task Order. vi. "Supported Software" means the Software identified pursuant to Article 2. ARTICLE 2 —TASK ORDERS AND PROJECT SCHEDULE ESRI shall provide Deliverables as specified in Task Orders for support of the Software identified therein ( "Supported Software "). ESRI's services under this Agreement shall be performed in accordance with generally accepted professional practices and principles and in a manner consistent with the level of care and skill ordinarily exercised by members of the same profession currently practicing under similar conditions. ESRI shall observe and cause all work and Deliverables to conform to all applicable federal, state, and local laws and regulations. Unless otherwise provided by ESRI in writing, ESRI's Senior Contract Administrator, John D. Perry, is authorized to agree to Task Orders. Licensee shall provide advanced written notification of the name and title of the representative authorized to sign Task Orders and bind Licensee. Each party may enter into Task Orders at its sole discretion and shall not have any obligation under a Task Order until it is signed by both parties. Each party shall identify in writing the project manager who is responsible for the Deliverables specified in Task Orders. By written notice, either party may replace the project manager at any time with a similarly qualified person. ESRI shall complete each Task Order and perform services in accordance with the schedule specified in that Task Order. ARTICLE 3— LICENSIE GRANT Subject to the terms and conditions set forth in this Agreement and effective upon their delivery, ESRI hereby grants to Licensee a nonexclusive, worldwide license in the Deliverables to use, modify, and reproduce the Deliverables in connection with Licensee's authorized use of Supported Software. The Brant in the immediately preceding sentence does not apply to Map Data, which Licensee must separately and directly license from the vendor. Pas,- 3 of 13 ESR Aereement No. '006C7730.,S1 iK E600M 10'03 ARTICLE 4— PATENTS AND INVENTIONS During performance of Task Orders, the parties anticipate that inventions, innovations, and improvements ( "Inventions ") relating to the subject matter of such Task Orders may be conceived solely or jointly by principals, employees, consultants, or independent contractors (hereinafter called "Inventors ") of the parties hereto. The parties agree that, as of the effective date of this Agreement, ESRI or its licensors own all intellectual property rights in the Software. During the term of this Agreement, Licensee shall promptly notify ESRI if Licensee becomes aware of any known or suspected infring:ment or violation of these rights. Each party shall retain title to any Inventions made or conceived solely by its Inventors during the term of this Addendum, including, but not limited to, such Inventions as ESRI's Inventors solely make or conceive while providing technical assistance pursuant to this Addendum. The parties shall jointly own any Invention made or conceived jointly by Inventors from both parties. With respect to such Inventions of Licensee relating to the Software and as additional compensation for the Technical Data access and license provided under this Addendum, Licensee hereby grants and agrees to grant to ESRI an irrevocable, royalty-free, nonexclusive, worldwide right and license, with right to sublicense, use, make, sell, offer to sell, or import such Inventions for any purpose, whether or not patented in the country of such past or intended use. Licensee agrees to disclose promptly to ESRI (i) each Invention relating to the Software and made or conceived by Licensee's Inventors during the term of this Addendum and (ii) of any decision to file a patent application with respect to such Invention and the country or countries in which such application will be filed. Where only one party has title to an Invention, that party, at its sole discretion, shall have the right, but not the obligation, at its expense to: (i) decide on whether or not to seek or maintain, or to continue to seek or maintain, patent protection in any country on such Invention; (ii) decide the extent and scope of such protection; and (iii) protect and enforce in any country any patients issued on such Invention. Except as provided in the next paragraph, where an Invention is jointly owned, each party shall share equally the costs of acquiring protection for the Invention and furnish the other joint owner with assistance reasonably required for acquiring protection. The acquisition or maintenance of protection shall not be abandoned by a joint owner (the "Assigning Owner ") without giving the other joint owner (the "Beneficial Owner ") an opportunity to intervene and acquire or maintain protection at the Beneficial Owner's expense. The Assigning Owner electing not to acquire or maintain protection on any Inventions in any country or countries shall assign such of its rights in such Inventions to the Beneficial Owner as is necessary to enable the Beneficial Owner to protect such Inventions in such country or countries at its expense and for its exclusive benefit. In such event, the Assigning Owner shall make available to the Beneficial Owner the Assigning Owner's Inventors and shall otherwise cooperate with the Beneficial Owner in order to assist the Beneficial Owner in protecting such Inventions. The Beneficial Owner shall reimburse the Assigning Owner for all reasonable out -of- pocket expenses incurred in rendering such assistance. If any such Inventions are so protected by the Beneficial Owner, then the Assigning Owner shall have a license with respect to the subject matter of such protected Inventions in such country or countries. All Inventions made by Inventors during performance of tasks and activities defined by Task Orders during the term of this Addendum will be presumed, absent clear and convincing evidence to the contrary, to have resulted from the Inventors' activities under the Task Orders. Neither party may license, transfer, sell, or otherwise alienate or encumber its interest in jointly owned Inventions without the written consent of the other party, which is hereby given to ESRI for Inventions relating to the Software and shall otherwise not be unreasonably withheld by either party. However, either party may transfer such Inventions to its Affiliates for their internal use only. "Affiliate" shall mean the parent or subsidiary companies of a party or subsidiary companies to a party's parent provided there is more than fifty percent (50 %) ownership of the subsidiary by the parent or party. ARTICLE 5-- OWNERSHIP, CONFIDENTIALITY, AND EXPORT CONTROLS Except as specifically granted in this Addendum, ESRI or its licensors own and retain all right, title, and interest in the Deliverables. This Agreement does not transfer ownership rights of any description in the Deliverables to Licensee or any third party. Pas, 4 of 13 ESRI Agreement No. 2006C7 72G'SMK E600N 10%05 Unless otherwise required by law or by lawful order, or otherwise agreed in writing, the Deliverables are ESRI confidential and Licensee shall preserve and protect their confidentiality. Insofar as its rights may be legally restricted, Licensee agrees not to reverse engineer or decompile Deliverables delivered only in object code, executable code, or formats subject to similar or greater means of access control (collectively, "Secure Formats "). For Deliverables delivered in source code or other humarm- readable formats, Licensee shall have met its obligations under this Article if its disclosure of Deliverables is limited to Deliverables in Secure Formats, provided that the means for reverse engineering, decompiling, or disassembling such Deliverables is withheld from such disclosure. Except as provided in the preceding paragraph, Licensee shall not disclose the Deliverables to employees or third parties without the advanced written consent of ESRI. However, Licensee may, without such consent, make such disclosures to employees as are reasonably required for the Licensee's authorized use of the Supported Software, provided that such disclosure is strictly limited to the portions of the Deliverables needed for that purpose. The disclosures permitted under the preceding paragraph shall not relieve Licensee of its obligation to maintain the Deliverables in confidence m the extent permitted by applicable law and to comply with all Applicable laws and regulations of the United States, including, without limitation, its export control laws. Furthermore, before disclosing all or any portion of the Deliverables to employees or third parties as permitted in the preceding paragraph, Licensee shall inform such employees or third parties of the obligations in this Article. Licensee shall not have any obligation to protect any part of a Deliverable that: (i) was in Licensee's possession before receipt from ESRI; (ii) is or becomes a matter of public knowledge through no fault of Licensee; (iii) is rightfully disclosed by a third party without a duty of confidentiality; (iv) is disclosed by ESRI to a third party without a duty of confidentiality; (v) is independently developed by Licensee; or (vi) is required to be disclosed by operation of law or by lawful order. 4"a tf0arIMUM6Z.T17t W1. e)0 A. For Time and Materials Task Orders Deliverables are provided strictly on a time and materials basis. Therefore, Licensee shall accept Deliverables as promptly as practicable after delivery, and Deliverables shall be deemed accepted thirty (30) days after delivery. B. For Firm Fixed Price Task Orders Deliverables for fixed price; Task Orders shall be categorized as follows: i. "DELIVERABLE ACCEPTED" means a Deliverable conforming to applicable Task Order(s) with no more than minor nonconformities. Licensee shall complete its acceptance review within ten (10) working days of receiving each Deliverable. ii. "DELIVERABLE. ACCEPTED WITH REWORK" means a deliverable substantially conforming to applicable Task Order(s), but having a significant number of identified nonconformities and accepted subject to rework by ESRI. ESRI shall rework the Deliverable for the identified nonconformities and resubmit it within thirty (30) days. Licensee will rerun its acceptance review for the nonconformities detected in the initial review within ten (10) working days of such resubmission and will reclassify the deliverable as either DELIVERABLE ACCEPTED or DELIVERABLE REJECTED. iii. "DELIVERABLE. REJECTED" means a Deliverable that fails to substantially conform to applicable Task Order(s). ESRI shall rework, the Deliverable and resubmit it to Licensee within thirty (30) days, at which time Licensee shall have ten (10) working days to rerun its acceptance review and reclassify the deliverable as either DELIVERABLE ACCEPTED or DELIVERABLE REJECTED. Licensee agrees it shall not use any Deliverable in its business operations before acceptance as described in Subsections B(i) or B(ii). If ESRI does not receive within ten (10) working days after delivery written notice that the Deliverable is "ACCEPTED WITH REWORK" or "REJECTED" in accordance with B(ii) or B(iii), or if Licensee uses the Deliverable in its business operations, the Deliverable shall be deemed, as of the first to occur of either of these events, to have been accepted. ARTICLE 7— CHANGES TO SCOPE OF WORK Licensee may, at any time, request changes within the general scope of an open Task Order. If the parties agree to such changes and such changes cause an increase or decrease in the cost or time required to provide a Deliverable under any Task Page 5 of '13 ESRI Agreement No. 2006C7720%SIAK E600M 10:05 0 Order (regardless of whether the Deliverable itself is changed), an equitable adjustment in the price or schedule, or both, shall be made, and this Agreement shall be modified accordingly in writing and signed by both parties. ARTICLE 8—COMPENSATION; INVOICES A. For Time and Materials Task Orders ESRI shall prepare and submit to Licensee written monthly invoices showing the compensation due for work performed under Task Orders which will specify a not -to- exceed amount. The amount invoiced will be equal to the number of hours expended during the previous month multiplied by the rates for labor categories set forth in Attachment B, plus other burdened direct costs. ESRI may, at its sole discretion, stop work in order to avoid exceeding the total value of applicable Task Orders. B. For Firm Fixed Price'rask Orders ESRI shall prepare and submit monthly invoices based on the percent complete for each Deliverable as of the end of the preceding month. Upon acceptance of all Deliverables under a Task Order, the full amount of that Task Order is due. C. Payment Licensee shall pay each invoice no later than thirty (30) days after receipt thereof. Invoices shall be subject to review for compliance. by Licensee with the requirements of this Agreement, and shall be subject to audits for two years after the completion of the applicable Task Order. The audit rights of Licensee shall not extend to ESRI's overhead, general and administrative and/or profit percents. ARTICLE 9— REQUIRED CORRECTIONS AND LIMITED WARRANTY A. Correction of Deliverables and Warranty 1. For Time and Materials Task Orders: Not later than thirty (30) days after acceptance of a Deliverable, Licensee may require ESRI to correct or replace, at ESRI's option, Deliverables that at the time of delivery do not conform with the applicable written specifications included in, or delivered by ESRI pursuant to, the corresponding Task Order. The cost of replacement or correction shall be determined under the Time and Materials section of the Compensation; Invoices article of this Addendum. ESRI shall have no obligation or liability under this Agreement to correct Deliverables that were nonconforming at the time of delivery, except as provided in this Subsection A.1. 2. For Firm Fixed Price'Task Orders: ESRI warrants that for a period of thirty (30) days after acceptance of a Deliverable that the Deliverable will conform, in a manner consistent with professional and technical standards in the software industry, with the applicable written specifications that are included in, or delivered by ESRI pursuant to, the corresponding Task Order. B, Disclaimer 1. THE REQUIRED CORRECTIONS AND WARRANTY SET FORTH IN SECTION "A" OF THIS ARTICLE ARE IN LIEU OF, AND THIS AGREEMENT EXPRESSLY EXCLUDES, ALL OTHER OBLIGATIONS TO CORRECT OR REPLACE DELIVERABLES AND OTHER WARRANTIES, EXPRESS OR IMPLIED, ORAL OR WRITTEN, INCLUDING, WITHOUT LIMITATION, (i) ANY WARRANTY THAT DELIVERABLES ARE ERROR -FREE, WILI. OPERATE WITHOUT INTERRUPTION, OR ARE COMPATIBLE WITH ALL EQUIPMENT AND SOFTWARE CONFIGURATIONS; AND (ii) ANY AND ALL WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NONINTERFERENCE, SYSTEM INTEGRATION, AND NONINFRINGEMENT. 