HomeMy WebLinkAboutAgenda Packet - EVWD Board of Directors - 10/28/2008~ , EastO/aliey
~~- Vi/ater District
365413IGHLAND AVE., SUITE #12, HIGHLAND, CA
SPEC:[~L T30ARI7 MEETING October 28, 2008 230 P.M.
AGENDA
---------•...-------------------------------------------------------------
"In order to comply with legal requirements for posting of agenda, only those items filed witli the
District Secretary by 10:00 a.m. on Wednesday prior to the following Tuesday meeting not requiring
depart~nental investigation, will be considered by the Board of Directors".
----------•-------------------------------------------------------------
CALI, '1'O OF~ER
PI.EDGr OF ALLEGIANCE
P'ublic Comments
2. Approval of Agenda
CONSENT'CALENDAR
3. P.pproval of Special Board Meeting Minutes for October 14, 2008
4. Accounts Payable Disbursements: Accounts Payabie Checks 216767 through 216941 were
distributed October 10, 2008 through October 22, 2008 in the amount of $563,293.43. Payroll
Checks for period ending September 30, 2008 and October 10, 2008 and included checks and
direct deposits, in the amount of $ 7,934.45 and $175,164.42. Total Disbursements for the
period were $746,39230
5. Review and Approval of General Manager's Expense Report
OI.D ~BiJSIN]ESS
6. IIeadquarters Project Review and Update
7. Lliscusszon and possible action regarding the general session at ACWA's fall conference and
clc;sif;nating a delegate to vote on behalf of East Va11ey Water District
8. Review of the DistricYs 2008/2009 Capital Improvement Program, Budget and Rate Proposals
). l~iscu.ssion and possibie action regarding annual meeting and election of Directors for the
.Sssociation of the San Bernazdino County Special Districts
I Q. Discussion and possible action regarding the Districts Identity Theft Prevention Program
l 1. Discussion and possible action regarding the Second Amendment to the East Valley Water
]~istrict Water Services Agreement (WSA) Weli #107 between East Va11ey Water Districl and
13asin Water, Inc.
12. Itesolution 2008.21 - A Resolution of the Board of Directors of the East Valley Water District
Amending its Contract Procedures
TbA;P6~]~.TS
13. Review and accept the Quarterly Investment Report for the period ended September 30, 2008
14. Cleneral Manager/Staff Reports
15, Consultants Reports
16. Committee Reports:
a. Legislative - (Standing)
b. Budget - (Standing)
c. Public Outreach - (Standing)
d. ~Ieadquarters Committee - (Ad-Hoc)
17. ~i•al corrunents from Board of Directors
18. Li;tter to the District from Ca1PERS regarding CaIPERS investments during the recent market
downtiun
19. LPtter of appreciation to James Morales for attending the grand opening of the Colonel Joseph
C. Rodr:iguez Prep Academy and for donating bottled water for the event
20. Letter from 7vlelody McDonald (Water Conservation District) regarding a briefing on the critical
iniport~ice of water supplies, conservation and political concerns in the community, October
2.h~' or DTovember 6~', 2008
21. President Albert Karnig and the WRI (Water Resources Institute) 7`~ Annual Lifetime
A.chievement in Water Resources Awards Banquet, California State University San Bernazdino,
Nove;m.ber 15~', 2008
C)L0:9]±:D SESSION
7.1. CONFERENCE WITH REAL PROPERTY NEGOTIATOR
~:Government Code Section 54956.8]
]?roperiy:
Parry v~7th whom the District will negotiate:
~'arty who will be negotiating on behalf of the District:
lJnder Negotiation:
22+/- Acres of Vacant Land
North of Third Street, East of
Sterling Ave, South of 5~' Street
San Bernazdino County,
State of California
APN(s): 1192-241-O1, 1192-231-O1
IVDA
Robert Martin/Jim Cimino
Price and Terms of Payment
23. C;ONPERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
Significant exposure to litigation pursuant to Government Code Section 54956.9(b)
One Potential Case
A,DJOURIW
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Pursuant to Government Code Section 54954.2(a), any request for a disability-related modification or
ar,coxnmodation, including awciliary aids or services, that is sought in order to participate in the above-
agendizf;d puUlic meeting should be directed to the District's Administrative Manager at (909) 885-
4900 at least 'll hours prior to said meeting.
Subjec;t to approval:
Ef4ST VALLEY WATER DISTRICT OCTOBER 14, 2008
SPECIAL BOAR.D MEETING
MINUTES
Vice President Wilson called the meeting to order at 8:30 a.m. Director LeVesque led the
flag salute.
1'RESENT: Directors Le Vesque, Morales, Sturgeon, Wilson
ABSENT: Goodin
;iTAFF~: Robert Martin, General Manager; Brian Tompkins, Chief Financial
Officer; Ronald Buchwald, District Engineer; Justine Hendricksen,
Administrative Manager
I,EGAL COiJNSEL: Steve Kennedy
CiUES"C(s): Charles Roberts (Highland Community News), Evelyn You (CDM),
Dick Corneilie (CDM)
1~UBI,IC PARTICIPATION
Vice I'resident Wilson deciared the public participation section of the meeting open at 8:31
a.m. 'I'here being no written or verbal comments, the public participation section was closed.
~1.PPROVAL OF SEPTEMBER 23, 2008 BOARD MEETING MINUTES
M/S/C (LeVesque-Sturgeon) that the September 23, 2008 Board Meeting Minutes be
approved as submitted.
ID~ISBTJRSF,MENTS
M/S/C (I,eVesque-Sturgeon) that General Fund Disbursements #216473 through
216766 distributed during the period of September 19, 2008 through October 8, 2008 in the
amount of $1,340,985.88 and Payroll Fund Disbursements for the period ended September
2~, 2.008 in the amount of $176,952.11 totaling $1,517,937.99 be approved.
IrE`~IIEW AND APPROVAL OF GENERAL MANAGER'S EXPENSE REPORT
M/S/C (LeVesque-Sturgeon) that the General Manager's expense report be approved.
Special Meeting Minutes: 10/14/08 jph
DgI2~CTOR'S FEES AND EXPENSES FOR SEPTEMBER 2008, were presented to the
Board for approval.
M/S/C (LeVesque-Morales) that the Director's Fees and Expenses for September
2008 be approved as submitted.
1DI~CUSSION AND POSSIBLE ACTION REGARDING AUTHORIZATION TO BID
'TBiE ACQUISITION OF A SUBMERGED OR PRESSURE MEMBAANE
1FI}:,T'I2ATION SYSTEM FOR PLANT 134
'Che .rreneral Manager reviewed the specifications and proposal requirements to bid the
f ltration system for Plant 134 with the Board.
M/S/C (LeVesque-Sturgeon) that Board approve the authorization to bid the
acquisition of a Submerged or Pressure Membrane Filtration System for Plant 134.
])ISCUSSION AND POSSIBLE ACTION REGARDING AWARD OF BID FOR THE
f~'Q~R'I'H FORK CANAL RELOCATION PROJECT (PHASE In
"I'he Cieneral Manager stated that there were twelve bidders for the project; that the bids were
Iower than the Engineer's original estimates; that CDM has reviewed the bids and paperwork
:>ubrnitted by the apparent low bidder, E.J. Meyer Company; that E.J. Meyer Company has
submitted the necessary paperwork and based on their review CDM recommends that East
~~alley Water District award the contract for the construction of the North Fork Canal
17elocation Phase II Project to E.J. Meyer Company.
M/S/C (LeVesque-Morales) that the cbnstruction contract for the North Fork Canal
IZelocation Project (Phase II) be awarded to E.J. Meyer Company.
]7ISCUSSION AND POSSIBLE ACTION REGARDING THE CANCELING OR
1:ESC:I3EDULING OF TAE NOVEMBER i1TH, 2008 BOARD MEETING
M/S/C (Sturgeon-LeVesque) that the November 11`h, 2008 Board meeting be
canceled.
(:.ENE]RAL MANAGER / STAFF REPORTS
"]'he General Manager reported on the District's operations to date; that the DistricYs Water
(1uality Conference commences today.
Mr. Tompkins stated that Federal Trade Commission (FTC) published an Identity Theft Red
I'lag R.ule and is requiring all utilities to develop an Identity Theft Prevention Program to be
irnplernented by November 1, 2008; that the District learned of the Rule eleven days ago;
2 Special Meeting Minutes: 10/14/08 jph
that he will have an Identity Theft Program to present to the Board at the next meeting on
October 28, 2008.
Direc:tor Morales voiced his concern regarding the DistricYs process of online payments and
how this program would interact with that process.
~ORA.I, COMMENTS FROM BOARD OF DIRECTORS
:~irector Sturgeon stated that evwd.org is not accessing the District's web site; that the Clean
'Vehir,le Expo is in Ontario this week; that he and Director Morales attended the grand
opening of the Colonel Joseph C. Rodriguez Prep Academy.
Director Morales recently attended a session regarding water supply challenges; that a fact
sheet for the District would be beneficial at events; that the District's website needs to be
reviewed for typographical errors.
Vice President Wilson is looking forward to the DistricYs Water Quality Conference.
AI-JOURN
The meeting was adjourned at 8:55 a.m. until the next regularly scheduled Board Meeting on
<)ctober 28, 2008.
Donald D. Goodin, President
]Etoberk E. Martin, Secretary
3 Special Meeting Minutes: 10/14/08 jph
~,
i
, : ' East~'afley
~a~ ~ ~~.ter° ~istric~
Boa~rd Memorandum
Fr~~rn: Brian W. Tompkins / Chief Finan~iai Officer
~
Sdi~Ueat: Disbursements.
R~~c~xnm~~ndation:
Ap~~rove the attached list of accounts payable checks and
payroll issued during the period October 10, 2008 through
OcYOber 22, 2008.
Date: October 28, 2008
Beiclcgvo~und:
Acc:ounts payable checks are shown on the attached listing and include numbers 216767 to 216941 for
A tott~l of $;i63,293.43.
ThE~ source of funds for this amount is as foliows:
Unre;>tricte<i Funds $563,293.43
Pa~~roll disbursed was for the period ended October 10, 2008 and included checks and direct deposits
Totaling $ 175,164.42.
Dir~~ctor payroli disbursed was for the period ended September 30, 2008 and included checks and
dir-r.ci: depusits for a total of $7,934.45
Total disbur•sements $746,392.30.
Uate:
' Wednesday, October 22, 200P
Water District
East Valle Page: 1 of 4
l
ime: 10:55AM y Report: 20600.rpt
User: I(ATHY Check Reqister - Standard Company: EVWD
As of: 10/22/2008
E3ank Ac<wunt: Citizens Business Bank
~' 13110 00-00-000-0•000-00-00
(::hecl< ~I Tn Check Payee Clear Period
Mbr Tp Tp Date ID Payee Name Date Post Amount
000001 ~ 216766 Missing
2167G7 AP CK 10/10/200E SOU007 SOUTHERN CALIFORNIA EDI 04-OB 1,592.9'L
2t67G7 AP VC 10/20/200f SOU007 SOUTHERN CALIFORNIA EDi 04-OB -1,592.9'L
216768 AP CK 10/15/200f ADM001 ADMIRAI WEST,LLC 04-OB 6,382.Oi3
216769 AP CK 10/15/200f ADP002 ADP 04-08 463.4!d
216770 AP CK 10/15/200f ADV001 ADVANCED TELEMETRY SYt 04-OB 6,647.63
216771 AP CK 10/15/200E AIR005 AIRGAS WEST 10/21/2008 04-08 69.1!i
216772 AP CK 10/15/200£ AME019 AMERIPRIDE UNIFORM SER` 04-08 t,671.3Ei
216T73 AP CK 10/15/200f ATT00~ AT&T 04-08 23.7Q
216TT4 AP CK 10/15/200f BA1015 BAILOR-LES 10/21/2008 04-08 7682!i
216T/5 AP CK 10/15/200f BAT002 BATTEEN-JOHN W 10/21/2008 04-08 4,855.00
216T7"o AP CK 10/75/200f BIL005 GROUP INC-BILL SANTORO 04-08 ~ 96.9!3
21671/ AP CK 10/15/200f BON013 JOSEPH E BONAD~MAN 04-08 4,790.00
2167'78 AP CK 10/15/200f BRA046 BRADLEY-CECIL B 04-08 49.813
216T79 AP CK 10/15/200f CAL096 CAL PACIFIC PROPERTIES O4-08 94.5!i
2167t30 AP CK 10/15/200f CAM004 CAMP DRESSER & MCKEE IP 04-08 4,000.00
2167t37 AP CK 10/15/200E CHA064 CHAVEZ^LUCRECIA 04-08 312.69
2167II2 AP CK 10/15/200f COA003 COAST & COUNTRY REAL Et 10/21/2008 04-08 370.1h
2167E33 AP CK 10/15/200E COU025 COUNTY OF SAN BERNARDI 04-08 2,135.6D
2167F34 AP CK 10/15/200f COV010 COVARRUBIAS-DANIEL 04-08 86.67
2167A5 AP CK 10/15/200f DIB001 DIB'S SAFE & LOCK SERVICE 04-08 164.11i
2167E36 AP CK 10/15/200f DUR002 DURAN-SYLVIA 04-OB 39.5:i
2167E37 AP CK 10/15/200E ESB001 E.S. BABCOCK & SONS, INC 04-OB 577.Op
2167f3F! AP CK 10/15/200E FAC002 FACULTY PHYSICIANS AND ~ 10/20/2008 04-08 1,500.00
216789 AP CK 10/15/200E GAR109 CARCIA-GAMALIEL 04-OB 1.82
216750 AP CK 10/15/200E GEL001 GELLER~ALLEN 04-08 31.63
2167<.11 AP CK 10N5/200f GEN007 GENUINE PARTS COMPANY 04-OB 1,039.51
276797_ AP CK t0/15/200f GOK002 GOKEY-DONNA 10/21/2008 04-OB 33.77
216793 AP CK 10/15/200f GON077 GONZALEZ-JAVIER 04-OB 34.47
216792 AP CK 10/15/200f HUB001 HUB CONSTRUCTION SPEC~ 10/21/2008 04-08 9121i
216795 AP CK 10/15/200f HYD001 HYDRO-SCAPE PROD. INC. 10/21/2008 04-08 912.4p
216796 AP CK 10/15/200E INL004 INLAND DESERT SECURITY 04-08 359.6p
27679"7 AP CK 10/15/200f INL005 INLAND WATER WORKS SUF 10/21/2008 04-OB 65,055.2!i
276796 AP CK 10/15/200f INT005 INTERSTATE BATTERY 04-08 307.39
216799 AP CK 10/15/200f JOH069 JOHNSON-BRENDA 04-OS 54.13
21680U AP CK 10/15/200f JRF001 J.R. FREEMAN CO., INC 04-OS 70.1!i
216801 AP CK 10/15/200E KAT001 KATZ LANDSCAPING 04-08 1,700.OQ
21680? AP CK 10/15/200f KIN020 KING-DEION 10/21/2008 04-08 67.38
2168(13 AP CK 10/15/200F LOU003 CHECK-LOUIE 10/21/2008 04-08 410.Op
216802 AP CK 10N5/200f MAC027 MACAULAY-CHRISTOPHER 04-OS 57.33
21680:i AP CK 10/15/200£ MCM002 MCMASTER-CARR 04-08 178.04
21680G AP CK 10l15/200f MIL001 MILOBEDZKI~JACEK 04-08 1,300.Oa
21660'7 AP CK 10/15/200E M00009 MOORE-MICHAEL B 10/21/2008 04-08 118.73
21680H AP CK 10/15/200E M00029 MOON-LINDA 10/21/2008 04-OS 35.213
216809 AP CK 10/15/200E PAM001 MGMT-PAMA 10/21/2008 04-08 352.7!i
216810 AP CK 10/15/200E POM002 POMA DISTRIBUTING CO 10/21/2008 04-08 853.7i3
21681'i AP CK 10/15/200E PRU004 REAL EST-PRUDENTIAL SIG 10/21/2008 04-08 83.3d
216812 AP CK 10/15/200E REF001 REFUSE DEPT CITY OF S B 04-OS 1,513.07
216813 AP CK 10/15/200E RMA001 RMA GROUP 04-OS 657.5p
21681~t AP CK 10l15/200E ROQ001 ROQUET PAVING 04-08 10,449.313
21681> AP CK 10l15/200f SAN009 SAN BERNARDINO^CITY OF 04-08 3,864.00
21681ti AP CK 10/15/200f SHI006 SHIDLER DEVELOPMENT IN( 04-08 55.54
216817 AP CK 10/15/200E SITY001 SITYPTYCKI-RAYMOND 10/20/2008 04-08 720.00
2'168173 AP CK 10/15/200f SOC003 SO CAL PUMP & WELL SER~ 10/21/2008 04•OB 2,781.OF1
2'1681!3 AP CK 10/15/200f SOC004 SO CAl EDISON COMPANY 04-08 262,867.3;5
2'16820 AP CK 10/15f200E SPA008 SPARKS-JASON 04-OS 81.5f3
21682'I AP CK 10/15/200E TEE001 TEEL-JEFF 04-08 79.OA
2'16822 AP CK t0/15/200E THE018 THEISEN-ANDREW T 10/21/2008 04-08 254.99
[7ate: Wetlnestlay, OCtObef 22, 200E
iime: ~10:55AIN
User ICATHY
fsank Account Citizens Business Bank
• Page:
East Valley Water District Report:
Check Reaister - Standard Company:
As of: 10/22/2008
13110 00-00-000-0-000-00-00 2 of 4
20600.rpt
EVWD
Chedc Ji Tn Check Payee Clear Period
Pdbr Tp Tp Date ID Payee Name Date Post Amount
2168'l.3 AP CK 10/15/200E TRE002 TREASURER-TAX COLLECT( 04-OB 362.9fi
2168?.4 AP CK 10/15/200£UCN001 UCN/PAYMENTCENTER#54 10/21/200804-08 934.1l3
216675 AP CK 10/15/200E UHL001 UHL-ROY 04-OB 59.7;5
2168'lo AP CK 10/15/200E UNI002 UN~TED PARCEL SERVICE 10/21/2008 04-OS 17.Oq
216827 AP CK 10/15l200E USA006 USA MOBILITY WIRELESS, I~ 04-08 178.43
21682t3 AP CK 10/15/200E VAL058 VALUE HOME LOAN INC 04-OB 5024
2168'1.9 AP CK 10/15/200E VER004 VERIZON CALIFORNIA 10/21/2008 04-OB 92.67
216830 AP CK 10/15/200E VIS002 VISTA PAINTS 10/21/2008 04-08 578.39
2168;11 AP CK t0/15/200E VUL001 VULCAN MATERIALS COMPF 10/20/2008 04-OS 857.5A
216832 AP CK 10/15/200E W00023 WOOD^MARY 04-OS 320.00
216833 AP CK 10/15/200E ZAR008 ZARAGOZA-MARIA 04-08 60.2A
27683h AP CK 10/15/200E ZEE001 ZEE MEDICAL INC. 04-OB 94.74
216835 Missing
216836 AP CK 10/15l200f CIT018 CITISTREET 04-OB 8,375.50
21683'7 AP CK 10/15/200E EAS003 East Valley Water District 10/21/2008 04-OB 400.00
216838 Missing
216839 AP CK 10/15/200f SAN007 SAN BDNO PUBLIC EMPLOYI 04-OB 677.7ii
216840 AP CK 10/15/200f STA055 STATE DISBURSEMENT UNI' 04-08 1,027.00
2168a1 AP CK 10/15/200f UN1023 United States Treasury 04-OB 100.00
21684? AP CK 10/15/200f ARR009 ARROWHEAD UNITED WAY 04-08 105.00
216843 AP CK 10/15/200E EAS003 East Valley Water District 10/21/2008 04-08 672.50
216842 AP CK 10/20/200f SOU007 SOUTHERN CALIFORNIA EDI 04-08 1,592.9;i
216845 AP CK 10/22/200E ADP002 ADP 04-08 5892;i
216841i AP CK 10/22/200f ADV006 ADVANCED MISS~ON GLASS O4-08 141.54
21684'7 AP CK 10/22/200f ADV012 ADVANTAGE MAILING 04-08 5,190.8'I
2168473 AP CK 10/22/200f ALV045 ALVAREZ-MODESTO 04-OB 30.5'I
216849 AP CK 10/22/200E AME001 AMERICAN EXPRESS 04-OB 591.91i
276850 AP CK 10/22/200E AME026 AMERIGAS 04-OS 91.63
216851 AP CK 10/22/200f ASS006 ASSOC OF CALIF WATER A6 04-08 18,122.50
21685? AP CK 10/22/200f ATT007 ATRT 04-08 1,085.07
21665:i AP CK 10/22/200f BAR074 BARRY'S SECURITY SERVIC 04-08 3,593.94
216654 AP CK 10/22/200f BAS009 BASIN WATER 04-OB 9,724.00
21685> AP CK 10/22/200f BAV001 BAVCO APPARATUS AND VP 04-OB 1,012.73
21685f> AP CK 10/22/200f BLU002 REAITY-BLUESTONE 04-OB 57.65
276857 AP CK 10/22/200f BRU001 BRUNICK, MCELHANEY & BE 04-08 5,200.00
2168513 AP CK 10/22/200E CAL095 ESTATE SERV-CAL~FORNIA 04-OB 8.40
27685!a AP CK 10/22/200E CAM039 CAMACHO-ESMERALDA 04-OB 4.58
216860 AP CK 10/22/200E CEN009 CENTURY 21 LOIS LAUER RE 04-08 60.81
21666'I AP CK 10/22/200E CHE007 CHEM-TECH INTERNATIONA 04-08 4,518.87
21686'l. AP CK 10/22/200E CIS007 CISNEROS-BLANCA 04-08 14.37
21686:5 AP CK 10/22/200E COA003 COAST & COU(JTRY REAL Et 04-08 478.67
2168Ed AP CK 10/22/200E COU004 COURTNEY'S ELECTRIC, INC 04-OB 724.OG
21686!i AP CK 10/22/200E DEC011 DECOND-MEVLIN J 04-OB 41.33
2~6861i AP CK 10/22/200E DHL001 DHL EXPRESS (USA) INC. 04-OS 47.61
216867 AP CK 10/22/200E DIBDOt DIB'S SAFE & LOCK SERVICI 04-OB 1,704.2A
21666i3 AP CK 10/22/200E DIE004 DIEHL-JEFF 04-OB 6.50
21686!a AP CK 10/22/200E DONOOt DONEGAN TREE SERVICE 04-OB 1,020.00
2168%D AP CK 10/22/200E DUR002 DURAN^SYLVIA 04-08 50.65
21687'I AP CK 10/22/200f EAS002 EAST HIGHLANDS RANCH 04-OB 32.00
21687:? AP CK 10/22/200f EQU004 REALTY^EQUITY PLUS O4-08 104.75
216873 AP CK 10/22/200E ESB001 E.S. BABCOCK & SONS, INC 04-08 14,000.00
216674 AP CK 10/22/200E EVE001 EVERSOFT, INC 04-08 147.75
21667!i AP CK 10/22/200E FA1002 FAIRVIEW FORD SALES,INC 04-08 51.73
21687Ei AP CK 10/22/200f FER009 FERGUSON ENTERPRISES I 04-OS 629.2fi
2'168TI AP CK 10/22/200E FI0004 FIORETf'I-MARIAH 04-08 156.01
21687t2 AP CK 10l22/200£ FIR008 FIRST AMERICAN CORELOG 04-08 315.00
2168753 AP CK 10/22/200E FON007 FONTAINE-LOUIS O4-08 57.5!3
216880 AP CK 10/22/200E FRA026 FRANKS FENCE & SUPPLY C 04-08 390.09
Uate:
"I"ime: Wednestlay, October 22, 200E
10:55AM East Valle Water District
y Page: 3 ot 4
Report: 20600.rpt
I.lser: KAl'HY Check Reaister - Standard Company: EVWD
As of: 10/22/2008
Bank Account:
-- Citizens Business Bank 13110 00-00-000-0-000-00-00
Check ~~ 7n Check Payee Clear Periotl __
P7br Tp Tp Date ID Payee Name Date Post Amount
216881 AP CK 10/22/200f GA6001 GABRIEL EQUIPMENT CO 04-OS 333.31i
'216887_ AP CK 10/22/200E GEL001 GELLER-ALLEN 04•08 90.7.5
216883 AP CK 10/22/200E GEN007 GENUINE PARTS COMPANY 04-08 70.3ii
216884 AP CK 10/22/200E G01001 GOINS JANITORIA~ SERVICE 04-08 2,390.09
216885 AP CK 10/22/200f GRA049 GRANTLEY-BRUCE E 04-08 74.80
216886 AP CK 10/22/200E HIG023 CARWASH-HIGHLAND HANC 04-OS 361.72
216887 AP CK 10/22/200E HIL025 REAL ESTATE-HILL TOP 04-08 159.58
216886 AP CK 10/22/200E H0005 HO-PAUL 04•08 1823
216869 AP CK 10/22/200f HUB001 HUB CONSTRUCTION SPECI 04-08 917.3'7
216890 AP CK 10/22/200f IMB002 IMBERT-FRANK 04-08 55.45
2168'.d1 AP CK 10/22/200f INL005 INLAND WATER WORKS SUt 04-08 27,825.33
216892 AP CK 10/22/200E JOR004 JORDAN-OLIN 04-08 50.44
276893 AP CK 10/22l200E JRF001 J.R. FREEMAN CO., INC 04-08 282.5.5
216894 AP CK 10/22/200f KRE002 OCCASIONS INC-KREATIVE 04-OB 90.41
2168~35 AP CK 10/22/200f LAY007 LAY~HAN HENG 04-OS 67.61i
21689G AP CK 10/22/200f LEE028 CORPOR4TION-LEE WAYNE 04-08 1,135.11i
2168~37 AP CK 10/22/200f LES002 LESLIE'S POOL SUPPLIES, It 04-OS 38.2!3
216898 AP CK 10/22/200E LOV006 DEVELOPEMENT-LOVE 04-OB 100.00
216899 AP CK 10/22/200£ MAC023 MACAULAY^CHRIS 04-OB 32.6!i
216900 AP CK 10/22/200E MAL001 MALCOM ENTERPRISES 04-OB 3,781.80
2169U1 AP CK 10/22/200f MAR005 MARTIN-ROBERT E 04-OB 632.123
216902 AP CK 10/22/200f MAT012 MATICH CORP 04-OS 1,339.6:i
216903 AP CK 10/22/200f MOR082 MORRISON-RITAA 04-OS 53.9:i
216902 AP CK 10/22/200f NGU064 NGUYEN-MAI XUAN 04-OS 482;i
21690:i AP CK 10/22/200E OFF007 OFFICETEAM 04-OS 3,342.00
216906 AP CK 10/22/200f ONL001 ONLINE RESOURCES CORP~ 04-OS 37.40
216907 AP CK 10/22/200f ONL002 ONLINE RESOURCES CORP~ 04-OB 57.47
21690t3 AP CK 10/22/20Df PAC028 PACIFIC TRUCK EQUIPMENI 04-OS 496.9E3
216909 AP CK 10/22/200f PAM001 MGMT-PAMA 04-OB 364.4!3
2'16910 AP CK 10/22/200E PAT023 PATEL-JOYSHNA 04-OS 47.93
21691 i AP CK 10/22/200f PER081 PEREZ-JESUS O4-08 90.7fi
276912 AP CK 10/22/200£ PLU002 PLUS 1 PERFORMANCE 04-08 566.01
216913 AP CK 10/22/200f PRU004 REAL EST-PRUDENTIAL SIG 04-08 326.65
216914 AP CK t 0/22/200F PUL003 PULLTARPS MFG 04-OB 258.353
27691:i AP CK 10/22/200f QWE001 QWEST 04-OB 28.4e1
21691fi AP CK 10/22/200f REA013 SERVICES-REALPRO REO 04-OS 90.50
216917 AP CK 10/22/200E REG003 REGENCY REALTORS O4-08 70.61
2'1691l7 AP CK 10/22/200E ROQ001 ROQUET PAVING 04-OB 8,454.92
2'169153 AP CK 10/22/200f ROU002 ROUNSVILLE'S AUTO BODY 04-OB 862',i
27692tl AP CK 10/22/200E SAF001 SAFETY KLEEN CORP 04-OS 213.43
2'1692'i AP CK 10/22/200f SAF003 SAF-T-FlO 04-08 5532Ei
2'1692'l. AP CK 10/22/200f SAN009 SAN BERNARDINO^CITY OF 04-08 t,5012fS
2'16922i AP CK 10/22/200F SEN001 SENTRY-TECH SYSTEMS, L. 04-08 2,915.Otl
2'1692~i AP CK 10/27/200f SHI019 SHIRK^~HEATHER 04-OS 3.3A
2'1692',i AP CK 10/22/200E SIS003 SISENGLATH-VINAY 04-08 30.Oft
21692E~ AP CK 70/22/200E SOC002 SO CAL GAS COMPANY 04-OS 38.32
21692% AP CK 70/22/200E SOC003 SO CAL PUMP & WEIL SER~ 04-OS 25,465.Otl
25692E~ AP CK 70/22/200f TAN003 TANZY-JERRY 04-08 155.61
21692E~ AP CK 10/22/200E TEE001 TEEL-JEFF 04-08 20.4n
216930 AP CK 10/21./200f THE027 THE MPSN PROPERTIES LP 04-08 72.65
216931 AP CK 10/22/200f UHL001 UHL-ROY 04-OB 3?_.65
216932 AP CK 10/22/200f UN1002 UNITED PARCEL SERVICE 04-OB 17.00
216932 AP CK 10/27./200f UNI021 UNITED SITE SERVICES OF ~ 04-OS 232.06
2'16934 AP CK 10/22/200E UTI001 UTILITY SUPPLY OF AMERIC 04-08 406.64~
216935 AP CK tp/22/200fVAS025 VASQUEZ~RICARDOG 04-08 83.66
216936 AP CK 10/22/200E VER004 VERIZON CALIFORNIA 04-08 43.99
216937 AP CK 10/22/200E VIS002 VISTA PAINTS 04-OS 502.62
216938 AP CK 10/22/200£ WAR013 WARD-DON 04-OB 57.85
Date: Wednecday, October 22, 200e
7ime: i0:55AM
User: ICATHY
Bank Acwunt: Citizens Business Bank East Valle Water District
y
Check Reqister - Standard
As of: 10/22/2008
13110 00-00•000•0-000-00-00 Page:
Report:
Company: 4 of 4
20600.rpt
EVWD
Checfc ~_ ~~ Tn Check Payee Clear Period
Mbr Tp Tp Oate ID Payee Name Date Post Amount
216939 AP CK 10/22/200f WiL099 WILLIAMS^BARRY 04-08 33.0'l.
216940 AP CK 10/22/200f WIL100 WILLETT-VITAM 04-08 48.42
216941 AP CK 10/22/200f WIR003 WIRELESS WATCHDOG, LLC 04-08 'L52.0(I
CheckCount 174 BankAccountTOWI 563,293.A3
Count Amount Paitl
Regular 173 564,886.35
Hand 0 0.00
Void 1 -1,592.92
Stub 0 0.00
Zero 0 0.00
Mask 0 0.00
Outstanding 0 0.00
Unusetl 0 O.OD
174 563,293.43
~'
a ; , East`~a(I~~
a~ ' ; ~ater ~is~,rict
~+ BiaRirdl Memarandum DATE: October 28, 2008 ~
F'r'~m: Brian W. Tompkins / Chief Financial Officer
Sialaject: General Manager's Expenses. ~
%'
F3i;c:ommendation:
Approve tYie attached list of payments and reimbursements
for Caeneral Manager expenses during the period October
10, :?008 through October 22 ,2008.
