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HomeMy WebLinkAboutAgenda Packet - EVWD Board of Directors - 04/26/2011East Val ley t"OWater District 3654 HIGHLAND AVE., SUITE #30, HIGHLAND, CA BOARD MEETING April 26, 2011 3:00 P.M. 0410►11rZ7 "In order to comply with legal requirements for posting of agenda, only those items filed with the District Secretary by 12:00 p.m. on Tuesday prior to the following Tuesday meeting not requiring departmental investigation, will be considered by the Board of Directors ". --------------------------------------------------------------------- CALL TO ORDER PLEDGE OF ALLEGIANCE --------------------------------------- ----- --- ----- ----- ----- -- - -- - -- 1. Public Comments 2. Approval of Agenda CONSENT CALENDAR 3. Accounts Payable Disbursements: Accounts Payable Checks # 227963 through # 228339 which were distributed during the period of March 16, 2011 through April 18, 2011, in the amount of $1,715,566.58. Payroll and benefit contributions for the period ended April 18, 2011 and included checks and direct deposits, in the amount of $503,130.51. Total Disbursement for the period $2,218,697.09 4. General Managers Expenses 5. Development Agreement between East Valley Water District and Wal -Mart Stores, Inc. for water and sewer services located at 4210 East Highland Ave., in the City of San Bernardino, County of San Bernardino, State of California 6. Development Agreement between East Valley Water District and H & H General Construction Inc. for water service located at 27320 Meines Court, in the City of Highland, County of San Bernardino, State of California OLD BUSINESS 7. Discussion and possible action regarding the City of San Bernardino's sewer rate increase and the scheduling of a public hearing NEW BUSINESS 8. Review and accept financial statements for the month endec F ebruary 28, 2011 9. Review and accept summary report of Board expenses through February 2011 10. Discussion and possible action regarding the District's previous positions on Assembly Bills: AB 23, AB 229, AB 276, AB 148, AB 253, AB 527, A13 582 REPORTS 11. Review and accept the Quarterly Investment report ending March 31, 2011 12. General Manager / Staff Reports 13. Consultant Reports 14. Committee Reports • Legislative (Standing) Accept minutes for March 11 2011 • Community Affairs (Standing) • Policy Committee (Standing) • Labor Negotiating Committee (Ad -Hoc) • Succession Planning Committee (Ad -Hoc) 15. Oral comments from Board of Directors 16. San Bernardino Area Chamber of Commerce Thirty -Fifth Annual " Law Enforcement Recognition Dinner ", May 12, 2011 CLOSED SESSION 17 PUBLIC EMPLOYEE PERFORMANCE EVALUATION [Government Code Section 54957] Title: General Manager CONFERENCE WITH LABOR NEGOTIATOR [Government Code Section 54957.6(a)] District Negotiator: To be determined Employee Organization: S.B.P.E.A. 0) 19. CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION Initiation of litigation pursuant to Government Code Section 54956.9(c) One (1) Potential Case 20. CONFERENCE WITH REAL PROPERTY NEGOTIATOR [Government Code Section 54956.8] Property: Patty with whom District will negotiate: Patty who will be negotiating on behalf of the District: Under Negotiation: ANNOUNCEMENT OF CLOSED SESSION ACTIONS ADJOURN APN: 0297 - 061 -22 & 0297 - 061 -23 City of Highland, State of California Potential Buyers Robert Martin Price and Terms of Payment ---------------------------------------------------------------------------- Pursuant to Government Code Section 54954.2(a), any request for a disability- related modification or accommodation, including auxiliary aids or services, that is sought in order to participate in the above - agendized public meeting should be directed to the District's Administrative Manager at (909) 885 -4900 at least 72 hours prior to said meeting. 3 t"OEast Valley Water District Board Memorandum From: Brian W. Tompkins / Chief Financial Officer/ Subject : Disbursements. Recomnnandation: Approve the attached list of accounts payable checks and payroll issued during the period March 16, 2011 through April 18, 2011. Background: Date APRIL 26, 2011 Accounts payable checks are shown on the attached listing and include numbers 227963 to 228339 for A total of $1,715,566.58. The source of funds for this amount is as follows: Unrestricted Funds $1,514,197.05 Bond Financing $0.00 State Financing $201,369.53 Payroll and benefit contributions paid for this period totaled $503,130.51. Total disbursements $2,218,697.09. Y v N_ cc cc 3 N m N (0 W m m a Y L, W a a. c z o 0. E m o [C U ,Wi, oI O cc 0 ❑ 0 ❑ O D O O O QQ (O CO I� 7 M N N O O O O I� r M M (O (O N N 0 0 O O V (D O) O CO M to V V 90 N N 7 •- (O M M Co. 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C > 0 >mm00 >0 > > >> Z) m W U U TL U m N0 O N N N N_ N N N N O M O 0 (n (n M O (y M 00 M MOO m O O O O M 0 M N M 0 M I CO I O ` N N O O O_ N_ (o N (DO `� 0 0 0 0 0 V O V O V O V O V O O V O o o o V O V O V O V O V O N M d' (n (0 00 O O M p p N N N O f N N i n N N N M N N N (p N M $ N M M N M< M M m M N N R) (n N N m 07 N c N N fn W N N N ) O] W N N N N N N N m co N m N m N N o N o O o 0 0 0 N o N o N o N O N o o N o 0 0 0 N o N o N o N o ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ I:1 ❑ ❑ ❑ ❑ ❑ ❑ O O V OMi W 000 O O m m N O O N N (p. �M OOi 7 fro O O (00 (00, Omi on r M* oo r� 00 00 oirn m(0 co c6 m1--� 06 06 N N (0(+i0 r r V <T 00 M m (n T (n M V v (- r V V CO O co 000 M 00 M 0o CO') V' V N N N M N N 7 r o) C; S � LL > z Z U J a w Y O LL x H a d a Z O LLI H J z O ¢ a _O U 2 0_ ¢ F 0 W Of a :D a ❑ > Z J O w ¢ w o a x LL w J r w x < J as L) o Z � o ¢ o z ¢ n z ¢ U 2 z o w co CL U ¢ w W a O W H � O 7 J > _ J_ w z N c O O c � 00 2i > > > C > > 0) > > a C d d C C 03 O O O N O 03 C C N N c C G c N a c 7 C 7" C v n `a) n 0 of U-6 U o U _) K cu a) a) 0) 0) 0) N C M G of UI tl� U O c O V 0) 0) N N C C C C C 40 N O m O 0 O 0) 0) O O O (0 0 °0 0 0 0 0 0 °� o rn O c o o f E o m m m > 10 0 E E E 0) w w 0) 0) 0) a) z y U)� O C O j g y m D s .d). C > 0 >mm00 >0 > > >> Z) m W U U TL U m N0 O N N N N_ N N N N O M O 0 (n (n M O (y M 00 M MOO m O O O O M 0 M N M 0 M I CO I O ` N N O O O_ N_ (o N (DO `� 0 0 0 0 0 V O V O V O V O V O O V O o o o V O V O V O V O V O N M d' (n (0 00 O O M p p N N N O f N N i n N N N M N N N (p N M $ N M M N M< M M m M N N R) (n N N m 07 N c N N fn W N N N ) O] W N N N N N N N m co N m N m N N o N o O o 0 0 0 N o N o N o N O N o o N o 0 0 0 N o N o N o N o 0 0 O 0 O co N N O O r 00 N W m O O N N V V O O O t0 � � O O M M N N V V N (O cC c0 m 00 O N N T C 0 o M P W N co N (6 N N o N N N N o. o o o N o 0 E O U c v m` Z U c U _ Q y C/) W d7 W Q O Z 3 J _ CL o 2 Z H y W W U W Z :D J W M N waf °n a a m Y o 2 W Z U a) 3 u m w O h Z Q 3 Q U W U7 cn N C rn a C C N C O O O O _O U U > > c a° a c 0 0 E a a m _ O U O O U o N > > N N O D O- N p o N t0 K v F_ (n Z c Q N m O Q C U N W (Q (n C U) .N N_ U W 0 \1 0 N 0 N 0 N 0 N 0 N 0 M O M O —mm N O N N 0 U 0 Uj O O U U U U V R O F MO ry 0 o M P W N co N N o N N o N N N N o o o N o 0 R O F East Valley t"OWater District Board Memorandum From: Brian W. Tompkins / Chief Financial Officer Subject: General Manager's Expenses. Recommendation: Approve the attached list of payments and reimbursements for General Manager expenses during the period March 16, 2011 through April 18, 2011. Background: Date: APRIL 26, 2011 Business and Travel expenses incurred by the General Manager and paid during the reporting period stipulated above totaled $3256.55. A summary of theses expenses by authorized payment methods follows: American Express — R Martin 2211.44 American Express — J Hendricksen CalCard — R Martin 476.54 CalCard — J Hendricksen CalCard — E Bateman / C Contreras Direct Reimbursement 568.57 Total 3256.55 Highland, CA Store #1914 -04 DEVELOPMENT AGREEMENT FOR WATER AND SEWER THIS AGREEMENT is made this — day of by and between EAST VALLEY WATER DISTRICT, a public agency (hereinafter "the DISTRICT'), and WAL -MART STORES, INC., a Delaware corporation (hereinafter "the DEVELOPER "). RECITALS A. The DISTRICT is a County Water District organized and operating pursuant to California Water Code Section 30000 et seq. B. The DEVELOPER proposes to subdivide and develop certain real property within the boundaries of the DISTRICT, which is located at 4210 East Highland Avenue, in the City of San Bernardino, County of San Bernardino, State of California, and is generally identified as Assessor Parcel Nos. 1199-671-22, -27, -28 (hereinafter "the PROPERTY), and more particularly described by the legal description attached hereto as Exhibit "A" and incorporated herein by this reference. C. The development of the PROPERTY will consist of the expansion of an existing retail store, and the DEVELOPER desires that the DISTRICT provide domestic water and sewer service to the PROPERTY. The DEVELOPER intends to design and construct the facilities necessary for water and sewer service to be furnished to the PROPERTY. D. The DISTRICT supplies domestic water and sewer service within the area to be served and is the public agency empowered by law to provide such services to the PROPERTY. E. The purpose of this AGREEMENT is to provide the terms and conditions under which the DEVELOPER will design and construct the facilities necessary for the DISTRICT to supply water and sewer service to the PROPERTY (hereinafter "the PROJECT'). COVENANTS NOW THEREFORE, in consideration of the preceding Recitals and the mutual Covenants contained herein, the parties hereto agree as follows: Dmelopmmt Agr a nt foe Wain and Sewn 003 W894- SatBem dmo CA-- 6316)6.1 Section 1. DESIGN OF FACILITIES. The DEVELOPER agrees to design the water and sewer facilities for the PROPERTY in the following manner and according to the Rules and Regulations of the DISTRICT: a. Intentionally omitted. b. The DEVELOPER agrees to design the water and sewer facilities for the PROPERTY in accordance with the DISTRICT's Standards for Design and Processing of Water and Sewer Plans and the tentative water and sewer plans provided by the DISTRICT. The designs shall be submitted to the DISTRICT in a complete form which shall provide sufficient information for review and approval by the DISTRICT in the exercise of its discretion. which approval shall not be unreasonably withheld, conditioned or delayed. C. The DISTRICT may request certain changes in the tentative water and sewer plans to provide for oversizing of facilities, which DEVELOPER agrees to incorporate into the plans and specifications for the PROJECT. d. The DEVELOPER shall furnish the DISTRICT with any and all easements necessary for the construction, operation, maintenance, and repair of any and all water and /or sewer facilities to be installed and /or used for the PROJECT. All easements shall be submitted to the DISTRICT for review and approval by the DISTRICT in the exercise of its sole discretion (no' to be unreasonably withheld, conditioned or delayed) prior to the DISTRICT's acceptance of any dedication of the PROJECT facilities under Section 6 of this AGREEMENT. e. The DEVELOPER shall submit all Plans, drawings, specifications, and contract documents, for all work to be performed pursuant to this AGREEMENT, to the DISTRICT for review and approval, which approval shall not be unreasonably withheld, conditioned or delayed. The DISTRICT agrees to review all such documents in a timely manner anal. upon inclusion of all changes thereto requested by the DISTRICT in a manner reasonably satisfactory to the 2 Development AWr nt for Wata and Sena 003 W894- S.B..civo CA- 6316)61 DISTRICT, the DISTRICT will provide the DEVELOPER with authorization to proceed. The DEVELOPER shall not proceed with the construction of the PROJECT and any other water or sewer facilities for use on the PROPERTY until the DISTRICT so authorizes. Section 2. CONSTRUCTION OF FACILITIES. The DEVELOPER agrees to construct the PROJECT and all other water and sewer facilities for use on the PROPERTY in the following manner subject to the DISTRICT's approval, which approval shall not be unreasonably withheld, con&tioned or delayed: a. The DEVELOPER shall obtain all necessary permits from the City of San Bernardino and all other public or private agencies required for the construction thereof. The PROJECT and the facilities appurtenant thereto shall be constructed at a location determined by the DISTRICT, in its sole discretion. The DEVELOPER hereby grants the DISTRICT full access to the PROPERTY and all other locations where the work contemplated herein is to be performed. b. All facilities constructed pursuant to this AGREEMENT shall be in accordance with accepted standards and practices in the industry and in compliance with all local, state, and federal laws, rules, and regulations. The DEVELOPER shall be responsible for providing all labor, materials, and equipment necessary to perform the work for the PROJECT, and such work shall be performed in a timely and workmanlike manner by a party or entity licensed and qualified in the State of California to perform such work, and the installing contractor performing such work shall be reasonably acceptable to the DISTRICT. All such facilities shall conform to the DISTRICT's Standard Specifications for the Furnishing of Materials and the Construction of Water and Sewer Pipelines. All costs and liabilities in connection with the design and construction of the PROJECT shall be borne solely by the DEVELOPER. 