2. IN ADDITION TO AND WITHOUT LIMITING THE PRECEDING PARAGRAPH, ESRI DOES NOT WARRANT IN ANY WAY THE MAP DATA, WHETHER SUPPLIED BY LICENSEE OR ESRI, OR THE VENDORS OF EITHER OF THEM. IF SUPPLIED BY ESRI OR ITS VENDORS, ESRI BELIEVES SUCH MAP DATA IS RELIABLE, BUT IT MAY NOT BE FREE OF NONCONFORMITIES, DEFECTS, ERRORS, OR OMISSIONS; BE AVAILABLE WITHOUT INTERRUPTION; BE CORRECTED IF ERRORS ARE DISCOVERED; OR MEET LICE;NSEE'S NEEDS OR EXPECTATIONS. ESRI IS NOT INVITING RELIANCE ON MAP DATA, AND LICENSEE SHOULD ALWAYS VERIFY ACTUAL DATA FROM DOCUMENTS OF RECORD, FIELD MEASUREMENT, OR OBSERVATION. Pase 6 of 13 ESRI AsreementNo. 200607720 SMK E600M 10`05 ARTICLE 10- 1,I1qYTATION OF LIABILITY A. Disclaimer of Certain Types of Liability IN NO EVENT SHALL ESRI OR ITS LICENSOR(S) BE LIABLE TO LICENSEE FOR COSTS OF PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES; LOST PROFITS; LOST SALES OR BUSINESS EXPENDITURES; INVESTMENTS; OR COMMITMENTS IN CONNECTION WITH ANY BUSINESS, OR LOSS OF ANY GOODWILL. EXCEPT FOR CLAIMS FOR INDEMNIFICATION FOR THIRD PARTY LOSSES, IN NO EVENT SHALL ESRI OR ITS LICENSORS) BE LIABLE TO LICENSEE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES ARISING OUT OF OR RELATED TO THIS AGREEMENT OR USE OF THE DELIVERABLES, HOWEVER CAUSED, ON ANY THEORY OF LIABILITY, AND WHETHER OR NOT ESRI OR ITS LICENSOR(S) HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGE. THESE LIMITATIONS SHALL APPLY NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE OF ANY REMEDY. B. General Limitation of Liability EXCEPT FOR CLAIMS FOR INDEMNIFICATION FOR THIRD PARTY LOSSES, IN NO EVENT WILL ESRI'S TOTAL CUMULATIVE LIABILITY ARISING OUT OF OR RELATED TO THIS AGREEMENT OR USE OF THE DELIVERABLES, FROM ALL CAUSES OF ACTION OF ANY KIND, INCLUDING, BUT NOT LIMITED TO, CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY, BREACH OF WARRANTY, MISREPRESENTATION, OR OTHERWISE, EXCEED THE AMOUNTS PAID TO ESRI BY LICENSEE FOR THE DELIVERABLES FROM WHICH THE LIABILITY DIRECTLY AROSE. C. Applicability of Disclaimers and Limitations Licensee agrees that the limitations of liability and disclaimers set forth in this Agreement will apply regardless of whether Licensee has accepted the Deliverables or any other product or service delivered by ESRL The parties agree that ESRI has set its prices and entered into this Agreement in reliance upon the disclaimers and limitations set forth herein, that the same reflect an allocation of risk between the parties (including the risk that a contract remedy may fail of its essential purpose or cause consequential loss), and that the same form an essential basis of the bargain between the parties. AI?TICLF, 11 —HIGH RISK ACTIVITIES A. Deliverables are not fault-tolerant and are not designed, manufactured, or intended for use or resale for use for insurance underwriting or with critical health and safety or online control equipment in hazardous environments that require fail - safe performance, such as in the operation of nuclear facilities, aircraft navigation or communication systems, air traffic control, emergency response, terrorism prevention or response, life support, or weapons systems ( "High Risk Activities "). ESRI SPECIFICALLY DISCLAIMS ANY EXPRESS OR IMPLIED WARRANTY OF FITNESS FOR HIGH RISK ACTIVITIES. B. To the extent allowable by law, Licensee agrees to indemnify, defend, and hold ESRI, its officers, directors, employees, agents, subcontractors, licensors, successors, and assigns harmless from and against any and all liability, losses, claims, expenses (including attorneys' fees), demands, or damages of any kind, including direct, indirect, special, punitive, incidental, or consequential damages, arising out of or in any way connected with Licensee's use or permitting the use by others of Deliverable:: for High Risk Activities. Delivery of Deliverables does not constitute a waiver of the rights and obligations set forth in this Article. ARTICLE 12- 01SURANCE ESRI shall procure and maintain during the performance of this Agreement policies of insurance as follows: Workers' Compensation: ESRI 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 Licensee, its Board of Directors, officers, employees, representatives, and agents. General Liability: ESRI shall maintain general liability insurance including provisions for contractual liability, independent contractors, and broad form property damage coverage. This insurance shall be on a comprehensive, occurrence basis forrz with a standard cross liabilitv clause and endorsement (ISO CG 2010 or equivatenq. Licensee Page 7 of 13 ESRi Agreement No. 2006C7720/SMK E600M IOiOS shall be named as an additional insured, and the limit for this insurance shall be not less than $1,000,000.00 per occurrence, combined single limit for bodily injury and property damage. Automobile Liability: ESRI shall maintain automobile liability insurance with coverage for any vehicle including those owned, leased, rented or borrowed. This insurance shall have an endorsement naming Licensee 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 injury and property damage. Professional Liability:.ESRI shall maintain professional liability insurance with coverage for wrongful acts, errors, or omissions committed by ESRI in the course of work performed for Licensee under this Agreement. This insurance shall include coverage for liability assumed under this Agreement when ESRI's wrongful acts, errors, or omissions cause such liability. The limit for this insurance shall be not less than $1,000,000.00 per claim. The premiums for said insurance coverage shall be paid by ESRI. Insurers shall have at least an "A, VII" 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 State of California. Certificates of insurance and endorsements, acceptable to Licensee and verifying the insurance coverage required by this Agreement, shall be filed with Licensee within five (5) calendar days of execution of this Agreement and prior to execution of any Task Order. The general liability and property damage insurance, as well as automobile liability insurance, shall include as additional named insurers: Licensee, its Board of Directors, officers, employees, 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 Licensee so that any other coverage held by Licensee shall not contribute to any loss under ESRI's insurance. Each insurance policy shall contain a clause which provides that the policy may not be canceled or changed without first giving thirty (30) days advance written notio, to Licensee, or ten (10) days advance written notice in the event of cancellation due to non- payment of premium. ARTICLE 13 — INDEMNITY/HOLD HARMLESS ESRI shall defend, indemnify and hold Licensee and its officers, directors, employees, and agents ( "Indemnified Parties ") harmless from and against any and all claims, demands, damages, debts, liabilities, obligations, causes of action, suits, and losses of whatever nature, character, and description, including arising out of any action or claims for death or injury to person or property, which arise from or are connected with or are caused by the acts, errors, omissions, noncompliance with industry standards, and/or willful misconduct of ESRI and/or its agents, officers, employees, or subcontractors, and/or which art: alleged, asserted, suffered, or incurred on account of the execution and/or performance of this Agreement and/or any breach by ESRI and/or its agents, officers, employees, or subcontractors of any of the covenants contained herein, and including all fees, costs, and expenses that are sustained in investigating and defending against same; provided, however, that ESRI's duty to defend, indemnify and hold harmless shall not include any claims demands, damages, debts, obligations, causes of action, suits, and losses of whatever nature, character and description or liability arising from the sole negligence or willful misconduct of Licensee, its officers, directors, employees or agents. Approval by Licensee of any act or omission of ESRI and/or its agents, officers, employees, or subcontractors in performing services under this Agreement is understood to be conceptual approval only and does not relieve ESRI of ultimate responsibility for complying with all laws, codes, industry standards, and liability for damages caused by the acts, errors, omissions, noncompliance with industry standards, or the willful misconduct of ESRI and/or its agents, officers, employees, or subcontractors. ESRI shall provide the indemnification described under this Article 13 provided: a. Licensee promptly notifies ESRI in writing of the claim thereof, b. ESRI has sole control of the defense of any actions and negotiations related to the defense or settlement of any claim provided that: (1) ESRI shall permit Licensee to participate in the defense and settlement of any such claim, at Licensee's own expense, and with counsel of Licensee's choosing; and (2) ESRI shall not enter into or acquiesce to any settlement containing any admission of or stipulation to any guilt, fault, liability or wrongdoing on the part of Licensee without Licensee's prior written consent (to be given or withheld in Licensee's sole discretion); and c. Licensee reasonably cooperates in the defense of the claim. Paee 8 of 13 ESRI Agreement No. 2006C 7720 /SNtK E600M 10:05 0 ARTICLE 14 —TERM AND TERMINATION A. Term Unless terminated earlier pursuant to Section B or C of this Article, the term of this Addendum shall expire upon the later to occur of (i) the delivery of the last scheduled Deliverable as specified in the Task Orders executed under this Addendum or (ii) the expiration of a two (2) -year period commencing on the effective date of this Agreement. B. Termination for Convenience Licensee may terminate this Addendum or any Task Order at any time on thirty (3 0) days' written notice to ESRI and upon payment to ESRI of all amounts due to date pursuant to this Addendum, including reasonable, verifiable termination expenses and the pro rata contract price for the Task Orders affected. C. Termination for Cause Either party, as applicable, shall have the right, in addition and without prejudice to any other rights or remedies, to terminate this Addendum or any Task Order as follows: i. By ESRI, at its sole discretion and without opportunity to cure, if Licensee engages in unauthorized use, reproduction, or disclosure of Deliverables. ii. By either party for any material breach of this Addendum that is not cured within fifteen (15) days of receipt by the party in default of a notice specifying the breach and requiring its cure. D. Obligations upon Termination Upon termination of this Addendum, the parties shall have no further obligations pursuant to its terms, except that Articles 4, 5, 8, 9B, and 10-14 shall survive termination. Unless Licensee has materially breached its obligations under this Agreement, Articles 3 and 9A shall also survive termination. ARTICLE 15— RESTRICTIONS ON HIRING Licensee shall not solicit for hire any ESRI employee who is associated with efforts called for under this Addendum during the term of this Addendum and for a period of one (1) year thereafter. ARTICLE 16 —TAXES Values specified in Task Orders are exclusive of state, local, and other taxes or charges (including, without limitation, custom duties, tariffs, and value -added taxes, but excluding income taxes payable by ESRI). In the event such taxes or charges become applicable to Deliverables, Licensee shall pay any such taxes upon receipt of written notice that they are due. ARTICLE 17— INDEPENDENT CONTRACTOR ESRI is, and at all times will be, an independent contractor. Nothing in this Agreement shall be deemed to create an employer /employee, principal/agent, or joint venture relationship. Neither party has the authority to enter into any contracts on. behalf of the other party or otherwise act on behalf of the other party. ARTICLE 18 —FORCE MAJEURE The obligations in this Addendum are subject to the "Force Majeure" article set forth in this Agreement. ARTICLEE 19— COMMERCIAL TERMS AND CONDITIONS This Addendum contains L-SRI's commercial terms and conditions. Licensee's rights in the Deliverables are strictly limited to the uses granted by this Addendum. In the event any court, arbitrator, or board holds that the U.S. Government has greater rights to any portion of the Deliverables, such rights shall extend only to the portion(s) affected, and use, duplication, or disclosure by the U.S. Government is subject to restrictions as provided in DFARS §227.7202 -1(a) and §227.7202 -3(a) (1995), DFARS §252.227- 7013(c)(1)(ii) (OCT 1988), FAR §12.212(a) (1995), FAR §52.227 -19 (June 1987), or FAR §52.227 -14 (ALT III") (June 1987), as applicable. Paee 9 of 13 ESRI Agreement No. 2006C7720`SMIC E600-%i 10r05 ARTICLE 20— NOTICE All notice required by this Agreement shall be in writing to the parties at the following respective addresses, or to such other address as a party may subsequently specify in a notice provided in the manner described in this Article, and shall be deemed to have been. received (i) upon delivery in person; (ii) upon the passage of three (3) days following post by first class registered or certified mail, return receipt requested, with postage prepaid; (iii) upon the passage of two (2) days following post by overnight receipted courier service; or (iv) upon transmittal by confirmed telex or facsimile, provided that if sent by facsimile a copy of such notice shall be concurrently sent by U.S. certified mail, return receipt requested and postage prepaid, with an indication that the original was sent by facsimile and the date of its transmittal: Licensee: EAST VALLEY WATER DISTRICT 3654 E. Highland Avenue, Suite 18 Highland, California 92346 -2607 Attn.: Brian Tompkins Chief Financial Officer Tel.: (909) 888 -8986 Fax: (909) 888 -6741 Email: btomnkinstaeastvalley.ore ESRI: ESRI 380 New York Street Redlands, CA 92373 -8100 ProjectTechnical Notice — Attn.: Susan M. Keith, Senior Contract Administrator Tel.: 909 - 793 -2853, extension 2798 Fax: 909 - 307 -3034 Email: skeithta ,,esri.com Legal Notice — Attn.: Contract Manager Tel.: 909 - 793 -2853, extension 1593 Fax: 909 - 307 -3020 With a copy to Susan M. Keith, Senior Contract Administrator Notice for non -U.S. Licensees shall be deemed to have been received (i) upon delivery in person; (ii) upon the passage of seven (7) days following post by international courier service with shipment tracking provisions; or (iii) upon transmittal by confirmed telex or facsimile, provided that if sent by facsimile a copy of such notice shall be concurrently sent by receipted international courier service, with an indication that the original was sent by facsimile and the date of its transmittal. ARTICLF. 