Bsiekgraund:
Business and Travei expenses incurred by the General Manager and paid during the reporting period
sti~~ulated above totaled $1089.44 .
A summary of theses expenses by authorized payment methods follows:
American Ex ress - R Martin 457.26
American Ex ress - J Hendricksen
CalCard - R Martin
CalCard - J Hendricksen
CalCard - E Bateman
Direct Reimbursement 632.18
Total 1089.44
Association of California Water Agencies
Leaclersiiip Advo:acy Inforn,ation Since1910
~~(~[~~~~D
MEMORANDUM O~"Y 2 n ;:::.::;
=.:. ~ Ulst~e~
DATE: October 16, 2008
TO: ACWA Public Agency Members
General Managers and Board Members
FROM: Glen Peterson, ACWA President
Paul Kelley, ACWA Vice President
SUBJECT: General Session at ACWA Fall Conference
There will be a General Session meeting of the ACWA membership at the 2008 Fall
Conference in Long Beach, California, on Wednesday, December 3. The purpose of this
meeting is to conduct a vote by the membership on a proposed amendment to the Bylaws,
approved by the ACWA Board of Directors on July 25. The General Session will convene
imrnediately preceding the Wednesday luncheon program.
The proposed Bylaw amendment is attached hereto. The Bylaw amendment provides for
elevation of the Legal Affairs Committee from regulaz committee to standing committee
status. The principai significance of this change is to place the chair of this Committee on
the ACWA Boazd of Directors. The change in status of this Committee will be
permanent, unless subsequently changed by a vote of the membership.
The Legal Affairs Committee deals with relatively frequent appellate court matters which
result in the Association's name going on amicus curiae briefs filed at all levels of federal
and state appellate courts (and occasionally in trial courts). On occasion, the Committee
has had the leadership role for the Association in dealing with regulatory agencies such as
the S WRCB and the EPA, or acted in a coordinating role with other ACWA committees
for such activities. Between the Wanger decisions, the continuing stream of important
appellate cases related to Association and member agency goals and objectives, the high
level of activity on critical policy matters at the SWRCB, and a host of other important
subjects, the Legal Affairs Committee in general and its Chairperson in particulaz, could
play a valuable role as an active member of the Board.
The Board of Directors recommends adoption of this Bylaw amendment through a vote of
the membership.
In ozder to expedite the sign-in process of the voting delegates from each agency, we
would like to get those names prior to the meering. Each member agency may designate
one individual to cast the vote on behalf of the agency. Please have the enclosed form
Associa4ion of California Water Agencies 970 K Street, Suite 100, Sacramento, California 958743577 916/441-4545 Fnx 916/325~4849
Hafl of fhe 54ates 400 N. Capitol St., N.W., Suite 357 South, Washin~ton, D.C. 20001-7512 202/434-4760 vnx 202/434-4763
ACWA Public Agency Members
General Managers and Board Members
October 16, 2008
Page 2
signed by the individual who will be attending the General Session and voting on
behalf of your agency and return it by fax (916-554-2350) or email
(donnauna,acwa.com) at your earliest convenience. If there is a last minute change of
delegate, please let us know before the meeting date by contacting ACWA's Executive
Assistant, Donna Pangborn, at 916-441-4545 or donnap@acwa.com. She will see that you
receive a new form. If necessary, completed forms can be hand-carried to the conference.
However, in order to vote, this form must be on file with ACWA prior to the Wednesday,
Der,ember 3, General Session.
If you have any quesrions, do not hesitate to cali.
TQ:dgp
Enclosures:
1. General Membership Session Agenda, December 3, 2008
2. General Membership Session Minutes, November 29, 2007
3. Proposed Bylaw Amendment
4. Proxy Form
cc: ACWA Boazd of Directors
Association of California Water Agencies
Leadership Advocacy Information Since 7910
GENERAL MEMBERSHIP SESSION
Wednesday, DecemBer 3, 2008
Long Beach Convention and Entertainment Center
Promenade Ballroom
During Luncheon Program: Noon - 2:00 p.m.
Long Beach, California
AGENDA
Call to Order
Glen Peterson
II. Approval of Minutes of November 29, 2007 (attached) Glen Peterson
III. Proposed Bylaw Amendment Tim Quinn
IV. Other Business
V. Adjourn
Association of California Water Agencies
Leadership Advocacy Intormation Srnce 1970
GENERAL MEMBERSHIP SESSION
Thursday, November 29, 2007
Conference Center, Indian Wells Ballroom I-M
During Luncheon Program: 92:15 - 2:15 p.m.
Indian Wells, California
MINUTES
ACWA President Randy Fiorini called the meeting to order at 12:55 p.m.
M/S/C; Approved the minutes of November 28, 2007, as presented.
President Fiorini declared Glen Peterson the President and congratulated him on his election.
President Fiorini declared Paul Kelley the Vice President and congratulated him on his elecrion.
President Piorini passed the gavel to incoming President Glen Peterson.
ACWA Executive Director Timothy Quinn recognized the 2006-2007 ACWA Board of
Direr,tors and thanked them for their dedicated services to the Association.
There being no other business to come before the General Membership, the meeting was
adjowned at 1:05 p.m.
Respectfully submitted,
Domia G. Pangborn
A(:VJA Executive AssistanbClerk of the Board
Article VII
Cli~alification for Membership on ACWA's Standing and Regular Committees
Sec~tion 1. In order to serve on any ACWA standing or regular committee, an individual
must be an employee, director or other representative duly designated by a public
agency to represent that agency.
Standing Committees
S~ction 2. Communications Committee. There shall be a Communications
Comrnittee whose dury it shall be to develop and make recommendations to the Board
of Directors regarding a comprehensive internal and external communications program
for the Association and to promote development of sound public information and
educ:ation programs and practices among member agencies. The committee shall
consi ~t of no more than 40 individuals. Of that number, at least one individual shall be
from E;ach region.
Section 3. Energy Committee. There shall be an Energy Committee whose duty it
shall f>e to recommend policies and programs to the Board of Directors and to the State
Legislative Committee and/or Federal Affairs Committee as appropriate. The committee
shall c;onsist of at least one representative from each region.
Sectian 4. Federai Affairs Committee. There shall be a Federal Affairs Committee
who:~e; duty it shall be to review all federal legislative proposals and regulatory
praposals affecting Association members, after consulting with other appropriate
committees, and to develop Association positions consistent with existing policy, where
it has been established; recommend sponsorship of bills which will resolve problems or
improve conditions for Association member agencies and assist in the establishment of
the ~ssociation's federal legislative program. The committee shall consist of at ieast one
and no more than five individuais from each region.
~ectinn 5. Finance Committee. There shall be a Finance Committee whose duty it
~shall be to make recommendations to the Board of Directors regarding annual budgets,
~3ues formula and schedules and other revenue producing income, annual audit and
selec:tion of an auditor and investment strategies. The committee shail consist of the
,ACWA President and Vice President as ex officio members, the Finance Committee
~,hair, one; member of the board from each of ACWA's ten regions (either chair or vice
chair) ancl one additional representative from each region with experience in financial
mattESrs.
Section 6. Groundwater Committee. There shall be a Groundwater Committee
~nrho~~e: duty it shall be to recommend policies and programs to the Board of Directors
.~nd to the Stat~ Legislative Committee and/or Federal Affairs Committee as
appropriate. The committee shall consist of at least one representative from each
regicm.
Section 7. Insurance and Personnel Committee. There shall be an Insurance and
Personnel Committee whose duty it shall be to review, on a regular basis, ai~ group
insurance program offerings, make recommendations to the Board of Directors
regarding annual contract renewal of all group employee benefit plans, retirement
issues, and other personnel and administrative issues pertinent to the management of
member agencies. The committee shall consist of at least one and no more than two
individuals from each region; at least one from each region must represent an agency
enrolled in multiple plan offerings through the Association.
with requests for assistance involvinq leqal matters of siqnificance to ACWA member
a_.).c encies, includinq but not limited to state and federal court litiqation, water riqhts
matters, selected requlatorv and resources agencv matters, proposed ACWA bvlaw
revisions review of leqislation as reauested bv the State Le4islative Committee. etc.
The Committee shall consider matters and issues submitted to it in order to determine
!Committee believes ACWA should take with respect thereto. The Committee shall be
r~omnosed of beiween 35 and 45 attornevs, each of whom shall be. or act as. counsel
for an ACWA member aqencv, rearesentina diverse interests within the Association
includincl but not limited to, different qeoaraphical areas throu4hout the state, larqe and
ymaB a~encies aqricultural and urban acaencies, acaencies created under the various
enablinq statutes, etc. Further, the Committee shall have at least one attornev who
represents an aQencv located within each ACWA reqion.
:3ect6on 3. Local Government Committee. There shall be a Local Governmenfi
Committee whose duty it shall be to recommend policies to the State Legislative
~~omrriittee and Board of Directors on matters affecting water agencies as a segment of
local government in California. The committee shall consist of at least one and no more
1:han three individuals from each region.
yect6cin 10. State Legislative Committee. There shall be a State Legislative
Comrriittee whose duty it shall be to review all state legislative proposals affecting
Association members and to establish Association positions, consistent with existing
policy, where it has been estabiished; sponsor bills which will resolve problems or
improve conditions for Association member agencies and assist in the estabiishment of
the Association's legislative program. The committee shail consist of at least one and no
more than four individuals from each region. There shail be at least one persan
representing each of the following types of agencies: (a) California water districts; (b)
c;ounfy water districts; (c) irrigation districts; (d) municipal water districts. The
representatives of the above types of agencies shall be a part of representatives from
the rec~ions.
C3ylaw Amendment_LAC_Standing Committee_Nov2008.doc 2
~ection 11. Water Management Committee. There shall be a Water Management
Committee whose duty it shall be to recommend policy and programs to the Board of
Direc:tors on any area of concern in water management. The committee shali consist of
at least one and no more than four individuals from each region.
~ecti<~n 12. Water Quality Committee. There shall be a Water Quality Committee
whose; duty it shall be to develop and recommend Association policy, positions and
y~rogr~~ms to the Board of Directors, to promote cost effective state and federal water
quality regulations which protect the public heaith, to enable interested members to join
4ogether to develop and coordinate with other organizations, and to present unified
romments regarding agricultural and domestic water quality regulations. The committee
:shall <:onsist of at least one individual from each region.
Section 12. Appointment. The president shall appoint all committee members,
including the chair and vice chair thereof, after receiving recommendations from
members and regions.
Sectic>n 73. Term of Office. The term of office of standing committee chairs to the
13oard of Directors shall be two (2) years and shall commence on January 1 of the even-
numbered year following their appointment by the president and ratification by the then
:seated Board of Directors and shall terminate on December 31 of the odd-numbered
,year firoo (2) years later or until their successors are appointed and ratified.
~ection 15. Meetings. Meetings of standing committees, as well as all other
~appointed committees, may be called at such times and places designated by the
respe;c:tive chair thereof.
E3ylaw Amendment_LAC_Standing Committee_Nov2008.doc 3
FAX
ASSOCIATION OF CALIFORNIA WATER AGENCIES
PROXY FORM
ACWA GENERAL SESSION
WEDNESDAY, DECEMBER 3, 2008
AND, IF NECESSARY, THURSDAY, DECEMBER 4, 2008
TO: DONNA PANGBORN
FAX NUMBER: 916-554-2350
EMAIL: donnap@acwa.com
7'HE PERSON DESIGNATED BELOW WILL BE ATTENDING THE
A~CWA GENERAL SESSION ON WEDNESDAY, DECEMBER 3, 2008,
AND, IF NECESSARY, ON THURSDAY, DECEMBER 4, 2008, AS OUR
VOTING DELEGATE:
SIGNATURE OF DELEGATE:
PP~INTED NAME OF DELEGATE:
ArENCY:
TFiLEPHONE NUMBER:
F~X NUMBER:
E-MA,IL ADDRESS:
H:\GENERAL SESSIOMFaII_2008\Proxy Form.doc
11 October 2008
E:ast Valley Wa4er District
f~ttn: 13oard Secretary
F'. O. Box 3427
:yari Be>rnardino, CA 92413
f~e: Proposed Rate Increases
11Ve, th~ undersigned, do hereby protest the proposed water and sewer rate increase.
Y~he service address is
1Na4er District utility account number is ~
record.
Jack E nnings
~
~
the East Valley
, and we are the legal owners of
~'~~ ,~~,.~,..:,.~a~
Ellen J. ~enrnngs ~~
i
"~
, _._. /
From the desk of
Dr. John "Jay" Kulick, Sr
East Va11ey Water District
P. O. Box 3427
San Bernazdino, CA 92413
Dear Boazd:
Otv economy is in severe distress, our finances aze severely threatened, and our
immediate prospects look very bleak!
This is not the time to increase any debts to a household. Mbst aze finding it very
difficult to make ends meet as it is.
It would be my best suggestion that you make no attempt to increase the EV WD rate at
trus time.
It would behoove your company to wait until anther time, both for the general welfaze of
your customers, and for the overall good image of your company.
Very poor timing for this increase!!
~
Mary L. Kulick
October 4, 2008
To Whom It May Concern:
Please do not raise our water rates.
Th.ank you.
Sincerely,
VvV° ~
John and Linda Kim
~
tl~~ ~IigGaland ~apti~t Tempie ~
~~ --~
East Valley.Water District
F.O. Box 3427
San Bernardino, CA 92413
'I'o Whom It May Concern,
I am writing in regards to your proposed rate increase on water and sewer. 12 '/2 % is a
vea-y large increase since you just had an increase about one year ago. This is one of the
things that cause inflation. Everyone just keeps raising prices instead of holding the line.
Many people are seeing hard times seeing the country is in the condition it is. Many have
lost their jobs, and it is a burden on a11 of us of higher prices, especially on ones with
fixed incomes.
Your rates are already higher than other water districts. You are 20% higher than the city
of Redlands.
So I am definitely against a water.increase at this time.
Yours Sincerely,
~•~
Phil Coulter
We Preach the Word of God
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Sffi~ Bemard'u~o, CA 92413-3427 US Postage
PAIO
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SPECIAL NOTICE: SEPTEMBER 12, 2008
IPUFiI.,I(~ i~OTICE ItEQUTREMENT
Artirlf; ~~II:[D of the California Constitution requires that the District send notification
o~' a r~rap~sed rate increase to all owners and tenants of real property within the
l~istric;t's service area who would be directly liable to pay for water and/or sewer
servicf~ to the property at least 45 days prior to a public hearing at which adoption of
the ~~roposad rate increases will be considered. Thus, please be advised that tliis
d~cun~ient shall serve as formal notification that the District's Board of Directors wil]
holel a public hearing qn the proposed rate increases described herein on Thursdny,
(~ctotiea° ~b, 2008, at 6:00 p.m. in the City of Highland Council Chambers, 27215
~:~ B~agelime S~, Highland California. A copy of the proposed 2008-09 rate stud:ies
and Capital Improvement Plans, which are the basis for the proposed rate increases;
«nacJ..~I'~,r,? n}1¢a].ttnrl at thq Tlictrirl'~R.pi'~m]nicl'TaYt[~P nF~l~P . ... .,_ ~,
~o ~ s; ~yle -~a~;l y hov~eJ u~~ are fhe ou~~ers ~
~d ~- Josie ~urns
~= ~ G/ 9'~ li ~ g CCd (ln f" n u v.'1 ~r,t"
~~ ~ t.. ~- w~ y
~c~ ~ J~Si e, 13Urns ar~ r`~he O.ce~rrt'~.r df v~e~ard
3~
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y~ ~e ~ yl~ ~'h; .s ~i~c_~~ ~~~ s~ ~ ,
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'"¢~e~/~Pce ~ - .. h a ~~ a, f, ~~ cr~~ ~rc._s
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f~ au~ Gl fi l~ y ~.s i~ ~ m a/~P` /~C~'~,r~/`J~ ~/. ~!
, i, _~ D~ -f-~ ...1-L,v ii,~rs!/I://~ -~/`D/!O`0/i~ /J/(~~~~~` ~1.,
October 3, 2008
Thonias Grant _
Re: Rate Increase.
East: Valley Water District
365~f East Highland Ave., Suite 18
PO I3ox 3/i27
San Bernardino, Calif. 92413
Sir/Maam:
I am in receipt of an 8"xll" notice to all property owners; and tenants of
rea7. property; concerning a rate increase.
Fir:;t of All; It's Ludicrous, and unacceptable, that personnel responsible
witti East Valley Water District, are asking and expecting.; property owners,
and tenants of real property, in Highland, to bail you people out.
East: Va1:1ey Water District is responsible to put aside a portion of each
mont:hly water payment received; from the property owners, and tenants of'
real. property; for the purpose of refitting, and updating, All water sup-
ply, and drainage systems.
Second; $ased on the attendance, and letters received; the last time; dixe
to property owner, and tenants of real property empathy; It's my hope they
will. be more responsive in attendance; and with letters of opposition.
Howe~ver; With All Due Respect, Should the attendance, and letters of oppo-
siti.on, be about the same; IT IS MY HOPE YOU WILL ALLOW THOSE IN ATTEN-
DAN(:E, TO F.EPRESENT, AND SPEAK FOR THOSE UNABLE TO MAKE IT, DUE TO JOB RE-
OUIRf3MEN'PS, AND/OR FAMILY OBLIGATIONS.
I aei requesting a written response, on a letter head, dated, and with a
hancl. written signature. Thank you.
Re pectfully,
9,. ~~~~.-.-.~
Thomas J. Grant
USA RETIRED
_~'~~r~ `~
~
'V
a
October 3, 2008
Thorn<3s Grant
Re: Rata Increase.
East: Va.lley Water District
3654 East Highland Ave., Suite 18
PO 13ox 3427
San 23ernardino, Calif. 92413
Sir/Maam:
I am in receipt of an 8"xll" notice to all property owners; and tenants of'
rea7. property; concerning a rate increase.
Fir:;t of All; It's Ludicrous, and unacceptable, that personnel responsil>le
witti East Valley Water District, are asking and expecting.; property owners,
and t:enants of real property, in Highland, to bail you people out.
East. Va1:Ley Water District is responsible to put aside a portion of eacli
mont.hly water payment received; from the property owners, and tenants o£
real. property; fos the purpose of refitting, and updating, All water sup-
ply, and drainage systems.
Second; 13ased on the attendance, and letters received; the last time; due
to proper.ty owner, and tenants of real property empathy; It's my hope tliey
will. be more responsive in attendance; and with letters of opposition.
However; With All Due Respect, Should the attendance, and letters of oppo-
siti.on, 1>e about the same; IT IS MY HOPE YOU WILL ALLOW THOSE IN ATTT3N-
DANC-E, TO REPRESENT, AND SPEAK FOR THOSE UNABLE TO MAKE IT, DUE TO JUB 1tE-
QUIRE;MEN'CS, AND/OR FAMILY OBLIGATIONS.
I am requesting a written response, on a letter head, dated, and with a
hand wrii:cen signa~ure. 'I'hank you.
Respectfully, ~~Jj ,
l~` ti /~,c^2,~-u~..~ <J, . ~ 6-/,'LCi.ti ~.,~'
Thomas J. Grant
USA RETIRED
LETTER OF PROTEST OF PROPOSED RATE INCREASE OF-
THE EAST VALLEY WATER DISTRICT
October 13, 2008
Deaz Sirs;
I(Stephen D. McClure) and my wife (Dolores Aguilar) feel we must PROTEST the
PROPOSED WATER AND SEVYER RATE INCREASE of the EAST VALLEY
WATER DISTRICT.
Our Properry is located and described as:
East Valley Water District Account Number:
Sari Bernazdino County Tax Record Parcel Number:
As Retirees, living on "fixed incomes", with respect to the current states of the local,
State, and Federal Economies, plus with inflation added, we must PR01'EST this current
Proposed Sewer and Water Rate Increase.
My Wife and I depend upon our vegetable garden to supplement our "fixed income"
retirement monthly Food Budget. We feel that a Rate Increase at this time will place an
undue hardship upon us. Currently, every Public Utilitv in our azea is requesting Rate
Increases. We have lived at our home on ~ _ _ t for over 22 years. We
feel ANY Rate Increases in our Public Utilities (i.e. Sewer and Water) will have a
NL~"iA'S'IVE EFFECT upon ow LIFE STYLE and HEALTH.
PI,N:ASE DO NOT raise our Water and Sewer Rates at this time!
Sincerely,
Str,phen D. McClur~,,Q/: ri~~ ('~~v
/ ~
Dolores Aguilaz ~~.n.hn__~ ~ ~~~ /, ~
~
Px.wa~.•b
September 19, 2008
T;~: East Valley Water District / Attn.: Board Secretary
F'rom: Reuben Contaoi / Owner
Acct.. .
Fast Valley Water District:
I, Reuk>en Contaoi, am the owner of record of the above referenced property. I
heseby protest any proposed rate increases. Rates are high enouqh! Thank you.
Sincerely,
~~ ~'"",~/ ~
Reuben Contaoi
~~~~om~~~
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Septernber 19, 2008
€:ast Valley Water District
,~~ttn: ESOard Secretary
P.O. Box 34J7
'ian Bernardino, Ga 92413
I:>ear Sirs:
~~~~
~ (.~ ~ ~~~
-, St ~~I~ Y~stEr Ois4~i~
I,Ipan reading your recent letter regarding rate increases please keep in mind that the immediate future
~oes not bode well for the economy. in other words, incomes most likely will not be increasing and
1:imes could be difficult for some. Therefore, any improvements to the water delivery system should only
I~e made wich great deliberation and only when necessary.
'fhis brings me to the construction of a new District Headquarters. i recommend that this project be
tabled until a future date. I know it sounds great to have a brand new facility to work in but is this
<3bsolutely necessary? it think not at this time.
'fhank you fc
Sincerely,
I.arry Leonar
U
of this matter.
~
Michael M. Osbum
741'7 Lankershim Ave.
Hipl~land, CA 92346
12E: Protest to Water/Sewer Price Increase
'I'o: EV WD Board of Directors
REGEiMED
QAST VALIEY WATER 015T.
2008 SEP I 8 AM 8~ 39
September 16, 2008
T own and live at and own the property
at ' ,, where my son resides. I pay all
water/sewage for both addresses. I do not accept the proposed increases that aze proposed
For the following reasons.
1. Your letter/notice dated September 12, 2008 states that your reason for needing a
new facility because your current facility was deemed unhealthy in 2004 the way I
understand it. I believe that if the facility was unhealthy at the time you entered the
building, why did you lease it in the first place.
2. Is it not the responsibility of the land/building owner to insure that all health and
safety requirements are met and kept up to date through proper maintenance?
3. Highiand has grown considerably over the past 4 yeazs. East Highland now has new
home extending almost to the Green Spot Bridge. With the number of new homes
and business there should be more than enough monies going into the water district
coffers without raising the cost.
4. As a Highland resident sense 1974, I have seen very little as faz as improvements in
"old" Highland but East Highland seems to get more improvements a11 the time.
There was a notice sent out several years ago stating that the "city" would give the
property owner (providing he/she lived on that properiy for 5 yeazs) $5000 for
property improvement in "East Highiand" not in the older parts of Highland (where
home improvements are needed.
In closing, I protest any and all increases in my water/sewage costs.
~.~-,~~ -~---~
Michaei M. Osburn, MSgt, USAF, Ret.
James Pinder
East Valley Water District
Attn: Board Secretary
P.O. Box 3427
San Bernardino, CA 92413
To Whom It May Concern:
I am the owmer of record of the real property described above, with the corresponding
East Valley Water District account number.
I object to the proposed rate increase as described in the notice sent to my home on
September 17, 2008.
I will support a rate increase when it can be shown that the rate increase will stop the air
and sand in the water lines.
Regazds, ~
~ J ~
~~~i;<~. ~~<~
James Pinder
~
~ECEi1dED
FAST VALLEY WATER DiSi.
2008 SEP 19 AH 10~ ^~1
Phyllis Hodges
Attn: Boazd Secretary,
Sept.17, 2008
As a homeowner for the past six years, I have considered your rates very high compazed
to other azea rates. I previously lived in another azea of north San Bernazdino for 20
years azid never did pay the lazge fees I pay now, plus had fluee bathrooms and used my
dishwasher regulazly.
I think any increase in rates would make watering my yard a hardsiup. I already conserve
water in every way I can. I have placed bottles of water in my toilet tanks, do not take a
shower every day, do not use my dishwasher and only wash dishes once a day, I'm doing
everything I can inside to curb my water use. Plus I limit watering my yard to the bare
mutimwn.
I think this raise should be reeonsidered.
Ttiwk-you for your considerateon.
Sincerely ~
r /
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EastV~lleyl~at~~ "~s~'
t~ct:ober 2, 2008
~fo: Ea<.~t Water Valley District
Re: Proposed Ratelncrease
"fo Whom it may cnncern:
I am protesting the proposed rate increase for water and sewer for property owners and
t:enants of real property.
At your request:
f~ 1
# 2 I:nclosed is a copy of my September Utility Account Information
#13 My name is Harold T Wilson and 1 live at .
;incerely
~~~ ~~ ~ ~~~
liarold T Wilson
~
n...,..,-o
M~q~,Boyd Wilson
October 1, 2008
E;ast Valley Water District
Attn: Board Secretary
Box 3427
Dear Board Secretary and District Board of Directors:
~
~LS~~~ V ~~I
OCi i° 2 ~00~
--st ~lalley U~at~€ ~E«F~sf
My name is Boyd Wilson, and my wife (Lilly) and I live at
~. We have lived here for thirty four
years.
WE PROTEST THE PROPOSED RATE INCREASES.
First of a11, we wish to thank you for your excellent service
throughout the years. Your emphasis on water quality and
delivery is unexcelled.
Tre~a~s and plants provide the necessary oxygen for survival.
When we moved here in 1974 - at night we would cross Palm Avenue
on Highland Avenue and it would be ten to fifteen degrees cooler.
Development occurred - and trees and plants were replaced by
asuhalt, businesses and houses. More water was required and it
beczime more humid with less oxygen.
I called and was told that we have a 5/8 " meter. Our bill
woul.d go up about $25.00.
We rai.se fruit an~ vegetabies to help the poor at Mary's
Tabl.e on the West Side of San Bernardino.
Once again we protest the High rate increase.~
~
2
Rate increases favor those with 1", 1'z', 2', 6", and 8"
We have no sewer system on Atlantic Avenue - East
of Boulder.