3 Dcvclofmrnl Agccmml for W ew end Sc+ 003 W894- SanBCme ino CA-- 6316'161 C. The DISTRICT shall inspect and approve all work to be performed under this AGREEMENT. However, any approval b), the DISTRICT of such work, or of the designs, specifications, reports, and /or materials furnished hereunder, is understood to be conceptual approval only and will not operate to relieve the DEVELOPER or its contractors, consultants, or subcontractors of responsibility for complying with all laws, codes, industry standards, and liability for damages caused by negligent acts, errors, omissions, noncon-pl iance with industry standards, or their own willful misconduct. Further, neither the DISTRICT's review, approval, or acceptance of any of the work or services performed in connection with this AGREEMENT shall be construed as a waiver of any rights hereunder or of any defense or cause of action which the DISTRICT may have arising out of the performance of this AGREEMENT or any previous or subsequent agreements. The DEVELOPER shall cause the facilities constructed under this AGREEMENT to be inspected as required by any and all other public or private agencies. Section 3. DEVELOPER'S COSTS. In addition to all other obligations imposed upon the DEVELOPER under this AGREEMENT, the DEVELOPER shall he responsible for the payment of all of the following: a. The DEVELOPER shall pay to the DISTRICT all, or any portion, of the connection fees for the PROPERTY at the time of application for water and sewer service therefor. The DISTRICT will provide water and sewer service only to those specific lots within the PROPERTY for A,hich payment in full has been made to the DISTRICT. b. The DEVELOPER shall be solel\ responsible for the payment of all costs, fees, and expenses associated with the construction, inspection, operation, maintenance, repair, and relocation of the PROJF_CT, including all costs, fees, and expenses incurred for the environmental analysis engineering, and design of the PROJECT. 4 Dn elo0mmt Aqn nl for W aw and Se a 003 W894.SanBemerdmo CA-- 6)1676.1 C. The DEVELOPER shall comply with all rules, regulations, resolutions, and ordinances of the DISTRICT that are currently in place or may hereafter be adopted, and shall pay when due any and all fees, deposits, charges, rates, fines, penalties, taxes, and/or assessments that may be levied by the DISTRICT. d. The DEVELOPER hereby consents, and waives any objection, to the exercise of any and all collection remedies that are available to the DISTRICT under the law upon the PROPERTY. Section 4. SECURITY. a. The DEVELOPER shall provide performance, completion, and payment bonds for the PROJECT in the minimum amount of not less than one hundred percent (100 %) of the estimated construction costs containing covenants, which are acceptable to the DISTRICT. b. The DEVELOPER shall provide a maintenance bond for the PROJECT in the amount of one hundred percent (100 %) of the construction cost, which shall contain covenants which are satisfactory to the DISTRICT. Such bond shall remain in force for at least twelve (12) months from the date of acceptance by the DISTRICT of the dedication of said facilities. C. The DEVELOPER shall also procure and maintain during the performance of this AGREEMENT such policies of insurance, bonds from an acceptable surety, cash deposits, escrow accounts, letters of credit, and other forms of security, in amounts and upon terms reasonably deemed sufficient by the DISTRICT in its sole discretion to protect the DISTRICT from any and all exposure to loss and/or liability. To the extent DEVELOPER is required to maintain insurance hereunder, DEVELOPER shall have the right to self - insure any of the risks required to be insured hereunder as long as DEVELOPER maintains a 5 Oc.aiopmem Al..t!or W. and Scv 003 W894 -S mB .dmo CA-- 631616.1 net worth in excess of One Hundred Million and No /100 Dollars ($100,000,000.00), Section 5. INTENTIONALLY OMITTED. Section 6. DEDICATION OF FACILITIES. a. The DEVELOPER shall, upon completion of the construction of all facilities to be installed hereunder to the reasonable satisfaction of the DISTRICT, dedicate said facilities to the DISTRICT by a deed of dedication or such other instrument as the DISTRICT ma} reasonably prescribe, and the DISTRICT agrees to accept the dedication thereof ol. formal action of its Board of Directors. Thereafter, such dedicated facilities shall become and be operated and maintained by the DISTRICT as part of the DISTRICT's water and sewer system. The DISTRICT shall not accept dedication of said .pater or sewer facilities until all connection fees have been paid unless otherwise allowed under Section 3.a. herein. b. The DEVELOPER hereby grants the DISTRICT full access to the PROPERTY for the purpose of installing, operating, inspecting, maintaining, and repairing all meters, valves, and other appurtenances necessary for the DISTRICT to record, regulate. and control the amount of water pumped therefrom. Section 7. SERVICE RESTRICTIONS. Any obligation on :he part of the DISTRICT to supply water to the PROPERTY pursuant to the terms of this AGREEMENT shall be excused in the event that the performance thereof is interrupted for any of the following reasons: riots, wars, sabotage, civil disturbances. insurrection, explosion, court order, natural disasters such as floods, earthquakes, landslides. and fires, and other labor distarbances and other catastrophic events which are beyond the reasonable control of the DISTRICT. Notwithstanding any other provision to the contrary, the DISTRICT may suspend or refuse water service to the PROPERTY if the DEVELOPER is in breach, default, or violation of this AGREEMENT or any rule, regulation, resolution, and /or ordinance of the DISTRICT that is currently in place or may hereafter be adopted, or if such service would adversely affect the health, safety, or welfare of 6 O .10,.m Ayae Mm l for W m¢ end Sewn 001 W894-S.B..dm CA -- 6316/61 the DISTRICT's customers, or for any other reason deemed paramount by the DISTRICT in its sole discretion. Section 8. NO REPRESENTATIONS, WARRANTIES, OR CLAIM OF WATER RIGHTS. The DISTRICT makes no express or implied representations or warranties concerning the quality, pressure, or temperature of any water delivered pursuant to the terms of this AGREEMENT, or the manner in which the water is provided, or its fitness for any particular purpose, and the DISTRICT shall not be held liable for any losses incurred or damages sustained as a direct or indirect result thereof, nor shall the DISTRICT be held liable for any losses incurred or damages sustained after the water furnished hereunder is transferred to the PROJECT facilities. Any water conveyed by the DISTRICT under this AGREEMENT shall not serve as the basis of, or otherwise support, any water rights claim that may be asserted by the DEVELOPER. Section 9. LIABILITY FOR DAMAGES. The DISTRICT shall not be held liable or responsible for any debts or claims that may arise from the operation of this AGREEMENT, or for any damage claims for injury to persons, including the DEVELOPER and /or its officers, directors, shareholders, guests, invitees, trespassers, agents, contractors, consultants, and employees, or for property damage, from any cause arising out of or in any way related to the PROPERTY, the PROJECT, and /or the DEVELOPER's obligations hereunder, except to the extent of the DISTRICT's sole negligence or willful misconduct. Except for liability asserted against DISTRICT in connection with third -party claims, neither party hereto shall be liable to the other party hereto for any consequential, special or punitive damages, and both parties hereto hereby waives all rights to seek recovery of same against the other party hereto. Notwithstanding anything contained in this AGREEMENT to the contrary, it is expressly agreed that the DISTRICT shall not seek any recourse against the DEVELOPER's shareholders, partners, directors, officers, agents, and employees, or any of their respective personal assets for satisfaction of any liability, duty or obligation of DEVELOPER with respect to this AGREEMENT. Nvel,pmrn Agmn nL for Wzier and Scvxr 003 W89 Sa0,rnardlna CA - 6316)61 Section 10. RELEASE. The DEVELOPER hereby expressly waives and releases the DISTRICT and its agents, officers, directors, and employees fr-)m any and all liability for the claims, actions, and /or losses set forth in Section 9 above and for any costs and expenses incurred in connection therewith. The DEVELOPER, not withstanding the provisions of California Civil Code § 1542. which provides as follows: "A general release does not extend to claims which the creditor did not know or suspect to exist in his or her favor at the time of the executed release which if known by him or her must have materially affected his or her settlement with the debtor." expressly waives and relinquishes all rights and benefits afforded to the DEVELOPER thereunder and under any and all similar laws of any state or territory of the United States with respect to the claims, actions, and /or losses referenced above. This .AGREEMENT shall act as a release of any claims that may arise from the aforementioned whether such claims are currently known or unknown. The DEVELOPER understands and acknowledges the significance and consequences such specific waiver of Civil Code § 1542 and hereby assumes full responsibility for any injuries, damages, losses, or liability that may result from the claims identified above. This AGREEMENT shall also act as a release of any claims. actions, and /or losses set forth in Section 9 above, that may arise in the future whether such claims are currently foreseen or unforeseen. Section 11. HOLD HARMLESS. Excepting the sole or active negligence or willful misconduct of the DISTRICT, the DEVELOPER shall indemnify and hold the DISTRICT and its officers, directors, agents, and employees harmless from and against all claims and liabilities of any kind arising out of, in connection with, or resulting from. any and all acts or omissions on the part of the DEVELOPER and /or its officers, directors, shareholders, partners, assignees, guests, invitees, trespassers, agents, contractors, consultants, and employees in connection with the PROPERTY, the PROJECT, and the performance of their obligations under this AGREEMENT, including design defects, even if occurring after the completion of the 8 Dc clopmcm Agcammt for Water end Sava 003 W894 -Se BCmardmo CA -- 6316)6.1 PROJECT, and defend the DISTRICT and its officers, directors, agents, and employees from any suits Or actions at law or in equity for damages, and pay all court costs and reasonable counsel fees in connection therewith. In addition, the DEVELOPER agrees to defend, indemnify, and hold the DISTRICT harmless from and against all third party claims, losses, liabilities, damages, demands, actions, judgments, causes of action, assessments, penalties, costs, expenses (including, without limitation, the reasonable fees and disbursements of legal counsel, expert witnesses, and accountants), and all foreseeable and unforeseeable consequential damages which might arise or be asserted against the DISTRICT and /or the DEVELOPER with regard to the PROPERTY and /or the PROJECT which are alleged and /or determined to be tortious, and /or in violation of present and future federal, state, and local laws (whether under common law, statute, rule, regulation, or otherwise), including, but not limited to, the California Environmental Quality Act, Public Resources Code Section 21000 et seq., and the Guidelines adopted thereunder, California Code of Regulations Section 15000 et seq., all as the same may be amended from time to time. Section 12. NOTICES. All notices and other communications required or permitted to be given hereunder shall be in writing and shall be sent by: (i) certified or registered mail, postage prepaid, return receipt requested, (ii) personal delivery, or (iii) a recognized overnight carrier that provides proof of delivery, and shall be addressed as follows: If to the DISTRICT: East Valley Water District 3654 Highland Ave, Suite 18 Highland, CA 92346 Attn: General Manager If to the DEVELOPER: Wal -Mart Stores, Inc. Attn: Property Manager (Ref: Highland, California Store No. 1914 -01) 2001 SE 10th Street Bentonville, AR 72716 -0550 9 Devdapmcm Agramm� for W.I. and Sewn 003 W894 ;MBemmdmo CA.. 6316]61 With a copy to: Wal -Mart Stores, Inc. Attn: President (Ref: Highland. California Store No. 914 -01) 2001 SE 10 ` Street Bentonville, AR 72716 -0550 Section 13. DISPUTES. Any dispute or controversy arising o.tt of, under, or in connection with, or in relation to this AGREEMENT, and any amendment•i thereto, or the breach thereof, which is not resolved informally by prior mutual agreement of the parties hereto, shall be submitted to arbitration in accordance with the California Arbitration Act, Sections 1280 through 1294.2 of the Code of Civil Procedure. The parties shall pay the cost of such arbitration equally; however, the prevailing party in the arbitration shall be en -ied to reimbursement of its attorney's fees and other costs incurred in connection therewith Section 14. ATTORNEYS' FEES. If a dispute arises which cannot be resolved by arbitration, regarding the breach or enforcement of the provisions of this AGREEMENT, the prevailing party therein shall be entitled to recover all reasonable attorneys' fees and other costs actually incurred in connection with reaching a resolution of the dispute whether or not an action, claim, or lawsuit is filed. In any action brought, the entitlement to recover attorneys' fees and costs will