21— ASSIGMWENT AND DELEGATION ESRI may, in whole or in part, assign any of its rights or delegate any performance under this Agreement, provided that ESRI shall remain responsible for the performance it delegates. This Agreement binds and benefits successors or assigns permitted under this Article 19, provided that ESRI shall remain responsible for the performance it delegates. ESRI shall not subcontract any of the services specified in a Task Order without the written consent of Licensee. If ESRI subcontracts any of the work to be performed, ESRI shall be as fully responsible to Licensee for the performance of the work, including errors and omissions of ESRI's subcontractors and of the persons employed by the subcontractor, as ESRI is for the acts and omissions of persons directly employed by ESRI. Nothing contained in this Agreement shall create any contractual relationship between any subcontractor of ESRI and Licensee. ESRI shall bind every subcontractor to the applicable terms of this Agreement unless otherwise specified in a fully executed Task Order. Pao' 10 of 13 ESRI Agreement No. 2006C7720,SMK E600M 10:05 0 ATTACHMENT A SAMPLE TASK ORDER ESRI Agreement No. Task Order No. In accordance with the terms and conditions of the above - referenced Agreement between Environmental Systems Research Institute, Inc. (ESRI), and _ (Licensee), this Task Order authorizes delivery of the Deliverables described and in accordance with the terms, schedule, and startlend date(s) specified below. 1. Scope of Work: [As applicable, specifically identify and describe Deliverables including Custom Code, Map Data, and Technical Data ( hncluding Technical Assistance), Supported Software, and the resources to be provided by Licensee (including Licensee - supplied personnel, software, hardware, and digital or hard -copy data), and place of delivery and location where technical assistance will be provided.] 2. Contract Type (FFP or T &M): 3. Total Task Order Value or Not -to- Exceed Value (if time and materials basis) 4. Delivery Schedule or Start/End Date(s) for Each Deliverable: 5. Special Considerations: 6. ESRI Project Manager: ESRI Senior Contract Administrator: Licensee Project Manager: Licensee Contract Administrator: ACCEPTED AND AGREED: Title: Date: ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC. (ESRI) Signature: Printed Name: Title: Date: Paee I! of 13 ESRI Agreement No. 3006C7 720 SMK E600M 10,05 ATTACHMENT B TIME AND MATERIALS RATE SCHEDULE Effective January 1, 2007 Hourly time and materials .labor rates have been provided for each labor category for calendar year 2007. The hourly labor rates for services that are performed after 2007 may be escalated in an amount not to exceed seven and one -half percent (7.5 %) each year. Other direct costs, such as travel, reproduction, subcontractor, telecommunication/freight, or materials, will be charged a material handling fee and invoiced. Principal Hourly Rate: $316/Hour These staff members work as program directors or project advisors providing project vision, strategic consulting, and program management for all types of geographic information system (GIS) projects. They apply market/ application domain expertise and have extensive experience in GIS and related technologies. Consulting activities may include strategic planning, review and oversight of requirements definition, application and database design, and system integration consulting. Management activities may include defining program requirements, establishing budgets and schedules, allocating staff and other resources, and managing and overseeing subcontractor activities. These staff members work with senior client staff and have the support of senior ESRI corporate staff to ensure successful project completion. Senior Consultant Hourly Rate: $239111our These staff members work: as project managers or project advisors providing strategic consulting and program management for all types of GIS projects. They apply markettapplication domain expertise and have extensive experience in GIS and related technologies. Consulting activities may include strategic planning, GIS workshops and seminars, requirements definition, application and database design and development, and system integration consulting. Management activities may include defining program requirements, establishing budgets and schedules, allocating staff and other resources, and managing and overseeing subcontractor activities. They design comprehensive work plans that employ structured systems methodologies, which define project deliverables, milestones, and realistic schedules. Consultant Hourly Rate: $190/11our These staff members provide day -to -day consulting and management of contracted projects within ESRI. They work under the guidance of senior ESRI consulting staff and support the design and implementation of defined work plans. They provide traditional consulting services and design and management support to application development projects and database conversion projects. They conduct detailed requirements interviews, document application requirements, develop logical and physical database designs using computer -aided software engineering (CASE) tools and entity- relationship (E -R) diagramming methodologies, design and develop software and database quality assurance/quality control (QA/QC) programs, and provide management oversight of daily technical activities. They work with senior consulting and technical staff to design comprehensive work plans that employ structured systems methodologies, which define project deliverables, milestones, and realistic schedules. These staff members also work with ESRI administrative staff to ensure that progress and financial reporting is provided according to contract requirements. Senior Technical Designer Hourly Rate: $247 /Hour These staff members are the senior technical staff at ESRI. They provide the overall technical vision and system architecture for large complex systems. They apply sound software engineering principles and life cycle methodologies to projects. They are actively involved in systems architecture design, application software design, database process design, and all phases of coding including conducting design and code reviews. They may serve as the principal investigator in focused studies or research and development (R &D) projects. While staff members in this category have broad technical knowledge of GIS applications and related technologies, they also provide specific expertise in areas such as Internet applications, data warehousing, spatial ana'tysis, and modeling. They are proficient in ESRI software languages as well as third - generation programming languages, Internet markup languages, and other technologies. Pate 12 of 13 ESRI Agreement No. 2006C7720 /SMK E600M 10105 Technical Designer Hourly Rate: $200111our GIS system/software developers design technical project plans for the implementation of application software projects and database development projects. They oversee the day -to -day technical activities of the project team and ensure that appropriate systems methodologies are employed. They design and develop QA/QC programs and oversee design and code reviews, database reviews, and other QA/QC activities throughout the project life cycle. They perform detailed software design and detailed database conversion design and are directly involved in the coding and implementation of the more complex and strategic portions of application software and database conversion projects. They are proficient in ESRI software languages as well its third- generation programming languages, Internet markup languages, and other technologies. Technical Analyst Hourly Rate: $155/Hour Staff members in this category work independently to perform software coding and write software documentation to design specifications developed by senior staff. They also design and implement data conversion procedures. These staff members also perform software and database quality control and are proficient in the coding of software and processing of digital databases. They are also proficient in ESRI software languages as well as third- generation programming languages, Internet markup languages, and other technologies. Database Analyst Hourly Rate: $13I/Hour These staff members provide database development support in creating cartographic and digital data products. Areas of expertise include performing data conversion, migration, and translation activities utilizing advanced processing techniques in ArcGIS software. In addition, these staff members design and implement efficient production tools and coordinate workflow with project personnel. Page 13 of 13 ESRi Agreement No. 200607720 .MK E600M 101:05 ESRI Agreement No. 2006C7720 Task Order No. 001 In accordance with the terms and conditions of the above- referenced Agreement between Environmental Systems Research Institute, Inc. (ESRI), and East Valley Water District (Licensee), this Task Order authorizes delivery of the Deliverables described and in accordance with the terms, schedule, and startlend date(s) specified below. 1. Scope of Work: See Exhibit 1, which is attached hereto and incorporated herein by this reference. In addition to the foregoing, Licensee agrees that its employees, representatives, and subcontractors will cooperate and communicate with ESRI during performance of this Task Order. Without cost to ESRI, Licensee shall provide, allow access to, or assist ESRI in obtaining all data ESRI requests for performance of this Task Order, including, but not limited to, (1) copies of previously prepared reports, maps, plans, surveys, records, and other documents in the control or possession of Licensee and (2) copies of ordinances, codes, regulations, or other governmental documents. 2. Contract Type: Task 1-4 will be performed by ESRI on a firm fixed price basis. Total Task Order'Value: The price for deliverables specified in the scope of work is $86,700 as more fully detailed in the table below. Task Price Task 1 - Develop Database Design $14,468 Task 2 — Develop Data Conversion Requirements $ 8,439 Task 3 — Perform Data Conversion Convert Water Maps $23,441 Convert Sewer Maps $23,441 Assign valve numbers from valve maps $ 2,411 Customer Addresses $ 2,411 _Geocode Load Sewer and Water data into Geodatabase $ 4,823 Task 4- Perform OA/ QC and Deliver Pilot Database $ 7,266 Total Finn Fixed Price $86,700 4. Delivery Schedule: Seethe Project Schedule section in Exhibit 1, which is attached hereto and incorporated herein by this reference. 5. Special Considerations: None. 6. ESRI Project Manager: Jose Gonzalez ESRI Senior Contract Administrator: Susan Keith Licensee Project Manager: Brian Tompkins ACCEPTED AND AGREED: EAST VALLEY WATER DISTRICT (Licensee) Signature: _ Printed Name: Title: Date: ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC. 1 (ESRI) _ < / 1 Signature: Printed Name: 4 . M,$Ifr1 Title: Date: "_V '- 2 2006C7720iSMK (T.O. T1) 1 02 Jan 200" Exhibit 1 to Task Order No. 001 Contract No. 2002C7720 Scope of Work Scope of Work The following scope of'work is for a pilot data conversion project to assist East Valley Water District in its development of a Geographical Information System (GIS). The pilot project will include a comprehensive representation of the water, sewer, and landbase features for the East Valley Water District, as more fully detailed below. The conversion of water and sewer data pilot project will consist of the following tasks • Task 1— Develop Pilot Database Design • Task 2— Develop Pilot Data Conversion Requirements • Task 3— Perform Pilot Data Conversion • Task 4-- Perform QA/QC and Deliver Pilot Database Task I - Develop Pilot Database Design The development of a database design and associated documentation will create the foundation for the pilot data conversion project. During this task an ESRI database designer will lead a database design workshop session with EVWD staff to develop a database model that will accommodate EV WD's water, sewer, and landbase features and attributes. The standard ESRI Water and Sewer model, in the form of a Universal Modeling Language (UML) document in Microsoft (MS) Visio format, will be customized for EV WD. The initial version of the customized - database model will be submitted to EVWD for review and comment. Then, based on the results of the review ESRI will develop the final version of the pilot data model to include EV WD's comments. Deliverables 11 Three day data modeling workshop 11 Draft Water & Sewer Pilot Database Design in MS Visio format II Final Water & Sewer Pilot Database Design in MS Visio format EVWD Responsibilities 19 Provide meeting facilities for database design workshop 12 Provide data source documents to assess the data elements (features, attributes, properties) that will be represented in EV WD's water and sewer model. The necessary source samples to assist with this task will include: 93 100' scale water atlas sheets f; 100' scale sewer atlas sheets ® valve maps and the gate valve database in MS Access format * water and sewer as -built maps © backflow accounts database in MS Access format 0 extract from EVWD water customer database in MS Access format 02 Jan 2007 2006C7720r Me S K (T.O. rl) - ■ Provide consolidated comments on Database Model within ten business days Assumptions II The standard AICGIS models for Water & Sewer networks will be used as the starting point to develop EV WD's data :model ■ Landbase target model will be based on the data acquired from San Bernardino County by EV WD IN The pilot will consist of a portion of EV WD's service area. It will be one square mile in size approximately, and delimited by: If Highland Avenue to the South If Palm Avenue to the West If The San Bernardino Mountains to the North 11 The 330 Freeway to the East Task 2 - Develop Pilot Data Conversion Requirements During this task an ESRI technical manager will meet with EV WD's staff to perform an inventory and review of the existing source materials maintained by EV WD to define the requirements (such as precision, scale, text sizes, etc) that will rule the pilot conversion process. At part of this task, EV WD staff will review the data sources with the ESRI