Once again - my ad@ress is
__ My Account Number is __ __
Meter Number
.S/~in~cerely,
/~/cs~~ ~~ao~-'
Boyd Wilson
September 30, 2008
Faut Valley Wafer District
P.O. Box 3427
San Bemardino, CA 92413
District Secretazy:
77us letter is in response to the proposed inaease in rates for the East Valley Water District. Ow names aze
T7iomas and Jaz~e Slamer. We are the owners of the property at _
cusCOmer account .
W a oppose the increase in rates for several reasons:
1. VVe already had an increue in t6e last yeaz or so.
2. The rates are already unbelievably lilgh. Our monthly water bill is the highest of all ow utility bills, and
wt: don't waste water.
3. The economy cannot sustain another increase. Most people aze stretched to the limit in their budgets due
to job losses, extremely high rent or mortgages, and inflation that outpaces raises in income. It takes a lot of
nerr~e to propose a 12.5% increase in this economy, not to mention saddling our children with paying off a
$47,000,000 bond.
As all of us need to do at tlris time, we must assess our Snances and Snd ways to trim the budget in order to
meet our needs and pay the bills. I suggest ihat instead of building a new headquar[ers at this time when the
economy is so depressed, the district look for another place to lease and put off Uus expensive project until
the economy recovers.
In addition, use the federal funding available to work on the primary surface water intake pipeline.
Sometimes we can't do everythina we want all at once. If you don't have the money, do what you can with
what vou have.
As fbr updating technology and installing pipelines, prioritize and do what needs to be done immediately.
The fees for sewer treatment and maintenance and water system aze aiready so high. Frankly, we just can't
pay any more. Find other sources for funding. The consumers are already burdened to the limit.
Conc ed custome
C .~~ ~-~ ~~~~~/zJ
T6omas and Jane Slamer
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Linda Bossolono
October 3, 2008
Ea.st Valley Water District
A.ttn. Board Secretary
P.O. F3ox 3427
San Bernardino, CA. 92413
To Whom It May Concern:
I vvould like to respond to your request for a increase in my water
ra1:e. I am voting "NO" I do not want an increase in my water bill.
Than~C you in advance for your consideration in this matter.
Sincerely,
~1i
inda Bossolono
~~~~~d~~
OCT - 6 2008
=t Valiey Vt'atef B~St~6$
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QC~i' - 6 200fi
~.? Valley U~+ater Dis~a+t
~
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Do you remember those na
rices that Esst Valley Weter Dis-
hict sent out about a week ago~
Yes, theY want to raise our xates
agaizi. IL seems to me tlwt we
had a raise about a Year ago. I
don'2 imow about you, but my
/ ~ ~ ~
water bill is right up thane ~vith
ttte eleetric. I thumk it takes a loi
of nerve to ask for a 12S percent
increase az a time when the
economy lias just about ground
to a ha1t. The districi wants to
bnitd a brand new district,head-
quarters on aur money wtate ~cs
are ~xvggling to,pay the rent or
inortgage. dn top roP, that, they
want to saddle us with a$4? tqii-
$pn bond th8t we and our chil-
dren wIll be respoasible to pay
off. I vrge the residenYs of High-
]and and ali East Valley cus•
~
tomers to wrlte to Yhe clis2ricY
~d lei U~n know that we do
NOT want an ~p^e~se. AL the
bottom of that notice, ie says that
iE ¢nough people cvrite in Ya
pmtesk the Increat~e will not
happen. Pieese,~in :me m ~~rif-
m$ a pmtest. iCOZ~iy talce & rnu-
pl~ of min~rces .uid aIl yon heve
m do #s say `~ti~".'V/hetlzer ~t~e
get a iaist: in .rEtes or not de-
` jieOtlS on }Ait. W:;tef0: E65t V81-
lep VG'ater Disp,ict, Eita;. Board
SecretaiY, P.U:Ftox 3q27, San
,~~rear~im>, C.'~. 9247.3. It must
' be done bafore T ctober 30.
Jcute Stamer
,Highlond
~,S ~-`LC-`~c~0~~~ J'L~
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ocr - s zoo~
E2 '~'"eY Vlater Dis~t
,./~
F~~ ~~~
Do you remember those na
ticea thatEast Vailey Water Dis-
trlct sem ont about a week ago?
Yes, Yhey wanc m raise our rates
again. It seems to me that we
had a raise about a year ago. I
don't know about you; but my
cvater bill is righY up Ti~et+~ wi;h
the eleciric. T thimk ii takes a lot
of nerve to ask for a 12.5 percent
increase at a cime when the
economy has juat abouf ground
to a balt. The distript wants to
build a brapd new disu•u.K head-
quarters on out money while we
are struggling to pay the rent or
mortgage. On top of that, the"y
wanCto saddie us with a'$47 mfi-
lion bond t1~et we and om• chil-
dren w~71 be responsible to pas'
off. I urge the residents of Fiigh-
land snd all East Valley cus-
_ -- f
tomers to write Yo the districi
a~d Let tPiettt I~iww shat we do
NOT wan¢ ari ixcrease. A4 the
bottom of Yhat notice, it sftys that
if enoagh people write in to
protest, the 3nexease a~ill not
happen. P:(ease jtan me ia r.17t-
ing a protP.st: Tt ahlq take a wu-
yle of minutec ~~ all you have
ta do is 5aY `•~0°, tNhethez• we
get a~~ise in r~xes or not de-
t>ends on gaa. Wriie So: E~ rt Val-
ley ll~eter District, Attr,. Boerd
Sec.~~eTaty, P.~_~fl~ 3427, S2n
.~rnxrdinc, Cf, ~241^s. It must
~ be done before Octotrer 30.
Jane Slanter
HiBhl~tncf
i~~~~om~~
OCT - 6 2RQ8
e~ast ~21l~y Y~~ter Ulstief
l~ rl ~5 ~ ~~~ ~ ~L~l'~-
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.~-- -- -_ " water bill is ri~ht yp 1lisze wii6 tomers to write to the disu°ict
the elech~ic. T think it takes a lot and ic~. them tamw Yhae we do
of nerve to ask for a 12S percent NOT want an inere~se. At the
increase at a time when the hottom of chat notice,'rt says thaY
economy has just about grovnd ff enough people wriee in to
to a ha1G The district wants to protest, .the uic~^ease will noe
build a braqd new disFrict head- happen. l~ieasa josn me in uxit-
~~~ ~~~ guarters on our money white ive .:ing a pmtes:. TC otily take a cau-
Do you remember those no- ~~~~8 ~ PaY ~e rent or 'ple of winutes ,nd ap you }~at~e
tices that East Valiey Water Dis- ra6itgage. On top of that, theq to do is: stzy "Ii'fl". 19hethe:~ vse
trict sem out ubaut a cveetc a~o? want to saddle vs with a'$47 mil- get a ra9se in rz.t8s or aot cle-
Yes, they want to iaise aur rates 1~~ ~nd ihat we and our ciul- pends on l av. ti5'r fe tu: Easf Vai-
again. It seems to me tliat we ~'~. ~~ responsible to pap lep t4~Ater Dis~cict. Atu;. Tsoard
had a raiae aboui a.year ago• I o£f. x urge the residents of Fligh- Seuitary, Y.U.?;nx 3427, San
don't M~ow about yoo, but my land and all Fast VaRey cus- ,~rnai•dir!n, t;; 924:L3. Iz must
% be done before OCtober 30.
-- . ._ _ __._ -` . .
Jane Siamer
~iigh(an:?
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t~ !: . ~~ . .~ ~ ~ ~ . ~~~~od~~
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To the East Valley Water District:
We are asking EVWD to not increase the rates by 12.5% - with
what is going on with possibly the worst economic crisis in the
histc~ry of the United States, we think it best that the EVWD re-
evaluate the increase at this time.
Tom Clauson
Darla Ciauson
~[~~~UM~~
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a ~o"c ~~o` ~;~ ~'~m~~ ~~ _...r?e ~-'~
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S~~}ember 16, 2008
Laura L. Damell
[~[~~~~d~D
~p 2 2 1~0~
-^st Valley Vdater Disl~
E7s~+ Valley Wa+er Distric+
Af+n: Board Secre+ary
P. 0. 13ox 3427
San Bemardino, CA 92413
D~ar _Secre+ary:
I am a re~tired person on a fairly low fixed income. This ra~e increase
will m~ke i+ diff~cul+ for me and wil- make ~+ harder +o keep my yard looking
nice. There are no+ many yards on my sireet +ha+ look nice and my desire
is ~hat ( be able to mainf~in my yard's curren~ beaviy.
Ol~her exper,ses have increased greatly +h~s year, as you know: gas,
elec+ricify, food cos+s, and med~cal cos~s. ( have a chronic illness fhat
requires many doc+ors' visi~Fs and medication. Increasing +he water ra~Fe will
make i~ harder for me to +ake care of my medical needs, no~ ~Fo mention
b~ing able ~to buy adequa+e, nourishing food. I am feeling very pressed by
~hc~ raises in the cosF of everyFhing.
Please do no+ raise +he ra+es for seniors (those over 60 years of aqe),
so +ha+ we can cor,finue ~Fo manage somewhat adequately on much less
money. Th~nk you for your considera}ion.
Sir~cerely,
~=~c,c.~,~ti~ ~~~-~
Laura L. Damell
~
J~
EMPIRE MANAGEMENT GROUP
Septembez 17, 2008
East Valley Water District
Attn: Board Secxetary
PO Box 3427
San Bernardino, CA 92413
FoAowing rhis covex letter is a protest to the proposed rate incxease. We want to make
sure that this letter counts for 96 units. Please let me know if you have any questions ox
concexns. Thank you.
inr. A~
~~~~~~~~`~~ ll
Vanessa Wuestewald
Account Manager
~
EMPIRE MANAGEMENT GROUP
Septembex 15, 2008
East Valley Water District
Attn: Board Secxetaxy
PO Box 3427
San Bexnardino, CA 92413
Re: Pxotestto Proposed Rate Incxease
Please accept this written coxxespondence as a stxong opposition to the psoposed rate
incxease for the sexvice of watex to a Home Ownexs Association that I manage.
Cuttendy, we have five (5) accounts that sexvice the 96 units as follows:
Since we took ovex Management of this Association in Octobex, 2007, the total bill for
all five above xefexenced accounts has gone from $3,694.22 to $6,928.64 most xecendy.
This Association is in a blighted axea of Highland and opexates on a very restricted
budget. They provide water fox not only the entise common azea, but foz all of the
Residents within the community. A tate increase of 12.5% on 96 units and common
axea would definitely have detximental effects on the communiry, up to and including
possible failuxe to pxovide water service.
We have seaxched endless options to assist this community, such as city and county gsant
programs, etc. Unfoxtunately the Association was not able to qualify fox any assistance
thxough these options. Please take this community into considezation when considering
the xate incxease. Again, this could put o~ communiry in woxse condition that it akeady
is. I would be happy to pxovide you with a copy of oux budget fox your review if
necessary to show you whese we stand with xegaxds to finances.
If you have any questions ox concerns, I can be xeached at Thank you in
advance fox yo~ considexation.
~
S' x ly
Vanessa Wuestewald
Account Managex
~y~ ~
Bill Roth
Txeasu:__ _.__ ._
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Jolynne CMorgan
October 14, 2008
East Valley ~1Vater District
Attn: Board Secretary
P~ Box 3427
San Bernardino, CA 92413
This letter shall serve as a written protest to the proposed rate increase.
Property address:
Account Number:
Statement is enclosed.
Respectfixlly Yours,
lyn e C M rga
~ ~~
C
Octobar 10, 2008
Deaz Sir or Madam,
I recently received a newsletter regarding a proposed increase in your current water rates.
I'm writing to ask that you not do this at this time. With our sluggish economy I
understand the challenges that we aze all facing however, as a small business owner our
company has also felt the current economic pressures with a serious decline in business.
'I'his decline of course affects our ability to pay our personal obligations. Any increase in
any of our current utility bills would be a great hazdship for us and we implore you not to
raise rates at this time.
T'hank you,
~,xigela Ginter
~~~~o~~o
oc~ ~ ~ zooe
` "eu 6Ja
te; DisE~e~
October 12, 2008
East ~a2iey Water District
3654 Bast Aighland Ave. Suite 18
P.U. Box 3427
San Bernazdino, CA 92413
To Whom It May Concern:
I am writing to empharicalTy protest any rate mcrease proposed for Water/~ewer rates.
We are `owners' of 28 apartment units in the city of San Bemardino, 12 of which use
East VaTIey Water District suppiies. We pay for the water for alI our tenants, pIus
landscaping. Unlike a private home owner, we have no control over the amount of
water used by our tenants.
7 cannot teIl discribe how financially impacted we are at tTie present time with rising costs
for mortgages, management, utiliries, maintenance, advertising, licensing fees, ta~~es,
insurance and more. We aze having dif~icuIty keeping our units rented due to the
er,onomic downturn as our tenants are experiencing job lay-offs and hours cut. As it is,
our properties aren't worth their mortgages, we are in the negative at ttus time, and now
you want to raise our costs even more?
Please consider my protest. I lrnow I am not the only voice with this concern.
Siricera;ly,
(~~~%~~~ ~
CaroIe C. 7ewe11
Carlly Propezties
v_._--~
East Valley Water District October 14, 2008
Atin: Boazd Secretary
P.O. Box 3427
San Bernazdino, California 92413
Deaz Secretary,
']~us letter is being written to protest the pmposed rate increase of our water and sewer.
~ rate increase of 12.5% is lazge and difficult at any time, but in trris cwrent economy, it
is outrageous! We are both teachers and our sataries have had no increase since 2006.
We are actively doing what many other Americans are doing - cutting our expenses and
Eixtding ways to live within ow financial means. IYs not easy, but it can be done.
We own 8 rental properties in your jurisdiction and aze required to pay the water bill
wtien our tenants defauit (which we have had to do twice in the last month). Mercifully,
die; gas and electric companies have no such policies. The tenants are solely responsibie
to pay their own bills. Apparently, apartment owners aze not forced to pay the delinquent
bills of their tenants - including the water bill.
i7ie aridresses of our rental properties aze as foliows:
Companies ail across America are finding ways to cut their expenses and be more
producrive with their cunent resources. We ourselves have had to cut rents the past 2
m.onths, and eat the costs. We believe that the water district can do the saxne and that the
proposed rate increases are not the only way to address the current problem. Please
uti~ize the creativity of your employees and decide not to charge your customets the
acicGtional 12.5%. It is our belief tbat a decision to proceed with your current proposal
would be extremely hard for the people you serve. Such a decision would indicate that
the water company is indifferent to the cunent economic difficulties and is rigidly
unwilling to look for a creadve altemative plan.
We challenge you to devise a better pian that will accomplish reasonable goals and not
create more hardslup for the people who live in tlus azea.
Sincerely,
Dz. and. Mrs. Steve Kobernik ~
~~'%~ ~ ~
~
Wednf~sday, Or.tober'I5, 2008 1127 AM _ _, _ _
10/I S/2008
East Vailey Water District
RE: Proposed rate increases
Attn: Board Secretary,
1 am protesting this rate increases the bond issue, and the 12.5% and any other increases
that you want to pass on to the property owners. You know that we are in a recession
penple are losSng their homes, jobs, and theu life savings it time to help not make it
worse this is going to put an even hazder hardship on those of us who are just hanging on
by our teeth so to speak. And you just had a preriy good rate hike.
t I ~m the homeowner at I do live in my home and I am on a
fixed income my account
Sincerely,
~G6a ~ ~~` ~
Pamela Eisenhardt
~~~~~bC~D
l~C~ r ~ ~a~e
a,~e~ ~a~~~,~r~.~_F
",~~:
p.u~
~~~ Associat[on oi The
San Bernardlno County
i~i Speclal Dlstricts
October 20, 2008
Deaz Regular Member:
909.799.7407 / PIiONE
909.799.1438 / FAX
25864-K Business Center Drive, Rediands CA 92374
www.asb-csd.org
"fhe Annual Meeting and election of Directors will be held on November 17, 2008. The
13oard will have four (4) seats open.
1'or those interested in serving, please submit a letter with a one-page resume. A letter of
recommendation must accompany this from your Board stating they will also support their
c:andida.te financially allowing him/her to attend all meetings.
f~or your review, following aze excerpts from the Bylaws:
ARTICLE 11, Section 2
Voting Rights
]:iach Regular Member shall be entitled to one (1) vote on all matters brought before the
membeiship for vote.
ARTICLE 111, Section 1
Number and Term of Office
'['he Board of Directors of the Association shall consist of Seven (7) Directors. Each Director
e:lected shall hold office for a term of two (2) yeazs or untii the election or re-election of his
successor. It is the intent of the membership of the Association that Directors shali be elected
so as t~ reflect as broad a geographical and different classification of Special Districts as
possible.
ARTICLE 111, Section 2
Qualifications of Election
T.~irectoss shail be elected at the Annual Meeting of inembers. The Nominating Committee,
appointed pursuant to these Bylaws, shall submit the names of at least as many persons as
ttiere azf; positions open for the Board of Directors by the Annual Meeting in November.
Each regular member through its representative shall have the right to nominate candidates
fi•om the floor for the Board of Directors.
No person shall be eligible to be a Director unless such a person is an elected member of the
governing body of a Regular Member (in good standing/paid up).
The candidates receiving the most number of votes shall be e]ected as Directors. Voting shall
be done by written secret ballot at the Annual Meeting provided. However, if a quorum of
Regular Members is not present at the Annual meeting, voting shall be by mailed written
ballot, which shall be returned to the Secretary not later than fifteen (I S) days following the
date of flle Annual Meeting.
Nominations will be accepted from the floor at the November meeting; however, you must
have the letter of recommendation fran your Board available at that time.
Please submit your nominations prior to November I 0, 2008 to:
Kate Sykes
2S864-K Business Center Drive
Redlands, CA 92374
(909) 799-7407 X 100
E-mail: Kate.Sykes@ca.nacdnet.net
Thank you!
Nominating Committee
Mike Martin
Kathy Tie~s
Steve Copelan
Elaar<i PJlemorandum Date: October 28, 2008
F~j'o~m: E3rian Tompkins / CFO
~saf~ject: Red Flags Rules
Fil~a:ommenciation: Approve the attached Identity
TliE:ft Prevention Program for East Valley Water
Disi:rict
~a~r..kgroiand:
In ~lovember 2007, the Federal Trade Commission, federai bank regulatory agencies, and the Nationeil
Cre<iit Union Administration issued 'Red Flags rules' requiring financial institutions and creditors to
devriop and implement written Identity Theft Prevention Programs (ITPP) as part of the Fair arni
Acciirate Gredit Transactions Act of 2003. The new rules went unnoticed by most water agencies.
At the beginning of this month EVWD and other water utilities received a flurry of emails from ACWA
arid AWW,4 advising ihat most water agencies meet the definition of a creditor under the rules based
ori the fact that we require completion of an application to begin service, and then provide monthly
services which are billed for in arrears. The emails aiso advised that we (creditors) must have ari
Idcnt:ity Theft Prevention Program in place by November 1, 2008. Attached for your consideration anci
ap~xoval is East Valley Water DistricYs inaugural ITPP document.
The purpose of Identity Theft Prevention Programs established under the new rules is to identify ancl
heln to detect the relevant warning signs of identity theft, i.e., identify a person fraudulently attemptinc~
to open/access a credit account by using the identifying information of another person without
auth<~rization.
It i<.; not the purpose of the Red Flags rules and the DistricYs ITPP to protect a customer's personal
idei~tifying information - requirements for those protections under Electronic Funds Transfers (EFT)
ruie~s and i:he UCC have been in place for many years.
Staff believes that the concerns addressed by the new Red Flags rules are most relevant to retail store
ch~~ rc~e acr,ounts and credit card issuers, but have liitle relevance to the operations of East Valley Water
Dis~~rict. While drafting the ITPP, the only scenario we could think of is a squatter attempting to get
water service to the property they are occupying. We are aware of only one occurrence of this in the
last five years.
Nonetheles;>, it is a requirement that the District have an ITPP in place. The attached document is
ver~~ c;omprehensive with respect to the District's processes; therefore, we recommend its approval in
ordE1r for the District to be in compliance with the Red Flags rules on November 151.
IDENTITY THEFT
P1aEVENTION PROGRAM
Developed By and For:
EA.ST VALLEY WATER DISTRICT
Approval of the Initial Program Received From:
EVWD Board of Directors
On the Following Date:
October 28, 2008
Program Reviewed, Updated and Approved on:
7Cable of Contents
Part I• Assessment of Existing Business Practices Page 1
Part II. Tdentification of Red Flags Page 2
Part III. Detection of Red Flags Page 3
Pv't IV. Prevention and Mitigation Page 4
Pvt V. Progrun Administration Page 5
A. Staff Training Page 5
B. Program Review and Update Page 5
C. Program Approval and Adoption Page 5
D. Annual Reporting Page 6
E. Service Provider Oversight Page 6
P~rt I. Assessment of Existing Business Practices
The District has identified specific business processes associated with offering or
maintaining accounts that are areas of potential risk for identity theft. The business
prar,tices listed below are typical, and necessary, for most utilities that operate as retailers
or wholesalers of drinking water.
A. Eiast Valley Water District provides Customer Service personne] with the ability to
request and review a customer's personal identifying information when engaging
in any of the following activities:
1. Open new accounts;
2. Access existing accounts;
3. Modify existing accounts; and/or
4. Close existing accounts
E3. In the near future, the District may also provide customers with the ability to
perform one or more of the above actions independent of Customer Service
personnel (either through an automated phone system or online), and a customer's
personal identifying information is required to complete any of these activities:
Also, if the District has identified a past occurrence of identity theft that was linked to a
cusCOmer's utility account (an unauthorized opening, modifying or closing of an account),
then they must perform the acdons set forth in the following Program.
Pa~rt II. Identification of Red Flags
The District has identified the following items as potential Red F1ag sources or categories
that might indicate an instance of identity theft.
• Credit report (accessed only if customer wishes deposit to be waived) includes a
fraud or active duty alert, a notice of credit freeze and/or a notice of address
discrepancy.
+ Documents provided for identification appear to have been altered or forged.
• Photograph, physical description and/or other information on the identification is
not consistent with the appeazance of the person presenting the identification.
~ Information provided is inconsistent when compared against external information
sources (applicant name, or owner name provided on rental agreement does not
match county record of title holder).
~~ Information provided by the customer is inconsistent with other information
provided by the customer (name on driver's license and name on rental
agreement).
~ Information provided is associated with known fraudulent activity (address and/or
phone number on an application is the same as the address provided on a previous
fraudulent application).
~ Information provided is of a type commonly associated with fraudulent activity
(address on an application is fictitious and/or phone number is invalid).
~~ Address and/or telephone number provided is the same as or similaz to ones
provided by another customer.
~~ (:ustomer fails to provide all required personal identifying information on an
application or in response to notification that the application is incomplete.
~~ Customer cannot provide authenticating information beyond that which generally
would be available from a waliet or consumer report (escrow documents / rental
agreement).
~ Mail sent to the customer billing address is returned as undeliverable although
services continue to be udlized at the customer's service address.
• District is notified that the customer is not receiving paper account statements.
a District is notified that it has opened a fraudulent account for a person engaged in
identity theft.
P'art ][II. Detection of Red Flags
The following is a list of detection methods that East Valley Water District uses to
prevent identity theft.
• Require customers to present government-issued identification information to
open a new account. Types of necessary information include:
l. Name
2. Address
3. Phone number
4. Photo Identification
• Verify personal identification information using records on file with the District
or through a third-party source such as a consumer-reporting agency.
~ Independently contact the customer (in the case of phone or internet setup of new
utility accounts).
o When fielding a request to modify an existing account (such as a change of billing
address), verify identity of customer by requesting specific pieces of personal
identifying information (copy of driver's license with the new billing address)
~ If new banking information is provided for electronic payment of accounts, cross-
check ownership of the new banking account with the customer name on the
utility account by contacting the appropriate financial institution.
• For online or automated phone system access of utility account, require the
establishrnent of security questions or PINs during the initial set-up of the
account.
P~rt I'V. Prevention and Mitigation
Tn the event District personnei observe a Red F1ag associated with a new or existing
customer account, one of more of the following actions wil] be taken by the District to
rectify the situation:
~ The District will not open a new account (after review of the presented identifying
information and discussion with department supervisor)
For an existing account, the District may discontinue the services associated with
that account and/or:
1. Continue to monitor the account for evidence of identity theft and
contact the customer to discuss possible actions.
2. Change the passwords, security codes, or other security devices that
pernut phone or on-line access to an existing account.
3. Reopen an existing account with a new account number.
4. Close an existing account.
If the District has identified an instance of identity theft associated with an unpaid
account, the Disuict will not attempt to collect the balance from the propeny
owner.
• For all instances of suspected identity theft, the District will make every effor[ to
notify the property owner and provide them with all the relevant details associated
with the identity theft event.
For all instances of suspected or confirmed identity theft, the District will notify
loca] law enforcement (code comp]iance).
Part V. Program Administration
Program administration is an important part of the Identity Theft Prevention Program.
This section details the uaining requirements, annual program review, approval and
adoption process and annual reporting requirements that are associated with this Program.
A. Staff Training
Any employee with the ability to open a new account, or access/manage/ciose an existing
account will receive training on identifying and detecting Red Flags. They will also be
trained in the appropriate response actions in the event that an instance of identity theft is
suspected. Department heads and Supervisors in the Key management personnel in
appropriate departments will also receive training on the contents of this Program. As
necessary, employees will be re-trained annually if the Program is updated to include new
methods of identifying and detecting Red Flags, or if new response actions are
implemented.
B.1'rogram Ateview and Update
The District will review and update the Program annually to reflect changes in risks to
cusT.omers from identity theft based on factors such as:
• Experiences of the District with identity theft.
• Changes in methods of identity theft.
o~Changes in methods to detect, prevent, and mitigate identity theft.
e Changes in the t}pes of accounts that the District offers or maintains.
o Changes in the business arrangements of the District, including service provider
anangements.
Co ]Program Approval and Adoption
This Program has been reviewed and approved by the District's Board of Directors.
East Valley Water District's Board of Directors has designated the Chief Financial
Officer as Program Coordinator responsible for the oversight, development,
irnplementation and administration of the Program. Annually, the Program Coordinator
will develop the annual report as described in Section D that will address compliance of
the District with this Program. The Board is responsible for reviewing reports and
approving material changes to the Program as necessary to address changing identity
thel't risks.
D. Annual Reporting
The Program Coordinator will provide an annual report to the Board of Directors that
detliis the District's compliance with the Federal Trade Commission's Red Flags Rule.
The report wili address matters related to the Program and address several topic areas
including:
•]Effectiveness of the policies and procedures of the District in addressing the risk
of identity theft in connection with the opening of new accounts and with respect
to the management of existing accounts;
• Service provider arrangements;
• Significant incidents involving identity theft and managemenYs response; and
• Recommendations for material changes to the Program
~. ~;ervice Provider Oversight
Whenever the Uistrict engages a service provider to perform an activity in connection
with one or more of the customer accounts, District staff will verify that the activity of
the service provider is conducted in accordance with reasonable policies and procedures
designed to detect, prevent, and mitigate the risk of identity theft. To accomplish this, the
District wili require the service provider by contract to have policies and procedures to
detect relevant Red Flags that may arise in the performance of the service provider's
;ictivities, and either report the Red Flags to the District, or to take appropriate steps to
prevent or mitigate identity theft.
Sccond Amcndment
to tl~c
Gast Vulley'Water Uis4ricC
Vl~ater Services Agreement (WSA) Well #]07
THTS AMrNDMBNT to tSie A~;reement is enYered 'anto on this day of October,
20p$, by and between: F,ast Val(cy Water District, with its principal adciress at 3b54 EHSt
Idi~;hland Avenue, Suiie 18, Highl~nd, CA 92346-2607 (liereinafter "District"); and Qasi-a
~,Va~cer, Inc., witii its principal lddress at 9302 Pittsbur~h nvenue Suite 21Q, Rancho
('ucamo~iga, CA 91730 (hercinaftet~ "Basin"} (either party may be referred to as "Party" and
collectively as'`Parties").