be considered an element of costs and not of damages. Section 15. INUREMENT. This AGREEMENT and all provisions hereof shall be jointly and severally binding upon, and inure to the benefit of, the parties hereto, their respective heirs, successors, legal representatives, and assigns. Section 16. ASSIGNMENT. This AGREEMENT may not be assigned to any individual or entity without the written consent of the parties hereto, which consent shall not be unreasonably withheld, conditioned or delayed. Section 17. INTEGRATION AND AMENDMENT. This AGREEMENT constitutes the entire understanding of the parties hereto with respect to the subject matter hereof and supersedes any and all prior agreements, whether oral or written, bel,,; een the parties in connection 10 Dcvcloymcnt AV m mt for Wata and Scwa 003 W894 -S.nB d�no CA- 6316]61 therewith. This AGREEMENT may not be amended unless in writing and signed by the parties hereto. Section 18. CAPTIONS. The captions of sections and subsections of this AGREEMENT are for reference only and are not to be construed in any way as a part of this AGREEMENT. Section 19. INTERPRETATION AND ENFORCEMENT. This AGREEMENT shall be construed as if both parties jointly prepared this AGREEMENT and any uncertainty or ambiguity of any provision contained herein shall not be interpreted against any one party simply by virtue of having drafted that provision. Failure by either party to enforce any provision of this AGREEMENT, or any waiver thereof by such party, shall not constitute a waiver of said party's right to enforce subsequent violations of the same or any other terms or conditions herein. This ACREEMENT shall be enforced and governed by and under the laws of the State of California, and. venue for any action brought to interpret and/or enforce any provision of this AGREEMENT shall be in a state or federal court located in the State of California that would generally have in rem jurisdiction over the PROPERTY. Section 20. SEVERABILITY. If any portion of this AGREEMENT is declared by a court of competent jurisdiction to be illegal, invalid, or unenforceable, the remaining provisions of this AGREEMENT shall continue in full force and effect. Section 21. TIME OF THE ESSENCE. Time is of the essence in this AGREEMENT, and the parties hereto agree to proceed in good faith, with due diligence, to complete all covenants and conditions set forth herein and to perform such further acts as is reasonably necessary to effectuate the purpose of this AGREEMENT. Section 22. AUTHORITY. Each individual executing this AGREEMENT on behalf of a panty hereto represents and warrants that he or she is fully and duly authorized and empowered to so execute on behalf of such party, and that this AGREEMENT is binding in the manner set forth in Section 15 hereof. Section 23. NEGATION OF AGENCY, JOINT VENTURE OR PARTNERSHIP. The pan.ies acknowledge that in entering into this AGREEMENT, they are acting as independent 11 W894 -imem ngmemeni for Water and Sewer W3 W89a <iandBcrnardmo CA- 6316)61 entities and not as agents of the other in any respect. The parties hereby renounce the existence of any form of joint venture or partnership among or between them and agree that nothing in this AGREEMENT will be construed as making them joint venturers or partners. Section 24. NO THIRD PARTIES BENEFITTED. No person other than the DISTRICT, DEVELOPER or their respective successors is intended to or shzll have any right or claim under this AGREEMENT, this AGREEMENT being for the sole benefit and protection of the parties hereto and their respective successors. Similarly, no amendmert or waiver of any provision of this AGREEMENT shall require the consent or acknowledgment of any person not a party or successor -in- interest to a party to this AGREEMENT. [Signatures follow — next page] 12 De Clcpment Agreemmt for Watn end Sewn 003 W894 -S.1B .dmo CA- 6316]6.1 IN WITNESS WHEREOF, the parties hereto have caused this AGREEMENT to be executed by their respective officers as of the date first above written. DISTRICT: By: Name: Its: Date: DEVELOPER WAL -MART STORES, INC., a Delaware corporation By: _ Name Its: Vice President of Real state Date: q —S—C;Q // 13 D dopmrnt A,m M.t for Wmm and Scw 003 W894- SmBemardino CA -- 6316]6.1 EXHIBIT "A" LEGAL DESCRIPTION All that certain real property located in the City of San Bernardino, County of San Bernardino, State of California, as more particularly described as follows: PARCEL A: THOSE PORTIONS OF PARCELS 1 AND 8 OF PARCEL MAP NO. 13892, IN THE CITY OF SAN BERNARDINO, COi_'tiTY OF SAN BERNARDINO. STATE OF CALIFORNIA, AS SHOWN BY MAP ON FILE. IN BOOK 167, PAGE 23 THROUGH 26 INCLUSIVE, OF PARCEL MAPS, RECORDS OF SAN BERNARDINO COIT^:TY, CALIFORNIA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE MOST EASTERLY CORNER OF SAID PARCEL 1; THENCE ALONG EASTERLY LINE OF SAID PARCEL 1, SOUTH 19"54;'24" WEST 91.71 FEET TO THE TRUE POINT OF BEGINNING; THENCE SOUTH 19`55'24" WEST 43.69 FEET; THENCE NORTH 69 °56'01" WEST 37.24 FEET; THENCE SOIfTH 20 °16'10" WEST 138.05 FEET; THENCE SOUTH 69 °13'32" EAST 26.77 FEET; THENCE SOUTH 12 °23'00" WEST 49.94 FEET; THENCE SOUTH 77 °37'00" EAST 56.33 FEET: THENCE SOUTH 01 °15'18" EAST 23.50 FEET; THENCE NORTH 88 °23'12" EAST 26.04 FEET TO THE EASTERLY LINE OF SAID PARCEL 1, THENCE NORTH 02 044'05" WEST 48.46 FEET TO THE BEGINNING OF A NON - TANGENT CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS 600 FEET AND TO THE MOST SOUTHERLY i'ORNER OF SAID PARCEL 8, RADIAL LINE TO THE BEGINNING OF SAID CURVE HAVING A BEARING OF SOUTH 43 122'27" WEST; THENCE NORTHEASTERLY ALONG SAID CURVE AND ALONG SAID EASTERLY LINE OF PARCEL 8, 201.59 FEET THROUGH A CENTRAL ANGLE OF 19 "15'00 "; THENCE NORTH 70 °04'36" WEST 124.05 FF.FF TO THE TRUE POINT OF BEGINNING. THE ABOVE DESCRIBED LAND IS SHOWN AS PARCEL 2 ON THAT CERTAIN CERTIFICATE OF COMPLIANCE LOT LINE ADJUSTi NT NO. 96 -05, RECORDED MAY 15, 1997 AS INSTRUMENT NO. 97- 0174052, OFFICIAL. RECORDS. PARCEL C: PARCEL 2 OF PARCEL MAP NO. 15064, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS SHOWN BY MAP ON FILE IN BOOK 186, PAGES 82 THROUGH 83, INCLUSIVE OF PARCEL MAPS, RECORDS OF SAN BERNARDINO COUNTY, CALIFORNIA. (END OF LEGAL DESCRIPTION) 14 D cloprnrnt Agwrrml for Wata and Scwo 003 W894 -Sa B=wdmo CA-- 6316/6.1 DEVELOPMENT AGREEMENT FOR WATER THIS AGREEMENT is made this A day of h !a , by and between EAST VALLEY/ WATER DISTRICT, a public ag ncy (hereinafter "the DISTRICT "), and &1/ CQ L t:-> &1(, a California (hereinafter "the DEVELOPER "). RECITALS A. The DISTRICT is a County Water District organized and operating pursuant to California Water Code Section 30000 et seq. B. The DEVELOPER proposes to subdivide and develop certain real property within the boundaries of the DISTRICT which is located at 27 -3zo Melhe) y ff . , in the City of �i L, .� • , County of San Bernardino, State of California, and is generally identified as Tract No. (hereinafter "the PROPERTY "). A copy of the Tentative Tract Map for the PROPERTY is attached hereto as Exhibit "A" and is incorporated herein by this reference. C. The development of the PROPERTY will consist of I dwelling units, and the DEVELOPER desires that the DISTRICT provide domestic water service to the PROPERTY. The DEVELOPER intends to design and construct the facilities necessary for water service to be furnished to the PROPERTY. D. The DISTRICT supplies domestic water service within the area to be served and is the public agency empowered by law to provide such services to the PROPERTY. E. The purpose of this AGREEMENT is to provide the terms and conditions under which the DEVELOPER will design and construct the facilities necessary for the DISTRICT to supply water service to the PROPERTY (hereinafter "the PROJECT "), COVENANTS NOW THEREFORE, in consideration of the preceding Recitals and the mutual Covenants contained herein, the parties hereto agree as follows: Section 1. DESIGN OF FACILITIES. The DEVELOPER agrees to design the water facilities for the PROPERTY in the following manner and according to the Rules and Regulations of the DISTRICT: a. The DISTRICT agrees to provide to the DEVELOPER tentative water plans which conform to the requirements of the DISTRICT. b. The DEVELOPER agrees to design the water facilities for the PROPERTY in accordance with the DISTRIC T's Standards for Design and Processing of Water Plans and the tentative plans provided by the DISTRICT. The designs shall be submitted to the DISTRICT in a complete form which shall provide sufficient information for review and appro1al by the DISTRICT in the exercise of its sole discretion. C. The DISTRICT may request certain changes in the plans to provide for oversizing of facilities, which DEVELOPER agrees to incorporate into the plans and specifications for the PROPERTY. d. The DEVELOPER shall furnish the DISTRICT with any and all easements necessary for the construction, operation, maintenance, and repair of any and all water facilities to be installed and /or used for the PROJECT. All easements shall be submitted to the DISTRICT for review and approval by the DISTRICT in the exercise of its sole discretion prior to the DISTRICT's acceptance of any dedication of the PROJECT facilities under Section 6 of this AGREEMENT. C. The DEVELOPER shall submit all plans, drawings, specifications, and contract documents, for all work to be performed pursuant to this AGREEMENT, to the DISTRICT for review and approval, if acceptable to the DISTRICT. The DISTRICT agrees to review all such documents in a timely manner and, upon inclusion of all changes thereto requested by the DISTRICT in a manner satisfactory to the DISTRICT, the DISTRICT will provide the DEVELOPER with authorization to proceed. The DEVELOPER shall not proceed 2 with the construction of the PROJECT and any other water facilities for use on the PROPERTY until the DISTRICT so authorizes. Section 2. CONSTRUCTION OF FACILITIES. The DEVELOPER agrees to construct the PROJECT and all other water facilities necessary for the PROPERTY in the following manner subject to the DISTRICT's approval: a. The DEVELOPER shall obtain all necessary permits from the cit or county and all other public or private agencies required for the construction thereof. The PROJECT and the facilities appurtenant thereto shall be constructed at a location determined by the DISTRICT, and shall be relocated by the DISTRICT at the DEVELOPER's sole expense if such relocation is deemed necessary by the DISTRICT in its sole discretion. The DEVELOPER hereby grants the DISTRICT full access to the PROPERTY and all other locations where the work contemplated herein is to be performed. b. All facilities constructed pursuant to this AGREEMENT shall be in accordance with accepted standards and practices in the industry and in compliance with all local, state, and federal laws, rules, and regulations. The DEVELOPER shall be responsible for providing all labor, materials, and equipment necessary to perform the work for the PROJECT, and such work shall be performed in a timely and workmanlike manner by a party or entity acceptable to the DISTRICT. All such facilities shall conform to the DISTRICT's Standard Specifications for the Furnishing of Materials and the Construction of Water Pipelines. All costs and liabilities in connection with the design and construction of the PROJECT shall be borne solely by the DEVELOPER. C. The DISTRICT shall inspect and approve all work to be performed under this AGREEMENT. However, any approval by the DISTRICT of such work, or of the designs, specifications, reports, and /or materials furnished hereunder, is understood to be conceptual approval only and will not operate to 3 relieve the DEVELOPER or its contractors, consultants, or subcontractors of responsibility for complying with all laws, codes. industry standards, and liability for damages caused by negligent acts, errors, omissions, noncompliance with industry standards, or their own willful misconduct. Further, neither the DISTRICT's review, approval, or acceptance of any of the work or services performed in connection with this AGREEMENT shall be construed as a waiver of any rights hereunder or of any defense or cause of action which the DISTRICT may have arising out of the performance of this AGREEMENT or any previous or subsequent agreements. The DEVELOPER shall cause the facilities constructed under this AGREEMENT to be inspected as required by any and all other public or private agencies. Section 3. DEVELOPER'S COSTS. In addition to all other obligations imposed upon the DEVELOPER under this AGREEMENT, the DEVELOPER shall be responsible for the payment of all of the following: a. The DEVELOPER shall pay to the DISTRICT all, or any portion, of the connection fees for the PROPERTY at the time of application for water service therefor. The DISTRICT will provide water service only to those specific subdivision lots within the PROPERTY for which Payment in full has been made to the DISTRICT. b. The DEVELOPER shall be solely responsible for the payment of all costs, fees, and expenses associated with the construction, inspection, operation, maintenance, repair. and relocation of the PROJECT, including all costs, fees, and expenses incurred for the environmental analysis. engineering, and design of the PROJECT. C. The DEVELOPER shall compb, v* ith all rules, regulations, resolutions, and ordinances of the DISTRICT that are currently in place or may hereafter be adopted. and shall pay when due any and all fees, deposits, charges, 4 