technical manager to explain the meaning of any special nomenclature found on them. The pilot data conversion requirements will be compiled by ESRI in a draft Pilot Data Conversion Requirements document. ESRI will deliver this draft document to EV WD for review and comments before the development of its final version. Deliverables ■ Draft Pilot Data Conversion Requirements document • Final Pilot Data Conversion Requirements document • Two -day data conversion requirements workshop EVWD Responsibilities 01 Provide meeting facilities for data conversion requirements workshop 11 Provide data source documents to be used in the pilot conversion. These source documents will include: 11 8 100' scale water atlas sheets I5 8 100' scale sewer atlas sheets 111 8 valve maps 69 gate valve database in MS Access format 1Z backflow accounts database in MS Access format IN 20 water anti 35 sewer as -built maps * Extract of water customer database in MS Access format with about 615 records * Provide consolidated comments on Data Conversion Requirements document within ten business days 02 Tan 2006C7720! viK (T.O. -_l) 300' Assumptions v Data sources for the pilot consist of: �9 8 100' scale water atlas sheets If 8 100' scale sewer atlas sheets u 8 valve maps * gate valve database in MS Access format m backflow accounts database in MS Access format ON 20 water and :15 sewer as -built maps 9 Extract of water customer database in MS Access format with about 615 records II Map sheets are kept in LaserFish system by EVWD and will provided in TIFF format to ESRI Task 3 — Perform Pilot Data Conversion After the database design and data conversion requirements tasks have been completed, ESRI's data conversion team will be ready to initiate the conversion of the pilot data sources. The data conversion team will use ArcGIS geo processing tools to implement methods and procedures that will include the following steps: ■ Geo- reference atlas sheets to landbase data 0: Trace and digitize water and sewer lines, facilities, and devices 11 Enter text annotation 11 Populate pipe, facilities, and devices attributes 11 Assign valve numbers from valve maps 11 Perform customer database geocoding EVWD Responsibilities If Provide prompt response to questions about the interpretation of data sources that may arise during the conversion process Assumptions 12 The pilot database design and pilot data conversion requirements tasks have been completed before the start of the data conversion task It The pilot database delivered to EVWD will be in personal geodatabase format Task 4- Perform OA4OC and Deliver Pilot Database During this task a series of checks and database reviews will be performed on the converted data as part of the quality control and quality assurance process. QA/QC checks and reviews will be designed and implemented to make sure that the converted data adheres to the agreed data conversion requirements and database design developed in previous tasks. Or..ce the database passes the QA/QC checks and reviews. it will be delivered to EVWD along with the Q-- QC report that will indicate the results of the checks performed and the counts of features converted. EVWD will review and provide ESRI comments and the ESRI conversion team will per_`orm final edits based on EVW-D corments to produce a Final pilot database delivery. 2006C7720. SNiK (T.O. mil) a 02 Jan 200- 0 Deliverables • Pre-final Pilot Geodatabase in personal geodatabase format for review • Pre-final QA/QC report • Final Pilot Geodatabase in personal geodatabase format • Final QA/QC report EVTPD Responsibilities N Provide meeting facilities to review and install pilot database and report Project Schedule The project schedule is as follows: Mon 9/1 0J07: Fri 9121107 ........... ... ......... ..... .......... Mon 9117107 Develop Pilot Database Design ... 10 days; ....... ..... .. ..... F6120W.l -------- --------- ------ ----- Develop Pilot Data Conversion Requirements 5 days Perform Pilot Data Conversion 65 days ..... Perform QAIQC and Deliver Pilot Database ... ...... 5 days! Mon 9/1 0J07: Fri 9121107 ........... ... ......... ..... .......... Mon 9117107 ... ... Fri 90107: ----- -- --- --- Mon 92 ..... .. ..... F6120W.l .. .. . . ....... Mon 1224107: Fri 1228107:5 . ........... . 2006C7720iSl�K (T.O. # 1) 02 Jan '_00 Reeb Government Relations, LLC Robert J. Reeb 910 K Street, Suite 300 I (916) 558.1926 rx Sacramento, California 95814 (916) 558 -1932 rnx e -mail: robertreeb @comcast.net (916) 402 -4278 ceu. M Proposal for Lobbying Services East Valley Water District 9 00 K S r_ =T, Eu?e 300 Seca- nc 6211 . 916-55 8-1926 =X• 916--58-_932 Tabie of Contents Introduction...................................................... ............................... 1 Firm Qualifications ........................................... ............................... 2 Relevant Experience ........................................ ........1...................... 5 Clientele.............................................................. ............................... 11 Professional References .................................. ............................... 11 Fee for Services ................................................ ............................... 12 0 J 1.. Introduction Reeb Government Relations, LLC is pleased to respond to a request for proposals for lobbying services in California's capital on behalf of the East Valley Water District. East Valley Water District is a special district that was formed in 1954 through an election by local residents who wanted water service by a public water agency. The mission of the East Valley Water District is to provide its customers with a safe and reliable water supply that is delivered at a fair and cost - effective price. Today, the District provides water and wastewater services to a service population of about 65,000 in the cities of Highland and San Bernardino and surrounding unincorporated areas. The District collects no ad valorem property tax money as all services are financed by rate system revenues. The East: Valley Water District's main sources of water are the Bunker Hill Groundwater Basin and high quality surface water from the Santa Ana River. In addition, the District has the option of obtaining supplemental water during dry years from the State Water Project through the San Bernardino Valley Municipal Water District. The District's Board of Directors and management understand that regulatory decisions and legislative actions in Sacramento can significantly impact the mission of the District. The District now seeks to retain a lobbying firm to represent its interests in Sacramento. Reeb Government Relations, LLC is particularly well- suited to meet the needs of the District in the areas of legislative and regulatory advocacy, as well as assisting the District to develop and maintain strong relationships with legislators in the era of term limits. Reeb Government Relations, LLC represents only local public agencies at this time —with seven clients that focus on local government, water, wastewater and flood control issues. Some of the firm's clients are State Water Contractors, some rely on a mixture of groundwater and surface water for supplies, and a number of clients provide wastewater and recycled water services. Bob Reeb, principal of the firm, has the breadth and depth of experience representing local water agencies like East Valley Water District that is unmatched in Sacramento. Mr, Reeb has been involved in every major Piece of water - related legislation before the California Legislature for the past 2 years: I le is not only a capable lobbyist, but is able to negotiate and draft annerdrnert= -1C le-gislation cn �h.alf C.f �'I Ile. ^, 'ic e'D.,.HCe w ^. 0 Proposal for Lobbying Services Reeb Government Relations, LLC Page 2 effectiveness is recognized by ACWA members, other lobbying firms, legislators, legislative staff and Schwarzenegger Administration personnel. Mr'. Reeb maintains regular and personal contact with each client throughout the calendar year, including both the legislative session and interim recess during the fall of each year. Contact principally occurs through e -mail and the telephone. Legislative reports, including the status and summary of key measures as well as notes and recommendations, are regularly prepared by Mr. Reeb. Typically, Mr. Reeb will visit with the Board of Directors twice each year in the District —once in the spring following the introduction of legislation in the state capitol, and once in the fall to present an annual report of activities undertaken by the firm on behalf of the District. Mr. Reeb also attends association conferences and seminars such as those offered by the Association of California Water Agencies in order to remain current on industry news, issues and practices and to afford opportunities for visiting with clients in a less formal setting. Z. Firm Qualifications Reeb Government Relations, LLC was established in January 2005 by Bob Reeb, principal and owner, to assist a select number of public sector clients with policy analysis, issues management and legislative and regulatory advocacy. Reeb Government Relations, LLC offers its public sector clients knowledge, integrity and experience. Knowledge Reeb Government Relations, LLC specializes in a diverse spectrum of issues involving California state and local governments. Bob Reeb, due to work experience in both private and public sector settings spanning nearly three decades, has developed knowledge and expertise in the following areas of practice: Natural] Resources F=ocusing on vdater supply development, vkla.er rights, water, transfers, drinking water, groundwater, flood protection, 1Aia5telM ate r, and vdater rrcyC! {ngr ii'Cii,iC!nG �.° CalfC rnla 0 Proposal for Lobbying Services Reeb Government Relations, LLC Page 3 Pollution Control Act (Clean Water Act), Porter - Cologne Water Quality Control Act, California Environmental Quality Act, Urban Water Management Planning Art, California Safe Drinking Water Act, and Underground Storage Tank Cleanup Act. Local Goyernment Focusing on governance, infrastructure development, public works, public contracts, energy and utilities, public finance, land use planning, and local government organization; including the Cortese - Knox - Hertzberg Local Governmental Reorganization Act of 2000, Ralph M. Brown Act, and California Public Records Act. Mr. Reeb is a graduate of the University of California at Davis with a Bachelor of Arts degree in political science /public service. Integrity A shared sense of purpose is essential to develop an effective and efficient relationship between client and lobbyist. Reeb Government Relations, LLC is committed to a strong work ethic; honesty; providing value to clients, and communication that develops understanding and accomplishes goals. Bob Reeb shares the commitment of today's top performing local agencies to planning, innovation, open communication and fiscal accountability in the delivery of essential public services. Experience Mr. Reeb'has a unique professional background with experience in journalism, water policy analysis, water agency management, public finance investment banking, and issue advocacy. His experience in public water and wastewater systems at the local government level is unmatched by any lobbyist practicing in Sacramento. Mr. Reeb most recently served as the State Legislative Director for the Association of California Water Agencies for over 9 years, representing the interests of the Association's 450 agency and affiliate members before the California Legislature, the Governor's office and the Executive Branch agencies, departments and commissions. While with ACWA, he paiicipated in the development of many impressive coalitions in order to more successfully pursue the Associat'ion's legislative agenda. ACWA's State _egjslla''.ive Deoar`rne -.:` � v,!a., . co- an1Zc ^_ v';/ r 0 Proposal for Lobbying Services Reeb Government Relations, LLC Page 4 Association Executives for its 1996 effort to secure passage of SB 900, which state voters later approved as Proposition 204. During his tenure with ACWA, Mr. Reeb was involved in every major piece of legislation relating to recycled water, drafting key provisions of current law, and working extensively with WateReuse Association, California Water Association (investor -owned utilities), California Municipal Utilities Association and others. He received the 1999 Gordon Cologne Award from the WateReuse Association of California for "outstanding achievement in promoting or increasing the use of recycled water in the State of California." Following graduation from UC Davis, Mr. Reeb worked four years as a weekly newspaper reporter and editor. He then worked seven years for the California Assembly for Assembly Member Jim Costa, serving five years as senior consultant to the Water, Parks & Wildlife Committee and specializing in water resources policy development and analysis. Mr. Reeb assisted Assembly Member Costa in the enactment of significant legislation, including the Water Conservation and Water Quality Bond Law of 1986 (Proposition 44), the Water Conservation Bond Law of 1988 (Proposition 82), and the Costa - Isenberg Water Transfer Act. It was during this time that Mr. Reeb also was elected to the Dixon City Council, serving one term in office. Mr. Reeb represented Dixon on the Solano County Transportation Commission, Association of Bay Area Governments, and Solano Economic Opportunity Council. Mr. Reeb managed the El Dorado County Water Agency from 1989 to 1993, when the agency was active in long range water planning and securing water rights. The Agency received a 1992 National Achievement Award from the National Association of Counties for negotiating an innovative water rights permit processing agreement with the State Water Resources Control Board. From 1993 to 1995, Mr. Reeb was a licensed municipal securities representative and worked for two regional investment banking firms where he focused on water and sewer finance. Firm Services Legislative advocacy services include: Representation in the State Capitol with respect to a client's legislative program, deni:ifying, analyzing and mcnitor ing legislatlo ^: Legislative reporting services. ?arG ipa ior. =':o _`tenda nce- a" Proposal for Lobbying Services Reeb Government Relations, LLc Page 5 Regulatory advocacy services include: • Representation for regulatory and administrative agencies to develop workable solutions to difficult problems. • Identifying, analyzing, monitoring and influencing the promulgation of regulations. • Identifying State grant and loan programs and assisting clients with program requirements. 