Wi-CF;RF,AS, the Parties on or about April 30, 2003 entered into thAt ccrtain Water
f.'>ervice Agreement ("Water Service AgreemenY') concecning DisU•ict's Cuil Well 2;
Wl-1E12L;A5, lhE Ya~ties on or about September 14, 2UU7 entered into the 6rst amendcnent
to tlie Watcr Service Agrcement replacing Cull We112 with Well ] 07;
WI-CFttls/~S, thc Partics cntered into diat certun Iaemonstr~tion Project Agreement
("Il?emt~nstrzitiun AgreemenY') concerninb District's Wel! 27 dateci 1~eUruary ?5, 20U5;
WI-IL:Rrr15, the Demonstration AgreemenY expired on ,iune 21, 2008;
W EiEtt~AS, the Pa~•ties executed an amendment to extend che Demonstration Agreement
tet7n on a month by month basis dated 7wie 19, 20d8;
Wh1FRL•'AS, ttie Parties intend to add Well 27 into the exiscing loiag-term Water Services
,agreement k'ar District's Well 107;
WfIfiREAS, the Pai~ties intend to cliange the Ffrective Uate ol' the Water Serviue
r\grcemcnt to June 17, 2008 to r~[fcct this second amendme:nt to tlac Water Scrvice Agreeineut;
W~II?.RCAS, the Parties intend to ainend the Per Acre F~oot "1'reAtmcuf l~ees of Weli 107
and Wetk 27 to one unitary Per .~cre Foot 'treatment Fee oP four hundred and cighty doltars
($~#8O) per acre Poot;
VJT-11?I2EAS, thc Parties intend to amend th~ anuual i3<tsc Quantity of' proccssing and
ir<:aunent of water fi•otn Well 107 and Well 27 to a c;ombi~xe total 01' two thousand (20Q0) ,Ai~
("fl3asc t~uantity"); and
W}31iR13AS, tiie Parties intcnd to adjust the Per Acrc ~oot Treatment k~ee fi•om three
l~uncired and Eorty dollais ($340) to three hundred and sixty dolla~s ($360) for any pibcessittg ancl
1re;aluiez~t ot' water ii•om the Wolls more thuz lhe [3ase Quanlily in tiny "ferm Year.
NUW, '7'I-ItiRGFORE, in mutual consideraGa~ l~erein described and other good nnd
valu~ble considerntion, receipt of which is hereby acknowledged, the Parties agree as follows:
Recitals ~ectio3i A.
The first sentence of Recitals Section A shall Ue ameuded by addiug "and Well
27' before "(the "~'ell")" and after "Well 107". The new fii•st sentence of
Recitals Section A shall read as follows:
"Dish•ict owns certain wells, commonly identified as Well 107 and
Weli 27 (the "WeIP'), that currently produce ground~vater
comaining levels of nitrate aud perchlorate (coUectively "the
Confarainants") that az•e in excess of presently acceptable
standards Por drinl<ing water."
The second sentence of Recitals Section A shall be amended by
deleting "~xhibit A" azid replacing it witli "Amended ExhiUit A"
which is attaclied to tiiis Second Amendment.
~,
3.
Recitals Section B,
The Recitals Section B shal] Ue amended by deleting "~xhiUit B" and re~tacing it
with "An~ended Exhibit B" which is attached to this Second Amendment.
Section 2.1. Duration of Aereemenf.
Section 2.1 Duration of Agreement shall be deleted in its entirety and sl~all be
replaced with d~e fo1Io~~ing;
"Unless this Ag~eement is earlier terminated pursuant to Section
17 Uelow, the term for treatment of water pursuant to this
Agreement sl~all run from June 17, 2008 until June 16, 20 ] 8. '
,},
Section 5. Water Ounlitv.
Sectioii 5. WaCer Quality shall be amended by deleting prior "~xhibit D" in its
entirety and z•eplacing it wifl~ "Amended Exhibit D" which is attached to this
Second Amendment.
Section 8.1, Per Acre Foot Trea#ment Fee.
The second sentence of Section 8.1. Per Acre I'oot Treatment Pee shal] be
unended by deleting the rest of sentence after "equal to" and replaciiig it with
"four huudrecl and eighty dollars ($480) per acre foot." The new second sentence
uf' Section 8.1. Per tlcre Foot Treatment Fee shall read as follow:
"P'nr each acre-foot of water h•eated by ttie Facilities that meets the
Quality Standard, as reflected by tlie records of the measurements
mflde as provided in Section 7 aUove, District sliall pay to Basi~i
Water a treatment fee ("Per Acre Toot Treat~nent Fee") equal to
four hundred azid eighty dollais ($480) per aere foot."
(i. Section 8.2. Minimnm Treatment Fee.
The first sentence of 8.2. Mi~iimum Treahnent 1'ee shall be arne~lded by deleting
the rest of sentence r~fter "for processing and trcatmenP', and x•eplacing ii wich "to
the Pacilities a comUined total of two thousand (2000) acre-feet of water fi•om the
Weiis per year (the "Base Qnantity")" The new first sencence of Seclion 8.3
Minimum Treahnent Fee shall read as follo~~~:
"The Per Acre Foot Treatment Fee is based upon the DistricYs
re,presentatioi~ tliat it will deliver for processing and treatment to
the T'acilities a combined total of two d7ousand (2000) acre-feei oF
~vater from the Wells per year (die "6ase Quantity")."
Section 8 3 Adiustment for Basin Water's nroduction of More Than Base Ouantit~~
Section 8.3., Adjustment for Basin Water's Productioi~ of More Than Base
Quaniity, shall be atnea~ded by deleting "tl~ree l~undred and forty dolla~~s ($340)"
before "(Ylte "Additional Treatment Fee"p' and after "Base Quantiry sliall be"
and replacing it witli "tlvee htuxdred and sixty dollars ($360)". The new Section
shall read as follo~~:
"Cf llistrict delivers for processing and treatment more than the
Base Quantity in any Term Year, and Basin Water's Pacilities
actually treat more tlian the $ase Quantity in any Tei~n Year, then
the price pee acre-foot for each acre-foot in excess of tl~e Base
Quantity shall be tlu•ee hundred and sixty dollars ($360) (the
"Additiona) Treatment ree").
8, This l~vendment sl~all talce effect upon the date entered unless otherwise p~rovided for
herein.
9. All terms of tlie A~reement not specifically amended or modified by tliis instrumene sl~all
re~~~ain tuvnodif'ted aud in full force nnd effect.
~~HEI2EPOR~, both pai~ties iudicate their approval of this Amendment by tlieir signature belo~N
aud each paity warrants that fill action uecessaxy to bind the panies to the terms of this
Agreement has been taken,
~ast Va11ey Water Disfrict
1'rint
'('iile:
l~ate: ---
~~
~Y ,~, ~,
Priut Nanie: Ei.. ~,. •V, S fo f7~~•r ~..`/r'~r//~ ~•i,
Title: /%i~ i ~~~`U
Date: ~o,/D ~/ ~-c~T~ ~
i
AIVTEND~D FXI~ISIT "A"
Description of Wel(s
WeU #!07
'I'iie ~kell site is located on Citrus Avenue in Sai~ Bernaidino, CA, between Mountain and T,oma
;~venue. I-li~h~vay 30 borders tfic so~ah side of the site. Directly to the north of the site on Citrus
,4venue ~re midti-family dwellings (apar•tments). Access to the site will be via Del ltos~ Ave, i.o
l::ast Lynx~ood and to Mountain Ave.
Well #27
This is the well site Iocated at 1875 Easl Marsl~all Blvd in San Bernu~dino, CA 92404
AMEND~D ~XI~Tili1T °`I3"
Description of racilities for Well #1.07
'I'he spstem will co~isist of tlie foilowing:
~~ One 1,300-GPM non-regenerable parchlorate ireatmenf unit
~~ Ux~e 1,300-GPM regenerable niuate U•eatment m~it
~~ One 30-tmi sah tank and salt pump and f Icer assembly
~~ 7'wo waste tanks with a waste transfer pun~p.
~~ Une staiiiless steel pre-filter assembly
~~ All intereqnnecting piping as required, to azid froin Customer connections.
Scope of Worlc
13asin Water:
~ Pi•oject Management for L1stAtlation, Stai~t-up, and Testing of System
~~ Yrovide contractor(s) as required for Tnstallation, Start-up, and Testing of System
~ Instailation of oxie 1300 GPNI Perchlorate Unit a~~d one 1300 GPM Nitrate Treatment Unit
~ Installation of intercamectiug pipin~, between Basiu Water supplied equipmei~t and
customcr's flanged comiections
~ Electrical conduit ti•om Customer comtecfions to IX Treatment Unit(s)
~ InstallAtioi~ of t~~o (2) Waste Tanks, related piping, a~id aiiciilary equipnient
~ Insfailation of Salt Tank, related piping, and ancillary equipment
~ Llectrical conduit, wiring, and terinination to all Basin Water sup,plied equi~ment. Customer
~vi.ll complete cermination of wiring to Customer SCADA/RTU.
•> All testing, loaclin~ of inedia aud start-up ofTreatment Unit{s)
AbTEND~D EXT3IBTT "1~" Continue~l
Description of Pacilities for Well #27
1'crchlorflte
I'err.hlorate DisposaUle Resin Treatment System (800 GPM Capacity)
3 16 Bed Configuration
~ Process Control system
Nre-77eatment T3ag F'ilter System
a Ba; Filters
y 6ilet, Outlet, Filter header system
Nifrate
Nitrate'I'reatment 5ystem (800 GPM Capacity)
~ 16 Bed Confguration
r Iriternal Brinc 5ystem
~ Process Conurol System
13rine Pilter System
Waste Storage Tanks
m 3••polypro tanlcs
~~ 4" Waste bisch~r~e system (to lockbox)
Salt Storage Tank
~ 1-polypro taiilc
~~ 4" tra~~sfer system
iJtility Requirenlents
~ 480 ~~ac, 3~h, 60Hz, 20 aml~ max (average 3 amps)
~ '/" service water conuection
~~ Well or Pump control interface
~ 4-20ma flow signal
~~ 2" Waste Drain
~[>ial-up telephone li.ne (for alarnis and iuiit monitoring)
AM~NDED ~XI-TIBTT "D"
Weii #Z07
Quality Staudards for Contamiuauts
Influent Levels f'or Contaminants
Infiuent Niu•ate C;oncentracions: 49 mg/1(ppm)
'I'reated/Blended Wacer Nitrate Conceutratious: I.ess than 35 mg/1 (ppm)
Cnfluent Perchlorate Conccntrations: 14 ugJl (ppb)
1'reated/Blended Water Perchlorate Concentrations; I.,ess than 4ug/1(ppb)
All General Physical and Chemical Characteristics to be based on inforination provide by
LVWD. Key data provided include Cliloride, Bicarbonate; Sidfate, Chroinium, Vanadium, and
Selenimn.
V4~e11 #27
lnfluent Nitrate Conceutratiou:
'I~reated Water Nitrate Conceniration:
Tnfluent Perchlorate ConcenU•ation:
1~reated Water Perchlorate Concentration:
SSmg/I (ppm)
Less thazi 30 mg/I (ppm)
12 ug/1 (PpU)
Less tliau 4 uglt (~pb)
fieptember S, 2007
pMENDMENT NO.1
TO
EAST VALLEY WATER DISTRICT
'WA,TEA SERVICES AGREEMENT (WSA) CULL W~LL #2 (AKA Cull Well #132)
Project: Well #107-1300 GPM Perchiorate/Nitxate System Jnstaliation
Client: East Valley Water District
Notice is hereby given that the abova-mentioned agreement (Water Services Agreement) has
been modified as hereinafter set forth. This amendment shall be made part o£the agreement
documants.
This amendment No. l shali fornn a part of the Water Services Agreement and take precedence
over the original Water Services Agreement.
ReciYais
1. Opening Paragraph: Replace California with Delawaze.
2. Section A: Replace Cull We112 with Well #107. Tn addition, add perchlorate to 1'ast of
contaminants.
O~erative Provisions
3. Section 2.1 Term: Change of Effective Date. The agreement tertn will be 10 years from the
last date upon which a Party hereto has executed this Axnendment to the Agreement.
4. Section 3: Effective Date~changed to reflect new execution date of Amendment to the
Agraement.
5. Sec;tion 8.1: Replace $168 with $453.00 per aere-foot of treated/blended water. (Alpha and
NumE;ric) i~~
6. Scr,tion &.2 Minimum Treattnent Fee: Replace 800 AF with 1500 AF. Rep ace 88 with $158.
(Npha and Numeric)
7. Section 8.3: Replace $12S with $340 (Alpha and Numeric)
Exhibits
t1.: Replace with attached
B: R.eplace with at~ached
C: R.eplace with attached
D: Fteplace ~vith attached
E: Replace with attached
F [:. Replace with attached
~ 8731 Prestige Court, Rancho Cucemonga, CA 91730, Phone 909-48tb800. Fas 909-081-6801, Web www.basinwater.cos ~
,
~llfafe~
IN WITNESS WHEI2EOP, this Amendment to the Agreement has been executed as of the last date below
written,
Dated: ~/ O 7 Basin Water, Inc.
By: i /~!°... ~ +~n~~~r~t~lN~
Title: n~~
Dated: 09lI1/07 EAST VALLEY WATER DISTRICT
By. ~ .
Title: BOard President
17
8737 Prestige Coury Raneho Cucamonga, CA 91730, PAone 909-481-6800. Fas 909-4846801. Wsb «:~n~.ua~inr~accr.cua~
E~sia «~„
Description of Wells
Well #i 07
The well site is located om Citrus Avenue in San Bemazdino, CA, between Mountaw and Loma
A~venue. Highway 30 borders the south side of the site. Directly to the north of the site on Ci~vs
A~venue are multi-family dwellings {apartments). Access to the site will be via Ael Rosa Ave.1o
East 7:,ynwood and to Mountain Ave.
ceidn
9341.000
EXHIBIT 0°B"
Description of Facilities
The system will consist of the following:
• One 1,300-GPM non-regenerable perchlorate freatment unit
a One 1,300-GPM regenerable nitrate treatment unit
o One 30-ton salt tank and salY pump and filter assembly
o Two waste tanks wikh a waste transfer pump.
o One stainless steel pre-filter assembly
~ All interconnecting piping as required, to and from Customer counections.
Soope of Work:
73asin Water:
~ Project Nlanagement for Installation, Start-up, and Testing of System
~ Provide confxactor(s) as required for Instailation, Start-up, and Testing of System
a Tnstallation of one 1300 GPM Perchloxate IJnit and one 1300 GPIvI Ni#rate Treatment
Unit
a Installation of interconnecting piping, between Basin Water supplied equipment and
customer's flanged connecYions
v Electrica2 conduit from Customer connections to IX Treatment Unit(s)
o Installarion of two (2) Waste Tanks, related piping, and ancillary equipment
+ Instaliation of Salt Tank, related piping, and ancillary equipment
a Electricai conduit, wiring, and terminarion to all Basin Water supp]ied equipment.
Customer will compiete texmination of wiring to Customer SCADA/RTU.
. All testing, loading of inedia and start-up of Txeatment Unit(s)
EXfIIBIT "C"
Purchase/T.,ease Option Terms
[NOT i3SED]
6816/?
9341.000
ExfnszT «n~~
Quality Staudards for Contaminants
Influent Levels for Contaminants
Influent Nitxate Concentrations: 49 ppm
Treated/Blended Water Nitrate Concentrations: Less than 35 ppm
Influent Perchlorate Concentzations: 14 ppb
Treated/Blended Water Perchiorate Concentrations: Less than 4.8 ppb
All General Physical and Chemical Characteristics to be based on infoxcnation provide by
EVWD. TCey data provided include Chloride, Bicarbonate, Sutfate, Chromium,
Vanadium, attd Selenium.
Ex~six K~,>
Payment Schedule
[NOT USEDJ
6816/?
9341.000
EI~ItBIT f°H"
Performance Schedule
VJeek i
~ FVWD begins on-site and off-site pxeparations
v Basin VJater begins System assembly
a~3asin Water begins Well #132 Demobilization
Week 6
. EV WU completes on-szte and off-site preparations
. Basin Water begins on-site mobilazation at We31 #107
e 33asin Water completes Demobilizaiion at Well #132
Week 9
. 13asin Water dalivers 1300 GPM Niizate and Perchloxate Units to WeII site #107
• Basin Water begin on-site installation
Week 12
. l3asin Water completes installation of 1300 GPM Nitrate and Perchlorate Units
. ]3asin Water begins startup tests
. l3asin Water completes startup tests
• 5ystem On-line
6876l2
9341.009
~as`~-' Voc 1tr~ (,~?a~e,- ~} ~:~v-+'~' - C~c! t btlelt ~. 1`(
~___.
WATER SERVICES AGREEMENT
'IT-IIS WATER SERVTCES AGREEMENT ("AgmzmenY'}, entered into as of the latest of the
dates shown opposite the signatures ofthe Parties to this Agreement, is made by and beiween BASIN
Wr1'£ER, INC., a Califomia wrporation ("Basin Water"), and BAST VA.LLEY WATER DISTf2ICT,
a public agency ("District"} (Basin Water and District sometirnes hereinafter are refeixed to
collectively as the "Parties" and individuaily as a"Parry").
RECITALS
A. District owns certain wells, commonly identified as Cuit Well 2(the "WeII"), that
currentiy produce groundwater containing levels of nitrate (coliectively "the Contaminants") that are
in excess of presentiy acceptable standazds for drinking water_ The Weils are more particulariy
described in .Exhibit "A" attached hereto and incorporated herein tiy this reference.
B. Basin Water possesses the requisite skill, expertise, technology, and solutions for the
devalopment of Facilities (as defined in Fxhibit "B" which is attached hereto and incorporated
herein by this reference) foz the treatment of groundwater containing the Comtaminants, 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 qualificafions to operate the Facilities
consistent with prudent water utility standazQs, practices and procedures, and all applicable
zegulatory 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 disposat of
waste derived therefrom and the payment of services iherefor by Dishict.
I~OV/,'THER.EFOTtE, im consideration of the mntuat 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 foIlows:
OPERATIVE PROVISIONS
1. Treatment.
1.1 Facilities. Subject to ihe terms and conditions contained herein, the Pazties
agrae that Basin Water shalt design, instslt, and own the Faciiities to treat the water produceci by the
We12s, and once such water meets tha Quality Standard (as defined in Section 5 below), to ckiarge
DisYrict a trea4ment fee for such water as set forth in Section 8 below. District shati assume sole
respansibility fbr operating the Facilities and shail supply appropriately qualified and certifieci
personnel. to perforni said activities in a skillfizl and competent manner, consistent with the standards
~enerally recognized as being employed by professionals in the same discipline in the State of
California.
1.2 bther Weils. If District owns other wells that pmduce water containing Ievels
of th.e Contaminants, or othex pofiutanis, itz excess of the maximum contatninant Ievei(s) mandated
by the State of Califoruia Deparnnent of Health Services {"DIiS"), orat levels tfiat District intends to
reduce to more desirable levels, and District wishes to connect to other Basia Water facilities for
treatment, then District shali send written notice (the "Supglemenfat Treatment RequesY') to Basin
Water requesting Basin Water to treat Fhe waYer produced by such other weIis. The Supplemental
Treatment Reqnest shail include all engineering and water quaIity information thaY District has in its
custody, control, or possession to pernzit Basin Water to evaluate DistrioYs request. Within thirty
(30) days of Basin Water's zeceipf ofthe Supplementai Treahnant Request, Basin Water shat] ttoti£y
Dishict whether it agrees to treat the water produced by the other welts, and if so, the terms and
conditions on wlrich Basin Water is wilting Yo do so. If Basin Water fails to respond to Distrir,t
withi.n such thirry (30) day period, then Basin Water shaii be deemed to have denied DistricYs
request. I£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 aze acceptable to District, Wen the Farties
shall execute a supplement to ffiis Agreement or a new agreement, so stating and specifying the
additional wells to be heated and any other modifications to ihis AgreemenY required as a result
thereof.
1.3 Relocation ofFacilities. With Basin'W'ater's prior wri4ten consent, which shaii
not be unreasonably withheld, the District may re2ocate the Facilities to oYher welIs the District owns
that produce water containing ievels of the Contaminants, or other poilutants, in excess of the
maxivnum contaminant level(s) mandated by DHS, or at levels that District intends to reduce to more
desirable leveIs. If the District desires io reIacate the Facitities, then District shalt send written
notice (the "Relocation Request") ta Basin Water requasting Basin Water to relocate the Facilities to
such other wells. The Relocatiott Itequest shall include all engineering and water quality information
that District has in its custody, control, or possession to permit Basin Water to evaluate Diskict's
xequest. Withut thirry (30) days of Basin Water's receipt of the Relocation Request, Basiu Water
shall notify bistrict whether it agrees to relocate the Faciiities to such other weiis, and if so, the tenms
and conditions on which Basin Water is willing to do so. If Basin Water fails to respond to District
within such tturiy (30) day period, then Basin Water shall be deemed to have denied DistricYs
request If Basin Water notifies District that it agrees ta relocate the Facilities, and the terms and
conditions pmposed by Basin Water aze acceptable to Districi, 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 Agresmen# required as a result thereof, and the District
shall pay Basin Water on a time and maferials basis for reIocating the Facilities.
2. Term.
2.1 Duration of Agreement. Unless this Agreemen# is eazlier terminated
puzsuant to Section 17 beiow, the term for Lreahnent of water pursuant to this Agreement shalt
commence on the date that at! required Permits (as defined in Section 14 below) have been obtained
and shali conLinue for a period of ten (10) years thereafrer (ihe "Term") except as no#ed in Bxhibit
2
; 1
"k; ". Notwithstanding the above, District shali have the right to terminate this Agreemeni on the
fifth azuuversary of the Effective Date by giving written notice thereof to Basin Water pursuant to
Secdon 22.5 of ttris Agreement at least 1 SO days prior to said termination date. If said notice is not
Ciniely given bq District, Aishtict shail not be entitied to texminate this Agreement prior to the end of
Phe: 'fe~m except as set forth in Section 17.1 below. At the end of the Tetm, District shail have the
option to tease and/or purchase certain of the Facilities in accordance with the terms attached hereto
as Fxhibit "C" and incorporated herein by this reference. Such ogtion shall be exercised by no~ice
gir~en by Disfrict to Basin Water no later than sixty (60) days prior to expiration of the Term. If no
suc;it notice is given by District prior to the expiration of the Term, Basin Water sball be entitled to
eaccead the end date ofthe Term for another twelve (12) months atthe same terms and condirions set
£orth in this Agreement.
2.2 Term Yeaz. As used herein, a"Term Year" is a period of twelve (12) full
cafendar months commencing on the first daq of January and ending of the last day of December,
exr,ept that if the Term commences on a date other than January 1 or ends on a date other than
Aecember3i, the period from the first day of the Term to the followiag December 31, andthe period
beginning on January 1 folIowing a preceding Term Yeaz and ending on the termination or expiration
date, shall also be Term Years. If any Term Year shatl be tess than twelve (12) months, the
1Vlinimum Treatment Fee (as defined in Section 8.3 below) shall be proportionately adjusted.
3. Effective Date. As used in this AgreemenY, t6e term "Effective Date" shail mean the last
datr, upon which a Party hereto has executed this Agreement.
4. Desien and Installation of Water Faci6ties.
4.1 Basin Water Obli at~ ions. In accordance with genezally accepted engineering
standards, Basin Water sttall design, conshuct, and install the Facilities so as to remove the
Co:ntaminants &om the Wells pursuant to tbis Agreement, and shall pecform all services under this
Agreement in a sicilIful and competent manner, consistent with the standazds generally recognized as
being pnployed by professionals in the same discipline in the State of California Uniess otherwise
agreed, Basin Water shall be responsibie for a11 costs and expenses necessaxy to instail the Facili[ies
to treat the water produced by the Wells so that it meets the Quality Standard. Basin Water maq
stoxe equipment or materials on DishicPs properiy during instailation of Facilities, provided that
such swrage does not otherwise interfere with AistricYs operations on such property. ,
4.2 Distriet's Obli a'ong. District sha(1 provide Basin Waterwith: (a) ail dasign
ata~ construction informarion conceming the Welis or otherwise in District's possession, custody, or
control necessary for Basin Water io design the connection of ttee Facziities to the WelIs and fzom the
Pacilities to DistricYs water distribution system; (b) District shall bear the capital costs to iastal] all
eler.iricat equipment required to operate the Facilities; (c) the license more paeticularly described in
5ection 19 hereof; (d) ali electrical power required by Basin Water to install the Facilities; (e) the
ptayszcat properry on which Basin Water wiil install the Facilities; (fl appropriately qualified and
cerCified personnel to become trained in the operations of the Facilities, to become familiar wiEh
operating poli.eies and procedures ofthe Facilitles as prescribed by the Permits (as defined in Sectian
.,
14.2 beiow) and the Operations and Maintenance ("O&M") Manual developed by Basin Water and
approved by DHS, and to participate in alt training prior to operations; and (g) a written Notice of
lhcceptance of the Facilities prior to operations: Basin Water shall be entitled to rely on atl
infoxmation and data provided by District in cIause (a) of tlus Section 4.2 without independent
verification and/or exposure to liabiiity therefor, and such information and data so provided by
bisirict shall be deemed to be complete and accurate in all material zespects for Basin Water's
purposes. District shaii particutazly advise Basin Water of all elements of influent water necessazy
for tlie design, construcrion, and installation of ihe Facilities.
43 Verification RiQhts. Each Party shall have the tight to verify, at its own
expense, the amount and quality of the water entering and exiting the Facitities and to conduct
independent testing thereof. Basin Water shatl monitor operatingperformance ofthe Facilities and
provide comments to District and orhers as appropriate.
5. Water Qaaliri. After Basin Water's design and installation of the FaciGties, and subject
to all of tlie terms and conditions of this Agreement, the Faciliries shall reduce the level of the
Contaminants in tha watar produced by the Wells tl~at are connected to the Facilities to the leveis
listed in.Exhibit "D" attached hereto and incorporated herein by this reference ("Quality Standazd").
District shall provide Basin Water with annua] reports describing influent water quality. District
s6a11 bear the cost of complying with changes in water quality standards that require reduction ofthe
Contam~„A.+ts to ievels less thatt the Quality Standazd and forpollutant ievels of influentwaterupon
which the design and conshuction on which the Facilities were based.
6. Pavments. bistrict acknowledges and agrees that: (a} bisirict shatI be liable for
payments to Basin Water of the fees and chazges set forth in this Agreement (including but not
limited to those Treatment Fees set forth in Section 8 beiow) for water processed through the
Facilities that meets the Qua7ity Standard fox the Contaminants even if such water does not meet
water quality standards for othex pollutants, regardless of whether the waier is aciually taken or put io
beneficial use; and (b) clause (a) of this Section 6 notwithstanding, I3isErict shalt pay the Minimum
'T'reatmen# Fee (as defined in Section 8.2 below) so long as the Facitities aze capabie oftreating the
Base Quantity (as defined in Secdon 8.2 below) of water.
7. NYeasurement. Once water treated pvrsuant to this Agreement meets the Quality
:itandard, the amount thereof shatl be properly measured each month by Basin Water and Aistrict at
ihe point where such water reenters the Districf s water distribution system &om the Facitities. The
I'arties shall be bound by the measurements at such point. At least annuaily, District, at its expense,
sha11 test the meter to verify that such equipment is properly measuring water pumped back into
l~istrici's water ciistribution system. These test results shail be made promptly avai?abie to Basin
Water. Distri.ct, at its expense, shall make or gause to be made any repairs to enstue such equipment
is measuring properly and shalt supply such information to Basin Water, inciuding appropriate
certification by equipment testing professionals.
8. Treatment ~'ee. Beginning on the eazlier of (a) the date that DHS approves use by
t~istrict of the water treated by the Facilities, or (b) the date that the Facilities continuously and
, r r
corusistently process ihe Base Quantiry (as de5ned in Section 8.3 below) of water at the Quaiity
Standazd for seven {7} consecutive days, or (c) sixty (60) days after the Effective Date, District shall
be obli{~ated Yo make the foUowing payments to Basia Water:
8.1 Per Acre Foot Treatment Fee. Aistrict shail be obligated to makepayments to
Basin Water for water that meets the Quality Standard. For each acre-foot of water treated by the
Fru.itides that meets the Quality Standard, as reftected by the records of the measurements made as
provided in Section 7 above, DisErict shall pay to Basin Water a treatment fee (the "Per Acre Foot
Treakn~;nt Fee"j equal to One Hundred Sixty Eight Dollars ($ i 68) per acre foot.
8.2 ~nimum Treahnent Fee, The Per Acre Foot Treatment Fee is based upon
DistricYs representation that it wiil deliver for processing and treatment at each of the Facilities
~ight Hrandred (800) acre-feet per year of water at each of the Wells (the "Base Quantity'~, and upott
Ba~sin Water's zepresentation that its k'acilities are capabie ofprocessing the Base Quantity ofireated
water. Therefore, even if District delivers for processing and treatment less than the Base Quantiiy,
Phe District shall pay Basin Water a fee of Eigixty-Eighi Dollazs ($88) (the "Tviinimum Treatmenc
~~ee'~ for the difference between the Base Quantity and the volume ofwater aciuaily dalivered for
~reatment. Basin Water shall bitl Dis[rict for anq paymeat adjustment within thirty (30) days
~'oliowing the expiration of the Term Year in which District delivers for processing and treatment
less than ihe Base Quantity of water so long as Basin Water's Facilities are capabla ofprocessing the
I3ass Quazrtity.
8.3 Adivstment for Basin Water's Production of More Than Base Ouaatiri. If
District delivers for processmg and treatment more than the Base Quantity in any Term Yeaz, amd
ftasin Water's ]Faci(ities actuatly treat more than the Base Quantiry in any Term Yeax, then the price
per a.cre-:foot for each acre-foot in excess of the Base Quantity shall be One Hundred Twenry Five
Dotl~rs ($125) (the "Additionat Trearinent Fee'~.