rates, fines, penalties, taxes, and /or assessments that may be levied by the DISTRICT. d. The DEVELOPER hereby consents, and waives any objection, to the exercise of any and all collection remedies that are available to the DISTRICT under the law upon the PROPERTY and/or the person and /or property of DEVELOPER and its shareholders and partners. Section 4. SECURITY. a. The DEVELOPER shall provide performance, completion, and/or payment bonds for the PROJECT in the minimum amount of not less than 100 percent of the estimated construction costs containing covenants which are acceptable to the DISTRICT and the (city or county) b. The DEVELOPER shall provide a maintenance bond for the PROJECT in the amount of 100 percent of the construction cost, which shall contain covenants which are satisfactory to the DISTRICT. Such bond shall remain in force for at least twelve (12) months from the date of acceptance by the DISTRICT of the dedication of said facilities. C. The DEVELOPER shall also procure and maintain during the performance of this AGREEMENT such policies of insurance, bonds from an acceptable surety, cash deposits, escrow accounts, letters of credit, and other forms of security, in amounts and upon terms deemed sufficient by the DISTRICT in its sole discretion to protect the DISTRICT from any and all exposure to loss and/or liability. Section 5. COSTS FOR OVERSIZING. Pursuant to Section I.e. of this AGREEMENT, the DISTINCT agrees to pay to the DEVELOPER the incremental cost of oversizing any PROJECT facilities greater than twelve inches (12 ") in diameter for water distribution pipelines. The DISTINCT shall determine the amount of the incremental cost of oversizing and the method of payment in the exercise of its sole discretion prior to its acceptance of the PROJECT facilities. E Section 6. DEDICATION OF FACILITIES. a. The DEVELOPER shall, upon completion of the construction of all facilities to be installed hereunder to the satisfaction of the DISTRICT, dedicate said facilities to the DISTRICT by a deed of dedication or such other instrument as the DISTRICT may prescribe, and the DISTRICT agrees to accept the dedication thereof by formal action of its Board of Directors. Thereafter, such dedicated facilities shall become and be operated and maintained by the DISTRICT as part of the DISTRICT's water system. The DISTRICT shall not accept dedication of said water facilities until all connection fees have been paid unless otherwise allowed under Section 3.a. herein. b. The DEVELOPER hereby grants the DISTRICT full access to the PROPERTY for the purpose of installing, operating, inspecting, maintaining, and repairing all meters, valves, and other appurtenances necessary for the DISTRICT to record, regulate, and control the amount of water pumped therefrom. Section 7. SERVICE RESTRICTIONS. Any obligation on the part of the DISTRICT to supply water to the PROPERTY pursuant to the terms of this ACi R f I-MENT shall be excused in the event that the performance thereof is interrupted for any of' the following reasons: riots, wars, sabotage, civil disturbances. insurrection, explosion, court order, natural disasters such as floods, earthquakes, landslides, and fires, and other labor disturbances and other catastrophic events which are beyond the reasonable control of the DISTRICT. Notwithstanding any other provision to the contrary, the DISTRICT may suspend or refuse water service to the PROPERTY if the DEVELOPER is in breach. default, or violation of this AGREEMENT or any rule, regulation, resolution, and /or ordinance of the DISTRICT that is currently in place or may hereafter be adopted, or if such service would adversely affect the health, safety, or welfare of the DISTRICT's customers, or for any other reason deemed paramount by the DISTRICT in its sole discretion. M Section 8. NO REPRESENTATIONS, WARRANTIES, OR CLAIM OF WATER RIGHTS. The DISTRICT makes no express or implied representations or warranties concerning the quality, pressure, or temperature of any water delivered pursuant to the terms of this AGREEMENT, or the manner in which the water is provided, or its fitness for any particular purpose, and the DISTRICT shall not be held liable for any losses incurred or damages sustained as a direct or indirect result thereof, nor shall the DISTRICT be held liable for any losses incurred or damages sustained after the water furnished hereunder is transferred to the PROJECT facilities. Any water conveyed by the DISTRICT under this AGREEMENT shall not serve as the basis of, or otherwise support, any water rights claim that may be asserted by the DEVELOPER. Section 9. LIABILITY FOR DAMAGES. The DISTRICT shall not be held liable or responsible for any debts or claims that may arise from the operation of this AGREEMENT, or for any damage claims for injury to persons, including the DEVELOPER and /or its officers, directors, shareholders, guests, invitees, trespassers, agents, contractors, consultants, and employees, or for property damage, from any cause arising out of or in any way related to the PROPERTY, the PROJECT, and /or the DEVELOPER's obligations hereunder. Section 10. RELEASE. The DEVELOPER hereby expressly waives and releases the DISTRICT and its agents, officers, directors, and employees from any and all liability for the claims, actions, and /or losses set forth in Section 9 above and for any costs and expenses incurred in connection therewith. The DEVELOPER, notwithstanding the provisions of California Civil Code § 1542, which provides as follows: "A general release does not extend to claims which the creditor did not know or suspect to exist in his or her favor at the time of the executed release which if known by him or her must have materially affected his or her settlement with the debtor." expressly waives and relinquishes all rights and benefits afforded to the DEVELOPER theremider and under any and all similar laws of any state or territory of the United States with 7 respect to the claims, actions, and /or losses referenced above. This AGREEMENT shall act as a release of any claims that may arise from the aforementioned whether such claims are currently known or unknown. The DEVELOPER understands and acknowledges the significance and consequences such specific waiver of Civil Code § 1542 and hereby assumes full responsibility for any injuries, damages, losses. or liability that may result from the claims identified above. This AGREEMENT shall also act as a release of any claims, actions, and /or losses set forth in Section 9 above, that may arise in the future whether such claims are currently foreseen or unforeseen. Section 11. HOLD HARMLESS. Excepting the sole o- active negligence or willful misconduct of the DISTRICT, the DEVELOPER shall indemnili• and hold the DISTRICT and its officers, directors, agents, and employees harmless from and against all claims and liabilities of any kind arising out of, in connection with, or resulting from. any and all acts or omissions on the part of the DEVELOPER and /or its officers, directors, shareholders, partners, assignees, guests, invitees, trespassers, agents, contractors, consultants, and employees in connection with the PROPERTY, the PROJECT, and the performance of their obligations under this AGREEMENT, including design defects, even if occurring after the completion of the PROJECT, and defend the DISTRICT and its officers, directors, agents, and employees from any suits or actions at law or in equity for damages, and pay all court costs and counsel fees in connection therewith. In addition. the DEVELOPER agrees to defend, indemnify, and hold the DISTRICT harmless from and against all claims, losses, liabilities, damages, demands, actions, judgments, causes of action, assessments, penalties, costs, expenses (including, without limitation, the reasonable fees and disbursements of legal coattsel, expert witnesses, and accountants), and all foreseeable and unforeseeable consequential .damages which might arise or be asserted against the DISTRICT and/or the DEVELOPER with regard to the PROPERTY and/or the PROJECT which are alleged and/or determined to he tortious, and /or in violation of present and future federal, state. and local laws (whether under common law, statute, rule, regulation, or otherwise), including. but not limited to, the California Environmental Quality Act, 8 Public Resources Code Section 21000 et seq., and the Guidelines adopted thereunder, California Code of Regulations Section 15000 et seq., all as the same may be amended from time to time. Section 12. NOTICES. Any notice, tender, or delivery to be given hereunder by either party to the other shall be effected by personal delivery in writing or by registered or certified mail, postage prepaid, return receipt requested, and shall be deemed communicated as of mailing or in the case of personal delivery, as of actual receipt. Mailed notices shall be addressed as set forth below, but each party may change its address by written notice in accordance with this section. If to the DISTRICT: If to the DEVELOPER: East Valley Water District P.O. Box 3427 1155 Del Rosa Avenue San Bernardino, CA 92413 Attn: General Manager Attn: Section 13. DISPUTES. Any dispute or controversy arising out of, under, or in connection with, or in relation to this AGREEMENT, and any amendments thereto, or the breach thereof, which is not resolved informally by prior mutual agreement of the parties hereto, shall be submitted to arbitration in accordance with the California Arbitration Act, Sections 1280 through 1294.2 of the Code of Civil Procedure. The cost of such arbitration shall be paid by the parties equally: however, the prevailing party in the arbitration shall be entitled to reimbursement of its attorneys fees and other costs incurred in connection therewith. Section 14. ATTORNEYS FEES. If a dispute arises which cannot be resolved by arbitration, regarding the breach or enforcement of the provisions of this AGREEMENT, the prevailing party therein shall be entitled to recover all attorneys fees and other costs actually incurred in connection with reaching a resolution of the dispute whether or not an action, claim, 0 or lawsuit is filed. In any action brought, the entitlement to recover attorneys fees and costs will be considered an element of costs and not of damages. Section 15. INUREMENT. This AGREEMENT and all provisions hereof shall be jointly and severally binding upon, and inure to the benefit of, the parties hereto, their respective heirs, successors, legal representatives, and assigns, and each of the shareholders and partners of the DEVELOPER in their individual. separate, and/or other capacities. Section 16. ASSIGNMENT. This AGREEMENT may not be assigned to any individual or entity without the written consent of the parties hereto. Section 17. INTEGRATION AND AMENDMENT. This AGREEMENT constitutes the entire understanding of the parties hereto with respect to the subject matter hereof and supersedes any and all prior agreements, whether oral or written, between the parties in connection therewith. This AGREEMENT may not be amended unless in ok ruing and signed by the parties hereto. Section 18. CAPTIONS. The captions of sections and subsections of this AGREEMENT are for reference only and are not to be construed in any way as a part of this AGREEMENT. Section 19. INTERPRETATION AND ENFORCEMENT:. This AGREEMENT shall not be construed against the party preparing it, but shall be construed as if both parties jointly prepared this AGREEMENT and any uncertainty or ambiguity contained herein shall not be interpreted against any one party. Failure by either party to enforce any provision of this AGREEMENT, or any waiver thereof by such party, shall not constitute a waiver of said party's right to enforce subsequent violations of the same or any other terms or conditions herein. This AGREEMENT shall be enforced and governed by and under the la\vs of the State of California, and venue for any action brought to interpret and /or enforce any provision of this AGREEMENT shall be in a state or federal court located in the State of California ?hat would generally have in rem jurisdiction over the PROPERTY. lD Section 20. SEVERABILITY. If any portion of this AGREEMENT is declared by a court of competent jurisdiction to be illegal, invalid, or unenforceable, the remaining provisions of this AGREEMENT shall continue in full force and effect. Section 21. TIME OF THE ESSENCE. Time is of the essence in this AGREEMENT, and the parties hereto agree to proceed in good faith, with due diligence, to complete all covenants and conditions set forth herein and to perform such further acts as is reasonably necessary to effectuate the purpose of this AGREEMENT. Section 22. AUTHORITY. Each individual executing this AGREEMENT on behalf of a party hereto represents and warrants that he or she is fully and duly authorized and empowered to so execute on behalf of such party, and that this AGREEMENT is binding in the manner set forth in Section 15 hereof. IN WITNESS WHEREOF, the parties hereto have caused this AGREEMENT to be executed by their respective officers as of the date first above written. DISTRICT LE East Valley Water District President, Board of Directors ATTEST: Secretary DEVELOPER: By: [na eel [title] R r: s ATTEST: CALIFORNIA • ACKNOWLEDGMENT State of California 1 � Ji County of &A �a,n &, C?„ L l lam` On Apf t I 11,,, It.