3e Relevant Experience AB 140, Garcia (Chapter 29, Statutes of 2007) The Desert Water Agency Law was enacted in 1961 to create the Desert Water Agency and prescribe its boundaries, organization, operation, management, financing and other powers and duties. The Agency is authorized to generate electricity by means of hydroelectric power generation. The energy generated by such projects may be used for Agency purposes or sold at wholesale to public or private entities. AB 140 authorizes the Agency to pursue other means of generating electricity for purposes of operating Agency facilities and producing a stream of income to help underwrite capital improvements to the Agency's water and recycled water infrastructure. The latter purpose will assist the Agency in keeping rate increases to a minimum.. Reeb Government Relations assisted the Agency to secure introduction of AB 140 by Assembly Member Garcia, developed background material in support of the legislation, prepared support letters, negotiated amendments and testified on behalf of the bill. Reeb Government Relations also worked to secure the support of the Association of California Water Agencies for the legislation. Proposition 1E Early implementation Project (2007) Cate voter: approved Yroposidon __, 'he Disaster- %reoaredness and 'revent or, fond, Act o' 2006, i". _tie N!ovem e( 2006 0 Proposal for Lobbying Services Reeb Government Relations, LLC Page 6 bond measure allocates $3 billion for the repair or replacement of levees and other facilities of the State Plan of Flood Control in California's Central Valley. Reeb Government Relations, LLC, under contract to Peterson Consulting, Inc., represents the Three Rivers Levee Improvement Authority, which seeks state funding under Proposition 1E for a levee project in Yuba County along the Feather River. Mr. Reeb has been working with personnel in the Department of Water Resources, the state administering agency for the flood prevention bond, to gain inclusion of the project among various Early Implementation Projects. Mr. Reeb also has arranged and participated in briefings for key legislative budget committee staff and legislators. The Three Rivers project was identified as an Early Implementation Project in the proposed bond expenditure plan released by the Department in February 2007. At this time, the Three Rivers project is under consideration for funding in Fiscal Year 2007 -08. Water Right Permit & License Fees (2007) The California Legislature in 2003 shifted financial support for the State Water Resources Control Board's Division of Water Rights from the State General Fund to water right permit and license holders. The shift was made in order to help balance the State General Fund. The State Board adopted an emergency regulation that spread the costs among as many water right permit and license holders as it held under its jurisdiction. Subsequently, many water right holders and groups representing the fee payors challenged the fees in court, arguing that the fee was unconstitutional and unfairly applied by the State Board. That case is now before the California Supreme Court. In the meantime, lobbying firms retained on behalf of the fee payors have sought legislation, SB 258 (Ducheny) to reduce or repeal the fees as well as to regain General Fund support for the Division of Water Rights. Reeb Government Relations, LLC is active in this effort on behalf of three of its clients. Delta Levee Project Funding (2006) Reeb Government Relations, LLC was contacted in late 2005 to assist it the drafting of an initiative statute to be qualified through a =statewide signature gathering process for placement on the November 2005 General Election ballot. !fir. Reeb vdos asked to draft provisions relating to levee malnterlcnce anc specla DrO __ in the Sacramento-San --loaculn Delta. -1 Gr'K ':4za5 0 Proposal for Lobbying Services Reeb Government Relations, LLC Page 7 accomplished on behalf of the California Central Valley Flood Control Association. Mr. Reeb has participated in drafting ballot measures and identifying program and project funding for state general obligation bond measures for over 20 years. As a result of his participation and support received from the Association of California Water Agencies, Mr. Reeb succeeded in obtaining $275 million for delta levee projects in the proposed ballot measure, which later qualified and became Proposition 84, The Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Bond Act of 2006. Proposition 84 was approved by state voters on November 7, 2006. Educational Revenue Augmentation Fund Adjustment (2005) The State of California reallocated property tax revenue from cities, counties and special districts to public schools in 1992 in an effort to balance the state budget. An error was made regarding the classification of Santa Ynez River Water Conservation District, which lead to more revenue being reallocated than was appropriate. The error was not discovered until a subsequent additional property tax shift in 2003. The District approached the State Controller and Department of Finance to correct the error in 2004, but was not successful in its attempts to obtain a correction or repayment of the excess payments due to the potential negative impact on the State General Fund that would result from a reversal of the earlier classification determination. The District retained Reeb Government Relations, LLC in January 2005. Mr. Reeb contacted the District's legislative delegation to seek assistance in resolving the error. Mr. Reeb also contacted key personnel in the State Controller's office and Department of Finance. On May 31, 2005 the State Controller's office reached a decision that an error had indeed been made and that an adjustment to the property tax revenue allocation for the District was in order. The Department of Finance reached the same conclusion days later and, as a result, a reversal of $60,000 was made on behalf of the District. SB 181, Machado (Chapter 167, Statutes of 2003) This legislation was sponsored by the Association of California Water Agencies. The legislation was introduced on February 12, 2003 and signed into lavf on Augu-ct 2, 2003, `Mir: Reeb was the lead lobbyist .n� St! DDr? Of the eais'et :on. 0 Proposal for Lobbying Services Reeb Government Relations, LLC Page 8 Solano Irrigation District was subject to a compliance order issued by the California Department of Health Services (DHS) to provide treatment of raw agricultural water that might be consumed inside of rural homes. While the District worked with and received the concurrence of its customers to implement a drinking water treatment option, the District was concerned that future homeowners would not understand the type of water service that they would receive from the public water system. SB 181 established procedures for a Public Water System to notify and record the status of compliance with drinking water directives of the DHS for individual properties in a service area. Mr. Reeb worked with DHS and the California Land Title Association to address concerns that were raised during the legislative process. SB 1586, Haynes (Chapter 547, Statutes of 2002) This legislation was sponsored by the California Building Industry Association. The legislation was introduced on February 20, 2002 and signed into law on September 15, 2002. Mr. Reeb was the lead lobbyist in opposition to the legislation. Under the Cortese - Knox - Hertzberg Local Government Reorganization Act of 2000, when any district to which annexation of territory is proposed has adopted and transmitted to the local agency formation commission a resolution requesting termination of proceedings within a prescribed time period, the commission is required to terminate the proceedings. This provision was included at the request of ACWA, California Special Districts Association and California Association of Sanitation Agencies over the objections of the California Building Industry Association. AB 1586, as introduced, would have repealed the above - referenced annexation termination authority. The special district community secured a sufficient number of votes to kill the legislation in the Senate Local Government Committee, and amendments were written to preserve the ability of local agencies to terminate annexation proceedings. The amendments continued to require the commission to terminate the proceedings after consideration of the district's resolution, but also required such a resolution to be based upon written findings supported by substantial evidence ir the record that the request is justified by financial or service concerns, as defined. The bill made a district's resolution subject to judicial 0 Proposal for Lobbying Services Reeb Government Relations, LLC Page 9 SB 109.3, Costa (Chapter 968, Statutes of 2001) Mr. Reeb was responsible for positioning ACWA as its State Legislative Director to respond to member needs as they arose, which at times, came to light near the end of a legislative session. SB 1093 is an example of the ability to respond quickly upon learning of a member agency problem during the summer legislative recess. ACWA assumed sponsorship of. SB 1093 in August 2001. The subject matter of the legislation amended into the bill on August 27, 2001 and signed into law on September 27, 2001. Mr. Reeb was the lead lobbyist in support of the legislation. Existing law, with certain exceptions, prohibits bodily contact with water in a reservoir in which water is stored for domestic use. SB 1093 exempted from this prohibition recreational activity in which there is bodily contact with water by any participant in Sly Park Reservoir provided that specified conditions were satisfied. The bill required the El Dorado Irrigation District (EID) to file a report concerning implementation of the provisions of the bill with the State Department of Health Services (DHS) by January 1, 2005. Recreational activity had been allowed at Sly Park Reservoir since its completion in the mid- 1950s. The reservoir was a unit of the Federal Central Valley Project. Once the reservoir was transferred to EID, DHS was prepared to enforce the prohibition against bodily contact. Mr. Reeb asked Senator Costa to delete the contents of his legislation, placing it into a committee omnibus bill, and then amend the EID provisions into SB 1093. Mr. Reeb was successful in gaining enactment of the legislation despite initial opposition, from the Sierra Club, Clean Water Action and the Blue Water Network. SB 989, Sher (Chapter 812, Statutes of 1999) Mr. Reeb was responsible during his tenure with ACWA for monitoring, analyzing and influencing legislation relating to the California Safe Drinking Water Act. SB 989 was among the preeminent bills in which he was involved. This legislation was sponsored by the Association of California Water Agencies. The legislation was introduced on February 26, 1999 and signed into law on October 10, 1999. Mr. Reeb was the lead lobbyist in support of the legislation. ei_B._ sync -let:_ cheml---.. cgGB- . C.'a�;ii-•e !i; "ip G. - = C.:iiL;; 0 0 Proposal for Lobbying Services Reeb Governunent Relations, LLC Page 10 part of the federal Clean Air Act. Limited quantities had been used in gasoline in California since the 1970s. In 1992, oil companies began using it extensively in California to meet reformulated gas requirements of the state Air Resources Board. MTBE had begun being detected in groundwater and surface water sources throughout California as early as 1995. MTBE contamination forced water suppliers to shut down drinking water wells in Santa Monica, South Lake Tahoe, Santa Clara Valley and in the Sacramento area. Private wells in the town of Glennville were also shut down. A study by the Lawrence Livermore National Laboratory concluded that MTBE is a "frequent and widespread contaminant" in groundwater throughout California and does not degrade significantly once it is there. The study estimated that MTBE had contaminated groundwater at over 10,000 shallow monitoring sites in California. Hundreds of drinking water wells could be affected if the contamination moves into deeper groundwater basins. SB. 989 required the development of a timetable for eliminating the use of methyl tertiary butyl ether (MTBE) in motor vehicle fuel at the earliest possible date, and sought to protect groundwater supplies by specifying increased monitoring and containment requirements for certain underground storage tanks. It also increased financial assistance for upgrading underground tanks, and required multimedia evaluation of new specifications for motor vehicle fuel. Finally, the legislation updated the Drinking Water Treatment and Research Fund in the State Treasury to make payments to public water systems for the costs of treating contaminated groundwater and surface water for drinking water purposes, investigating contamination, acquiring alternate drinking water supplies, and for conducting research into treatment technologies. The Fund was created by a prior Sher bill, SB 2198 (Chapter 997, Statutes of 1998) that also was sponsored by ACWA and for which Mr. Reeb served as the lead support lobbyist. SB 989 initially was opposed by the Sierra Club of California, which wanted to preserve the clean air benefits of MTBE, and the Western States Petroleum Association, which wanted to avoid having to reformulate gasoline and retool oil refineries. This unusual combination of opponents made the lobbying and negotiating strategy quite complicated, but ultimately, Senator Sher and ACWA were able to overcome opposition arguments and obtain legislative and gubernatorial approval. Proposal for (Lobbying Services Reeb Government Relations, LLC Page nl 4. Clientele California Central Valley Flood Control Association Desert Water Agency El Dorado Irrigation District Newhall County Water District Santa Ynez River Water Conservation District (2005) Three Rivers Levee Improvement Authority Tulare Lake Basin Water Storage District Valley Ag Water Coalition 5. Professional References Mr. Ron Davis State Legislative Director Association ol` California Water Agencies 910 K Street, Suite 100 Sacramento CA 95814 PH: 916- 44.1 -4545 E -mail: rdavisColacwa.com Ms. Ane Deister General Manager El Dorado Irrigation District 2890 Mosquito Road Placerville CA 95667 PH: 530 - 622 -4513 E -mail: adeister(d)eid.oro Mr. Brent Graham, Secretary /Treasurer Valley Ag Water Coalition 1001 Chase Avenue Corcoran CA 93212 PH: 559 -992 -4127 bGraha Cat':b\r!sd.com Proposal for lLobbying Services Reeb Governiment Relations, LLc Page 12 Mr. David Luker General Manager -Chief Engineer Desert Water Agency P. O. Box 1710 Palm. Springs CA 92263 -1710 PH: 760 -323 -4971 E -mail: dlukerCabdwa.ora Mr. Richard Marshall Executive Director California Central Valley Flood Control Association 91.0 K Street; Suite 310 Sacramento CA 95814 PH: 916 - 446 -0197 E -mail: dick(a )cvflood.oro Mr_ Bruce A. Wales General Manager Santa Ynez River Water Conservation District P. O. Box 719 Santa Ynez CA 93460 PH: 805- 693 -1156 E-mail: brucewales(a syrwcd.com 6, Fee for Services Reeb Government Relations proposes a monthly retainer in the amount of $6,000 per month with reimbursable expenses not to exceed $3,000 during the term of the contract (typically, an annual contract). A contract for the duration of the current two -year legislative session is also an option. 