8.4 AdiushuentforNon-Snecifecation Influenf Water. The Minunum Treatrnent
Fee and the Addirional Treatment Fee are based upon District's representations to Basin Water that
the lavel of the Contaminants in the water produced by the WelIs as of the Effective Date is as set
fortfi in the documeut attached hereto as Exhibit "D" and incorporated herein by this referenoe. Tf
aftex~ the Effective Date, it is determined ihat the levei of the Contaminants in the water produced by
the Wells is greater than tlie Ieve2s zepresented by District, the Minimum Treatrnent Fee and the
A.dcf.idon<d Treatment Fee may be acijusted by Basin Water.
8.S Adiustment for Changes in Ouality.,Standard. The Minimum Treatrnent Fee
azid the Additi~ na1 Treatment Fee are ba.sed upon tiie Quality Standard existing as of the Effective
Date. If the Quality Standazd is changed during the Term, the M'vumum Treatment Pee and the
Additiona] Treatrnent Fee may be adjusted by Basin Water.
8.6 Adjustment for Unaualified Personnel. The Minimum TreaUnent Fee and the
Additional Treatmen2 Fee aze based upon District supptying appmpriately certified and qualified
operators during the Term. If Disirict is unable, or otherwise requests Basin Water, to supply
appropriately certified and quatified oparators, the Minimum Treatment Fee and the Addirionai
'freatment Fee may be aiijusted by Basin Water.
&.7 Adiustment for CPI. The Minimum TreaUnent Fee and the Additional
Treatment Fee shall be adjusted by Basin Water in its invoices to Distrzct commencing on January 1,
2004, and on each Janvazy 1 fhereafter, by the percentage increase, if any, reflected in the January
Cost of Living Index measured by the United States Depaztment of Labor revised Consvmer Price
T.ndex foz Ail Urban Consumers for the Los A.ngeles- Long Beach- Riverside area ("CPI'~ for the
preceding twelve (12} months as published by the Bureau of Labor Statistics.
9. Uaconditioaal Obtieation. After installation of the Facilities by Basin VJater so that the
water produced from the Wells meets the Quality Standard, District's obIzgation to pay all amounts
due under this Agreement shal l be an absolute and unconditional obligation of District, payable as an
operating e~cpense of District, not subject to deduction, set off, prior notice, demand, changes or
~uctuations in demand or price of other sources ofwater, or inability ofDistrict to accept delivery of
water, or to use, store, or reseli water after delivery from the Facilities.
10. Invoices. ARer the Facilities are aperational and have receivsd all Pernuts (as defiaed in
Saction 14 below), Basin Water shali invoice District witlrin tett (I O) days of the last day of the
month, beginning with the month in which alI applicabie Peimits have been issued. Such invoice
shall recite the amount of water treated during that month, measured in accordance witk Section 7
above, multiplied by the Per Acxe Foot Treatrnent Fee and the Additionai Treaunent Fee, as
appIicable. Provided that Bistrzct receives such 4nvoice from Basin Water no later than the fi;fth day
of each month, then within fhiriy (30) days followiag Dis2ricYs receipt of such invoice from Basin
Water, District shall, without dednction or offset, make payntent to Basin Water for atl amounts then
due by directing such payment to the address at which notices are to be delivered pursuant to Sectlon
22.5 offhis Agreement. The invoice shalI be substantially in the form ofExhibit "F" attached hereto
and incorporated herein by this reference. District and Basin Water shal! work cooperatively to
effect electronic rneter reading, billing, and payments to maximize efficiettcy.
11. BeIinauent Pavments.
I t.1 From the District. Any payment due from District to Basin Water under fltis
Agreement that is not received within thirry (30) days after the date ofthe invoice therefor shatl bear
interest at the Iesser of twelva percent (12%) per annum or at the masimum rate permitted by law,
from the date due untii payment is received by Basin Water. If District fails To pay Basin Water for
watez ireated in accordance with this Agreement within one hundred twenty (120) days after receipt
of any ir.voice Eherefor, then; in addition to any otl:er 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 othenvise
be owed to Basin Water had the Agreement been oompleted through the Term; provided, however,
that if a bona fide dispute exists between District and Basin Water, then $asin Water raay not be
entitled to terminate this Agreement so long as: (a) District has paid the undisputed portion o£any
amount due, together wifh any interest thereon in accordance with this Section; and (b) the Parties
~ ~
are negotiating in good faith toward the resolution oFthe dispute; provided further, howe~er, that if
such resolution does not occur within ninety (90) days ofthe occurnnce ofthe dispute, Basin Water
shall have al2 righfs aqd remedies available to it under this Agreement, by law or equity.
i t.2 From Basin Water. Any payment due &om Basin Watcrto t6e Disfrict wzder
this Ag,reement that is not received within thirty (30) days afier the date of the invoice therefor shall
bear in.terest at the lesser of tweive percent (12%) per annum or at the maximum rate permitted Uy
Iaw, from the date due uniil payment is received by the District. If Basin Water fails to pay the
DisMct any amount due under this Agreement witUin one hundred iwenty (120) days afterreceipt of
anp invoice therefor, then, in addition to any other rights that the Bistrict may have at law or in
equity, the D'zstrict shall be entitled to temunate this Agreement; provided, however, that if a bona
fide dis~pute exists between the District and Basin Water, then the Aistzict may not be entitied to
tenxunate this Agreement so iong as: (a) Basin Water has paid the undisputed portion of a~ amonnt
duFS, together with any interest thereon itt accordance with tlris Section; and (b) the Parties aze
negotiating uz good faith toward the resolu6on of the dispute; provided further, however, that if such
ras~Intion does noP occur withia ninety (90) days of the occurrence of the dispute, the District shali
have a11 rights and remedies available to it ixndex this Agreement, by law or equity.
12. Operatioa. Mainfensuce. and Reaairs.
12.1 eration. District shali be sotely responsibie for operating the Facilities as
requireci by law and an accottiance with the Permits (as defined in Section 14 below). The ongoing
elec:tricaI usage costs, incIuding any electrical costs related to the pumps or booster stations, sha]t be
borcee by the DistricY. Basin Water, as part of the Per Acre Foot Treatrnent Pee, shatI be xesponsible
for all other operating costs of the Faciliries, inoluding, without limitation, salt to produce water &om
Lhe'Wells and disposal of DistrieYs waste as set forth in Section 12.4 below, but exciuding any costs
or expenses rela6ng to DislritcYs operating or managerial personnel or related overhead.
12.2 Maintenance and Re,pairs. Subject to the tecros and conditions of this
,Agreemeat, Basin Water shall be responsible for all zoutine maintenance end aII ordinary repairs
nece:ssary to maintain the Facilities in good condition in accordance with the O&M Manual.
1. 12.3 'fhird-Partv Con(acts. Basia Water, at its option, may contract with ttvcd
parEies ("Third-Pariy Service Providers"), including without limitation District, io perform
routine operational acrivities and routine maintenance of the Facilities under Basin Water's direct
superviszon,
In connection with performing such routine operational activities and routine
maintenance of the Facilities, the Districi acknowledges that the Facilities and their use to
reniove a variety of poilutants from water supplies are covered by Basin Water's pending United
5tate:s and intemational patent applications. Accordingly, the District is hereby granted a license
t~nc~er these patent applications and patents which may issue thereon to use the Facilities to
rernove Ehe Contaminants, No license to make or sell or lease Faeiiities is granted, neither is a
license g~anted to use the Facilities to remove poliutants other than the Contaminants, except as
otherwisr set fozth in this Agreement.
Also in connection with performing such routine operational activities and routine
maintenance of the FaciHties, the District acknowledges that the Faciiities contain copyrighted
proprietary operating software of Basin Water. A license is granted to use this software in
connection with the operation ofthe Facilities Ya remove the Contaminants. No license is granted to
adopt, modify or reproduce this proprietary softwaze.
The District further acknowledges that the Facilities contain trade secret and othez
materials that are proprietary to Basin Water. Distzict agrees that it shall not, nor shall it perxnit any
'1`6ird-Pazty Service Providers to, modify, translate, reverse engineer, decompile, disassemble, ereate
derivative works upon, or copy the Faeilities without Basin Water's prior, written consent, which
Basin Water maywithhoid in its sole and absolute discretion. The District furtheragrees that neither
i2 noz~any'Third-Pariy Service Providers shall open, examine or otherwise investigate ox maniputate
any portion of the Facilities that bear the legend "Do Not Open" or any similar legend, without Basin
Water's prior written coasent, which Basin Water may withhold in its sole and absolute disczetion,
and ihat neifher the Aistrict nor any Third-Party Service Providers shall remove any proprietary
notices, labels or mazks on any portion of the Faeiliries.
i2.4 Waste. As part of the Per Acre Foot Treatment Fee, Basin Water shatl assist
I7istrict in disposing all of DistricYs brine and other waste resulting from Basin Water's ireatment of
District's water through the Facitities. Basin Water's participation uz this process shall not relieve
District of its ultimate ob3igation to dispose of ail brine and other waste in aceordattce with all
fedezal, state, or Iocal statutes, oxdinances, laws, ruIes, or regutaTions. Basin Water may request
others to assist in these matters, the cost of which shail be bome by Distdct. The Monihty Treatnnent
Fee is based upon the Waste Disposal Standards existing as of the Effective Date. If the Wasta
Disposal Standards or disposal costs aze changed during the Term, Basin Water may adjvst the
Monthiy Treatment Fee to reflect the direct costs associated with these changes. The District shall
approve Basin Water's disposal site. Such approvat shail not be unreasonable withheld.
13. Securi .
13.1 Fac'slities. District, at its expense, sha11 have the sole zesponsibility for
providing security for the Pacilities. The leve] of security shall be determined at the reasonable
discretion of the District in accordance with District pracHces and procedures.
13.2 Insurance.
13.2.1 Covernue bv Distriot. District sha11 procure and maintain &om and
a8er ihe Effective Date, at its sole expense, such policies of insurance, bonds from an acceptable
surety, cash deposits, escrow accotuats, letters of credit, and other forms of security, in amounts and
upon terms set £orth in Exhibit "G" attached hereto and incorporated herein by this reference.
13.2.2 Coverase bv Basin Water. With respect to its activities under this
F,greement, Basin Water shall znaintain or canse to be maintained, and shall provide or cause to be
provided, evidence ofgenerat liability, workers' compensaYion, and automobile insurance coverage
in such arnounts and oa such tez~ms and conditions as aze more particularly set fozth iu Exhibit "G "
attached hereta and incorporated herein bq Yhis reference.
13.3 Indemnities.
13.3.1 Bv Basin Water. Basin Water agrees to save, indemnify, hold
harxnless and defend the District and its successors, assigns, and affiliates, and their respec6ve
afficers, directors, conholling persons (if any), employees, staff members, attomeys, agents,
consultants, and shareholders (colIectively the "District Indemnitees") &om, against, and in respect
of a~xy azad all claims, costs, losses, fees, penal6es, interest, suits, acrions, proceedings (forn-al and
ia~formai), investigations, judgments, deSciencies, damages, settlements, liabilities, and legal and
ather expenses (inciuding reasonable legai fees and expenses of attorneys chosen by the District
Indenanitees) as and when incurred by any of the District Tndemnitees arisixtg out of or Based upon
Basin Water's gross negiigence or willfiil misconduct in the performance of its obligations under ttus
Agi~eement.
13.3.2 ~ District. The Districi agrees to save, indemnify, hold hamiless and
defend Basin Water and its successors, assigns, and af~'iliates, and their respecrive officers, ditectors,
conri•olling persons (if any), employees, staff inembars, attomeys, agents, consultants, aaxd
share.hoiders (collectively the "Basin Water Indemnitees") from, against, and in respect ofany and a11
clainu> costs, losses, fees, penalties, interest, suits, actions, proceedings (formai attd informal),
i~zv~tigations, judgments, deficiettcies, damages, setttements, liabilities, and legal and other
expenses (including reasonable legat fees and expenses of attomeys chosen by the Baszn Water
Indemnitees) as and when incurred by any of the Basin Water Indemnitees arising out of or based
upan. the DistcicYs gross negligence or willful misconduct in the performance ofits obIigations under
this Agreemen~
14. Permits and Authorizations. As soon as practicabte following the execution of tius
Agreement by each of the Parties hereto, Basin WaYer and District shail cooperate in obtaining aIl
perxrnits, consents, entiflements, and approvals required as of the Bffective Date (collectively the
"Penanits'~, including without limitation any and ail environmentat Permits, necessary to enable
Basin Wrater to insfatl the Facilities and to initiate the treaiment of water produced from the ~J'ells to
meeti the Quality Standard pursuant to this Agreeraent. Accordingly, Basin Water and District agree:
(a) to joinUy pursae and support each other in obtaining the Pezmits necessary to initiate timely
instaliation and operation of the Facilities; (b) to make timely submission for sucA Pemuts; and (c) to
cooperate with each other in implementing temts of this Agreement and achieving its objectives.
Each Pariy shaIl beaz its own costs aad expenses for Yhe acdvities required under ttus Section 14.
Any permit necessary to operate the Facilities shail be drawn in the name of the District.
15. Water Fti¢hts Not Affected. The treatment ofwaterpursuant to this Agreement shall not
confer acry appropriative, public trust, or other right io water of any nahue on any person oz entity.
Nothing in ttus Agreement shall act as a forFeiture, diminution, or icnpairment of any rights District
may enjoy to full use of the water from the Weils ftom and after the execution and subsequent
1 1
expiration ofthis Agreement, or shall in any way prejudice any of Dishict's rights, tiUe, or interes4
therel:o. The Parties hereto agree that neither water treated under this Agreement aor the AgeemenY
itself is evidence of Iack of beneficial use of the water iuvolved in the treatment hereunder.
16. Time for Performance. Subject to Secdons 17 and 22.18 below, each of the Parties
hereto shall perform their zespective obligations under #tris Agreement in a pmmpt, timely, and
professioaai manner and in accordance with the Performance Schedule attached heseto as Exhibit
",(3"' and incorporated herein by this reference.
17. Earlv Termination.
17.1 DistricYs Termination Ootions.
17.1.1 Failure to Obtain Permits. Tf far any reason other than a delay caused
by I3istrict or by a Force Majeure Event (as defined in Secrion 22.18 below), ali requisite Permits
have not been secured and Basin Waierhas aot been abie to install the Facilities to treat the water so
tlunt it meets the Quality Standard within sixty (60) days after the last day af the Performance
Schedule (the "Performance Deadline'~, then District, at iis option, upon written notice to Bas'sn
Vi~al:er in the mannez set forth in Secdon 22.5 below, may terminate this Agreement, and Disuict and
Sasin Water shall each be responsible onty for their owu respective expendituzes and out-of-pocket
cosrts incurred in connection witft this Agreement.
17.1.2 Change in Quality Staadard. If aftez the Effective Aate and be~ore the
issuance of the PermiYs, the Quality Standard is increased for any reason not caused by District, and
District does not wish to pay Basin Water the inereased Minimum Treatment Fee and Additional
Pee, if any; charged by Basin Water pursuaat to Section 8.6 hereof, then District, ai its option, upon
wriiten ttorice to Basin Water in ihe manner set forth in Secrion 22.5 below, may ternrinate this
Agreement, and District and Basin Water shali eachhave no fisther responsibilities to the other Patty
under this Agreement and each shall beaz its own expenditures and out-of-pocket costs imcurred in
coruiection therewith.
17.2 Basin Water's Terminarion Opflons. In addition to the rights and remedies set
forth an Section 11 of this Agreement, Basin Water shall be entided to exercise atl of the following:
17.2.1 Failure to Obtairi Pemilts. If for any reason otherthan a Force Majeuzc
l~vent (2s defined in Section 22.18 below), all requzsite Permits have aot been secvred and Basin
'Gt~ater has not been able to install the Facilides to treat the water so that it meets the Quaiity Standard
on or before the date that is sixty (60) days after the Pprformanee Deadline, then, Basin Water, at its
option, upon vrritten notice to District in the manner set forth in Section 22.5 below, may ternunate
s,tiis Agreement, and, in lleu of any other rernedies at law or in equity to which District oflzerwise
~nig~t be entitled, Basin Water shall be responsible only for its own expenditures and out-of-pocket
aosts inc:urred in connection with this Agreement.
17.2.2 Breach. TFfor any reason other than aForce Majeure Event (as defined
IO
, ~ 1
in Section 22.18 below), District fails to fuily and compietely comply with any of its obligations
under this Ageernent, or the representations contained in Seotion 20.1 below are deterntined to be
inaccurate or no longer applicable, or any ofihe Permits are revoked, then Basin Water, at its option,
m.ay 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 thak D'zstrict mustcure saic~
defauit to the saiisfaction of Basin Water within fifteen (15} days o£ said notice. Ifthe default is not
timely cured to the satisfaction of Basin Water, then Basin Water may declare a material breach of
this Agreement and, upon writtan notice to District in the manner set fozth in Section 22.5 betow,
tem~inate this Agreement, and, in addition to any other remedies at law or in equity that might
otherwise be avaitable to Basin Water, Basin Water shall be entitled to receive a Imnp sum payment
from District of Yhe entice amoun# of money that woutd otherwise be owed to Basin Water had ihe
Agreement been completed tlu~ough the Term.
17.3 District's Terminadon Option. If for any reason other than a Force Majeure
Event (as defined in Section 22.18 below), Basia Water faiis to fulFy and completely comply with
any of its obfigations undex this Agreement, or the representarions contained in Section 20.2 below
are determined to be inaccurate or no tonger applicable, or any of the Permits aze revoked, then the
Distcict, at its option, may deem said act or omission to consrituYe an event of default and shall give
Basin Water written notice tkereof in the manner set forth in Section 22.5 below, and provide therein
thyt Basin Water must cure said defauit to the satisfacfion of the District within ftfteen (I S) days of
said notice. If the default is not timely cured to the satisfaction ofthe District, then the District may
declare a material bceach of this Agreeraent and, upon written notice to District in the manner set
forth in Section 22.5 below, terminate tkds Agreement, and, zn 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 FaciIifles and restore the Distric£s property to the condifion exisfmg imme@iately prior to Basin
VTater's installation of the Faci(iries, reasonable weaz and tear excepted.
18. Ttemovai of Facilities. Upon termination ofthis Agreement, Basin Water, at 3ts expense,
may remove or shut down any or alt Faciliries installed and used by Basin Water to treat the water
produced by the We1Ls andlor to monitor compliance of such water with the Quality Standazd. Basin
Water shall coordinate such removal or shut down with District. Basin Water shall not be
responsible fbr costs required to reinstate DistiicYs property Lo its originai condition.
19. License to Enter. By execution of this Ageement, Distxict hereby conveys to Basin
Water an exclusive irrevocable license coupled with an interest to fuU and complete access to the
I)istricf's property on wtuch ihe Facilitles are looated, solely for the purpose of performing its
obligatzons under this Agreement. If Basia VJater so zequests, the license herein conveyed shall be
formali2ed by a sepaxate written ir_strumenY con:9stent wiYh the scope of the license set forth above
and in a form satisfactory to Basin Water.
20. Representations and Warranties.
20.1 Representations and Warranties of District. tn addition to the representations
rE;flec;ted in Section 5 above, District makes the following representations, warranries, and covenants
11
4o Basin. Water, as of the Effective Date:
20.1.1 Power and Authoritv to Execute andPerform this A¢reement. Distric4
fias the right, power, and authority to enter info this Agreement and to perform its obligations
her~,under, and the person(s) execudng this Agreement on behaif of District has (have) the right~
power, and authority to do so.
20.1.2 Enforceabilitv. This A@reement constitutes the legal, valid, and
bixuling obligation of District, enforceabie against District in accordance with its terms.
20.13 No Li6eation. 'Fhere is no suit, action, or azbitrarion or Iegal,
administrative, or ather proceeding, formal or informal, pending or threatened; which adversety
affer,ts District's ability to enter into and perform its obligations under this Agreement.
20.1.4 No Conflict. The execurion and performance of this Agreement hy
~listrict does not breach or constitute a default by District under any law, reguladon, ruling, court
orcie;r, agreement, indenture, or wadertaidng or other instrument to which District is a party or by
r~vhieh Aistrict or any of its property may be bound or affected and does not consritute a breach or
defavlt under any law, regulation, ruling, or court oxder.
20. i.S Production Caqacitv. (Jpon compterion of installation ofthe Facilities,
puxsuant to Section 16 above, the Weils will be capabie of producing and delivering the Base
Quantity of water for processing at the Facilities, subject to Section 22.1$ hereof.
26.1.6 Operafional Capabilities. Upon completion of installation of the
I~acilifies, pursuant to Section 16 above, and for the Term of this Agreemetrt, District will grovide
appropriately qual~ed and certified operatzons personnel so as to properly operate the Facilities in a
highlq efficient manner and deliver the Base Quantity of water for processing at the Facilities,
sabject to Seerion 22.18 hereof.
20.2 Representations or Warranties of Basin Water. Basin Water makes the
following representations, waeranties, and covenants to District, as of the Effective Aate:
20.2.1 Power and Authoritv to Execute and Perform this Ag~ment. Basin
Water has the right, powex, and authority under this Agreement to perform its obligarions hereunder,
and the pezson(s) execudng this Agreemeni on behalf of Basin Water has (have) the right, power,
~ncl authority to do so.
20.2.2 Enforceabilitv. This Agreement constitutes a legal, valid, and binding
obli~atian of Basin Water, enforceable againsi Basin Water in accordance with its terms.
20.2.3 No Litisation. There is no suit, action, or arbitration or legai,
administrative, or other proceeding, formai or informal, pemding or threatened, which adversely
affer.is the ability of Basin Water to enter into and perform its obirgations under this Agreement.
12
20.2.4 No Conflict The execudon, delivery, and performance of this
tagreement by Basin Water witl not breach or constitute a default under or grounds for the
acceleration of maturity of any agreement, indeniure, or undertaking or other instrument to whiah
Basin Water is a parly or by which Basin Water or any of its properiy may be bound or affected acid
does not constitute a breach or default under any law, regulation, ruling, or court order.
20.2.5 Treatment Capaoitv. The Facilities aze capable of treating, at a
minimum, the Base Quantity oFwater, subject to Section 22.i 8 hereof.
20.2.6 Supervisory Canabilities. TJpon compietioa of installation of the
I~acilities, pursuant to Section 16 above, and for the Term of this Agreement, Basin Water wili
monitor the operation of the Facilities by D'istrict and provide technical advice therefor.
2l. Taxes. Basin Water shali not be liab2e for any taxes and govemmental chazges of ariy
lcind whatsoever that may at any time be assessed or levied against, or with respect to, the use,
possession, occupation, and/or ownership of any propezty, or part thezeof, invoived in the
hnplementation of tlus Agreement (including, but not limited to, the WeIls, the Facii9ries, and the
reai pmperry upon wi2ich the Wells and the Facilities are located and upon which Basin Watez has a
license to enter pursuant to Secrion 19 above), or any and ail general or speciai ta~tes, fees,
assessments, and/or charges made by any governmental body for any improvements made to such
property, orpart thereof, and/or for any setvices or acrivities performed hereunder. If Basin Water is
assessed any such taxes, fees, assessments, or charges, said sums shait be paid by District within
tirirty (30) days after receipt of an invozce therefor from Basin Water.
22. Misce[laneous Provisions.
22.1 Further Assurances. At any time and from time #o time after the date hereof,
each ParEy agrees to take such acrions and to execute and deliver such documents as the other Party
may reasonably request to effectuate the purposes of tIvs Agreement
22.2 Assignment. Neither Party shall assign any of its rights, interests, ox
obligationsunderthisAgreementwithoutthepriorwrittenconsentoftheotherParty. Subjecttothe
foregoing restriction, this Agreement and all provisions hereof shall be binding upon, and inure to
the benefct of, the Parties hereto and their respective heirs, successors, legai representarives, and
assigns.
223 Amendment. Except as otherwise provided in this Agreement, ueither fhis
Agreement nor any provision hareof 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 EnYire Agreement. This Agreement and the ageements provided for hesein
constitute fhe entire understanding between the Parties with respect to the matters set forth herein,
13
i 1
and they supercede all prior or contemporaneous understandings or agreements between the Parties
witli ~~espect to the subject matter hereof, whether oral or written.
22.5 Norices. Any no6ce, approval, consent, waiver or other communication
required orpermitted to be given oz to be served vpon either Party in connection with Uris Agmzment
shal! be in wri#ing. Such notice shaIl be personally served, sent by facsimile, telegram, or cable, or
sexit prepaid by registered or certified mail with retnm receipt requested, or sent by reputable
ovexnip,izY delivezy service, such as Federal Express, and shall be deemed given: (a) if personaily
served, when delivered to the Pariy to whom such notice is addressed; (b) if given by facsimile,
tele~ram, or cable, when sent; {c) if given by prepaid or certified mail with retunn receipt requested,
on the date of execution of the rehun receipt; or (d) if sent by xeputable overnight delivery service,
sucki as ~'edezal Express, when received. Any notice given by facsimile, telegratn, or aabte shali ba
conf.xrmed in writing, and such cos~tmation shall be sent or delivered by any of the other means of
de(ivery set forth in this Section, within £orty-eight (48) hours after notice was sent by facsirnile,
Yele~;ra-m, or cable. Such noYices shall be addressed to the Parly to whom such notice is to be given at
the ]?arty's address set forth beiow or as such Party shatl otherwise direct in a writing to the other
Put;y deiivered or sent in accordance with this Section.
If to Basin Water: Basin Watee, Ine.
P.O. Box 70000
San Diego, CA 92167
Attn: Peter L. Jensen, President
Fax No.: (6i 9) 222-3393
TftoDistTict: Sase Valley Water Diatrict
1155 De1 Rosa Avenue
San Bernardiao, CA 92410
f~~Cl: Rohert MarY9n
FaxNo.: (909) 889-5732
22.6 Goveming I.aw. This Agreement shatl be governed by, and conskved and
interpreted in accordance with, the laws of ttte State of Califomia, without giving effect to any
choice-of-law or aonflicts-of-laws rule or principle that would result in the application of aay other
laws.
22.7 Hesdin2s. Headings, fities, and captions are for coavenience only and shail
not cr~nstitute a poztion of this Agreement or be used for the interpretation thereof.
22.8 Cumulative Rights; Waiver. The rights created under Uris Agreement, or by
1a.w or equity, shall be cumutative and may be exercised at any time and from time to time. No
failure by either Pazty to exercise, and no delay in exereising any rights, shaU be const~veci or deemeci
ta be a waiver thereof, nor shall any single or partial exercise by any Party precIude any other or
future ex~rcise thereof or the exercise of any other right. Any waiver of any provision or of any
brea.ch of any provision of this Agreement musi be in writing, and any waiver by any Party of any
14
breach of any provision of this AgreemenY shall not operate as or be construed to be a waiver of any
other breach of that pmvision or of any breaoh o£any otherprovision of this Agreement. The failure
of any Pariy to insist upon strict a@harence 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 Parry of the right thereafter to insist upon stiict
adherence to that term or provision or any other ierm or provision oP this Agreernent. No delay or
omission on the part of any Parly in exercising any rigkt under this Agreement shatl operate as a
waiver of any such right or any other right under this Agreement
22.9 Liberal Construcdon. This Agreement constitutes a fulty-negotiated
agreement among commerciatly sophisticated Parties, each assisFed by legal counsel, and the terms
of this Agreement shatl not be conshued or interpreted for or against azry Party hereto because ihat
Party or its legal representative drafted or prepazed such provision.
22.10 Severabilitv. If ariy provision of this Agreement is invalid, illegal, or
anenforceabie, such provision shalt be deemed to be severed or deleted from this AgreemenY and the
balanoe of this Agreement shall remain in fuit force and effect notwithstanding such invalidity,
iIlegality, or unenforceability.
22.11 Good Paith and Fair Dealina. The Parties hereto acknowledge and agree that
t.he performances required by ihe provisions oftkis Agreement shall be undertaken in good faith, and
with each of the Parties dealing fairly with each other.
22.12 NoThird-PartyBeneficiazies. SubjecttoSection22.2above,t~isAgreement
does not create, and shali not be construed to create, any rights enforceable by any person,
parlnership, coxpozation, joint venture,limited liabiiity company or other form of organization or
association of any kind tfiat is not a Party to this Agreement, except to the extent that Basin Water's
rights may be enforced by a pazent company thereof or a subsidiary thereto.
22.13 Counterpar~s: Facsimile Execution, This Agreement may be executed in
counterparts, each of which shall be deemed an original, but all of which together shail consYitute one
and the same instrument. The signahxre page of any counterpart may be detached therefrom without
impairing the legal effect ofthe signature(s} thereon, pzovided such signature page is attached to any
other wunterpart identical thereto except for having an additional sigaature page executed by any
other Party. Each Party agrees that each other Paity may rely upon the facsimile signature of vry
Pariy on this Agreement as constitufing a duly authorized, irrevocable, actuai, current delivery of this
Agreement as fully as ifthis Agreement contained the original ink signature of the Party supplying a
facsimile signaiure.