- ( ( before me, PA Lades 0-V(,i f v - i t E � � PL) Jo Date Here Inserr Nar,� Winie of the Oihc T rL� personally appeared i Nanne(s) of S, ner s. A. LEDESMA Commission # 1899490 Notary Public . California a% San Bernardino County Comm. Was Soo 10, 2014 who proved to me or the- basis of satisfactory evidence to be the person* whose riame(�(aw subscribed to the within instrument and acknowledged to me that oshekhey- executed the same ir(S�IiMeN I authorized capacity(ies), and That by j/herRheir signature(oon the instrument the person(a). or the entity upon behalf of which the personM acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of Califorria that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature �: 1 Place Notary Seal Above T3nature of Notary Public OPTIONAL Though the information below is not reauired bylaw, it may prove valuable to petsens relying on the document and could prevent fraudulent removal and reattachment of this form to 3nnnoar document. Description of Attached Document Title or Type of Document: f� r�eV'vt Document Date: S %4' ( Numbs- of Signer(s) Other Than Named Pages: Capacity(ies) Claimed Signer(s) /by� Signer's Name: I`c 1Tl �"-bCS Signe Name: Individual yy�6 - Individu ,'Corporate Officer — Title(s): f r:. L Corporate O ' r — Title(s): ❑ Partner — ❑ Limited ❑ General _ C Partner — - Lir -fed, General J Attorney in Fact • ❑ Attorney in Fact ❑ Trustee - -' °f thomb here J Trustee ❑ Guardian or Conservator I Guardian or Conservator ❑ Other: - Other: S 11 er I Re resenting:, " 1 Signer Is Represerf!lnc _ 0200114ational Notary Association •9350 De Selo AVe `3 BIX 2402•Chatsmrth.0A 913132402 -w Naocr,IN, oy item x5907 Reorder Cail Toll Free 1- 800 -816 -6821 East Val ley Water District Board Memorandum No. B -13 -2011 Date: April 26, 2011 From: Robert Martin, General Manager Subject: Prop 218 Hearing Background: At the request of President Wilson, I have placed this issue on the agenda for the Board's consideration. As you are aware, the City of San Bernardino Water Department has adopted a two phase increase to their wastewater treatment rates for both residential and commercial customers. When I originally brought this issue to the Board's attention, the decision was made to delay scheduling a rate hearing and to subsidize, on a temporary basis, the increased cost of wastewater treatment. Our obligation to begin paying the City's higher rates began at the beginning of this month and will cost, depending on consumption rates, $40,000 to $50,000 per month. The second phase of their increase goes into effect on January 151, 2012 and will add another $1.50 /month to the residential rate. If the District were to also subsidize this increase, the total monthly cost would be approximately $90,000 to $115,000. It is unfortunate that these increases occurred soon after we had our last rate hearing. However, it is my opinion that the District's obligation is to pass these higher costs on to our customers as we have always done. With this in mind, I wish to propose that the Board set a date for conducting a Prop 218 hearing to consider raising our wastewater rates to account for these higher treatment rates. The notice period for this hearing must be at least 45 days. It is my recommendation that the Board schedule this hearing during the last two weeks of June which would allow us to have these new rates in place for the start of our new fiscal year (July 15S). I propose that we implement a two phase increase. The first adjustment would be effective on July 151. The second increase would become effective on January I" of next year which will coincide with the City of San Bernardino's second phase adjustment. I have included a draft notice for this hearing for your review and consideration. vwvater st Valley District Notice of Public Hearing Proposed Sewer Treatment Rate Increase Article XI' .ID of the California Constitution requires the East Valley Water District (EVWD) to send notification of a proposed rate increase to all owners and tenants of real property within EVWD's service area who would be directly liable to pay for water and / or sewer service to the property at least 45 days prior to a public hearing at which adoption of the proposed rate increases will be considered. Please be advised that this document shall serve as formal notification to you that EVWD's Board of Directors will hold a Public Hearing on the proposed increases described herein on Wednesday, March 23`d , 2011, at 6 pm in the City of Highland Council Chambers located at 27215 E Baseline Street, Highland, California. Why Sewer Treatment Rates are Rising The East Valley Water District provides sewer treatment service to customers within its service area in accordance with a 1957 Joint Powers Agreement (JPA), as amended, with the City of San Bernardino. Under the JPA, wastewater collected by the District's sewer mains is conveyed to the City of San Bernardino Treatment Plant for treatment. The JPA also stipulates that the City and District will adopt uniform ordinances affixing sewer treatment charges for customers within their respective service areas, and that the rate setting body will be the City Council of the City of San Bernardino. On January 10, 2011, the San Bernardino City Council held a public hearing to review the findings of a rate study performed by the engineering firm of R.W. Beck. Based on that study, the City of San Bernardino Water Department staff recommended that the Council approve a two step sewer treatment rate increase, with incremental increases to become effective on February 1, 2011 and January 1, 2012. The rate increases recommended by Water Department staff were approved. Copies of the R.W. Beck study and the City Water Department staff report are available on the EVWD's website. Protesting Proposed Rate Increases Property owners and tenants of real property within the District who are directly liable to pay sewer bills and who are opposed to the proposed rate increases described herein may file a written and signed protest with the District Secretary prior to the close of the public hearing. Protests must be submitted in writing even if you plan to attend the hearing. Written protests must include: (1) a description of the property owned, or being rented, sufficient tc identify the property (the service address shown on this mailing is sufficient); (2) your East Valley Water District utility account number, (3) and a statement identifying you as owner of record or tenant. If you own or rent more than one parcel within the District, you may file a single protest, but it must identify each parcel you own or rent. Written protests may be mailed to: East Valley Water District Attn: District Secretary P.O. Box 3427 San Bernardino, CA 92413 Written protests may also be mailed or delivered in person to East Valley Water District, District Secretary, 3654 E. Highland Avenue, Suite 18, Highland, California 92346. Written protests may also be presented to the District Secretary of the East Valley Water District prior to the close of the public hearing on 2011 The District. Board of Directors will consider all protests received. If a majority of property owners and tenants of real property directly liable for paying water bills file written protests in opposition to the rate increases, the increases will not be imposed. Residential sewer treatment charges: Monthly fixed charge Commercial sewer treatment charges: Monthly fixed charge Volume charges (per HCF of water uses Multi- family (4+ units, incl. MHP) Commercial/Retail /Light Industrial Restaurants, motels w /restaurants Laundromats Dry Cleaners Schools, Daycare, Churches Offices, Motels w/o Restaurant=_ Hospitals, Convalescent Homes Auto Repair / Service / Wash Phase i . f Proposed Rtes Current Proposed Apri, Jan 1, Rates Rates 2011 2012 $16.00 $18.50 $1 If $18.50 $2.00 $2.50 `, L` $2.50 95 1.40 1 2` 1.40 1.90 2.20 1 2.20 2.00 2.70 = ? ` 2.70 1.30 1.50 4( 1.50 1.90 2.20 2.20 .70 1.10 It 1.10 1.50 1.50 S1' 1.50 .95 1.35 1 1.35 1.30 1.30 11 1.30 twvater stValley District Board Memorandum No. B -14 -2011 From: Brian W. Tompkins / Chief Financial Officer Subject: Financial Statements for the month ended February 28, 2011 Recommendation: Accept and file attached financial report Background: Balance Sheet Date: April 26, 2011 Total Assets increased by $401,232 in February due to continued construction activity. CIP did increase by $705,290 as several jobs had activity in February — see further discussion under Capital Projects below. Compared to January, Current Assets decreased by $461,593 and Current / Total Liabilities increased by $87,72. The significant decrease in current assets, cash, was due to progress payments on the Plant 134 contract, payments that we will be reimbursed by the state in the near future, but as of now, are being fronted by the District. The Current Ratio (current assets to current liabilities) fell from 1.35:1 to 1.23:1; and the liquidity indicator of Unrestricted Cash and Investments compared to Current Liabilities fell from 92% to 82% coverage, again because the District is fronting the cost of the Plant 134 construction and then awaiting reimbursement. Budget Amendments Budget amendments approved as part of the mid -year budget review have been input and are reflected in the attached Revenue & Expense statement. Changes were allocated over the 12 months of the fiscal year, applied to the month(s), as much as possible, in which variances did, or will, actually occur. Revenue & Expenses Statement OOperatinc Revenue Water sales in February are shown as $3 over the adjusted budget — due to the fact that actual sales for February were already known when the adjusted budget was entered. In terms of volume, sales were down 4.1% from January to 427,217 HCF, but are up 72,256 HCF, or 20.3 %, compared to February 2010. Compared to two years ago, sales are down 25,045 HCF or 5.5 %. Year -to -date, sales are down 447,717 HCF or 7.2% compared to the eight months in fiscal year 2009- 10. Staff projects that March through June sales will finish 3.3% below (original) budget. Other District operating revenues were $2,816 under budget in February, and Sewer Treatment revenue, which is passed through to the City of SB, was $697 over budget. Collectior charges were $542 under the adjusted budget as these revenues for March through June have been adjusted to anticipate the $5 final notice charge (pink tag) that went into effect in October. Year to date, operating revenues are $22,389 over modified budget. Sales Volume by Month 1,500,000 �— -- - - - -- - - - I 1,000,000- �'-�"� 500,000 -._. -- -' -- -- Cc� boo Zp" Sao <yro e V$a jai Operating Expenses Operating Expenses were $150,793 under budget in February. --- - - — 2008 -09 -, -- 2009 -10 2010 -11 (April -Jun est.) In the Source of Supply cost center, the lab testing costs were lower than anticipated, and the District was not billed by Kennedy -Jenks for progress and the Regional Urban Water Management Plan as anticipated. Pumping costs were $8,069 under modified as unused maintenance and chemicals budget covered higher than anticipated power costs. Water Treatment costs were under the modified budget by $64,917 due to the continued shutdown of plant 27 (fluoride) which suppresses the use of the mobile treatment unit at that site. Transmission and Distribution, Customer Accounts, and Wastewater Collection costs were under budget by a combined $6,486 due primarily to labor savings. In General and Administrative expenses were $60,662 under modified budget due primarily to - • Salaries are under budget in February because of the open Engineering position • Benefits are tracking under budget due to the fact that no funds have yet been deposited with a trust for OPEB benefits, • No significant office equipment/software maintenance contracts were due in February. Total operating expenses are under the modified budget $436.486 through February while operating revenue is $22,389 over budget. Operating Income for the July through February is $458,875 over projections at $3,393,361. Modif ed operating income projected `or the 2010 -11 fiscal year is $4,261,264. Capital Projects Capital expenditures during February included a 50% payment on upgrade of the billing program, continuing work on leasehold improvements to Suite 30, and rehab work on well 125. There was also $648,859 spent on the CIP during February, consisting primarily of construction at plant 134 and work on the Conejo sewer main. East Valley Water District Balance Sheet - Unaudited February 28, 2011 ASSETS UTILITY PLANT - at cost: Utility Plant in Service - water department $125,147,467 Utility Plant in Service - sewer department 30,814,563 155,962,030 Less: Accumulated Depreciation (48,381,429) 107,580,601 Construction in Progress 7,841,537 115,422,138 RESTRICTED ASSETS: Customer / Construction Deposits 1,836,209 Capacity Fees 102,384 Construction Funds 15,679,180 Debt Service Funds - Trust Accts 1,288,653 18,804,042 CURRENT ASSETS: Cash and Investments 24,230,721 Less: Restricted Cash and Investments 18,804,042 5,426,679 Accounts Receivable (net of allowance) 1,216,200 Other Receivables (net of allowance) 300,165 Inventor .1 1,007,423 Prepaid xpenses 188,102 8,138,569 OTHER ASSETS AND DEFERRED COSTS (Net of Amortization): Bond discount and incidental bond expenses 318,759 Deferred financing charges 420,645 739,404 TOTAL ASSETS 143,104,153 Balance Sheet Page 1 East Valley Water District Balance Sheet - Unaudited February 28, 2011 LIABILITIES AND EQUITY LONG -TERM DEBT: 2010 Revenue Bonds $32,490,000 Premium on 2010 Revenue Bonds 2,213,063 DWR Loan 131,861 Less: Deferred amount on refunding of COPS (457,686) Accrued interest payable 34,377,238 CURRENT LIABILITIES: Accounts payable 2,138,437 Accrued payroll and benefits 1,338,691 Customer service deposits 1,614,057 Construction deposits 222,152 Accrued interest payable 255,745 Long Term Debt - amounts due within one year 1,071,307 6,640,389 TOTAL LIABILITIES 41,017,627 EQUITY: Contributed Capital: Restricted Developer Fees 102,384 Invested in Utility Plant 39,193,724 Other Contributed Capital 3,699,778 Retained Earnings: Reserved for water bond funds 6,475 Reserved for emergencies 2,170,000 Reserved for Unemployment Insurance 16,450 Unreserved 53,949,999 Net Income for current year 2,947,716 TOTAL EQUITY 102,086,526 TOTAL LIABILITIES AND EQUITY 143,104,153 Balance Sheet Page 2 o SS S0 T W , oo o CI O�W000Ci l7ON MAN m OWp�p Oo00000 Ogom 1 0) ° ° o S O aaa°°o M AMA ANA o000 oS �oS000 A4 WpOOWO N W I GCCm"i dMAWmN(7O maGN�GV pi OOOOVON O0f =a htWO NI�M1� Ahe N 1� N m O � "MNmNov ) d tl -MMm m N M �- Q C AVFT 66m )O NMAWoI lW T W CI O�W000Ci l7ON MAN m OWp�p W RGIeRmaQ mNMmW•e}�y 1 0) MAdOOh0�O ddWmmO" ob AMA ANA M dl� h MMO[O NW(OOMNd O dMAWmN(7O V� �OIM OdN N V•� TOYJ O A � A dNAtOdM N .r_. 