0 �,':1, N"tS�' =allh� _:ktLu`�i'��• 'err w yin .. ...i` �,Lk. :.sr�_� a„�.._5 ✓+.S:��k� =:, �`rti .s a.�i..Czx.cYlS - s:__.__ ➢p, Inc. Mr. Robert E. Martin General Manager East Valley Water District 3654 E. Highland Avenue, Suite 18 Highland, CA 92346 August 27, 2007 Dear Mr. Martin: , It is our firm's pleasure to respond to your request for a proposal to represent the East Valley Water District ( "District "). The contents of your request for qualifications match up very well with the talents and qualifications of our firm. We draw your particular attention to our mix of private sector and public agency clients. In the 17 -plus years since we established this Sacramento -based governmental relations firm it has been our experience that such an array enables greater interaction and enhances credibility with policy makers. I am the founder and president of this firm and as such have the authority to make representations for it and bind the firm to all contracts. This firm's street address, telephone /facsimile numbers, e-mail address, and other pertinent information are listed below and on the cover page of our proposal. We understand and appreciate the difficulty involved in choosing the best firm to meet your legislative and regulatory needs in Sacramento. As such, should any questions arise during the scope of your review, please do not hesitate to contact me with any questions or comments. In the meantime, we invite you to contact our web site at www.gualcoorouo.com to obtain additional information about the firm and the kinds of strategic and quick- response services we provide to our clients. Cordially, JACKSON R.GUALCO °resident I `, 'thelflualco Croup, Inc.® -A EAST VALLEY WATER DISTRICT Response to Request for Proposal to Provide "State of California Qegislative and regulatory) advocacy services" for the East Valley Water District. Submitted BY The Gualco Group, Inc., a California Corporation 770 "L" Street, Suite 1440 Sacramento, CA, 95814 -3396 Telephone; 916 - 441 -1392 E -mail; Jackson Gualco@GualcoGroup.com Web site; www.ctuolcoarouD.com Established; February 17, 1990 Table of Contents A. OVERMEW/FIRM PROSPECTUS B. STATEMENT OF QUALIFICATIONS AND EXPERIENCE EXPERIENCE AND ESTABUSHED RECORD OF SUCCESS IN LEGISLATIVE AND REGULATORY SERVICESTO LOCAL GOVERNMENTAL ENTITIES ® SAMPLES OF WORK THAT DEMONSTRATES IN -DEPTH KNOWLEDGE OF WASTE - WATER, WATER RECLAMATION, AND ENVIRONMENTAL ISSUES • DESCRIPTION OF OUR FIRM'S APPROACH TO REPRESENTING EAST VALLEY WATER DISTRICT IN THE CAPITOL AND BEFORE THE STATE'S REGULATORY AGENCIES C PR EC o TA�o O D. METHODOLOGY AND APPROACH TO SCOPE OF WORK .. -, I':_.0,9 _iW�,� 11. a i i \fR � � � _ ■o�>: y.��,L,c' ��� .1'' i;1;r F. REFERENCES A. OVERVIEW/FIRM PROSPECTUS This section will provide you with: (1) a summary of the main points of our proposal, and (2) additional information that may assist your selection committee in choosing the best Firm to meet your legislative and regulatory needs in Sacramento. Proposal's Mcin Points • The Gualco Group, Inc. is a registered California corporation in good standing with the State. The Firm was established 17 plus years ago • Your needs to address (State financial assistance, State legislative and regulatory advocacy services) are needs identical to what we have met and presently do meet on behalf of our clients • The State legislative and regulatory issues involved to dean -up the district's orphan sites and the sewage over flow and your responsrblifies to convey a reliable supply of quality water to your customers are issues with which we have had detailed e>pedence. • Our Finn's lobbyists are veterans of the State legislative, regulatory, and budget processes. Individually and collectively we posses practical hands -on e)peiience that has translated into year to year successes for our clients Ac9cIlitilonal Information We believe what sets us apart from other Firms is our knowledge of the State Budget process and our extensive water and natural resources practice. Our moc of top qualify private sector and public agency clients keeps us in front of a number of key policymakers, including the leadership of both houses B. QUALIFICATIONS AND EXPERIENCE Relative to your funding needs for improvements, we pride ourselves on our knowledge of the State Budget process and the non- linear, multi - dimensional process involved in enacting it each year. We have repeatedly secured both General Fund and General Obligation Bond (Props. 12, 13, 40 and 50) funds for our clients. Two clients, the Sacramento Area Flood Control Agency ("SAFCA" ), o special act joint powers agency, and the City of Santa Cruz, retained the Firm expressly .to achieve funding of the State's share of the federal /state /local cost of funding their respective flood management projects. A third client, the Tahoe - Truckee Sanitation Agency ( "T- TSA "), a special district, retained us to secure $11.6 million General Fund dollars to help pay for the construction of biological nitrogen removal technology at T TSA's wastewater treatment plant. In 2006, the govemor's "May Revise" proposed a $100M expenditure from the General Fund to partially re- imburse, flood control agencies pursuant to the Flood Control Subventions Program. Of this amount, $10M will be allocated on an expedited and priority basis to our client the Napa County Flood Control and Water Conservation District, This work necessarily involved extensive interactions with the Legislature, Department of Water Resources, the Department of Finance, and staff to the governor. Following are just a few examples of our successes to date. PROPOSITION 13 A line -item allocation of two million ($2,000,000) dollars in the water /flood bond bill (AB 1584- Article 7 of Proposition 13) "to pay for the state's share of the costs of flood management projects authorized by the United States to improve the level of flood protection in the Santa Cruz region." A line -item allocation of twenty million ($20,000,000) dollars in the water /flood bond bill (AB 1584- Article 6 of Proposition 13) "to pay he state's share of the costs of SAFCA's flood management projects authorized by the United States to improve the level of flood protection In T'nE= state capita. region." Thie inclusion, of the "Capltal Area Flood Protection Program." in A3 1584 represents -'he first THT1-6 tnat a W0-S1;'- Yela3eCl bond. SpeCliled f IGOd CCntrGl fui ding fort :e cap!tcil region. PROPOSITIONI 40 A line4em allocation of nine million, six hundred thousand dollars ($9,600,000) to "Central Coast Rivers' in the FY 2002 -2003 Budget (AB 425). This appropriation is part of the $75,000,000 that Prop. 40 allocated to "the Secretary for Resources for the acquisition and development of river parkways and for protecting urban streams." Of this $9.6M, one million nine hundred thousand dollars ($1,900,000) was earmarked by the Resources Agency for allocation to the San Lorenzo River Flood Control and Environmental Restoration Project sponsored by the City of Santa Cruz. GENERALFUND • An appropriation of $1,750,000 for SAFCA's Magpie Creek Flood Control and Environmental Restoration Project in the FY 1999 -2000 Budget (SB 160) • Line -item allocations totaling $28,200,000 dollars in the FY 2001 -2002 Budget (SB 739) for SAFCA's flood management projects • Line -item allocations totaling ($6,000,000) dollars in the FY 2002 -2003 Budget (AB 425) for SAFCA's flood management projects • Line -item allocations and reappropriations in the FY 2003 -2004, 2004- 2005 and 2005 -2006 State Budgets for SAFCA's flood management projects will be provided to you upon your request J It is important to note that our diverse clientele has always included local government. A few brief examples of recent successes on behalf of local government clients (cities, special districts) are as follows: ® Achieved passage and enactment of a series of bills that provided State authorization of all City of Santa Cruz and Sacramento Area Flood Control Agency- sponsored flood control projects (See AB 1147 - Chapter 1071, Statutes of 2000, AB 1020 - Chapter 749, Statutes of 2004, SB 1280 - Chapter 616, Statutes of 2004, and SB 347 - Chapter 584, Statutes of 2005) In the 03 -04 Regular Session of the Legislature, we advocated for our water - related clients interests on a number of bills including, but not limited to: ® One of a small number of special districts to prevail upon the author of SB 407 (2003) to amend his bill to include a narrow exception that would have limited the Agency's ERAF hit ® On behalf of the Alameda County Flood Control and Water Conservation District -Zone 7 Water Agency ( "Zone 7 "), we successfully advocated AB 1125 (Houston, et al) through the legislative process and enactment into law (Chapter 284 - Statutes of 2003). This law vests Zone 7's board of directors with the sole authority to govern matters affecting the residents within the 425 square mile area served by Zone 7 Spearheaded the effort which led to legislative rejection of the Legislative Analyst Offices' recommendation to retroactively reduce the State share of the cost to construct federally authorized flood control projects from fifty (50 %) percent to thirty (30 %) percent Assi,ited SAFCA's efforts to achieve an acceptable indemnity provision in the modifications to the Folsom Dam Cooperation Agreement 0 J In the 04 -05 Regular Session of the Legislature, we advocated our clients' water - related interests on a number of bills including, but not limited to; ® On behalf of the Sacramento Area Flood Control Agency we successfully advocated SB 347 (Ortiz, et al) through the legislative process and enactment into law. This bill clarified the authority of The Reclamation Board to enter into a Project Cooperation Agreement ( "PCA ") with the Army Corps of Engineers, Sacramento Area Flood Control Agency and the City of Folsom to construct a new and permanent bridge across the American River just below Folsom Dam. This bill was a follow on to last year's Senate Bill 1280 (Chapter 616, Statutes of 2004) and concludes the State's authorization of a comprehensive flood control project in the capital region. On behalf of the City of San Carlos, we coordinated and led the effort to defeat a bill and, in turn, concluded a very rancorous land dispute involving our clients, the City of San Carlos and an association of business property owners. The matter at issue in the bill was whether the Legislature would be willing to overturn long- standing case law that prevents abuses and gerrymandering in annexation decisions. Although we were retained when the bill was already heading for the Floor of the second house we were ultimately able to secure the bill's defeat on the Senate Floor. In 1992 we were retained by the Kern County Water Agency. Our first project for the agency was to secure passage of a bill that had been stopped in the previous Session of the Legislature due to partisan wrangling and author difficulties. The passage of the bill made it possible for the agency to issue public debt for improvements to the water delivery system in the agency service area without a vote of the people as had been prior law. 0 Following are a few examples: ® In 2003, we took a leading role in the defeat of two CEQA- related bills (AB 974 and SB 18) that would have given Native Americans influence over land -use decisions that no other parry, agency, or governmental body now enjoys ® AB 4C� (Jackson et al.) In 2003 -2004, with the author's decision to "drop" her bill we concluded two years of aggressively advocating against AB 406, a bill that would have prohibited any party from submitting a draft EIR to the public agency responsible for CEQA review of the proposed project • In 2000-01, we were retained by the City of Vacaville, With a population of 90,000 residents, Vacaville was faced with the prospect of spending multi - millions of dollars to comply with stringent new requirements for discharges from their Easterly Wastewater Treatment plant. We represented them in all governmental relations efforts involved in their challenge of the Central Valley Regional Water Quality Control Board Order #5 -01 -044. This included, but was far from limited to, setting up meetings with Board members and staff, meetings with the Department of Health Services, and lining up 28 ",Interested Parties' to testify on their behalf at the first day of the SWRCB's three -days of hearings on their petition ® We were retained by the City of Manteca in 2004 -2005 to obtain an appeal at the State Water Resources Control Board related to the granting of an NPDES permit to the city with onerous conditions attached. The appeal was granted and the onerous provisions were either removed or significantly amended Obtained extensions to the sunset provisions of the San Gabriel Basin Water Quality Authority, which was created by special act in 1992 for the purpose of ensuring continued public oversight, coordination, funding, and integration of local, state and federal efforts to cleanup and 'halt the spread of The groundwater contamination affecting The San Gabriel basin and refinement of the ogencVs Act to iProvide o greaTer Voice Ta WCTer prCG✓Iders in t :e San Gabriel valley o Our Firm's methodology and approach to representing the District in the capital will be explained in more detail under the "APPROACH TO SCOPE OF WORK ". on the following page. Briefly, and by way of introduction here, our approach to representing the District in the capital will be as follows: The firm's lobbyist will review every single bill and amendments to introduced Assembly and Senate bills for impacts on the District. Bills requiring closer scrutiny will be immediately forwarded to you for review and comment, We also