22.14 Time of the Essence. Time is of the essence of each attd every provision of
this Agreement. Unless business days aze expressly provided for, atl references to "days" hereiu
shalT refer to consecutive calendar days. If any date or time period pmvzded foz in this Agreement is
or ends on a Saturday, Sunday or federal, state, or legal holiday, then such date automatically sha(1 be
extended to the next day which is not a Saturday, Sunday, or federai, state, or legal holiday.
15
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22.15 Number and Gender. As used herein, and as the circumstances require, the
plurat term shalt include the singular, the singular shatl inalude the plural, the neuter term shall
incIude the masculine and feminine gen8ers, the masculine term sha21 incIude the neuter and the
feaninine genders, and the feminine term shall include the neuter and the masculine genders.
22.16 Disnutes.
22.I6.1 Arbitration. Any dispute or controversy arising out of, under, or in
co~nneation wittz, or in relaHon to, ttus Agreement and/or any amendments thereto, or the breach
thcreof, which is not resolved informally by prior mutual agreemeni of the Pazties hereto, shaii be
submitted to azbitrarion in accordance with the procedure set Porth in the Califomia Arbitradon Act,
Searions 1280 through 1294.2 of ihe Code of Civii Procedure, uniess otherwise waived and/or
madified in writing by the Parties hereto. The cost of such arbitration shall be paid by the Parties
equally; however, the prevailing Parry in the arbitrarion shail be entitled to reimbursement of its
a[tomeys fees and other eosts incucred in connection therewiih.
22.16.2 Attornevs Fees. lf a dispute arises which is not concluded by
arb3trati.on pursuent to Section 22.16.1 above, and any Party to this Agreement reasonably reYaius
counse! for tfie purpose of enforcing any provision of flvis Agreement, imcluding withont limitafion
the nistitution o£any action or proceeding to enforce any provision of t&is Agreement, or to tecover
damages if otherwise available hereunder, or to obtain injunctive or othex reGef by reason of any
alleged breach of any provision of this Agreement, or far a declaration based on a demonstrated
necessity of such Party's rights or obligarions under this Agreement, or for any other judicial or
eqnitable remedy, then if the mattex is settled by judicial or quasiyudicial detemiination, the
prevailing Parry shall be entitled, 3n addiGon to svch other relief as may be granted, to be reimbursed
by the losing 4'arty for alI costs and expenses inourred, including without limitation all attorneys'
~ees and costs for services rendered to the prevailing Party and any attomeys' fees and cosfs incurred
in snforcing any jixdgnent or order entered. The prevailing Paxty shall be deternuned by the court in
tne inititd or any subsequent proceeding.
22.17 Venue. Venue for any action or proceeding brovgtrt pursuant to Section 22.16
above shall be before a state or federat court, tribunal, or magistrate located in the State of Califomia
that woutd generally have competent in rem j~sisdiction over the Wells.
22.18 Force Maieure. If any performance (other than the payment of money dae
ixereunder) of this Agreement is prevented, delayed, or made impracticable due to extended drought,
flood, fne, earthquake, or other natural disaster, lock out, sirike, unavaiIability.of necessary
n~afe~ials, electrical power oc fueI, civii rioting, temorist attack, war or military conflict, inability of
E~asi~t Water ta obtain all necessary Permits or appmvats (includ'ung any and a11 environmental
appr~3vals), or if the cost of complyictg with environmental reqeurements renders this ttxnsaction
economir,atly impractical (collectively a"Force Majeure Event"), then such performance (excepi for
dxe pa}m~iant of money due hereunder) of this Agreement shall be excused for the period of
prevf:ntion, delay, or impracticability resulting from Lhe Force Majeure Event.
16
written.
)~ated:~a ~ ~j
1)ated: April 2? 2bo3
BASIN WATER, INC.
( !~ ~
Peter L. Jensen,
EAST VALLEY WATER DISTRiCT
Donald D. Goodin, Board President
IN WITI3ESS WHEREOF, this Agreement has been executed as of the last date betow
17
i ~
EXIiTBIT KA"
Descriprion of Wells
EXHIBIT'B"
Description of Facilities
EXHfBIT uC"
Purctiase/Lease Oprion Tertns
EXHIBTT'°D»
Quality Standarct for Each Contaminant
Influeni Levels for F.ach Contaminant
EXIiIBIT aE"
PaytnentSchedule
EXFiIBIT "F>'
Tnvoice Form
EXtiIBIT "G"
Insurance Rec}uirements
EXHIBTI' °iIi"
Performance Schedute
18
,r .~
EXHIBIT "A"
East Valley Water District
Cull Well2
Nitrate Removel Facitity
SA1~' ~'RA/dC/SCO ST.
-~- z
PLANT 13e?
(CULL PL/~NT)
e nu. n92-35/-2.e
, I ~)
EXHIBIT `B•>
East Vailey Water Aistrict
C`uil We112
Nitrate Removal Facility
Facility Description
~ Treatment Module (1,000 gpm capacity)
0 16 bed configuration
o Internal brine system
o Process control system
o Pre-Treahnent fiiter system
o Bag fiiters
o Inlet, oudet, filter header system
• Brine filter system
• Waste storage tanlcg
0 2 - polypro tanks
0 4" Waste dischazge system (to lockbox)
~ Salt storage tank
0 1 - polypro tank
0 4" transfer systera
• Utility requiremenis
0 480vac 3ph 60hi 20 amp max (average 3.0 amps)
o '~" sezvice water connecdon
o Well or Pump control interface
0 4-20ma flow signai
0 2" Waste drain
~.7ia1-up telephone line (for aiarms and unit monitoring)
~ ~ I ~
EXHII3IT "C"
Bast Vatley Water District
Cull We112
Nitrate Itemoval Pacility
Purchase Option Prices
After 5 years $653,850
After 10 years $512,680
ii {)
ExHtszT ~°~„
East Valley Water Districz
C~1t WeI12
Nitrate Removai Facility
Water Quality Objectives
Tnfluent Nitrate Concentration: 50 mg/l
Treated Water Nitrate Concentrarion: Less than 25 mg/1
AII General Physical and Chemica! Characteristics to be base on water quaiity ai time of
weil start np.
EXHIBTT "E"
East Valley Water District
Cull We112
Nitrate Removal FaciIity
Earty Ternunation
The District may e2ect to terminate this agreement prior to its term onty if changes in
govemment xeguiations require that the Cuil WeII 2 be removed from service. In the
event that the District is required to take such action, Basin shali be compensated as
follows:
Yeazs 1- 3 $375,400
Years 4 - 6 $25d,000
Yeazs '7 - 9 $125,OQ0
EXHIBIT "F"
13as,tn 4Nat~r Technology Group ~ ~
391=u14on V~venue
I~a~;iadena CA, 91107 ~~~~~ ~o~~~~~..~ ~~
Phcine: (fr?S) 304-26H0 ~~ (~Z.°l
F'ax: (f26j 304-9157 ~~-~J
~31E ~. T~. SERVICE ADDRESS:
Fa:;.t Vaiiey Water Distriot East Vailey Water District
f~.C:. Box 3~527 Cull We112
5air Bemardino, CA 92413
San Bemardino, CA 92410
f'OlContrac:t Number. Previous Meter Reading: !Z/34/01 12:00 AM 0.0
lavnice Dafe: 3125Y1002 Current Meter Reading: 1/31/02 12:00 AM 0.0
F.iilling Cyole: ~# to 1/31/2002 Total Ftow (c~: 0.0
C)~ays of Service:: 32 Total Flow (Acre-ft.): O.G0000
F~are~~vtou~ Charges Amount of Previous Bili 12l30l2002 $0.00
an<i CrediCs: Payment Fteceived $0.00
N3ur CSar~es Standby Charge ( $0.00 /month) $0.00
arid CrediV.s: Operating Charge ( $0.00 /cf x, 0.0 c~ $0.00
PLEASE REMIT TO:
Basin Water Technology Group
39 Fufton Avenue
Pasadena, CA 91107 Totai Due $0.00
EXIiIBIT "G"
The Contracto~ shai( roaintain throughout the duration of the term of the Agreement,
Iiabiiity insurance covering the Confractor and designating the Dtstrict including its
elected or appointed officials, directors, o~cers, agents, emptoyees, volunteers, ar
contractors, as additionai insured against any and atl claims resulting in injury or damage
t~ person~ or property (both real and personal} caused by any aspect of fhe Contractor's
wark, in amounts no tess than the foilowing and with such deductibtes as are ordinary
and reasonabfe in keeping with industry standards. it shall be stated, fn the Additionai
Insured Endorsement, that the ConfractoPs insurance policies shall be primary as
respects any claims related to or as the resutt of ihe Con#ractors work. My insurance,
pooled coverage; or ssff insurance maintained by the District, its efected or appointed
officiaEs, directors, o~cers, agents, employees, volunteers, or contractors shalf be non-
contributory.
Genera! L.iabi~ity:
s~. General Aggregate
b. Products ComplOp Aggregate
c. Personal & Advertising Injury
d. Each Occurrence
e. Fire Damage (any one fire)
{. Medical Expense (any one person}
$2,Q00,000
$2,000,000
$1,00~,000
$1,000,000
$ 50,000
$ 5,000
Workers' Compensafion:
a. Workers' Compensafion Statutory Limits
b. EL Each Accident $9,OQ0,000
c. EL Disease - Policy Limit $1,000,000
d. EL Disease - Each Employee $1,000,000
Automobile Liabitity
a. Any vehicle, combined single limit $1,OD0,000
The Contractar shatl provide thirty (30) days advance notice to the District in the event of
material r,hanges or cancellation of any coverage. Certificates of insurance and
additionai i~sured endorsements shaA be fumished ta the District thirty (30) days prior to
~he effec3ive date of this Agreement. Refusai to submit such certificates shaii constitute
a matsriai breach of this Agreement entitiing the District to any and ali remedles at law or
in equity, inctuding Yermination of th€s Agreement. If proof of insurance required under
this Agreement is not detivered as required or if such insurance is cancefed and not
adequately replaced, the District shall have the right but not ihe duty to obfain
replacement insurance and to charge Efle Contracfor for xny premitam due for such
coverage. The DistricF has Yhe option to deduct any such premium from the sums due to
the Conttactor.
Insurance is fo be placed with insurers authorized and admitted to write insurance in
California and with a current A.M. BesYs rat+ng of A-:V{i or better. Acceptance of
insurance from a carrier with a rating lower than A-:VIt is subject fo approvaf by the
DistrieYs Risk Manager. Contractor shall immediately advise the District of any Iitigation
t t
„
tha~t may affect these tnsurance policies.
F ~ i
EXHiBIT "H"
East VaIley Water District
Cull Wel! 2
Nitrate Removal Facility
Perforcnance Schedule
o Week 1
o Owner begins on-site and off-site pzepazation
o BWT begins unit assemble
• Week 6
o Owner completes on-site and off-site preparations
o BWT begins on-site mobilization
. Week 10
o BWT deliveries Nitrate Removal Facility to Cull Well 2 site
o BWT begins installation of Nitrate ItemovaT Facility
• Week 12
o BWT completes installafion of Nitrate Removal Facility
o BWT begins startup tests
o BWT completes startup tests
o Nitrate Removat Facility ready for perntitfing
;I~i~l!~%~"~! ~1~ ~
BILLING SUMMARY SHEET
AccountManager. Ron Gambfe
Gu~r~r Name: Eas2 Valley Water District Well Name andlor8: Cull We11 #2
C:ontact Name: Robart MarGn, PE Generat Manager
CtoMar,i EE-mall:
F~hone/ F'ax:
E~Illinf~ Address: 3654 East Hlghiand Avenue
Highiand, GA 92346-2607
SeMca ~Address: 7478 San Frencisw St.
Hi hland, CA 92346
I~~B~
[]YUniroe;c6SakAqoeemmt Owarersmxes~qreemenc L7oemo+,qreemrn~
Billing Sh3d Date: Billing End Date: 7ertn of Contrack 10 years
AF Ra9o: $188 Monthy 56 Fee: Deployment Fees:
7'akabrF'ay: MinII00AFlyr. Deposit: DalinquentTarms:l2%perannum
$BB~~p after 30 days
/nsfallmxnt Schedufa:
P'urch:tse Price:
tsh 2nd: 3~:
~~9
AccountManagor J Date ~
VP of Sales -T Date '
GFO -~~.--- Date
C:onfaininanL' NR~te FlowRata: 1,OOOGPM TreatmentGoal: <25mgfL
YotenftFy~ Adtusfnvanis ner Contract:
• Excoss AF/ AdJuated Rate: $125 /AF (or any AF lreatad of tha base quantity of 800 AFJyear.
• Excess InAuent C~ontaminant: (above 50 mB/L)
it after ihe effec6ve date, tt Is delemined that tha level of eonWminanl Is greater t~an t~e
levals represented by the DIsVIct, then both ihe Mfnimum Treatment Fea 3 Atlditlonal
Treatment Fee may be ad)usted by Basin.
• Wate:r (~ualily Changec• Any changas in quaGry atantlard,will result in an atljustment by Bas~n in the Minimum Treatment and Atlditlonat
7eeatmant Faes.
• Bacin f.~BM (labor): if 1ha DIS1ACt is unable to supply appropriately cettified operators, or requests Basm to
provide such operaMrs, both tt~e minimum and additonal heaknent taes may ba adjusted by Basin.
I• CPI ,Acljustrnents: Perihe wnirad, ihe CPI adjusfinent effective Is 7/1/04.
E3asin'in%ater ~elivcrables: ~
~(,Iient~Di:tiverables _..._
I
,fiasin WaterTertninaNon Options•
i
fEast Vailey Water District has right to terminate by 180 day written no8ce pdor to 5th year annlversary of contrect.
~ a After 5 yeaB, right M krminate or purohase opUon oi SBb3,850
I o After 70 ytars, ti8ht to terminate or purchaae option of S512,880
Amendment One
to thc
Demoastration Project Agreement
THIS AMENDMENT to the Agreement is enterecl into on this 19th day oPJune, 2008, b,y
aa~iJ bctwcen: I~ast Yallcy Water llisYrict, wlth its principal address at 3654 kSast Highland
Avenue, Suite 18, Hi~hland, CA 92346-2607 (hereinafter "DistricY'); and Basin Water, Inc.,
~t~ith its principal address at 9302 Pittsburgh Avenue Suite 210, Rancl~o Cucamonga, CA 91730
(hcreinafter "Basin")( either party may be referred to as "Party" and collectively as"Parties").
WHLR~AS, District and Basin entered into that oertain Demonstration Prqject
A~reement ("Agreement") dated February 25, 2005; and,
WI-IEl2EAS, the Agreement expires on June 21, 2008;
WHETtEAS the Patties intend to enter iiz a lon~-term water services agreement;
WI-I~R~AS the Parties need addiGonal time to determine the terms and condirions for
such long term agreement;
WI-TLREAS the Parties wish to extend the existing Agreement for thirty (3d) days in
order. to provide time to determine, discnss and memoriatized the terms of such long-term
agreement;
WHF,RFAS the Parties intend to amend the Per Acre Foot Treatment Fee fram One
T-[undred and Ninety Pive Doilars {$195} per acre foot to Pive T-lundred and Twenty Dollars
(.~5?.0) per acre foot;
WHL;REAS the amended per acre-foot ireatment fee compensates Basin Water for its
services and does xiot include any amounts related to the capital eosts for the Faciliries;
WHE~AS, the parties now desire to modify selective portions of the Agreement, all as
set forth herein;
NOW, 't'IIEREFORB, im m~tua3 consideraiion herein described and other good and
valuable consideration, receipt oi'which is ltet~eby acknowledged, the parties agree as follows:
Sectiun 2., Term, sfiall be amended by deleting die seation in its enrirety and replacing it
with the following:
"1"he term for treatment of water pursuant to Uiis Agreement shall
commencc on the date that ali required Permits {as defined in
Section 14 below) has been'obtained and shall continue untii Juty
31, 2008. Thereafter the term shall conYinue on a rraonth to montl~
basis witi! either Party provides thiriy (30) days wririen notices to
the other Party to ~erminate the Agreement."
Scction 8.1, Pcr Acre Foot Treatment Ree, shall be amended by deleting "Nitrate" from
the second line of tlie first sentence and by substituting "Five Hundred and Twenty" for
"One Hundred Ninety Five" tand substituting "($520") for "($195)" in the last Ywo lines
of the second sentence. The new amended Section 8.1 shall read as foliows:
"Uisuict shail Ue obligated to make payments to Basin Water for
water chat 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 $asin VJalsr a ereatinent fee
(the "Per Acre Foot Treatment I'ee") equal to Five Hundred and
Twenty Dollars ($520) per acre-i'oot "
3. Sectiau 4.1, Sasin Water ObliQations, shall be amended by includin~; the following
pai•agraph after the existing language:
"Bnsin Water shall perform a resin column test to evaluate
perclilorate selective resins for use at the Faciliry locaied at the
Dishtict's Well #27. Basin Water shall also evaluate blending
District well water to determine, if possibie, a more economic
method for the District to treat its well water. i'ollowing
collection of this data, Basin Water wi(1 determine whether it
cau reduce the District's groundwater h•eahnent costs, and if
so, Basin Water shall submit a proposal to the Distriet for a
tong-term service project."
4. "I'liis Amendment shall take efT'ect upon the date entered unless otherwise provided for
liercin.
5. Ail terms of the Agreement not specifically amended or modified by this instrument shall
remain unmodi~ed and in fuil force and effect.
VJ~IERCFOIt~, bofh parties indicate their approva( of ihis Amendment by their signature be(ow
and eac;h party w~rrants ihat all action necessary to bind the parties to the terms af this
AUreeraent lias been ttxken.
I~siE.t Vailey'UVater istrict
73Y:__~,!` ~"~
l~cint TIanie:_.E~d_~~~clf4.
•rnte:_~;~(!~y
I/
llate:~~~U~
B:-sin Watcr, Inc.
By: ~'~.~'l~r. ~~. [~`,~~;.~~,`
Print Name: ~r ~. ~ ~ ~~ ~ci u-' i(..
~
l ~ .,
Title: ~-t <'~ ~- c.':~:~k Y.y ~ ~.~
Date:~ ~ • J ~
~ ..
~~y ..- •~/:
DE1VI01\'STRA'J'TON P120.TECT AGREEMENT
THIS DEMONSTRATIOIV PROJECT A.GREEMENT ("Agreement"), entered into as of
the latest of the dates shown opposite the signatures of the Parties to this Agreement, 'ss made by
and between BASIN WATER, INC., a Cali£omia corporation ("Basin Water"), and BAST
Vl~L,LEX WATBR ATSTRICT, a public agency ("Aistrict") (Basin Watez and Disisict are
sometimes hereinafter are referred to collectively as the "Parties" and individually as a"Par[y").
RECITA.LS
A. Distcict owns ceztain well(s), commonly identified as Well 27 (the "Weil"), that
currenfly produce groundwater containing levels o£nitrate and perchlorate (collectively "the
Contaxninants") that are in excess ofpresently acceptable standazds for drinking water. The
Well(s) aze more particularly described in.~xhibit "A" attached hereto and incorporated herein
by this reference.
B. Basin Watez possesses the requisite skili, expertise, technology, and solations for the
deveIopment of Paciliries (as defined in Exhibit ".8" which is attached hereto as incorporaYCd
hexein by this reference) foz the treatment oP grouxidwater containing the Contaminants, so as to
enabie District to supply potable water from the WeII(s) that meets the desired dcinking water
sta.ndazds for said pollutanzs.
C. Basin Wate'r also has developed and appfied for patents on an innovative method to
re,fluce perchlorate zesiduais resulting from.the use of disposable perchlorate xesins. Basin and
the Dishict wish to demonstrate the viability of this method as it applies to drinking water.
D. Bas3u Water, at its sole cost, will provide ail necessary equipment, Yraining and waste
dasposal £or the perchlozate portion of this demonstration project. The Aistrict shall be
responsible for paying for the Operation and Maintenance of tke nitrate portion of the water
treatment system being installed.
E. District possesses the requisite skiIl, expertise, and qualifications to operate the
Fucilities consistent with prudent water ufility sfandazds, practices, and procedures, and all
appiicable regulatory requirements.
R. The purpose of tbis 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 WeIl(s) and
disposai of waste derived therefrom and the payment of services therefore by District.
NOW, THEREFORE, in consideration af the mutual covenants contained in this
Agreement, and for other good and valuable consideration, the receipt and adeqtaacy o£which are
herebq aclrnowledged, the Parties hereto a~-ee as follows:
OPERATI'VE P120VISIONS
1. Treatment.
l.l Facilitaes. Subject Yo the ternvs and conditzons contained herein, Ehe
karties agree Ehat Basin Watar shall design, install, aud own the Facilities to treat the water
prodnced by the Well(s), and once such water meets the QuaJity Standazd (as defined in Sectiott
5 below), to charge Distnict a treatment fee for such water as set forth in Section 8 below.
Uistrxct shall assume sole responsibility for operating the Facilities and shall supply
appropriateIy qualified and certified personnel to perform said acrivities in a skillful and
competent mauner, consistent with the standazds generalIy recognized as being employed by
p:rofessionals in the same discipline in the St»te of Cali£omia,
1.2 Other Well(sl. If Distdct owns other We11(s) that produce water
cr~ntaining leveis of the Contaminants, or other pollutants, in excess of the maximum
contarninant level(s) mandated by the State o£ Caiifomia Department of Aealth Services
("DFTS"), or at levels that District intends to reduce to more desirable levels, and District wishes
to coxmect to other Basin Water facilities for treatment, then District shall send written notice
(El~e "SupplemenYz[ Treahnent Request") to Basue Water zequesting Basin Water to ireat the
water produced by such othex'Well(s). Tbe Suppleraental Treatment Request shail include aii
enginrering and water quaIity infozmation that District has in its custody, contzol, 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 shai2 notify District whether it
agrees to treat the water produced by tlze other We11(s), and if so, the Yexms and conditions on
wbich Basin PJates is walling to do so. If Basin Water fails to respond to Dishict witlzin such
thirty (30) day period, then Basin Water shall be deemed to kave denied DastricYs request. I£
Basin Water notifies bistrict that it agrees to treat the water produced by the other Well(s), aud
the terms and condifsons proposed by Basin Water are acceptabte to District, then fhe Parties
shall execute a supplement to tlus Agreemettt or a new agreement, so stating and specifying the
addirional Well(s) to be treated and any other modificataons to this Agreemeut zequired as a
resuIt thereof.
2. Tex~m.
2.1 Duration of A eement. The term foz tteatment of water pursuant to this
A~;reement shall commence on the date that all required Permits (as defined in Section 14 below)
have been obtained and sha11 continue for a period of one (1) yeaz thereaftex (the "Term"). At
th<; end of the Term, District shali have the option to extend the demonsiration period for an
ad<iitional year or to lease and/or purcHase the Demonstcabion Pacilities in accordance with tenms
that are mutualIy agxeeable to both pariies. Such option sha11 be exercised by notice given by
J~istrict to Basin Water no later tlian saxty (60) days prior to expiration of the Term. Tf no such
notice is given by District prior to the expiration o:Fthe Term, Basim Water shall be entided to
extend the end date of the Term for anotfier twelve (12) months af the same terms and conciitions
set forih in ehis Agreement provided that Basin gives notice to District of such extension no later
than ten (10) days following the expiration of the DistricYs option the extend the Tenm of this
agreement.
2.2 Term Year. As used herein, a"Tenn Year" is a period of twelve (12) full,
calendar months comxnencing on ttze date that all required Permits (as defined in Section i4
below) have been obtained and shall continue for a period of one (1) year therea$er (the
"Term").
3. Effective Date. As used in this Agreement, the term "E££ective Date" shaIl mean the
Iast date upon which a Parry hereto has executed this Agreement.
4. Desien and Installation o£'GVater Facilities.
4.1 Basin Water Obli ations. Tn accordance with generally accepted
engzneering staudards, Basin Water shall design, construct, and install the Facilities so as to
reznove the Contaminants &om the WeIl(s) pursuant to this Agreemant, and shall perform all
services under tlais Agreement in a skzllful and competent manner, consistent with flie standazds
generally recognized as being employed by pro£essionals in tlze same discipline in the State of
Califomia. Basin shall be responsible providing designated District personnel with all training
necessary for the sa£e and eff'xcient operation of'Basitt's ireatment system. The Dislxzct shall be
the sole judge as the sufficiency of all training provided by Basin. Unless otherwise agreed,
Basin Water shall be responsible £or all costs and expenses necessary to instalI the Facilities to
treat the water produced bq the WeIl(s) so thaE it meets the Quality Standazd. Basin shall prepaze
and. submit the Operations and Maintenance ("0&M") Mannal for District and D~TS approval.
Said O&IVf IvlanuaI shall also contaia specific informaYion on tAe Basin equipment, nitrate
analyzer, and all relevant subsystems. Basin Water maq store equipment or materials on
District's property during installation of Facilities, provided that such storage does not otherwise
interfere with DistricYs operations on such property.
4.2 DistricYs Obli~arions. District shall provide Basin Water with; (a) all
design and construction information conceruing the Well(s) or otherwise in District's possession,
custody, or contzol necessary for Basin Water to desigu the connecrion o£the Facilities to the
We11(s) and from the Facilities to DistricYs water distribution systezn; (b) District shall bear the
capital costs to install all eiectrical equipment required to operate the Facilities; (c) the license
more particulazly described in Section 19 hereo£; (d) all electrical power required by Basin Water
to install the Facilities; (e) the physical pzoperty on which Basin Water will instaLl tTae k'acilities;
{~ appropriately qualified and certi~ied personnel to become trained in the operarions o£ the
Facilities, to become familiar with operating policies and procedures o£the Facilities as
proscribed by the Permits {as defuxed zn Section 14.2 below) and fhe Operations and
Maintenance ("O&M") Manua1 developed by Basin D'Jater and approved by DHS, and to
paaticipate 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 infomiation and data
provided by District in clause (a) of this Section 4.2 without independent verificatioxi and/or
exposure to liability therefore, and such informarion and data so provided by District shall be
deemed to be complete and accurate in a1I material respects for Basin Water's purposes. Aishict
shall particulazly advise Basin Water of all elemenfs of influent water ttecessary for the design,
aonstruction, and installation of the Pacilities.
4.3 Verification Riehts. Eacla Pariy shall have the right to verify, at its own
expeuse, the amount and quality of the water entering azad exitiug the Facitities and to conduct
independent testing thereof. Basin Water shall monitor opezating performance of the Facilities
and provide comments to District and others as appxopziate.
5. Water Quality. After Basin Water's design and 'znstallatzon o£the Facilities, and
subject to ail of the terms and conditions o£this Agreement, the Facilities shall reduce the level
of the Contaminants in the water produced by the Well(s) that aze connected to the Pacilities to
the Ievels listed in Exhibit "C" attached hereto and incorporated herein by this re£erence
("QuaSi[y Standard"). District shall provide Basin Water with annnal reports describing influent
water quality. Distxict shall bear the cost of complqing with changes in water quality standards
that require reduction of the Contaminants to levels less than the QuaIity Standard and for
pollutant levels of influent water upon which the design and construction on whzch the Facilities
we:re based.
6. Pavments. District acknowledges and agrees that: (a) Disirict shall be liable for
payments to Basin VJater of the fees and ckazges set forth in this AgreemenY (zncluding but not
limited tb those Treatment Pees set £ozth in Section 8 below) for watex processed thzough the
Facilities that meets the Quaiity Standard for tize Contaminants.
7. 1Vleasurament. Once water treated puzsuant to this Agreement meets the Quality
Standard, fhe amount thereof shalI be properly measured each month by Basin Watez and District
at t7ie point where such water reenters the District's water dishibution system from the Facilities.
The Parties shail be bound by the measurements ac such point. A.t least annually, District, at its
expense, shall test the raeter fo verify that such equipment is properly measixring water pumped
back into Aistrict's water distdbution system. These test results shali be made promptly
available to Basin Water, Aistrict, at its expense, shall make or cause to be made any repairs to
ensure such equipment is measuring properly and skall sapply such information to Basin Water,
includang appropriate certification by equipment testing professionals.
$. Treatznent Fee. Beginning on the eazlier of (a) the date that DHS approves use by
Di.sfrict of the wafer treated by the Facilities:
8.1 Per Acre Foot Treahnent Fee. DistricY shall be obligated to make
payments to Basin Water for water that meets tke Nitrate Quality Standazd For each acre-foot
of water treated by the Faci2ities that meets the Qualiry Standard, as reflected by the records of
the measureinents made as provided in Sectaon 7 above, District shall pay to Basin'Water a
treatmeut fee (the "Per Acre Foot Tzeat~nent Fee") equal to One T-Tundred Ninety Five Dollars
($:195} per acre foot.