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X W d 7 C d d C MN�m dnON o O) OcOhN mN o d ONF� moc Onm�OnZoOO C� O NN TNnm O d� Ip OdT Onto P.O > O 0000 Co o 0 o O mmmom nIMCW m m CCC000000 o0p000mCO 0 p 0 m yMj n rp° pAj 00 t")tD 0_oM d OC')OOOO_C CO :� A N H 00 Of nMQtmN �IJO�Omdmdv^ "J p MI- - �d I'm m M j N m N 9 d w nmmm arvrn ry o m mmmz> M t�mw ' -�.- m om Mmodmop ry r m o - m ro h m r mnn� to C': tOON m00 nc m A IO jp O t0 m Ilm -d N VOO Omm N t0 n m N Q V N W m F- N 2 � 7 U G� wmoo to o�ov'>n m oo 000�nonc m N O) O On nd m r NV �d O n m lDhc Cl nNC: c N N O co N W K N r r e^ Mi r W Q N > W y> N► 0000 O 000�nn N N m 000000000 o moo 0 o t0 h m Or O J �d o o o 0 o o .- a Ito n O �0o h Of h pp tp J > >LL 0) N um QO W MN00 d 0000v P OONOOJ�O �O N tt'J M m m N O� m tp 41 n of to '� N E tdo m 1m0 Q N N R N U) U) 1O a c ° i w E a F- d w fn W m c n ep w E zg =° yE d ww Uc Q aci >. ay waa.- E> F -w��t` mo c �� Z� o U' not t° n�m aEom U jp x Z_ �aEyi y cm _�a�'] Wgcvp na °'mo w WZ w 4¢~ EQ,Ea �a`a`a'0y'� K5 °a= °E�_:o° w Lu 1'' W d s s� d ZCO who cd d LLa O W m �+ m...io ww o'^ts U Wy `y Q U O RC N y C y c, U E 0 y 6 N w Y Q a N U d N L °! O GI p �. O. y = U E L C lC O O a w W Ip Z U W ° =U5 >(7Tm'S: n° ° 04).00 Qn QV30U U X� W Z U W Q Z a d Of a W d H C N C. X W d 7 C d d C EAST VALLEY WATER DISTRICT CAPITAL IMPROVEMENT PROGRAM INCLUDING CAPITAL BUDGET FOR FISCAL YEAR 2010 -2011 Updated through February 2011 Page 1 EAST VALLEY WATER DISTRICT Capital Improvement Program Updated through February 2011 rage 2 Prior Current (Memo) Projects - By Type Years Year 2010 -11 2011 -12 Actual Actual Budget Year 2 Source of Supply Plant 150 Wells - Lower Zone Wells (2) - Plant 24 Drain Line 12,000 340,000 Sunrise Ranch Wells (4) - - _ _ Total Source of Supply Projects - - 12,000 340,000 Treatment Facilities Plant 134 - Upgrade Technology 1,758,011 1,014,284 3,245,892 6,645,079 Plant 134 - Membrane Replacement Plant 150 - Lower Zn Perch Treat. PI - Phase 1 1,825,125 55,781 605,000 650,000 Plant 150 - Lower Zn Perch Treat. PI - Phase 2 - - - _ Plant 152 - Inter. Zone Perch Treat. Plant - - - _ Total Treatment Projects 3,583,136 1,070,065 3,850,892 7,295,079 Pumping Facilities Plant 9 - Rehab Forebay and Booster Station - - - 50,000 Plant 40 - Inter to Upper Zone Transfer 2,096 125 400,000 Plant 127 - Lower to Inter Zone Transfer - - - - Plant 12 - Replace Boosters / Well - - - _ Plant 134 - Upper to Canal Zone Transfer - - - _ Plant 39 - Inter to Upper Zone Transfer - - - _ Plant 25 - Inter to Upper Zone Transfer - - - _ Plant 143 - Inter to Upper Zone Transfer - - - _ Total Pumping Projects 2,096 125 - 450,000 Wastewater Collection System Sewer System Studies / Planning 142,662 7,370 50,000 250,000 Sewer Main Lining - - 100,000 450,000 Conejo Main Replacement 112,889 272,385 560,000 - Total Wastewater Collection Projects 255,551 279,755 1 710,000 700,000 rage 2 rage 3 2012-13 2013-14 2014 -15 2015 -16 Beyond Project Year 3 Year 4 Year 5 Year 6 Year 6 Totals 1,925,000 1,925,000 3,300,000 3,300,000 _ - 352,000 4,400,000 4,400,000 9,625,000 9,977,000 1,253,895 - - 10,671,269 16,990,000 1,025,000 - - - 20,545,906 _ - 5,050,000 2,850,000 - 7,900,000 _ _ - 19,160,000 19,160,000 18,243,895 1,025,0001 5,050,0001 2,850,000 19,160,000 58,277,175 250,000 - - - 300,000 - - 200,000 200,000 802,221 - 300,000 - - 300,000 500,000 500,000 - - 1,000,000 520,000 - 780,000 - - 1,300,000 _ - 2,200,000 - 2,200,000 400,000 - 400,000 _ _ _ - 2,900,000 2,900,000 1,270,000 800,0001 980,0001 2,800,000 2,900,000 9,202,221 _ _ _ - - 400,032 450,000 450,000 450,000 450,000 1,800,000 4,050,000 _ _ - 385,274 450,000 450,000 450,000 450,000 1,800,000 4,835,306 rage 3 EAST VALLEY WATER DISTRICT Capital Improvement Program Updated through February 2011 Projects - By Type Prior Current Years Year (Memo) ( __ 2010 -11 2011 -12 Actual Actual Budget Year 2 Transmission & Distribution System 6th St 20" Pipeline - Plants 11 & 12 to 150 - - 510,000 Live Oak Main Replacement 9,943 197,136 200,000 - Harlan Lane Main Replacement 7,957 - - 90,000 Cunningham / Hillview / Crest / Bruce - 384,607 450,000 - 6th St 30" Pipeline - Plant 151 to Plant 40 - 61,632 120,000 3,837,000 6th St 30" Pipeline - PI 40 to PI 143 - - 9th St 12" Pipeline - Del Rosa to Sterling - - - _ AMR Meter Replacement Program - 47,098 60,000 300,000 Plant 59 Recoating - - - 300,000 Plant 143 - 10mg Inter Zone Storage 28,780 200,000 900,000 Reservoir - Greenspot Rd S Curve - - - - Reservoir -Seven Oaks Dam Rd - - - Relocation of Facilities for Other Agencies 54,733 20,946 100,000 Eastwood Farms Assessment District 112,529 51,877 2,211,399 - Baseline Gardens 31,416 Total Trans & Distribution Projects 185,162 813,492 3,341,399 5,937,000 General Projects GIS Implementation 457,752 132,671 160,000 100,000 Headquarters Building - - - - Total General Projects 457,752 132,671 100,000 j e,}1�60,000 Miscellaneous / Developer Projects Developer Water Facilities (Reimb by Fees) 226,444 (20,476) Developer Sewer Facilities (Reimb by Fees) (17,590) 5,628 Regional Treatment Plant 24,246 Seven Oaks Dam (SAR) Discharge 206,057 2010 Flood Clean Up - Highland 14,023) 2010 Flood Clean Up - EVWpDD Facilities y� X455,454 Ton *40 Page 4 Page 5 Prgec$ons 2012 -13 2013 -14 2014 -15 2015 -16 Beyond Project Year 3 Year 4 Year 5 Year 6 Year 6 Totals 510,000 - 207,079 70,000 167,957 - 384,607 2,060,000 - - 5,948,632 1,300,000 1,000,000 - 5,400,000 7,700,000 - - 700,000 - 700,000 300,000 300,000 - 947,098 - - - 300,000 550,000 10,700,000 12,178,780 - 10, 700, 000 10,700,000 10, 700, 000 10, 700,000 - 75,679 - - - 164,407 4,280,000 1 1,300,0001 700,0001 37,500,000 50,684,238 - - - 690,423 10,000,000 10, 000, 000 - - - 11/0�,p0e000,000 t- -21,2 5 »;..-- yi�i1 /.. _.:: ,..1_i iS�V,Wi9! 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U) d' 2_ LO N W U Q o d N W' O W U 0 0 0 0 O O O In 0 0 0 00 0 0O O O O 00 O 0 CO X N Z W (n O N O O' N N O In N o O LO In M N W L'J W M <�O N N V U Q W W W W W W } O �J LL Q U O (1) oLL c� °OOo ° a O O N N O o O o° Lo m p] W F •- �-- L �_ N N M M M M Q W X 0 0 10 O I� r- O N cJ M Cl) LL r W O n r M N N M M C O N N E.L) v� o E Q o 0 LL d 15 -co 'O o z D E `u)i v T �>> E E E N y y U lo Q) 0 LLL LL a a o U) CO J 7 m �NEaE� Z:co U Q 3Z�WW: a m�ofafof3: < <�U AMENDED IN ASSEMBLY APRIL 14, 2011 CALIFORNIA LEGISLATURE - 2011 -12 REGULAR SESSION ASSEMBLY BILL No. 23 Introduced by Assembly Member Smyth December 6, 2010 An act to add Section 54952.3 to the Government Code, relating to local government. LEGISLATIVE COUNSEL'S DIGEST AB 23, as amended, Smyth. Local agency meetings: simultaneous meetings:prekibition.. compensation disclosure. Existing law, the Ralph M. Brown Act, requires each legislative body of a local agency to provide the time and place for holding regular meetings and requires that all meetings of a legislative body be open and public: and all persons be permitted to attend unless a closed session is authorized. This bi 1 would prohibit the members of a legislative bodr, durin" This bill would authorize a convened legislative body whose membership constitutes a quorum of any other legislative body to convene a meeting of the second legislative body, simultaneously or in serial order, only if a clerk or member of the convened legislative body verbally announces the amount of compensation or stipend that each member will be entitled to receive as a result of convening the simultaneous or serial meeting of the second legislative body, as specified. 98 AB 23 —2— Vote: majority. Appropriation: no. Fiscal committee: no. State - mandated local program: no. The people of the State of California do enact as follows: SECTION 1. Section 54952.3 is added to the Government Code, to read: 4 of that legislative body shall not eonvene other meetings of an� 5 other legislative bedr, simultatteously or irt serial mdei, where the 6 members of the peviotisly eonvened legislative body eonstiedfe 7 at least a qtterttm of the legislative body that is attempt.i..' 8 9 that are expressly ami—i-ed, sta.— to eonvene meetittgs 10 . 11 54952.3. (a) A legislative body that has convened a meeting 12 and whose membership constitutes a quorum of any other 13 legislative body may convene a meeting of that other legislative 14 body, simultaneously or in serial order, only if a clerk or a member 15 of the convened legislative body verbally announces, prior to 16 convening that second meeting, the amount of compensation or 17 stipend that each member will be entitled to receive as a result of 18 convening the simultaneous or serial meeting of the second 19 legislative body. However, the clerk or member of the legislative 20 body shall not be required to announce the amount ofcompensation 21 authorized by Section 34130.5 of the Health and Safety Code. 22 (b) Forpurposesofthis section, compensation andstipendshall 23 not include amounts reimbursedfor actual and necessary expenses 24 incurred by a member in the performance of the member's official 25 duties, including, but not limited to, reimbursement of expenses 26 relating to travel, meals, and lodging. x 98 AMENDED IN ASSEMBLY APRIL 14, 2011 AMENDED IN ASSEMBLY APRIL 13, 2011 AMENDED IN ASSEMBLY MARCH 30, 2011 AMENDED IN ASSEMBLY MARCH 14, 2011 CALIFORNIA LEGISLATURE- 2011 -12 REGULAR SESSION ASSEMBLY BILL No. 229 Introduced by Assembly Member Lara February 2, 2011 An act to amend Section 12410.5 of, to add Sections 12410.6, 12410.7, and 12410.9 to, and to add and repeal Section 12410.8 of, the Government Code, relating to audits. LEGISLATIVE COUNSEL'S DIGEST AB 229, as amended, Lara. Controller: audits. Existing, law requires the Controller to superintend the fiscal concerns of the state. Existing law requires the Controller to receive every audit report prepared by any local agency to comply with the federal Single Audit Act of 1984. This bil I would require the audit reports prepared in this regard to be submitted to the Controller within 9 months of the end of the period audited or in accordance with applicable federal law. This bill would authorize 1he Controller to appoint a qualified certified public accountant to complete an audit report if it is not submitted by the local agency within the required timeframe, with associated costs to be borne by the local agency, as specified. This bill would require the audit to comply with the Government Auditing Standards issued by the Comptroller General of the United States. This bill would require the audits to be 95 AB 229 —2— made by a certified public accountant that is licensed by the California Board of Accountancy and selected by a local agency from a directory of accountants to be published by the Controller by December 31 of each year. The Controller would be required to use specified criteria to determine those certified public accountants that are to be included in the directory. This bill would require the Controller to develop a plan to review and report the financial and compliance audits of local agencies, and to review and monitor the audit reports performed by independent auditors. according to specified criteria. This bill would require the Controller. in consultation with specified entities, to propose and adopt the content of an audit guide. This bill would also require the Controller to report to the Legislature by January 31 of each year the results of the Controller's oversight activity. The requirement that the Controller report to the Legislature would be repealed on December 31, 2015. Vote: majority. Appropriation: no. Fiscal committee: yes. State- mandated local program: no. The people of the State of California do enact as follows: 1 SECTION I. The Legislature finds that financial audits provide 2 an independent assessment of, and reasonable assurance about. 3 whether local agencies' reported financial condition, results, and 4 use of resources are presented fairly in accordance with recognized 5 standards. Accordingly, it is the intent of the Legislature to promote 6 accountability over local government funding by establishing a 7 process for reviewing and reporting on financial and compliance 8 audits conducted of local agencies. It is further the intent of the 9 Legislature that the Controller shall have oversight responsibilities 10 for implementing and ensuring compliance with this act. 11 SEC. 2. Section 12410.5 of the Government Code is amended 12 to read: 13 12410.5. (a) The Controller shall receive every annual financial 14 audit report prepared for any local agency, as defined in Section 15 53890, including those reports prepared in compliance with the 16 federal Single Audit Act of 1984 (P.L. 98 -502; 31 U.S.C. Sec. 17 7501 et seq.) and required under any law to be submitted to any 18 state agency, and shall, after ascertaining its compliance with that 19 federal act, transmit the report to the designated state agency. 