will closely monitor California's regulatory and administrative processes for proposed actions which potentially could impact your activities e After consulting with you on proposed legislation and or regulations of concern, we will identify the problem, craft an optimal solution set, formulate a strategy and initiate appropriate advocacy actions • We will maintain and enhance the District's alliances by serving as the liaison between. the District and your legislative delegation and regulatory officials We will make frequent contact with key decision - makers and colleagues to obtain intelligence on political and policy developments affecting your interests ® We will leave no stone unturned to achieve passage and enactment of legislation that addresses the District's needs and /or increases the District's effectiveness in carrying out its mission C. PROJECT TEAM The Gualco Group, Inc., a Sacramento -based governmental relations Firm was established in 1990 by Jackson R. Gualco. The Firm is doing business in California. as a registered California corporation in good standing with the State. According to the most recent filings at the Office of the Secretary of State, The Gualco Group, Inc, ranked among the top firms. We propose the District's legislative and regulatory matters be managed by the Firm's founder, owner, and president, Jackson R. Gualco. Direct and immediate advocacy assistance to Mr. Gualco will be provided by Kendra Daijogo, Patrick D. Leathers, Elaine Berghausen and Lisa Rodriguez. Directly supporting Mr. Gualco in his role as the project manager and the District's team of lobbyists will be the Firm's legislative assistant, Kristin Goree, who is responsible for tracking of legislation, as well as generating legislative summary and status reports. The scheduling of meetings with Members of the Legislature, staff and Administration officials and other tasks as assigned by the Firm's professionals will be handled by the firm's executive assistant, Shawnee Patterson, Please see attached biographies, 7ACKSON R. GUALCO (President /CEO) Jack Gualco is the president of The Gualco Group, Inc., a government relations and public affairs consulting firm based in Sacramento, California. Mr. Gualco's firm represents a wide array of clients; from agriculture, business, and the public sector. Prior to his reentry into the lobbying community, Mr. Gualco served as Special Assistant to Assembly Speaker Willie L. Brown, Jr. During his employment with the speaker, The California Journal ranked him as one of the Capitol's most influential staffers. Mr. Gualco received a master's degree in Pastoral Studies from Loyola University, New Orleans and an MBA in management from Golden Gate University. He received a certificate in management from the University of California, Davis. His undergraduate degrees are from the University of California, Davis and Sacramento City College. Mr. Gualco has participated in Harvard Business School's Agribusiness Program as well as executive level programs sponsored by the University of California and Boston University. Mr. Gualco is a graduate fellow of Class XX of the Agricultural Leadership Program. He is a Rotary International Paul Harris Fellow. Mr. Gualco is a member of the Deans' Advisory Council of the UC Davis College of Letters and Science and the UC Davis Foundation board of trustees and chairs the Frank A. Mesple Memorial Scholarship Fund, an endowed scholarship in the University of California, Davis Political Science Department that seeks to provide young Californians with a practical political science education. He is vice - president of the Institute of Governmental Advocates, the association of state -level lobbyists. He received the IGA President's Award in 2005 for his outstanding service to his profession. He sits on the advisory board of Calnet Business Bank and the SACTO Finance Committee. He was ordained a deacon in June of 1996 for service to the Catholic Diocese of Sacramento. Deacon Gualco is assigned to Saint Ignatius Loyola Parish in Sacramento. Mr, Gualco sits on the Advisory Council of the State Legislative Leaders Foundation. He is a former director of The Sutter Club, Catholic Charities of Sacrament ©, Inc., and the Cal Aggie Alumni Association. In addition, he served on various search and advisory committees at UCD. ari E� WiP ( Yn (� ;� ��a.- 'h i; 1T F� /-r � ✓0 : -�..7G _. e, �a Via¢ _, - VUC. �� �� �..C: v. 3.: C '.vr ie JCZ! ULJi `breeding, trai:;fng, and sales ;ac[I;i�/ .ih �eCrci'� "._'`C'`- v'-il1f: 0 J O KENDRA DADO0O Kendra Daijogo has been a member of The Gualco Group, Inc: s governmental relations team for more than fifteen years and was named a principal in the Firm in 2007. Ms. Daijogo was previously employed by Capitol Weekly, Inc., a state and legislative affairs publication, Her responsibilities included research in the areas of state and local government, Fair Political Practices Commission reporting, and instructional seminars entitled The California Legislative Process and The California Budget Process. Prior to joining Capitol Weekly's staff, Ms. Daijogo was employed at LegiTech, Inc., a computerized legislative tracking service. Ms. Daijogo began as a staff member and was promoted to the position of Legislative Supervisor. Her duties included management of legislative staff and supervision of daily assignments, monitoring actions of bills in all committees and Senate and Assembly floors, producing and analyzing daily reports to ensure the accuracy of all legislative actions, votes, bill text and analysis in the computer database and providing consultation to clients regarding the capabilities of the service and other related sources of information. Ms. Daijogo received her undergraduate degree in Business Management from the California State University, Sacramento and received her Certificate in Public Relations and Marketing from the University of California, Davis in 1997. Ms. Daijogo is a member of Capitol Network, California Women for Agriculture, the Institute of Governmental Advocates, Who's Who Worldwide and the National Association for Female Executives. Washington, D.C. PATRICK D. LEATHERS Patrick D. Leathers is Senior Counsel with The Gualco Group, Inc.'s government relations and public affairs consulting team. Mr. Leathers has been a legislative advocate in Sacramento for over 20 years. His representation has included local governments, national, regional and state business associations, healthcare businesses, education interests, water agencies, agricultural commodity organizations, individual farming entities, agricultural chemical companies and additional corporate and individual interests in California and Mr. Leathers has also served as general counsel for several associations during the legislative process and implementation phase for regulatory oversight and industry self- regulation. In addition, in 1993, Patrick co- founded the Emerging Technologies Institute where he secured a federal appropriation of $2 million for start up funding and served as its chief operating officer. Prior to becoming a legislative advocate, Mr. Leathers served as special assistant for agricultural issues for former Assemblymember Vic Fazio. After assisting Mr. Fazio's successful bid for Congress, he became Regional Attorney for Western Growers Association. When Assemblywoman Carol Hallett became Republican leader, she requested Mr. Leathers to serve as the senior consultant for agriculture and water for the Assembly Republican Caucus. Mr. Leathers graduated from Willamette University with a Bachelor of Sciences degree in American Studies and earned his Juhs Doctorate degree from the University of the Pacific, McGeorge School of Law. Mr. Leathers was born and raised in Woodland, California, one of six children of James and Dorothy Leathers, all of whom were very active in numerous school and community programs and their family farming operation. Mr. Leathers was Student Body Presidesnt of Woodland High School, is an Eagle Scout, earned an Honorable Mention All - American award for Baseball, is a member of the Sigma Chi Fraternity, is a former Board member of Families First and the Golden Empire Council of the Boy Scouts, and is active in the Boys and Girls Club of Sacramento. Mr. Leathers also owned and operated his own farming business in Sutter County and Cassadys nightclub in downtown Davis, California, prior to and during law school. Mr. Leathers lives in Davis with his wife, Kathrine Cole- Leathers, who is an elementary school teacher. Together, they have a daughter Hannah who excels in the GATE school program, sKiing, arcs and crafts and Girl Scouts. The Leather' fa"!,liy also sspe�ds special !ne a, Their !oa cabi � i lode o ', h SOE ETC uba Rive' cr: Tor! e" r'...: wne e they envoy all - ountainn and outdoor ai .•.vit -Z, espedalk, _n0�ly cKi�nG: I ELAINE BERGHAUSEN Elaine Berghausen brings over 30 years of State Executive Branch experience to The Gualco Group, Inc. Most recently, she was the Deputy Assistant Secretary for Bonds and Grants with the California Resources Agency where she was responsible for statewide fiscal oversight of the $10 billion in water, parks, and resources bonds in Propositions 12, 13, 40 and 50, ensuring all departments administering bond - funded programs complied with legislative mandates, reporting and audit requirements, and overseeing the cash flow and borrowing needs of all of the departments. She also had direct responsibility for the creation and delivery of $280 million in grants through nine separate grant programs. Grants were awarded to nonprofit organizations, local, state, and federal agencies, for a variety of projects, including the creation and protection of river parkways, development of multipurpose: trails, public recreation projects, acquisition of open space for natural resource, habitat, and watershed preservation, and restoration and protection of riparian and riverine habitats. Before joining the Resources Agency, Ms. Berghausen held executive and management positions in program and financial management with the State Water Resources Control Board, the California Department of Food and Agriculture, the California Prison Industry Authority, and the California Trade and Commerce Agency. Ms. Berghausen graduated Phi Beta Kappa from San Diego State University. LISA C. RODRIGUEZ Lisa C. Rodriguez is a member of The Gualco Group, Inc.'s governmental relations team. For more then ten years, Ms. Rodriguez served as the Firm's legislative associate. Within that role, Ms. Rodriguez was responsible for maintaining the client legislative system and website, organizing and maintaining bill files, providing direct assistance to the Firm's professionals, and coordinating client projects. Prior to joining The Gualco Group, Inc., Ms. Rodriguez served as a legislative assistant in the California Legislature. During her time with the State Assembly she managed legislative activities, as well as, everyday Capitol operations. Ms. Rodriguez began her career in politics serving as an intem working directly with consultants on the Assembly Elections, Reapportionment and Constitutional Amendments Committee. Ms. Rodriguez received a Bachelor of Arts degree in Political Science from California State University, Sacramento and is currently working on her certificate in Business Administration with Market Specialization from the University of California, Davis. D. METHODOLOGY AND APPROACH TO SCOPE OF WORK As the attached "Profiles" attest to, our Firm's legislative advocates represent decades of experience in government relations services in California. This combined experience will be drawn on everyday on your behalf. Specifically, we will review each Assembly and Senate bill introduced, and monitor amendments to bills, for any impact on the District. We will also monitor California's regulatory and administrative processes to identify potential actions affecting your interests. This work is supplemented by frequent contact with Governor Schwarzenegger's staff, legislators and their staff, key staff of primary policy and fiscal committees, and contacts within relevant State agencies. Moreover, conversations with colleagues at the Association of California Water Agencies, California Special Districts Association, California Municipal Utilities Association,' League of California Cities, California State Association of Counties, and lobbyists for individual cities, counties and special districts regularly occur. This contact is essential in order to obtain early notice regarding political and policy developments that may or will affect your interests. You will immediately receive via e -mail copies of any bill, or administrative action that potentially impacts your interests. Our Firm makes use of state- of- the-art technology to accurately and effectively report to our clients in a "time sensitive" manner, including a sophisticated legislative tracking system that District officials and staff could access from their desktops. Once the District's position on a legislative and /or regulatory matter is taken, we will initiate all the necessary and appropriate actions to advocate the interests of the District, These actions will include, but may not be limited to: (1) formal written correspondence, (2) lobbying of the author of the bill and his /her staff; (3) lobbying legislators and staff of the policy and fiscal committees with jurisdiction; (4) meetings with the governor's office, State agencies, and other interest groups represented at the Capitol; (5) presenting oral testimony on t'ne bill at committee hearings We leave "no stones unturned" in our efforts to represent our clients. We do not move forward on a legislative or regulatory matter without first achieving a thorough understanding of the problem, the full array of issues involved in it, and pro /con arguments associated with the bill or administrative proceeding at hand. From this base of knowledge we then frame the optimal and alternate solutions. It is at that point that we start to build the case and to frame the explanatory material that we will use throughout the process. We view it as a team effort that should include the client's policy, technical, legal, and public relations personnel. Selection of a bill author is a primary and critical consideration. We are always sensitive to seniority, placement, assignments, strengths, weaknesses, and prowess as an author before approaching the person(s) selected in consultation with our client. Prior to the initial entreaty to the possible author we frame a briefing packet that provides the