8.3 Adjustment for Non-Sveci~icaiion Influent Water. The Treatment Fee is
based upon DistricYs representatzons to Basin Water that the level of the Contaminants in the
4
water produced by the Well(s) as of the Effective Date ls as set forth in the document attached
hereto as Exhibit "C" and incorporated herein by this reference. Tf after the Ef£ecrive Date, it is
determined that the level of the Containinants in the watez produced by the Well(s) is greatez
than the levels represented by District, the Treatment Fee may be adjusted by Basin Water.
8.4 ~ustmenC for Chanees in Quality Standazd. The Treaiment Fee is based
upon the Quality Standard existing as of the Effective Date. If the QuaJity Standazd is changed
duxing the Term, the Treatment Fee may be adjusted by Basin Water.
8.5 Adiustment for tlnqualified Personnel. The Treatment Fee is based upon
Diattict supplying appropriately certified and qualified operators during the Term. If Dishict is
uuable, or othenvise requests Basin Water, to supply appropriately certified and quafified
opPrators, the Treatment Fee may be adjusted by Basin VJater.
8.6 Adiustment for CPT. The Treatment Pee shall be adjusted by Basin Water
in its invoices to District commencing on January 1, 2006, and on eacfi January 1 thereafter, by
the percentage increase, if any, reflected in #he Cost o£ Living Tndex measured by the United
Sta4es Department of Labor revised Consumer Price Index for All Uzban Consumers for the Los
Angeles T.ong Beach Riverside azea ("CPI") for the pzeceding twelve (12) months as published
by the Bureau of Labor Statistics.
9. Unconditional Obli2ation. After installation of the Facilities by Basin Water so that
the water produced from the WeU(s) meets the Quality Standazd, District's obIigation to pay all
amounts due under this Agreement shall be an absolute and unconditional obligation of District,
payabie as an operating expense of llistrict, not subject to deductaon, offset, prior nofice,
demand, changes or fluctuarions in demand or price of other sources of water, or inability of
Aistrict to accept delivery o£ water, or to use, store, or resell water after delivery from the
Facilities.
10. Invoices. After the Facilities aze opentional and have received all Pemuts (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 ail applicable Pemuts have been issued.
Sur,h invoice shall recite the amouut of water treated diuing that month, xneasured in accordance
with SecLion 7 above, multiplied by the Per Acre Foot Treatment Fee and the Additional
'i'reatment Fee, as app2icable. Provided that District receives such invoice from Basin Water no
later than the ~ifth day o£ each month, then wifilrin thirty (30) days following District's receipt of
such invoice from Basin Water, District shall, without deduction or offset, make payment to
Basin VJater for atl amounts then due by direcfing such payment to the address at which notices
aze to be delivered pursuant to Section 22.5 of this Agreement. The invoice shall be substaniaally
in the form of Exhibit "D" 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 e~ciency.
11. Delinauent Payments. Any payment due from District to Basin Water under this
Agreememt Chat is not received within thirty (30) days after the date of the invoice therefore shall
beaz iaterest at the Iesser of twelve percent (12%) per anuum or at the rnaxunum rate permitted
by law, from the date due until payment is received by Basin Water. If District fails to pay Basin
W ater for water treated in accordance with this Agreement with9n one hundred twenty (I20) days
af.ter receipt of any invoice therefore, then, in addition to any other rights'that Basin Water may
have at law or in equity, Basin Water shail be entitled to ferminate this Agreement, shut down or
remove all F'acilities, and receive a lump sum payment £rom District of the entire amount of ~
zn.oney that would otherwise be owed to Basin Water had the Agreement been completed through
ihe Term; provided, fiowevex, that if a boxia fide dispute exists between Disirict and Basin Water,
then Basin Water may not be entitled to terminate this Agreement so Iong as: (a) District has
paid the undisputed portion of any amount due, together with any interest thereon in accordance
with taais Section; and {b) the Parties aze negotiatuag ixz good faith toward the resolution of the
dispute; provided further, however, that if such resolution does not occur within ninety (90) days
of'the occun•ence of the dispute, Basin Water shall have all rights and remedies available to it
under this Agreement, by law or eqnity.
I2. Operafion.lVtaintenauce~Renairs.
12.1 eration. District sha11 be solely responsible for opez~ting tlze Pacilities
as required by law and in accordance with the Pernuts (as defined in Section 14 below). The
ongoing electrical usage costs, inctuding any electrical costs related to the pumps or booster
sfations, shall be bome by the District. Basin VJater, as part of the Per Acre Foot Treatrnent Fee,
shall be xesponsible for all other operatang costs of the Facilities, including, without limitation,
salt to produce water from the Well(s) and disposal of Distzict's waste as set forth itt Section 12.4
be:low, but excluding anq costs or expeuses relatiug to DistricYs operating or managerial
pezsonnei or related overhead. Basin pezsonnel shall not undertake any activity that resutts in a
change o£the operationai configuration as appzoved by DHS. Dishict shall be soleIy responsible
for setting or modifying alI operational configurations.
12.2 Maintenance and Renairs. Subject to the terms and conditions o£tkus
Agreement,l3asin Water shall be responsible for all routine maintenance and all ord'znaxy repairs
necessary to maintain the Facilities in good condition in accozdance with the O&M Manual. All
maintenance and zepairs pexformed by Basin Water shall be limited Eo those activities which do
not result in a change to DHS approved operational configura#ons. All routine maiutenance and
zepairs shall be schedule with District at Ieast 24 hours in advance and shall be preformed in the
presence of qualified Disixict personnel.
12.3 Third-Partv Contacts. Basin'Water, at its option, may contract with third
pas-ties, including without lnnitation District, to perform routine operational activities and routzue
mainten.ance of the Faciliries under Basin Water's d'zrect supervision. If Basin Water enters into
suc:h a contract with Disixict, then, as a condition thereto and in recognition of the proprietary
natuxe of the Facilities, District agrees to execute Basin Water's standard confidentiality and
noxa-disclosure agreement. Disfrict sfiall allow third parties access to the Fac9lities only after (a)
adequate advance notice thereof to Basin Water in accordance with Section 22.5 below, and (b)
Basin Water's issuance of written consent thereto, unless such access to the Faciliiaes is required
by t~pplicable Califomia or federal law notwithstanding the gzanting of any such consent by
Basin Water.
12.4 Waste. Basin Water shall assist District in disposing all of DistricYs brine
arid of,her waste resulting from Basin Water's treatment o£DistricYs water through the Faciliries.
Basin Water's participarion in tlus process shall not relieve Districe o£zts ultiznate obligation to
dispose of all brine and other waste in accordance with ail federal, state, or loca2 statutes,
orclinances, laws, rules, or regulations.
13. Securi .
13.1 Facilities. T~istrict, at its expense, sAa11 have the sole responsibility for
providing sacurity for the Facilities. The level of security shaA be detezxuined at the reasonable
discretion of the District in accordance with District psactices and procedures.
13.2 Tnsurance.
132.1 Coverage b~Dishict With respect to its activities under this
Agreement, Basin Water shalI maintain or cause to be maiutained, and shall provide or cause to
be provided, evidence of general liability, woxkers' compensation, and automobile insurance
coverage in sucfi amounts and on such terms and condirions as aze more particularly set forth in
Exhibit "E" atEacked hereto and incorpozated herein by this zeference.
13.2.2 Coverage by Basin Water. VJith zespect to its activities under this
Agreement, Basin Water shall maintain or cause td be maintained, aud shali provide or cause to
be ~~rovided, evidettce of generat liabilzty, workers' compensation, and automobile iasurance .
coverage in such araounts and on such terms and condiEioxis as are more particularly set forth in
Exhibit "E" attached hereto and incorporated herein by this refexence.
14. Permits and Authorizations. As soon as practicable following the execution of this
Agreement by each of flze Parties hereto, Basin Water and District shall cooperate in obtai~aing
all permits, conseuts, entitIements, and approvals required as of the Effective T~ate (collectively
the "Pernuts"), including without lixnitation any and all environmentai Permits, necessary to
enable Basin Water to instail tke Facilities and to initiate the treatment of water produced from
the Well(s) to meet the Quality Staudard pursuant to this Agreement. Accordingly, Basin Watex
and Dislrict agree: (a) to jointly pursue and support each other in obtaiziing the Pernuts xiecessary
to initiate tnnely installarion and operation of the Facilities; (b) to make timely submission for
snch Permits; and (c} to cooperate with each other in implementing terms of this Agreement and
achieving its objecrives. All costs and expenses of the activities xequired under this Sectiott 14
shall be the responsibility of District. Any pernrit necessary to operate the Facziities sha11 be
drawn in the nazne of the DistricC.
15. VVater 1tieBYs Not Affected. The treatment of water pursuant to this Agreement
shall not confer any appropziative, public trust, or other right to water of any nature on any
person or enrity. Nothing in this Agreement shall act as a forfeiture, diminution, or impaizment
of. any rights Aistrict may enjoy to full use of the water from the Well(s) from and aftez the
execu.tion and subsequettt expiration of this Agreement, or shall in any way prejudice any o£
]7istrict's rights, tide, or zntexest thereto. The Parties hereto agree that neither water treated
undez thas Agreement nor the Agreement itself is evidence o£ lack of beneficial use of the water
isivolved in the treatment hereunder.
16.1~me for Performance. Subject to Sections 17 and 22.18 below, each of the Parties
he.reto shall per£orm their respectSve obliga#ions under this Agreement in a prompt, timely, arid
pr.ofesszonal manner and in accordance with the Performance Schedule attached hereto as Exhibit
",F"' a.nd incorpoxated herein by this reference.
17. Early Termination.
17.1 District's Termination Oprions.
17.1.1 Faiture to Obtain Permits. If for any reason other than a deIay
causec9 by Distrzct or by a Force Majeure Event (as defaned in Section 22.18 below), all requisite
Pernuts 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 Staudard within sixty (60) days after the last day of the
Pf::rformance 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
ex:penditures and out-of-pockat costs incunred in connection with this Agreement
17.1.2 Chan~e in Qualitv Standard. I£after the Bffecrive Date and before
the issuance of the Permzts, Lhe QuaTity Standard is increased for any reason not caused by
17i.strict, and District does not wish to pay Basitt'l7Jater 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 Basiu Water in the manner set £orth in Sectzon 22.5 below,
may termiuate tLis Agreement, and Dist~ict aud Basin Water shall each have no fuzther
responsibiliries to the other Party under tlus Agreement and each shaII bear its own expenditures
and out-of-pocket costs incuxred in connection therewzth.
17.2 Basin Water's Termination Outions. Im addition to the rights and remedies
set: £ozfh zn Seciion 11 of this Agreement, Basitt Water shall be entitled to exercise all of the
following:
17.2.1 Failure to Obtain Pemuts. If fox any reason other than a Force
Ivlajeure Event (as defined in Section 22.18 below), all requisite Permits have not been secured
and Basin Watez has not been able to install the Facilities to ireat the water so that it meets the
QLiality Staudard on or before the date that is sixty (60) days afrer the Performance Deadline,
then, Basin Water, at its oprion, upon written notice to District in the manner set forth in Section
22.5 below, may Yeiminate this Agreement, and, iu lieu of aoy other remedies af ]aw or in equity
to whi<;h District otherwise might be entitled, Basin ~Vater shall be responsibie only for its own
expenc~itures and out-of-pocket costs incurred in connecrion with this Agreement.
17.2.2 Breach. If for any reason ofher thaxi a Force Majeure Event (as
defined in Section 22.18 below), District £aiis to fully and completely comply witfi any of its
obligafions under this Agreement, or the representataons contained in Section 2Q. i below aze
determined to be inaccurate or no longer applicable, oz any of the Pernuts aze revoked, then
Basin Water, at its option, may deem said act or omission to constihtte an event of default and
sha11 give District written nottce thereof in the manner set forth uz Section 22.5 below, and
provide therein that Disfrict 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 safisfacrion a£ Basin
Water, then Basin'Water may declaze a material breach of this Agreement and, upon written
notice to District in the manner set forth in Section 22.5 below, ternvnate this ,Agreement, and, in
addition to any other remedies ae law or in equity that might otherwise be available to Basin
Water, Basi7z Water shalt be antitled to receive a Iump sum payment from District of the entire
amount of money that would othervrise be owed to Basin Water had the Agreement been
completed through the Texm.
18. Itemoval of Facilities. Upon termination of this Agreement, Basan WaYer, at its
expense, may remove or shut down any or all PaciIities installed and used by $asin Water to
treat the water produced by the Well(s) and/or to monztor complzance of such water with the
Quality Standazd. Basin'Water shaii coordinate such removal or shut down with District. Basin
Water shall not be responsible for costs xequired to xeinstate District's properry to its original
coudition.
19. Licensa to Enter. By execution of this Agreement, DistricY hereby cottveys to Basin
Water an exclusive irrevocable license coupled with an interest to futl and compiete use of
DistricYs property, up to and includiug the Faciiities and Well(s), as is deemed neoessary by
Basin Water after the E£fective Date to install and maintain the Facilities necessary to treat the
water produced by the Well(s) in accordance with Basitt VJater's obligations undez this
Agreement. Basin shall notify Dishict 24 hours in advance of any and all proposed visits to the
WetI siee. I£Basia Water sa requests, the license herein conveyed shall be formalizedby a
separate written instnunent consistent with tlie scope of the license set forth above and in a form
satisfactory to Basin Water.
24. Renresentations and Warranfies.
20.1 Re~zesentatzons and Warranties of Dastrict. In addiUon to the
representalions reflected in Section 8.5 above, Disttict makes the following representations,
wazranties, and covenants to Basin Water, as o£the Bffective Date:
20.1.1 Power and Autharitv to Execute and 1'erform this A~reement.
District has the right, powsr, and authority eo enter into this Agreement and to perfoim its
obligations hereunder, and the person(s) executing this AgreemenE on behalf of Disirict has
(have) the right, power, and autliority to do so.
20.1.2 Bnforceab9litv. This Agreement constitutes the iegal, valid, and
binding ob2zgation o£ District, enforceable against District 9tt accordance with its terms.
20.13 No Litigation. There is no suit, action, or azbitzation or legal,
aduiinistrative, or other proceed'vng, formal or in£ormal, pending or threatened, which adverseIy
a1.'fects Distxict's ability to enter into and perform its obligations under this Agreement.
20.1.4 No Conflict. The execution and performance of this Agreemettt by
District does not breach or constitute a de£ault by District under any law, regulation, ruIing, court
order, agreement, indenfure, or undertaking or other instrument to which Distnict is a party or by
which Diskrict or any of its property may be bound or aff'ected and does not constitute a breach or
default under any law, regulation, rulixig, or court order.
20.1.5 Production Capacitv. Upon completion o£znstallation ofthe
Faciiities, pursuant to Sectibn 16 above, the'Well(s) will be capable of producittg and delivering
the Base Quantity of water for processing at the Faciliries, subject to Section 22.18 hereof.
20.1.6 Onerational Ca~abzlities. [Jpon completion o£installation ofthe
Fa.cilities, pursuant to Section 16 above, and for the Term of this Agraement, District wiil
provide appropriately qualified attd certified operations personneI so as to properlq operate the
Facilities in a highly efficient manner and deliver the Base Quantity of water for processing at
thr Facilities, subject to Sectiott 22.18 hereof,
20.2 Renresentations or Wazranries of Basin Water. Basin Water malces the
following representations, warranties, and covenants to District, as of the Effective Date:
20.2.I Power and Authoritv 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) executiug this Agreement on behalf of Basin Water has (have) the
right, power, and authority to do so.
20.2.2 Enforceabilitv. This Agreement constitutes a legal, valid, aud
bin.ding obiigation 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 Iegal,
aciministrative, or other proceeding, formal or in£ormal, peniling or threatened, which advezsely
af~;cts the ability of Basin Water to enter into and perform zts obligations under tbis Agreement.
20.2.4 No Conflict. The execution, delivery, andperforuuwce o£this
Agxeett~ent by Basin GJater will not breach or constitute a default under or grounds for the
accelerarion of maturity of any agreement, indenture, or undertaking or other instrument to
.~vhich F3asin Water• is a party or by which Basin Water oc any o£its properiy may be bound or
af£ected and does not constitute a breach or defauTt under any law, regularion, zuling, or court
order.
10
20.2.5 Treatment Capacitv. The Facil'aties are capable oP treating, at a
minimum, the Base Quant9ty of water, subject to Section 22.18 hereof.
20.2.6 Suoervisorv Ca~abilities. Upon compietion of znsfailation of the
Facilities, pursuant to Secrion 16 above, and for the Term of this Agreement, Basin Water will
moniWr the operation oP the Facilities by Disfsict and provide technical advice therefore.
21. Taxes. Basin Water shall not be liable for any taxes and governuiental charges o£ any
kind wflatsoever that may at anq time be assessed or levied against, or with respect to, the use,
possession, occupation, and/or ownership of any pzoperty, or part thereaf, involved in the
implementation of this Agreemene (incIuding, but not lanited to, the Well(s), the Facilities, and
the real property upon which the We11(s) and the Facilities aze Iocated 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 chazges made by auy governmental body for any improvements
made to suci~ propezty, or paxt thereof, and/or for any services or activities per£ormed hereuader.
I£l3asin Water is assessed any such taxes, fees, assessments, or charges, said suxns shall be paid
by Dishict within thirty (30) days after receipt o£ an invoice thezefoxe from Basin Water. ,
22. Miscellaneous Provisions.
22.1 Furtiier Assurances. At any time and &om time to time after the date
hereof, each Parry agrees to take such actions and to execute and deliver such documents as the
other Pariy may zeasonably request to effectuate the pusposes of this Agreement.
22.2 Assi~nment. Disirict shall not assign any of i#s rights, interests, or
obligations under this Agreement without the prior written consent of Basiu Water. This
Agresment and all provisions hereof shalt be binding upon, and inure to the benefit of, tlze
Partties hereto and their respeciive heirs, successors, legal representatives, and assigns.
22.3 Amendment. Except as othercvise provided in tIus Agreement, neither tbis
Agreement nor any pxovision hereo£ may be waived, modified, amended, dischazged, or
terminated except by an instrument in writing signed by both Pasties, and then oniy to the extent
set forth in such writing.
22.4 Entire A~reement. This Ageement and the agzeements provided for
herein constitute the entire understanding between the Parties with respect to the mattexs set forth
herein, and they supercede all priox oz contemporaneous understandings or agreernents between
the Parties with respecE to the subject matter hereo£, whether oral or written.
22.5 Notices. Any notice, approval, consent, waiver or other eommunication
required or pettnitted to be given or to be served upon either Parry in connecdon wzth this
Agreement shall be in writing. Such notice shall be personalIy served, sent by facsimile,
telegzam, or cable, or sent prepaid by registared or certified maal wztli retam receipt requested, or
sent by reputable ovemight delivery service, such as Federal Express, and sliall be deemed given:
(a) if personaily served, when delivered to the Pariy to whom such notice is addressed; (b) if
11
given by facsimile, telegxatn, or cable, when sent; (c) if given by prepaid or certified maIl with
return receipt requested, on the date of execution of the retum zeceipt; or (d} iP sent by repntable
nvenright de&vezy sezvice, such as Federal Express, when received. Any norice giveax by
f'acsiznite, telegram„ or cable shaIl be conf'umed in writing, and such confirmarion shait be sent oz
ctelivered by any of the other means of delivery set forth in this Section, withiLi £orty-eight {48)
hours after notice was sent by facsimile, Eetegram, or cable. Such notices shall be addressed to
the Party to whom such ttodce is to be given at the Party's address se4 fortfi below or as such
~'arty shall otherwise disect in writing to the other Party delivered or sent in accordance with tbis
Secrion.
J~'to Basan Water: Basin Water, Tnc.
P.O. Box 70000
Saa Diego, CA. 92767
Attn: Peter L. Jensen, President
Pa7cNo.. (619) 222-3393
If to Dishict East Valley Water Distric#
~ P.O. Box 3427
SanBemazdino, CA 92413
Atin: Robert fi. Mattin, General IvIanager
Fax No. (909) 889-573Z
22.6 Goven~iiie Law. Tl~is Agreernent sbai( be governed by, and construed,aud
interpreted in accordance wzth, the iaws of the State of Cali£ornia, without giving effect to any
choice-of-law or conflicts-of-laws rute or priaciple that would result in t6e application of any
other laws.
22.7 Hendines. Headiu~s, titles, and captions are for convenience aniy and
shalt not constitute a portion of this Agreement or be used for tfie intezpretatiom thereof.
22.8 Cumulltive Rigi~ts: Waiver. The rights created under titis Agreement, or
by law or eqnity, shall be cumulative and may be exercised at any time and from fime to time.
Nc~ fai2ure by either Party to exercisa, and no delay in exercising any rights, shall be consfrued or
dsamed to be a waiver thereo~ nor shall any singie or partial exezcise by any Party preclude any
otfier or futuze exercise thereof or the exercise of any otfier right. Any waiver of aay provision
or of any bz•each of any provision of ttus Agreement musC be in writing, and any waiver by any
Pariy of any breach of any provision of this Agreement shaf2 not operate as ox be construed to be
a vwaiver of any other breach bf that provision or of any breach of any other provisiou of this
Agzeernent. The failure o£ any Pariy to insist upon strict adherence to any term of the Agreemeue
on. one or more occasioas shall not be cbnsidered or conshved or deemed a waiver o£any
provis:ion or any breach of aay pro'vision of ilus .9~greement or deprive that Party of the right
12
fhereaftez to insist upon shict adherence to that texm or provision or any other term or provision
of thzs Agreement. No delay or omission on tfie part of any Party in exexcising any right under
fhis Agreement shall operate as a waivez of any such right or any oeher right under this
Agreement.
22.9 Liberal Conshuction. This Agreement constitutes a£ully-negotiated
a~eement among commercially sophisticated Parties, each assisted by 2egal counsel, and the
texms of this Agreement sha21 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 Severabilitv. Tf any provision of this Agreement is invalid, illegal, or
unenforceable, such provision shall be deemed to be severed oz deleted from this Agreement and
the balance of this Agreement shali remain in fixil force and effect notwithstandittg snch
invalidity, illegality, or unenforceability.
22.11 Good Faith and Fair DealinQ. The Parties hereto acknowledge and agree
that the performances tequired by the provis'sons of this Agreement shall be undertaken in good
faith, and with each of the Parties dealang fairly with each other.
22.12 No Third-Party Bene&ciaries. Subject to Section 22.2 above, tlus
Agreement does not create, and shall not be construed to creats, aay righfs enforceable by any
person, pari%ership, cozporation, joint venture, limited ]aaliility company oz other form o£
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 en£orced by a puent company thereof or a subsidiary thereto.
22.13 Counterparts• Pacsimile Execurion. This Agreement may be executed in
counterparts, each of wluch shall be deemed an original, but all of which together shali constitute
one and the sau~e instrument. The signature page of any counterpart may be detached t}aerefrom
without unpairing the legal effect of the signature(s) flzereon, provided such signature page is
attached to any other counterpart identical thereto except for having an additionai signature page
executed by any other Pariy. Each Party agrees that each other Parey rnay rely upon the facsimile
signature of any Parry on this Agreement as constituting a duly authorized, irrevocable, actual,
current delivery o£this Agreement as fixIly as ifthis Agreement contained the original znk
signature o£ the Party supplying a facsimile signature.
~ 22.I4 Time of the Bssence. Tizne is of the essence o£ each and every provision
of this Agreement. Unless business days aze expressly pzovided for, all references to "daqs"
herein shall refer to consecutive calettdar days. If any date or time period provided for in this
Agreement is or ends on a Saturday, Sunctay or federal, state, or lega2 holiday, then such date
automalacally shall be extended to the next day which is not a Saturday, Sunday, or federal, state,
or legal holiday.
22.15 Number and Gender. As used herein, and as the circumstances requ'vre,
the plural term shall include the singulaz, the singulaz shall include the pluzal, the neuter term
13
shall znclude the masculiue and feminine genders, the masculine term shall include the neuter
and the feminine genders, aud the feminine tezm shall include the neuter and the masculine
genders,
22.16 Disrontes.
22.16.1 Arbitration. Any dispute or comtroversy azising out of, under, os
in connection wiih, or in relation to, this Agreement and/ox any amendments thexeto, or the
breach thereof, which is not resolved anfoamally by prior mutual agreement of the Parties hereto,
shalI be submitted to arbitration in accorc3ance with the procedure set forth in the California
Arbitration Act, Sections 1280 through 1294.2 of the Code of Cival Procedure, unless ofhexwise
waived andlor modzfied in writing by the Parties hereto. The cost o£ such azbitrarion shall be
paid by the Parties equally; however, the prevailing Pariy in the arbitration shall be entitled to
reimbuzsement of its attomeys fees and other cosfs incurred in connection therewith.
22.16.2 Attomeys Fees. If a dispute azises which is not conciuded by
arbitrarion pursuant to Section 22.16.1 above, and any Party to this Agreemettt reasonably retains
counsel for the putpose o£enforcing any provision of this Agreement, including without
Iimita2ion the institution o£ any action or proceecliug to enforce anq provision of this Agreement,
or to recover damages if otherwise available hereunder, or to obtain injunctive or other relief by
i~eason of any alleged breach of any pmvision oPttus Agreement, or for a declaration based on a
demonstrated necessity of such Party's ri$hts or obligatzons nnder this Agreement, or for any
ot:her judicial oz eqixitable remedy, tlzett if the matter is settled by judiciaS or quasi-judicial
deternvnation, the prevailing Parry shall be entitled, in addition to such other relief as may be
granted, to be reimbursed by the losin$ Pariy fox all costs and expenses incurred, including
without limztation all attomeys' fees and costs for services rendered to the prevailing Parry and
any atromeys' fees and costs incurred in enforcing anq judgment or order entered. The
pr~vailing Party shall be detezmined by the court in the iairial or any subsequent proceeding,
22.I7 'Venue. Venue for any action or proceeding bzought pursuant to Section
22.16 above shall be before a state or federal court, tribuual, or magistrate located in the State of
Califo~via thaY would generally have competent in rem jurisdiction ovez the VJell(s).
22.18 Force Ivlajeure. If any per£ozmauce (othes than the payment of money dua
hereunder) of this Agreement is prevented, delayed, or made impracticable due to extended
drought, flood, fire, earthquake, or other natural disaster, sh~ike, unavailabiIity of necessary.
materials, electrical power or fuel, civil rioting, tezrorist attack, war or znilitary conflict, inability
of Basin Water to obtain ail necessary Pemrits or appxovals (including any and all envizonmental
approvals), or if the cost of complying with environmental requirements renders tlus lxausaction
econozxrically impractical(collectively a"Force Majeure EvenY'), then such performance (excepC
£oz• the payment o£rnoney due hereunder) of this Agreement shall be excused £or the period of
Pxeventaon, delay, or impracticability resulting from the Force Majeure Event.
14
IN WiT'NESS WfiEREOP, this Agreement has beezi executed as of khe last date below
written.
Dated: -a' jY ~~^ B ATER, INC.
\/~
B : S ~ ~'~
Y
Peter T,. 7ensen, President
Dated: 7. 9,c - e~' EAST VALT,EY WATER DISTRICT
George B. Wilson, Board President
15
EXFTTIBIT "A"
Description of Well(s)
EXI~IBIT "B"
Aescription of Pacilities
EXftXBI'T aC"
Quality Standard foz Each Contaminant
Influent Levels for Bach Contanunant
EXHIBIT "A"
Ixivoice Form
~a~oazr «~„
Tnsurance Itequirements
E7~HIBTT u~'+"
Performance Schedule
16
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GRAPHIC SCAL.E 1 in h=E o~f~ ;
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PREPARED UNDER DIRECT
SUPERVISION OF ;
KEVIN D. MCHUGH
EXPIRES; 9/30/OB
27 WELL $IT!
tAPHIC SURVEY
~ t54~,~ ~
Ep9/3G/06
~ _
6370
i
EXHIBIT "B"
East Valley Water District
We1127
Perchlorate/Nitrate Removal Facilzty
Facility Descraption
Perchtorate
• Perchloxate Disposable Itesin TY~eatment 1Vlodule (800 gpm capacity)
o J 6 bed configuration
o Process control system
• Pre-Treatment filter system
o Bag filters
o Inlet, outlet, ~ltex haadex system
Nitrate
• Nitrate Treatment Modules (800 gpm capacity) .