9< -3— AB 229 1 (b) An audit for any local agency submitted to the Controller 2 pursuant to this section shall comply with the Government Auditing 3 Standards issued by the Comptroller General of the United States. 4 (c) An audit for any local agency submitted to the Controller 5 pursuant to this section shall be made by a certified public 6 accountant, licensed by the California Board of Accountancy, and 7 selected by the local agency, as applicable, from a directory of 8 certified public accountants maintained by the Controller which 9 shall be published by the Controller not later than December 31 10 of each year. 11 (1) In determining which certified public accountants shall be 12 included in the directory, the Controller shall use the following 13 criteria: 14 (A) The certified public accountants or public accountants shall 15 be in good standing as certified by the California Board of 16 Accountancy. 17 (B) The certified public accountants or public accountants, as 18 a result of a quality control review conducted by the Controller 19 pursuant to Section 12410.9, shall not have been found to have 20 conducted an audit in a manner constituting noncompliance with 21 subdivision (b) of this section and subdivision (a) of Section 22 12410.7, and the Controller referred the matter to the California 23 Board of Accountancy for consideration of disciplinary action 24 pursuant to subdivision (d) of Section 12410.9. In that instance, if 25 the certified public accountant or public accountant had been 26 included in the directory, the certified public — 's 27 accovntant or public accountant shall be removed from the 28 directory until such time as the board makes a determination on 29 the matter. If the board suspends, or revokes, the certified public 30 accountant or public accountant's license, or prohibits the licensee 31 from performing audits of local agencies, the certified public 32 accountant or public accountant shall be excluded from the 33 directory until such time as he or she is in good standing with the 34 board. 35 (2) Commencing with the 2011 -12 fiscal year, it shall be 36 unlawful for a public accounting firm to provide audit services to 37 a local agency if the lead audit partner, or coordinating audit 38 partner, having primary responsibility for the audit, or the audit 39 partner responsible for reviewing the audit, has performed audit 40 services for that local agency in each of the six previous fiscal 95 AB 229 —4-- 1 years. The Controller may waive this requirement if he or she finds 2 that no otherwise eligible auditor is available to perform the audit 3 (d) The governing board of each local agency shall include all 4 of the following in its contracts for audits: 5 (1) A provision to withhold 10 percent of the audit fee until the 6 Controller certifies that the audit report conforms to the reporting 7 provisions of subdivision (a) of Section 12410.7. 8 (2) A provision to withhold 50 percent of the audit fee for any 9 subsequent year of a multiyear contract if the prior year's audit 10 report was not certified as conforming to the reporting provisions 1 1 of subdivision (a) of Section 124 10.7. This provision shall include 12 a statement that a multiyear contract shall be null and void if a 13 public accounting firm or independent auditor is declared ineligible 14 pursuant to subdivision (d) of Section 12410.9. The amount 15 withheld shall not be payable unless payment is ordered by the 16 board or the audit report for that subsequent year is certified by 17 the Controller as conforming to the reporting provisions of 18 subdivision (a) of Section 12410.7. 19 (3) A provision that will provide the Controller access to audit 20 working papers. 21 SEC. 3. Section 12410.6 is added to the Government Code, to 22 read: 23 12410.6. (a) The Controller shall develop a plan to review and 24 report on financial and compliance audits of local agencies. The 25 Controller, in consultation with the Department of Finance, and 26 representatives of the League of California Cities, the California 27 State Association of County Auditors, and the California Society 28 of Certified Public Accountants, shall propose the content of, and 29 adopt, an audit guide. 30 (b) The audit reports shall be submitted to the Controller within 31 nine months after the end of the period audited, or in accordance 32 with applicable federal law. 33 (c) If the audit reports required by Section 12410.5 have not 34 been submitted by a local agency to the Controller on or before 35 the due date established by this section, the Controller may appoint 36 a qualified certified public accountant to complete the report and 37 to obtain the information required. Any cost incurred by the 38 Controller pursuant to this subdivision, including contracts with, 39 or the employment of, the certified public accountants in 95 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 -5— AB 229 completing the audit shall be borne by the local agency and shall be a charge against any unencumbered funds of the local agency. SEC. 4. Section 12410.7 is added to the Government Code, to read: 12410.7. (a) The Controller on an annual basis shall review and monitor the audit reports performed by independent auditors. The Controller shall determine whether the audit reports conform with the reporting provisions of government auditing standards and the audit guide and shall notify each local agency, and the auditor of each local agency regarding each determination. (b) The independent auditor shall correct his or her audit report within 30 days of notification of any deficiency. The Controller may suspend the independent auditor from performing any local agency audits if the auditor does not correct his or her audit report within 30 days of the Controller's notification. (c) (1) Within 30 days from the date of receipt of written notification that the Controller refuses to certify an audit report as confirming to the reporting provisions described in subdivision (a), an independent auditor or audit firm having a portion of an audit fee withheld pursuant to paragraph (1) or (2) of subdivision (d) of Section 12410.5 may file an appeal in writing with the California Board of Accountancy. (2) The board shall complete an investigation of the appeal with.n 90 days of the filing of the appeal and, on the basis of the investigation, do one of the following: (A) (i) Order the Controller to provide notification that the audit report conforms to the reporting provisions described in subdivision (a). (ii) If the board orders the Controller to provide notification that the audit report conforms to the reporting provisions described in subdivision (a), the Controller shall notify the contracting local agency, which shall then release the portion of the audit fee being withheld in accordance with paragraph (1) or (2) of subdivision (d) of Section 12410.5. (B) Schedule the appeal for a hearing, in which case the final action on the appeal shall be completed by the board within one year from the date of the filing of the appeal. SEC. 5. Section 12410.8 is added to the Government Code, to read: 95 AB 229 —6 -- 1 12410.8. (a) The Controller shall report to the Legislature by 2 January 31 of each year the results of the Controller's oversight 3 activity, including the results of' the Controller's quality control. 4 reviews. 5 (b) A report submitted pursuant to subdivision (a) shall be 6 submitted in compliance with Section 9795. 7 (c) Pursuant to Section 1023 1.5, this section is repealed on 8 December 31, 2015. 9 SEC. 6. Section 12410.9 is added to the Government Code, to 10 read: 11 12410.9. (a) The Controller may perform quality control 12 reviews of audit working papers to determine whether audits are 13 performed in conformity with government audit standards and the 14 local agency audit guide. The Controller shall communicate the 15 results of his or her reviews to the Department of Finance, the 16 independent auditor, and the local agency for which the audit was 17 performed, and shall review his or her findings with the 18 independent auditor. 19 (b) Prior to the performance of any quality control reviews, the 20 Controller shall develop and publish guidelines and standards for 21 those reviews. Pursuant to the development of those guidelines 22 and standards for those reviews, the Controller shall provide an 23 opportunity for public comment. The Controller shall update the 24 guidelines and standards for any changes in audit standards. 25 (c) The Controller is responsible for selecting audits for review 26 based on criteria, including, but not limited to, disciplinary actions 27 by the California Board of Accountancy, results of the Controller's 28 review and monitoring of the audit reports, the extent of findings 29 in the audit reports issued by the independent auditor, the number 30 of audits of local agencies performed annually by the independent 31 auditor, the independent auditor's experience in performing audits 32 of local agencies, the complexity of state and federal programs 33 administered by the local agencies, and requests or leads from 34 other sources. 35 (d) If the Controller finds that the audit was conducted in a 36 manner that constitutes unprofessional conduct as defined pursuant 37 to Section 5100 of the Business and Professions Code, or that there 38 were multiple and repeated failures to disclose noncompliant acts, 39 the Controller shall refer the case to the California Board of 40 Accountancy. In that instance, the independent auditor shall be 95 -7— AB 229 prohibited from performing an audit of a local agency until such time as the board resolves the matter. If the California Board of Accountancy finds that the independent auditor conducted an audit in art unprofessional manner, the Controller may prohibit the independent auditor from performing any audit of a local agency for the period during which the independent auditor is not in good standing with the board, in addition to any other penalties that the California Board of Accountancy may impose. L 95 AMENDED IN ASSEMBLY APRIL 4, 2011 CALIFORNIA LEGISLATURE - 2011 -12 REGULAR SESSION ASSEMBLY BILL No. 276 Introduced by Assembly Member Alejo February 7, 2011 An act to amend Sections 12463, 53890 and 53 895, 53890, and 53895 of, and to repeal Sections 53892.1, 53895.5, and 53895.7 of, the Government Code, relating to local government. LEGISLATIVE COUNSEL'S DIGEST AB 276, as amended, Alejo. Local government: financial reports. (1) Existing law requires the officer of each local agency, who has charge of the financial records of the agency, to furnish to the Controller a report of all the financial transactions of the local agency during the next preceding fiscal year within 90 days of the close of each fiscal year, as specified. Existing law defines local agency, for purposes of these financial reports to mean any city, county, district, and specified community redevelopment agencies. This bill would also include within the definition of local agency any joint powers agency, formed pursuant to the Joint Exercise of Powers Act, that issues conduit revenue bonds, and would require these joint powers agencies to furnish the Controller with the required financial reports. (2) Existing law provides that an officer of a local agency who fails or refuses to make and file his or her report within 20 days after receipt of a written notice of the failure from the Controller forfeits to the state $1,000 in the case of a local agency with total revenue, in the prior year, of less than $100,000; $2,500 in the case of a local agency with total revenue, in the prior year, of at least $100,000 but less than $250,000; AB 276 —2-- and $5,000 in the case of a local agency with total revenue in the prior year of at least $250,000. Existing law raises these amounts in the case of a community redevelopment agency, and a joint powers agency that issues conduit revenue bonds in the second and third consecutive year. This bill would raise the forfeiture amounts for all local agencies to $2,500 in the case of a local agency with total revenue, in the prior year, of less than $100,000; $5,000 in the case of a local agency with total revenue, in the prior year, of at least S100,000 but less than $250.000: and $10,000 in the case of a local agency with total revenue, in the prior year, of at least $250,000. The bill would double these fines if the agency fails to submit the report to the Controller for 2 consecutive years, and would triple the fines if the agency fails to submit the report to the Controller for 3 consecutive years. The bill would also require the Controller to conduct an audit, as specified, of the local agency if the local agency fails to provide the financial reports for 3 consecutive years. (3) Existing law requires the Superintendent of Public Instruction to make available to the Controller, on an as- needed basis, data and other matters required to permit the compilation of the financial transactions of school districts by the Controller. This bill would repeal this provision. Vote: majority. Appropriation: no. Fiscal committee: yes. State - mandated local program: no. The people of the State of California do enact as follows: 1 SECTION 1. Section 12463 of the Government Code is 2 amended to read: 3 12463. (a) The Controller shall compile and publish reports 4 of the financial transactions of each county, city, special district. 