arguments for and against the bill, the likely lineup of support and opposition, and whether any legislation on the subject has been considered by the Legislature in prior sessions, Once an author accepts the bill, we then work to ensure that the Member and staff are fully prepared. We offer to write committee background materials, committee author's statements, and Floor statements. We also publish materials and position letters on behalf of our clients that reach the target audiences in the Legislature well before hearings and floor votes. We always strive to ensure that the author and staff are kept fully apprised of developments on the bill in the Capitol, in the district, the press, the Administration, and among key special interest organizations, We place a special emphasis on working closely with committee and caucus staffs. We treat the majority and minority staff with equal respect and provide them with thorough briefings and background materials. There is no doubt that if you inquired of the caucus and committee staffs as to our thorough activities that you would receive a very encouraging set of responses. We likewise include the Administration in the process from the outset, To us it makes little sense to pursue a bill or attempt to solve a problem without obtaining some initial read from the Governor's Office, the key Cabinet agency in question, and the relevant departments, most notably the Deparimeni of Finance, given its 'preeminent position in the legislative and g!belmdorlal signature process. Ii, as is the usual case, we receive no firm: signal, then we work t'hroug! you Y e process To ensure ThC': Tile r,.dminlslra+io' is consulTcd and briefed -very Sfcct clod g the way. Because most of Governor Schwarzenegger's staff gained invaluable experience in prior positions in previous Administrations or in and around the Capitol, we have established very good personal and professional relationships with them. We have also cultivated our relationships with the Capitol Press Corps. We are sought out for background information on a whole set of matters because the press corps knows that we will provide accurate and concise policy and political information. We always speak off of the record unless specifically authorized to go on the record by our client. We far prefer to let our client(s) be quoted in the press while we continue to do the in -the- trenches work in the Capitol and with the agencies, In short, in the wake of term limits we have seen our method of a comprehensive approach to problem solving prove quite successful. We do not rely on a small circle of inside relationships. No, instead we prepare the best possible case and environment for our clients and then set out to present the best - framed arguments case to the Administration, legislators, and staff who expect nothing less than the best and most accurate case from our entire staff. Meetings: Our Firm is located two blocks west of the State Capitol. Equipped with two conference rooms capable of seating at least twelve people in each, we frequently are the locale for meetings with legislators and administrators and their staffs and meetings with other lobbyists and coalitions. It would be a logical and easy extension of our services to prepare briefing materials and arrange, coordinate and attend meetings between key State policymakers, interest group representatives and East Valley Water District officials e Conferences, Presentations, Speeches: We will attend and participate in government or network activities and meetings on the District's behalf and when, of course, you request us to do so Reports: As a standard of performing our services, we have always utilized the best available technology to make the timeliest reports to our clients. This, of course, will include the wr iten updates, alerts and analyses on Issues Of importance to the District Including periodic Sumi- Arles on Iegsio -live and reguiaion/ events relaied 10 the Distri -t S orlorl i ieS 0 e Board Meetings: When requested, we will attend District Board meetings to answer questions or concerns and /or discuss pending legislative and regulatory matters 0 J E. CONFLICTS OF INTEREST, PROPRIETARY INFORMATION Conflicts of Interest Because clients are naturally concerned about not receiving the full measure of aggressive advocacy promised due to conflicting directives to us from other clients, we have developed an acute understanding and appreciation for even the potential for a conflict to arise, First, we would not have submitted this response if any actual or apparent, direct or indirect conflict exists. We anticipate that in the unlikely event a conflict does arise we would consult with the affected clients and fully disclose - he potential for conflict. We would explore either a conflict waiver if the matter is not deemed to be significant or arrange to find alternate representation for the specific matter. F. REFERENCES Mr. Robert Luckey Manager, Government and Regulatory Affairs Imperial Irrigation District 333 East Barioni Blvd. Imperial, CA 92251 (760) 339 -9785 E -mail: rk)luckev @iid,com Mr. Steve Kronick Attorney at Law Bartkiewicz, Kronick & Shanahan 1011 Twenty Second Street, Suite 100 Sacramento, CA. 95816 -4994 (916) 446 -4254 E -mail: sak @bkslawfirm.com Mr. Randy Van Gelder Assistant General Manager San Bernardino Valley Municipal Water District P.O. Box 5906 San Bernardino, CA 92412 -5906 (909) 387 -9218 E -mail: randvv @sbvmwd.com O. FEE PROPOSAL AND HOURLY BILLABLE RATES Subject to further specificity and guidelines if selected, we propose a monthly retainer of $6,000 not including any time expended on your matters by Senior Advisor Elaine Berghausen. Her time will be billed at her usual and ordinary rate of $260.00 per hour. In addition, your monthly invoices will include claims for reimbursement of usual and ordinary expenses, to be billed at cost. ,.iv'v- t'v..,,��{e: �;t;.._3+£..? r Er h�y��ie 0, F,i<,w J. .ir:- siv�,.�FSrY�i^'k. -a x'. .�• t.. y: -..._ Group, Inc. Clients Currently Registered For Government Relations Representation or For Which We Provide Consulting Services AES PACIFIC, INC. AGRICULTURAL COUNCIL OF CALIFORNIA ALAMEDA COUNTY FLOOD CONTROL AND WATER CONSERVATION DISTRICT -ZONE 7 ALLSCRIPTS, INC. AMADOR WATER AGENCY CALIFORNIA ASSOCIATION OF PEST CONTROL ADVISERS CALIFORNIA ASSOCIATION OF WINEGRAPE GROWERS CALIFORNIA ASSOCIATION OF ZOOS AND AQUARIUMS CALIFORNIA CONSTRUCTION AND INDUSTRIAL MATERIALS ASSOCIATION CALIFORNIA COUNCIL FOR ENVIRONMENTAL AND ECONOMIC BALANCE CAN MANUFACTURERS INSTITUTE CITY OF SANTA CRUZ COLUSA BASIN DRAINAGE DISTRICT COVANTA ENERGY GLENN- COLUSA IRRIGATION DISTRICT HI- DESERT WATER DISTRICT IMPERIAL IRRIGATION DISTRICT KERN COUNTY WATER AGENCY KINGS RIVER CONSERVATION DISTRICT KINGS RIVER WATER ASSOCIATION MODESTO IRRIGATION DISTRICT NAPA COUNTY FLOOD CONTROL AND WATER CONSERVATION DISTRICT SACRAMENTO AREA FLOOD CONTROL AGENCY SAN BERNA'RDINO VALLEY MUNICIPAL WATER DISTRICT SAN GABRIEL BASIN WATER QUALITY AUTHORITY SAN JOAQUIN VALLEY DRAINAGE AUTHORITY SAN LUIS & DELTA- MENDOTA WATER AUTHORITY SCIENTIFIC GAMES INTERNATIONAL, INC. SOLANO COUNTY WATER AGENCY UPPER SAN GABRIEL VALLEY MUNICIPAL WATER DISTRICT WEST HILLS COMMUNITY COLLEGE DISTRICT THE ZOOLOGICAL SOCIETY OF SAN DIEGO --- _-_ .- Erg, - -. 0 Memorandum To: Bob Martin, General Manager From: Ron Buchwald, District Engineer Z cl jb, C�7 Date: 9/6/2007 Re: Request for easement at Plant 146 Church Street and Greenspbt Road The District recently received a request for an easement for a trash enclosure to be installed on the District's property located at Church Street and Greenspot Road. The Developer is building an office building on the property adjacent to the District's plant site. The request is based on the Developer's concern for customers or staff using the office building to see the trash enclosure as they pull into the driveway to the parking lot. By moving the trash enclosure against the District's wall (a distance of approximately 7 feet), the Developer believes the trash enclosure would be less visible (please refer to the attached letter). Staff is not sure they agree with this assumption. Easements are a legal and increasingly more challenging to grant and process. Although the trash enclosure will be a brick wall, they still are relatively easy to demolish and relocate upon different ownership or something similar. In other words, the effort to grant an easement is not commensurate with the nature of the request. Easements are not generally granted for trash enclosures but more permanent structures such as utilities, roads and buildings of a more lasting nature. I recommend that the Board deny the developer's request. Staff has notified the Developer of our recommendation and has offered to continue to work with the Developer to work out other alternatives to this request. The Developer agreed to work with us in a neighborly fashion. However, he requested that his easement request be forwarded to the Board for their review and action. 0 EASEMENT REQUEST From : Jae K Kim, the owner of the adjacent property of the well pump located in Highland. To: East Valley Water District Properly APN: 1201- 431 -60 -0000 (Water Pump between 5`s St and Church St in Highland). Easement Description: The trash inclosure being between 51ft and 35 ft from north property line in the east side of the existing wall. Description of Desired Improvements and Intended Use: 16ft width x 6ft depth trash inclosure. Reason and Explanation: As I have presented to Mr. Ronald Buchwald and Mr. Eliseo Ochoa on Friday, August 24, in our present architectural drawing, we plan to put 6 ft high walls (the new wall hereafter) and .a trash inclosure (the inclosure hereafter) along our boundary line as shown in Exhibit A. In this case, the trees and bushes will remain between the new wall and the existing water district wall (the existing wall hereafter). This is not the best solution because the trees and landscaping between the two walls does not look fitting in the boundary area. Also, there will be some difficulties such as maintaining the trees and bushes as well as trash accumulation between the two walls. We have considered eliminating the new wall. However, the inclosure standing alone 6-7ft away from the existing wall looks like an isolated island in the parking lot as seen in Exhibit B. Furthermore, when customers enter the parking lot, they shall see this trash structure standing alone and could have degraded feelings. In general, people expect a trash inclosure standing against some supportive wall. In order to avoid this isolated structure, our architecture designed to put a wall behind the inclosure to provide: customers with a more comfortable environment.. As an alternative solution, we can move the inclosure closer to the existing wall and put curves & gutters on the property line as seen in Exhibit C. In this case, we can solve our problems mentioned above and the water district can easily maintain the existing landscaping area. We ask the water district to consider this situation and to give us an easement for the inclosure. Since we have a plan to submit our final plan to the city in near future, please let us know the district's decision as soon as possible. If you have any questions, please contact me. My address and phone number: 7951E-1; w an&— Ave. =11105, Ran-I c Cucamonga, CA 91739 909' 899-147'c. Thank you, Jae K. Kim 0 \ §� j ƒ} % f] / / \ ] ! §� kk % 7 / \ ] ! ° k � \ � \ §m3 U]) It k)* §� kk % 7 / � ^� ] ! a k I § � \\ � 22 (a/ � \\ �)2 k)) !° ƒI\ j � / q \ / 7 / / ) ! � \ ƒ \ k I § � \\ � 22 (a/ � \\ �)2 k)) !° ƒI\ j � / q \ / L) § > ■■ 2§ © >k k�e§ fz� §§�_- k2§ k LU 04 k % ( d \ ( § rn��N #,# 0 «,,n,r�n#N0 � ¥ / ei\§/ e.=2= o_ / / / \/ zCC. Z3 2 /i\ 4±k ƒkkk / / E - n 0 m & R \ e \ NI a N �I O N f� C7 O (C N in ¢ 34 cr LLI !' ch Y o 0 cV 0 J Z ,> a � IH V) co W O N r t- In 1� It r C9 Ce) ® I CV r N M r r rj' M tf) h 0 0 N N 1 LL [[ < M-1 U J O w w j L6 DCi L1� r` Q --J LL <2-»< 0 02 o i- A Non Profit RIVERSIDE NATIONAL CEMETERY 501(c)(3) Organization SUPPORT COMMITTEE TAX ID # 33- 0722700 P.O. Box 7519 Board Members Redlands, California 92375 (909) 957 -3982 Paul Adkins Chairman Website: mcsc.org .Alta Marlyn Vice Chairman Tom Hohmann Secretary Mike Warren Treasurer August 2, 2007 COL. Lewis L. Millett Sr. East Valley Water District U.S. Army (ret) Attn: Justine Hendricksen Congressional Medal of 3654 East Highland Avenue, Suite 18 Honor Highland, California 92346 Nina McCoy Adkins Dear Friends at East Valley Water District, Cindy Allen Gladys Baie Our Veterans and Loved Ones greatly appreciate your generous donation to the non - Tommy Blackshear profit Riverside National Cemetery Support Committee. Sue Coggins Bonnie Gachupin This Field of Honor proudly serves the Veterans of Riverside, San Bernardino, Los Tom Gibbons Angeles, Orange and San Diego Counties. Your support of our mission provides that SgtMaj Guenther Griebau those who proudly... in defense of our Nation and freedom will not be forgotten. USMC Jeannie Gushwa WithThe utmost gratitude... thank you for standing with us. Joe Loera Fay Kilbride Steve Mackey Sincer y, Elayne Mackey Dorothy Paracratz Joseph Sanchez F'a& Adkins Marty Schlocker Chairman Rosemary Schlocker Pat Smith Please retain the following information for your tax records. Riverside National Mary Spangler Cemetery Support Committee is a 501(c)(3) nonprofit corporation. Naomi Stephens James Valdez Amount Received: 100 cases of Bottled Water Check Reference: goods or services Representing Project Specified: Cemetery Beautification & Enhancement American Ex- Prisoners of War, Veterans of Foreign Wars, T1:eAmerican We provided no goods or services in consideration for the above mentioned gift. Legion, Sons& Daughters in Therefore, the entire amount is tax deductible as a charitable contribution. Touch, Native Daughters of the Golden West, Vietnam Veterans of America, Daughters of the .American Revolmion, Fleet Reserve, Society ofMllitary Widows Cold Star Wives of America and Sons of the American Legion o Save I e Dale Jack H. Brown Chairman and Chief Executive Officer Stater Bros'. Markets IS PLEASED TO ANNOUNCE THE /Z ,klfbon Cutting C&mon,# & Open Maude Ce"Pation COMMEMORATING OUR New Corporate Offices and a Preview ofAmerica!s Largest Under-One-Roof Supermarket Distribution Center 301 South Tippecanoe Avenue a San Bernardino, Cafifomia 92408 Wednesday, October 24, 2007 4:30 p.m - 7-30 p.m. For more information call (909) 783-5038 A forma( invitation with Stater Bros. Public Relations Department details will follow soon.