0 16 bed configuration
o Tnternat brine system
o Process con6rol system
• Bzine ftlter system
• Waste storage tanks
0 3 - polypro tanks
0 4" Waste discharge system (to lockbox)
e SaIt storage tank
o i - polypro tank
0 4" trans£er system
• Utility requirements
0 480vac 3ph 60hz 20 amp max (avexage 3.0 aznps)
o '/<" service water connection
o WelI or Pump contcol iwterface
0 4-20ma flow signal
0 2" Waste drain
Dial-up tetephone line (for alarms and unit monitoring)
~xxzaiT ~<c>,
East Valley Water District
We1127
Water Quality Objectives
We1127 Treatment Site - 8Q0 Galions Per Miuute
Influent Nitrate Concentration: 55 m~fl
Treated Water Nitrate Concentration: 7,ess than 30 mgll
Influent Pexchlorate Concentsation: 12 ug/1
Treated Water Perchlorate Concentration: Less than 4 ug/t
All General Physical and CHemical Characteristics to be base on water quality aE
time of ~cvell start up
EXHfBIT "D"
E3asin WaEer Te6hnology Group ~ -~
'~9 Fulton Avenue
F~asadena CA, 91107 ~
Phone: (&26) 3042660 Bas~n Wa#er~M _,./
f•'ax: (626) 304-915'l
1311L. 70: 5E12VICE ADDRESS:
E::ast Valley Water District East Valiey Wafer District
3Ei54 East Hic~htand Avenue, Sulte 18 Well Name: Weil 27
Highland, CA 92346 Weil Address
Well Address
P~~/Contract Number. Previous Meter Reading: 12/30/01 12;00 AM 0.0
Irivoico Date: 3/25/2002 Current Meter Reading: 1/39/02 12:00 AM 0.0
F3illing Cycle: ####~t~l# to 1/31/2002 Totai Flow (c~: 0.0
t)~3ys of Servir,e: 32 Totaf Fiow (Acre-ft.): 0.00000
Nr•evidus Charges Amount of Previous Biil 12/30l2002 $0.00
ai,d Credits: Payment Received $0.00
Ne:w Charges Standby Charge ( $0.00 /month) $0.00
~nd Credits: Operat(ng Charge ( $0.00 !cf x 0.0 c~ $0.00
PLEASE REMIT TO:
Basfn Water Technology Group
39 Fulton Avenue
Pasadena, CA 91107 Totat Due $0.00
EX~IBIT "E"
The Contractor/Districf shall maintain throughout the duration of the term of the
A~reement, liability insurance covering the Contractor and designating the District
including its elected or appointed o~cials, directors, officers; agents, empioyees,
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 fhan fhe following and with such deductibles
as are ordinary and reasonable in keeping with industry standards. it shall be stated, in
the Additional Insured Endorsemenf, fhat the Contractor's insurance po~icies shal( 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, ifs elected or
appointed o~cials, directors, officers, agents, employses, volunYeers, or contractors
shalt be non-contribu#ory.
General Liability:
a. General Aggregate
b. Products Comp/Op Aggregate
c. Personai & Advertising Injury
d. Each Occurrence
e. Fire Damage (any one fire)
f. ~4edical Expense (any one person)
$2,000,000
$2,000,000
$1,000,000
$1,000,000
$ 50,000
$ 5,000
Workers' Compensation:
a. Workers' Compensation 5tatutory l.imits
b. EachAocident $1,000,000
c. Disease - Poiicy Limit $1,000,000
d. Disease - Each Employee $1,000,000
Automobile Liability
a. Any vehicle, combined single limit $1,000,000
The Contracfor shali provide thirty (30) days advance notice to the District in fhe event of
materiai changes or canceilation of any coverage. Cert~cates of insurance and
addifional insured endorsements shatl be furnished to the District thirry (30) days prior to
the effective date of this Agreement. Refusal to submit such certificates shall constitute
a materiai breach of this l~qreement entifling the District to any and all remedies at law or
in equity, including termination of this Agreement. If proof of insurance required under
this Agreemenf is not deiivered as required or if such insurance is canceled and not
adequateiy replaced, the District shali have the right but not the duty to obtain
replacement insurance and to charge the ConUantor for any premium due for such
coverage. The Distriot has the option to deduct any such premium from the sums due to
fhe Contr•actor. ,
Insurance is to be placed with insurers authorized and admitted to write insurance in
Cafifornia and with a ourrent A.M. BesYs rating of A-:VII or better. Acceptance of
insurance from a carrier wifh a rating lower than A-:VII is subject to approval by the
f~istrict's Risk Manager. Contractor shall immediately advise the District of any lifigafion
EXHIBiT "F"
East Valiey Water Disirict
We1127
Performance Schednle
Wei12 % Treatment Site - 800 Gallons Per Minute
• Week 1
o Owner issues "N'otice To Proceed"
o Qwner begins on-site and off-site pzeparation
o BWT begins unit assemble
• Week 8
o Owner completes on-site and off-szte prepazations
o BVJT begins on-site mobili2ation
• Week 10
o BWT deliveries Pexchlozate /Nitrate Treatment Facility to siYe
o B WT begins installation of PerchIorate / Nitrate Treatnnent Facility
• Week 14
o BWT completes installation of Perchlorate / Nltrate Treatment Facility
o BWT begins staztup tests
o BWT completes staatup tests
• VJeek IS
o Perchlorate / I~Titrate Treahnent Facility ready foz permitting
RESOLUTION NO. 2008.
RESOLUTION OF THE BOARD OF DIRECTORS
OF THE EAST VALLEY WATER DISTRICT
AMENDING ITS CONTRACT PROCEDURES
WHEREAS, the East Valley Water District ("the DistricY') is a county water district duly
crrganized and operating pursuant to California Water Code Section 30000 et seq., and is not
specific;ally required to award contracts in accordance with the competitive bidding requirements of
the California Public Contract Code;
WI-IEREAS, there is a need to promote uniformity in the processing of bids and contracts for
services and projects within the District;
WHEREAS, the provisions of the Public Contract Code have been generaliy used to create a
procedure fbr processing bids and contracts for the District which will provide pubiic information
and uniformity in the expenditure of pubiic funds for projects and services negotiated by the District;
WHEREAS, on April 8, 1991, the District's Board of Directors adopted Resolution No.
1991.45 establishing bidding and contract procedures as part of its Rules and Regulations so as to
~~rovide guidance and direction to the DistricYs Board of Directors and staff in obtaining outside
:;ervices for projects initiated by the District;
WHEREAS, Resolution No. 1991.45 also provides that the "Contract Procedures" set forth
therein may be modified from time to time by the District's Board of Directors as is deemed to be
~~ecessary;
WHEREAS, on February 9, 1998, the DistricYs Boazd of Directors adopted Resolution No.
1998.1 amending the "Contract Procedures" contained in Resolution No. 1991.45; and
WHEREAS, the DistricYs Board of Directors desires to fin-ther amend the "Contract
I'rocedtues" contained in Resolution No. 1991.45, as modified by Resolution No. 1998.1.
NOW THEREFORE, BE IT RESOLVED by the Board of Directors ofthe District as follows:
Section 1. The "Contract Procedures" attached hereto and incorporated herein by this
i•eference aze hereby adopted as part of the Rules and Regulations of the District to provide guidance
~nd direction for the DistricY s staff and Board of Directors in procuring services and supplies on behalf
of the District.
Section 2. Resolution Nos. 1991.45 and 1998.1 aze hereby superseded in their entirety by
this Resolution and shall be of no further force or effect.
Section 3. The Contract Procedures set forth herein may be modified as necessary from
time to time by similaz action of the District's Boazd of Directors.
Section 4. This Resolution shall take effect immediately upon its adoption.
ADOP'I'ED this __ day of , 2008.
AYES:
NOES:
ABSENT:
ABSTAIN:
President, Boazd of Directors
AT"fEST:
Secretary, Board of Directors
CONTRACT PROCEDURES
~ection 1. Purpose
'Che following procedures have been adopted by the Board of Directors of the East Valley Water
District to promote uniformity in the processing ofbids and contracts for services and projects within
the East Valley Water District.
5ectimi 2. Policy
'Che,se procedures aze established to provide guidance and direction for the Boazd of Directors and
staff of'the East Valley Water District in procuring services on behalf of the East Valley Water
District, and these procedures shall be generally refened to as "Contract Procedures."
:iection 3. Definitions
f~) Approved Vendors - means those qualified contractors approved by the General Manager
~or Competitive Bidding purposes.
lEt) Bid Most Advantageous To The District - means the Lowest Responsible bidder on a
1:)istrir,t project that is subject to Competitive Bidding from among those bids that are deemed to be
l~esponsive to the Specifications.
1:`) Board - means the Board of Directors of the District.
TI) Corn-petitive Bidding - means the process of obtaining the Bid Most Advantageous To The
I;)istrict for any Purchase conducted through a Formal Bid or Informal Bid.
I;) District - means the East Valley Water District.
I~) Formal Bid - means a written quotation obtained in a sealed envelope from an Approved
Vendor, or through District direct solicitation, public announcement, or published advertisement and
opened at a specific day, place, and time. Bidders can be from the Approved Vendor's list or from
bidders responding to advertisements or openly solicited requests for bids. Notice inviting bids for
any contract: requiring Competitive Bidding shall state the time and place for receiving and opening
of sealed bids and distinctly describe the project and providing such other information as necessary
to fiilly comply with legal requirements. The nbtice shall be published in a newspaper of general
c:irculation which is circulated within the District, at least 14 calendaz days before the date of opening
t:tie bids and. posting at the District Administration Building. The notice inviting formal bids shail
a?.so be mailed at least 21 calendar days before the date of opening bids to all contractors or other
p~~rsons requesting notification of formal bids, and other sources as appropriate.
~G) Informal Bid - means a written or oral quotation obtained from an Approved Vendor, but
not required to be opened publicly at a specified day, place, and time. All Approved Vendors on the
list described in Section 7.A) of these Contract Procedures for the category of work being bid shall
be mailed notice inviting informal bids unless the Services or Supplies are proprietary. All mailing
of such notices shall be completed not less than ten (10) calendar days before bids are due. The
notice inviting informal bids shall describe the project in general terms, how to obtain more detailed
infornnation about the project, and state the time and place for submission of bids.
]3) Intr,rmediate Project - means a Purchase by the District that will cost more than $ I 50,000
but less than $500,000 to complete.
1) Low~est - means the smallest bid in monetary terms received by the District for the cost of a
~iroject subject to Competitive Bidding.
.1~ Major Project - means a Purchase by the District that will cost in excess of $500,000 to
complete.
]K) Miaor Project - means a Purchase by the District that will cost $150,000 or less to complete.
1'.,) Plans - means drawings or diagrams made to scale showing the structure or arrangement of a
c:onstruction project, or a method or program showing a level of service or benefit defined within a
contract. Plans will become part of the awarded contract. All bidders will be afforded an
opportunity to examine the Plans.
PVI) Proffessional Services - means all legal, accounting, engineering, architectural, and similar
labor furnished to the District by persons, firms, individuals or corporations not part ofor connected
with the District
l~f) PurQhase - means buying, renting, leasing or otherwise acquiring Supplies or Services for a
price.
(:~) ][2esponsible - means the Lowest bidder who possesses the trustworthiness, quality, fitness,
ability, capacity, and experience to satisfactorily perform a District project subject to Competitive
Elidding. When the Lowest bidder is found not to be Responsible, the District must notify the bidder
o f this finding and the evidence upon which the finding was based, and the District must afford the
b.idder an opportunity to rebut such adverse evidence, and permit the bidder to present evidence that
tlie bidder is Responsible.
F') ]2esponsive - means a bid received by the District for a project subject to Competitive
L-tidding that substantially conforms to the bid Specifications and all applicable statutory
rrquirements. A bidder is not entitled to a hearing on the question of Responsiveness, but is entitled
tr, noticf; and the right to submit materials to the Board or the DistricYs General Manager before a
decision is made.
4
~Q) Services - means all labor furnished to the District by persons, firms, individuals or
~orporations not part of or connected with the District.
[2) Sole Source Contractor - means a contractor or consultant that has been evaluated to
~~rovide unique or specialized Services or Supplies that cannot be obtained from other contractors or
r,onsu.ltants. Such designation must be approved by the Boazd.
!i) Specifications - means standazds, including quality, set by the General Manager, supervisory
;~taff or consuitants as a guide and as a measure ofthat which successful vendors or contractors must
eichievf;. Specifications shall be either technical specifications for bids, which shall state formulations
zis broadly as practicable, yet shall be specific enough to describe the requirements of the District or
cion-technir,al specification for bids, which shall state the quality required in general terms.
f>pecifications will become part of the awazded contract. All bidders will be afforded an opportunity
to examine the specifications.
'][') Splitting Purchases - means the intentional separation of a District project into smalier
x~ortions in order to avoid any of the Purchasing limits established by this policy.
'QJ) Supplies - means all materials and equipment.
; iectiorn 4. Applicability
"i'his policy shall apply to all Purchases made by the District, except as otherwise specified herein. ln
implementing this policy, District employees are prohibited from Splitting Purchases.
''vection 5. Purchasing Practices
1'he following requirements apply with respect to the Purchase of Services and/or Supplies by the
I )istrict:
E~,) Major Project.
1) For a Major Project, or otherwise upon direction of the Board, the Purchase sha11 be
contracted for and let to the Bid Most Advantageous To The District by formal action of the Board
a.fter complying with the Competitive Bidding requirements applicable to a Formal Bid. If two or
rnore bids aze the same and the Lowest, the Boazd may accept the one it chooses.
2) All bids received on a Major Project shall be opened in public at the time and place
designated in the notice. The bids shall be evaluated for compliance with the notice and requirements
of the District. The District shall determine from the bids received on a project the contractor that
has presented the Bid Most Advantageous To The District. Thereafter, the District shall indicate that
a contract will be executed according to specific terms to be negotiated by the General Manager. If
tr::rms ctinnot be negotiated, the General Manager may be delegated to terminate negotiations and
open negotiations with the contractor presenting the second Bid Most Advantageous To The District
far the project.
5
]B) Intermediate Project. For an Intermediate Project, the Board hereby delegates to the
)~istricYs (Jeneral Manager the authority to contract with the Bid Most Advantageous To The
]~istrict after complying with the Competitive Bidding requirements applicable to an Informal Bid.
Tf two or more bids are the same and Lowest, the DistricYs General Manager may accept the one he
or she chooses.
I~) Minor Project. For a Minor Project, the Board hereby delegates to the District's General
Manager the authority to negotiate and award contracts as appropriate without the necessity of
c;omplying with any of the Competitive Bidding requirements set forth herein.
>ection 6. Construction Contracts
(n addition to all other applicable requirements set forth in these Contract Procedures, the following
~irovisions apply with respect to any Purchase of Services and/or Supplies by the District involving
the construction or completion of any building, structure, or improvement:
A) Plans and Speci~cations. If Plans and Specifications are prepared describing the work, all
t~idders shall be afforded an opportunity to examine the Pians and Specifications, and the Plans and
~ipecifications shall be attached to and become a part of the contract, if one is awazded.
]Et) Bid Security. Ali Formal Bids for construction work shall be presented under sealed cover
and shail be accompanied by bidder's security in the form of either cash, a cashier's check made
payable to the District, a certified check made payable to the District, or a bidder's bond executed
1>y an admitted surety insurer made payable to the District. Upon an awazd to the bidder, the security
c,f an unsuccessful bidder shall be returned in a reasonable period of time, but in no event shall that
:;ecurity be held by the District beyond sixty (60) days from the time the award is made.
I;;) Bon~ds. The Board may, subject to Civil Code Section 3247 et seq., require the posting of
tliose bonds it deems desirable as a condition to the filing of a bid or the letting of a contract.
TI) Record. The District shall keep cost records of the work in the maruter provided in
Ciovernment Code Section 4000 et seq.
',iection 7. Competitive Bidding
I~i addition to all other applicable requirements set forth in these Contract Procedures, the following
provisions apply with respect to the manner in which Competitive Bidding is conducted by the
I;>islrict:
t!,) Corntractor's List. The DistricYs General Manager sha11 develop a list of Approved Vendors
who shall receive mailed notices of all Formal Bids and Informal Bids for projects conducted by the
i)istrict. T'he list of Approved Vendors shall be identified according to categories of work.
P~Zinimum criteria for development and maintenance of the contractors for each category shall be
developed by the District's General Manager. This list shall be updated as necessary, but at least
amiually, and shall be considered a public record available for review upon request. The list may be
limited to p,eographical areas for certain categories of projects.
B) Re~ord of Bids. The District's General Manager shall keep a record of all bids submitted,
snd such record shall be open to proper inspection by any interested party within a reasonable
atnount of time.
~C) Rejection of Bids. The District shall have the authority to reject any and all bids received in
response to invitations for bids. Rejection of Informal Bids may be done at the discretion of the
1~istricYs General Manager. Rejection of Formal Bids may be done only at the discretion of the
l3oard.
1) Any individual rejection of bids shall be made stating the reasons for rejection. If the
]3oard determines that the bidder is not a responsible contractor, a hearing must be held to allow the
V~idder to respond to the allegations. A hearing need not be held if a bid is rejected on the grounds of
tion-responsiveness.
2) If all bids are rejected, the District shall indicate (a) that the project has been
abandoned, and (b) that the economics of the project require that the project be substantially
rnodifif;d before readvertising.
:4)) Bid Irregularities. The District may waive a minor bid inegulazity that does not give an
i:mfair advantage to another bidder. However, the District is under no obligation to waive bid
i rregulazities.
]E;) Exemptions. Notwithstanding anything contained in these Contract Procedures to the
r.ontrary, Pt~rchases may be negotiated without competitive Bidding with when one of the following
c;ircumstances is present:
1) When the Purchase invoives a contract for Professional Services.
2) When an emergency exists, the District may proceed in accordance with Section 10 of
tllese Contract Procedures.
3) When a Sole Source Contractor has been designated.
4) When Competitive Bidding would fail to produce an advantage and/or when the
advr,rtisement for Competitive Bidding would be undesirable, impractical, or impossible.
c~ection S. Emergencies
A,) 'Vote. In the case of an emergency, the District, pursuant to a four-fifths vote of the Board,
rnay repair or replace a public facility, take any directly related and immediate action required by that
7
emergency, and procure the necessary Services and Supplies for those purposes, without giving
~otice for bids to let contracts.
;B) Findings. Before the Board takes any action pursuant to paragraph A) above, it shall make a
Tinding, based on substantial evidence set forth in the minutes of its meeting, that the emergency will
~iot permit a delay resulting from a competitive solicitation for bids, and that the action is necessary
to respond to the emergency.
C) Delegation. The Boazd, by four-fifths vote, hereby delegates to the District's General
Manager the authority to order any action pursuant to paragraph A) above.
D) Report. If the DistricYs General Manager, pursuant to the authority delegated by the $oa~•d
under paragraph C) above, orders any action specified in paragraph A) above, that person shall report
to the ESoard, at its next meeting, the reasons justifying why the emergency will not permit a delay
zesulting from a competitive solicitation for bids and why the action is necessary to respond to the
emergency.
]E:) Review.
1) If the Board orders any action specified in pazagraph A) above, the Board shall review
the emergency action at its next regulazly scheduled meeting and, except as specified below, at every
regularly scheduled meeting thereafter until the action is terminated, to determine, by a four-fifths
vote, that there is a need to continue this action.
2) If the District's General Manager, pursuant to the authority delegated by the Boazd
under pazagraph C) above, orders any action specified in paragraph A) above, the Boazd shall
initially review the emergency action not later than seven days after the action, or at its next regularly
sr,heduled meeting if that meeting will occur not later than 14 days after the action, and at least at
e~very regularly scheduled meeting thereafter until the action is terminated, to determine, by a four-
fifths vote, that there is a need to continue the action, unless the District's General Manager has
terminated that action prior to the Board reviewing the emergency action and making a determination
pursuant to this paragraph.
3) When the Board reviews the emergency action pursuant to paragraph E)1) or E)2)
aUove, it shall terminate the action at the eazliest possible date completed by giving notice for bids to
let contracts.
S~ection 9. Scope of General Manager's Authority
T':he District's General Manager shali purchase or contract for all Supplies, Services, and Capital
E?quipment needed 'zn accordance with procedures prescribed by this adopted policy and such
additional lawful rules, not inconsistent herewith, as the District Manger shali employ for the
e:f'ficient internal management and operation of the District.
8
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P.O. Box 942709
Sacramento, CA 94229-2709
888 CaiPERS (or 888-225-7377)
~i Telecommunications Device for the Deaf
~K,~~~~L~~~ No Voice (916) 795-3240
www.calpers.ca.gov
iCircular Letter
,._~_
'1~0: ALL PUBLIC AGENCIES
Date:
Reference No.:
Circular Letter No.:
Distribution:
Speciai:
October 6, 2008
310-050-08
I, IA, VI
SUBJE:CT: CALPERS INVESTMENTS DURING RECENT MARKET DOWNTURN
/~T'fENTION: FINANCE DIRECTORS, HUMAN RESOURCE DIRECTORS,
PUBLIC AGENCY DECISION MAKERS
I~tecerrt news surrounding the financial market volatility may be cause of concern to
C:aIPERS employers and members. In an effort to address any questions by employers
<:~nd me~mbers, this circular letter is being issued to provide information regarding the
protections and security of the CaIPERS defined benefit plan.
t:)VERO/IENV
The CaIPERS pension system remains sound amid the current global market downturn.
P~Ithough C:aIPERS is not immune from market fluctuations, we continue to achieve a
s;table Funding status by adhering to a prudent, long term investment strategy and
maintaining a well diversified portfolio. CaIPERS has an excellent record of enduring
market downturns and rebounding from periods of negative investment returns. The
rr~cent market volatility has no bearing on our ability to meet our benefit payments to
retiree>.
IIVVESTMFNT DIVERSIFICATION
(:;aIPFt~S :strategic asset allocGt~on sets the percentage of funds to be invested in each
<asset ciass. Our goal is to maximize returns at a prudent level of risk; an ever-changing
t>alancing act between market volatility and long-term goals. Our portfolio is well-
ciive~rsii~ied with investments in private companies, real estate, fixed income, and other
assets. This diversification is designed to mitigate losses in one asset class with
investmen~ gains in other asset classes. The Board of Administration's recent asset
~~Ilocation decisions further diversified the portfolio by creating a new inflation-linked
asset clas:s, increasing allocation to private equity and expanding real estate (with a ti-t
tc~ward inte:rnational investing). Our investment professionals continue to manage the
K~orifiolio within asset allocation and risk management policies set by the Board of
/~,dministration and designed for long term pertormance. While our market value of
<assets hau experienced a decline in recent weeks, it is important to note that our
pension system is structured - and well diversified - to withstand these types of
c~yrations.
~
Circular Letter # 310-050-08 - 2- October 6, 2008
CALPERS HISTORY OF RESILIENCY
CaIPERS is responding to the recent stock market volatility as we have in the past. We
endured and rebounded significantly from other market events such as the savings and
loan problems and soaring interest rates in the 1980's and 1990's, the real estate slump
of the eariy 1990s, the technology stock losses in early 2000, and the market downturn
following the 9/11 tragedy. We're monitoring our financial sector exposure closely and
identifying buying opportunities in the changing market environment. As a long-term
investor, we can afford to hold our position and look for longer term gains.
INVESTMENT STRATEGY
Our portfolio is well-positioned for the long term. We're exploring investment
opportunities in the private equity market, especially in the financial services industry.
Institutional investors like CaIPERS are a stable force in the market with long-term
capital deployment. We have a long-range investment focus and are in a good position
to generate value, over time, with our diversified portfolio.
IMPACT ON LOCAL PUBLIC AGENCY EMPLOYER CONTRIBUTION RATES
Cushioning the impact of investment set backs is the fact that CaIPERS experienced
double digit gains in the four years leading up to the 2007/2008 fiscal year. In previous
down markets, flat or negative investment returns contributed substantially to increases
in empioyer contributions the following year. However, CaIPERS rate stabilization
policies now spread market gains and losses over 15 years, thus reducing the volatility
of employer rates. Financial markets have dropped significantiy this fiscal year, but the
volatility we have experienced through 9/30/2008 will have oniy a slight impact on
employer contribution rates. The typical employer payroil contribution rate would
increase approximately one quarter of one percent (0.25%) of pay. The CaIPERS rate
stabilization policy is working as intended.
IMPACT ON MEMBER BENEFITS
Our members' retirement benefits are safe and secure and protected by taw. Benefit
payments to current members are not impacted by stock market swings. We understand
the concerns you and your employees may have in response to the recent market
conditions. CaIPERS is diligently monitoring the situation to ensure the long term
success of the System and the financial security for our members and employers. We
have included information on our Website, are in a position to respond quickly and
effectively to members who cail us or email us their concerns. We continue to urge our
federal policymakers and regulators to take steps necessary to restore investor overall
confidence in the markets.
Kenneth W. Marzion
Interim Chief Executive Officer
~~r. _
3 ..,=.. . -.,.~,. ~
} -
;SAN B~RNARDINO CITY
~UNIFIED SCHOOL DISTRICT
Arturo Delgado, Ed.D.
Superintendent
September 26, 2008
NIr. James Morales
Director
Bast Vafley Water District
P.O. Box 3427
San Bernardino, CA 92413
Dear Mr. Morales:
Linda R. Bardere, Director
"thank you for joining us at the Colonel Joseph C. Rodriguez PREP Academy grand
opening ceremony. Your donation of 1400 bottles of water was greatiy appreciated by
many of our students and attendees on what turned out to be a very hot and blistery day.
Your support of the San Bernardino City Unified School District is very much
appreciaxed.
On behalf of the Board of Education and Superintendent Arturo Delgado, thank you.
Sincerely,
~rc.,,.v{~.% ~ ~5~?hC~/t1'
/
LINDA R. BARDERE
Director
COMMUNICATIONS/COMMUNITY RELATIONS
777 North 1= Sfreet • San Bernardino, CA 92410 •(909) 381-1250 • Fax: (909) 388-1451 • linda.bardere@sbcusd.k12.ca.us
y~J~P~~R ¢:C~NSERVAT/ON p'S~'c
R
r
SAN BERNARDINO VALLEY WATER CONSERVATION DISTRICT
EscabGshed 1932 ~
1630 West Redlands Boulevard, Suixe A
`,..,, .-~--~,,-,.-,-r-. -.~. Redlands, CA 92373-8032
~ ~ ~ ~ (909) 793•2503
~U~AME~+I~•tt~M°S ~ Fax:(909)7934188 REVISEDDATE
October 21, 2008
Robert Martin
East Valley Water District
36`_i8 E. Highland Avenue, Suite 18
San Bernardino, CA 92413
Dear Robert Martin,
P.O. Box 1839
Redlands, CA 92373A581
Email: info@sbvwcd.dst.ca.us
www.sbvwcd.dst. ca. us
Please .join me and other community leaders for breakfast and a short briefing on the
critical importance of water supplies, conservation and political concerns in our
community and how the San Bernardino Valley Water Conservation District is protecting
and managing our vital water resources. Your leadership role in the San Bernazdino
Groundwater Basin is critical to communicating the importance of how water supports
and drives the economic engine of our communities and the need to retain local control.
The San Bernardino Valley Water Conservation District has served the Inland Empire for
more than 75 years; we are proud of how we have fulfilled important responsibilities in
managing your water and habitat conservation azeas.
On behalf of our elected Boazd of Directors and staff, I welcome the opportunity to make
you better acquainted with our District and some very significant issues that will impact
the .future of water in the San Bernardino Groundwater Basin.
Sincerely,
~-., ,
~ ~~~,~,~~,. ~~~, < <~; ~~,~<~~;
Melody McDonald
Pre,sident of the Board of Directors
Please choose one of the following meeting dates:
October 29, 2008 November 6, 2008
Complimentary breakfast service wi[1 be a ful[ buffet, irecluding fresh juice, coffee and sweet roles.
Breakfast will begin at 7:30 a.m. and conclude promptly at 8:45 a.m.
We are pleased to host this event at the Ayres Hatel, located at
1015 W. Colton B[vd., e% Tennessee St. Redlands, CA. 92374
F'lease RSVP to Shanae Smith at ssmith@sl~vwcd.dst. ca.us or (909) 793-2503 by October 27, 2008.
BOdRD Richnrd \~! Corncille Ainold L. \tlright Chciyl A Tubbs G&NCRAL li. Robcrt Ncufcld
OP Clarc Henry Day John Longvillc rlclody rlcDonald n~L1NdGCR
DIRL.CrORS T[anucl Axandn, Jr.
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PRESIDENT ALBERT KARNIG
~~~ ~
~~
W~.~,~.,~
ca~ sraCe. se~ e«„aw~o
(~ordially invite you and your guests to attend a dinner in which the
LIFETIME ACHIEVEMENT IN WATER RESOURCES AWARD
will be presented to
~OE GRINDSTAFF
and the
WATER HERO AWARD FOR ZOOB °~s °
will be presented to ~ "~'
HuBeRrWeBS ~---"
"~
~t;~~.
~ ~ ~~ ~ NOVEMBER I S, ZOOH
' 6:30 r.M., RECEPTION
7:00 P.M., DINNERIPROGRAM
SANTOS MANUEL STUDENT UNION
.CALiFORNW STATE UNIVERSITY, SAN BERNARDINO
, SSOO UNIVERSITY PARKWAY, SAN BERNARDINO, CA
_ :i
' PLEASE REP~.Y'$BY NOVEMBER I~ ZOOS, USING THE ENCLOSED REPLY CARD
; fOR ADDtTIONAL INFORMATION, r~~se cn~~ 909_537.3687
~ ,.
FSU ~
!:"`~ ~ ~ ~ ~ ~ ~ COMPLIMENTARY PARKING W LOT D
~ :~ ~ ~WIT'H ENCLOSED PARKING PA55 ON BACK OF CAMPUS MAP~
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