5 and joint powers agency formed pursuant to the Joint Exercise of' 6 Powers Act (Article 1 (commencing with Section 6500) of Chapter 7 5 of Division 7 of Title 1) that issues conduit revenue bonds. 8 respectively, within this state, together with any other matter he 9 or she deems of public interest. The reports shall include the 10 appropriations limits and the total annual appropriations subject 11 to limitation of the counties, cities, and special districts. The reports 12 to the Controller shall be made in the time, form, and manner 13 prescribed by the Controller. 9F -3— AB 276 1 (b) Effective January 1, 2005, the Controller shall compile and 2 publish reports of the financial transactions of each county, city, 3 and special district pursuant to subdivision (a) on or before August 4 1, September 1, and October 1 respectively, of each year following 5 the end of the annual reporting period. The Controller shall make 6 data collected pursuant to this subdivision available upon request 7 to the Legislature and its agents, on or before April 1 of each year. 8 (c) As used in this section, "special district' means any of the 9 following: 10 (fir) 11 (1) A special district as defined in Section 95 of the Revenue 12 and Taxation Code. 13 (B) 14 (2) A commission provided for by a joint powers agreement 15 pursuant to Chapter 5 (commencing with 6500) of Division 7 of 16 Title 1. 17 (e 18 (3) A nonprofit corporation that is any of the following: 19 (i) 20 (A) Was formed in accordance with the provisions of a joint 21 powers agreement to cant' out functions specified in the agreement. 22 (ii) 23 (B) Issued bonds, the interest on which is exempt from federal 24 income taxes, for the purpose of purchasing land as a site for, or 25 purchasing or constructing, a building, stadium, or other facility, 26 that is subject to a lease or agreement with a local public entity. 27 (fir 28 (C) Is wholly owned by a public agency. 29 SEC. 2. Section 53890 of the Government Code is amended 30 to read: 31 53890. As used in this article, "local agency" means any city, 32 county, any district, any community redevelopment agency 33 required to furnish financial reports pursuant to Section 12463.1 34 or 12463.3, and a joint powers agency formed pursuant to the Joint 35 Exercise of Powers Act (Article I (commencing with Section 6500) 36 of Chapter 5 of Division 7 of Title 1) that issues conduit revenue 37 bonds. 38 SEC. 3. Section 53892.1 of the Government Code is repealed. 39 SEC. 4. Section 53895 of the Government Code is amended 40 to read: W AB 276 H 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 -4- -- 53895. (a) An officer of a local agency who fails or refuses to make and file his or her report within 20 days after receipt of a written notice of the failure from the Controller shall forfeit to the state: (1) Two thousand five hundred dollars ($2,500), in the case of a local agency with total revenue, in the prior year, of less than one hundred thousand dollars ($100,000), as reported in the Controller's annual financial reports. (2) Five thousand dollars ($5.000), in the case of a local agency with total revenue, in the prior year, of at least one hundred thousand dollars ($100,000) but less than two hundred fifty thousand dollars ($250,000), as reported in the Controller's annual financial reports. (3) Ten thousand dollars ($10,000), in the case of a local agency with total revenue, in the prior year, of at least two hundred fift) thousand dollars ($250,000), as reported in the Controller's annual financial reports. (b) (1) Upon the request of the Controller, the Attorney General shall prosecute an action for the forfeiture in the name of the people of the State of California. (2) Upon a satisfactory showing of good cause, the Controller may waive the penalties for late filing provided in this section. (c) If an officer of a local agency fails or refuses to make and file his or her report within 20 days after receipt of a written notice pursuant to subdivision (a) for two consecutive years, the forfeiture or fine assessed pursuant to paragraphs (1), (2), and (3) of subdivision (a) in the second year shall be doubled. (d) (1) If an officer of a local agency fails or refuses to make and file his or her report within 20 days after receipt of a written notice pursuant to subdivision (a) for three consecutive years, the forfeiture or fine assessed pursuant to paragraphs (1), (2), and (3) of subdivision (a) in the third year shall be tripled. The Controller shall also conduct or cause to be conducted an independent financial audit report. In the case of a community redevelopment agency, the audit report shall be consistent with the requirements of Section 33080.1 of the Health and Safety Code, and in the case of a joint powers agency, the audit report shall be consistent with Section 6505. The agency shall reimburse the Controller for the cost of complying with this subdivision. 98, 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 -5— AB 276 (2) A redevelopment agency shall not use any of the funds in the Low and Moderate Income Housing Fund to fund any forfeiture or fine assessed pursuant to this section. (e) An agency that makes a forfeiture or payment pursuant to this section shall still file the report required pursuant to Section 5389;.. ��R"WIM sufiey ently transparent and aeeotmtable to the publie by extending sufFre ent pr. y . SEC. 5. Section 53895.5 of the Government Code is repealed. SEC. 6. Section 53895.7 of the Government Code is repealed. 7 98 AMENDED IN ASSEMBLY APRIL 14, 2011 AMENDED IN ASSEMBLY MARCH 16, 2011 AMENDED IN ASSEMBLY MARCH 2, 2011 CALIFORNIA LEGISLATURE - 2011 -12 REGULAR SESSION ASSEMBLY BILL No. 148 Introduced by Assembly Member Smyth (Coauthors: Assembly Members Jeffries, Norby, and Portantino) (Coauthor: Senator Correa) January 14, 2011 An act to amend Sections 53234 and 53235.2 of, and to add Section 53232.5 to, the Government Code, relating to local government. LEGISLATIVE COUNSEL'S DIGEST AB 1413, as amended, Smyth. Local government: ethics training: disclosure. (1) Existing law, for purposes of ethics training for officers and employees of a local government, defines the term ethics laws to include, among others, laws relating to government transparency. This bill would additionally define the term ethics laws to include compensation setting guidelines as established by specified organizations or the local agency. (2) Existing law requires local agency officials, as defined, to receive ethics training, if the local agency provides any type of compensation, salary, or stipend to a member of a legislative body, or provides reimbursement for actual and necessary expenses incurred by a member of a legislative body in the performance of official duties. This bill would require the local agency to post the ethics training 1MOM records of all elected members of the local agency on the local 96 AB 148 —2— agency's Internet Web site, if any, and to submit a copy of the7°eeard records to the Controller within 90 days of receiving the reeord records. By increasing the duties of local officials, this bill would impose a state - mandated local program. (3) Existing law authorizes a local agency, as defined, to pay compensation to members of a legislative body for attendance at specified occurrences. Existing law authorizes a local agency to pay compensation for attendance at other occurrences if the governing body has adopted, in a public meeting, a written policy specifying other types of occasions that constitute the performance of official duties. Existing law authorizes a local agency to reimburse members of a legislative body for actual and necessary expenses incurred in the performance of official duties, if the governing body has adopted a written policy, in a public meeting, specifying the types of occurrences that qualify a member of the legislate e body to receive reimbursement of specified actual and necessary expenses. This bill would require a local agency that has adopted a written attendance compensation policy or written reimbursement policy to post the policy on the local agency's Internet Web site, if any, and to submit a copy of the policy to the Controller. The bill would, if a local agency does not comply with these requirements, require the Controller to withhold any funds to which the local agency is otherwise entitled. as specified. (4) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state. reimbursement for those costs shall be made pursuant to these statutory provisions. Vote: majority. Appropriation: no. Fiscal committee: yes. State - mandated local program: yes. The people of the State of California do enact as follows: I SECTION 1. Section 53232.5 is added to the Government 2 Code, to read: 3 53232.5. (a) A local agency that adopts a written attendance 4 compensation policy pursuant to subdivision (b) of Section 53232.1 5 or a written reimbursement policy pursuant to subdivision (b) of 96 -3— AB 148 1 Section 53232.2 shall post the written policy on the local agency's 2 Internet Web site, if any, and shall submit a copy of the written 3 policy to the Controller. 4 (b) If a local agency fails to comply with the disclosure 5 requirements imposed by this section, the Controller shall withhold 6 any funds to which the local agency is otherwise entitled until the 7 local agency complies with the disclosure requirements. 8 SEC. 2. Section 53234 of the Government Code is amended 9 to read: 10 53234. For the purposes of this article, the following terms 11 have the following meanings: 12 (a) "Legislative body" has the same meaning as specified in 13 Section 54952. 14 (b) "Local agency" means a city, county, city and county, charter 15 city, charter county, charter city and county, or special district. 16 (c) "Local agency official" means the following: 17 (1) Any member of a local agency legislative body or any 18 elected local agency official who receives any type of 19 compensation, salary, or stipend or reimbursement for actual and 20 necessary expenses incurred in the performance of official duties. 21 (2) Any employee designated by a local agency governing body 22 to receive the training specified under this article. 23 (d) "Ethics laws" include, but are not limited to, the following: 24 (1) Laws relating to personal financial gain by public servants, 25 including, but not limited to, laws prohibiting bribery and 26 conflict -of- interest laws. 27 (2) Laws relating to claiming perquisites of office, including, 28 but not limited to, gift and travel restrictions, prohibitions against 29 the use of public resources for personal or political purposes, 30 prohibitions against gifts of public funds, mass mailing restrictions, 31 and prohibitions against acceptance of free or discounted 32 transportation by transportation companies. 33 (3) Government transparency laws, including, but not limited 34 to, financial interest disclosure requirements and open government 35 laws. 36 (4) Laws relating to fair processes, including, but not limited 37 to, common law bias prohibitions, due process requirements, 38 incompatible offices, competitive bidding requirements for public 39 contracts, and disqualification from participating in decisions 40 affecting family members. Compensation setting guidelines, as 96 AB 148 -4 -- 1 established by organizations including, but not limited to, the 2 California State Association of Counties, the League of Cali forma 3 Cities, the California Special Districts Association, the California 4 City Management Foundation, or the local agency. 5 SEC. 3. Section 53235.2 of the Government Code is amended 6 to read: 7 53235.2. (a) A local agency that requires its local agency 8 officials to complete the ethical training prescribed by this article 9 shall maintain records, in the manner prescribed by this section. 10 indicating both of the following: 11 (1) The dates that local officials satisfied the requirements of' 12 this article. 13 (2) The entity that provided the training. 14 (b) Notwithstanding any other provision of law, a local agent,, 15 shall maintain these records for at least five vears after local 16 officials receive the training. These records are public records 17 subject to disclosure under the California Public Records Act 18 (Chapter 3.5 (commencing with Section 6250) of Division 7 of' 19 Title 1). 20 (e) A local agency shall post the ethics training records of all 2] leeal ageney offieials as defined by paragraph (1) of subdivision 22 elected members of a local agency on the 23 local agency's Internet Web site, if any, and shall submit a copy 24 to the Controller within 90 days of receiving the records. 25 SEC. 4. The Legislature finds and declares that the ethical 26 integrity and stability of local governmental agencies in this state, 27 including charter cities, has a direct impact on the long -term 28 well -being of all the residents of this state. The likelihood of 29 businesses locating to or staying in the state is affected by the 30 perception of a functioning, transparent, and practical governmental 31 structure in the local governmental bodies in California. Therefore. 32 the Legislature finds and declares that to ensure the statewide 33 integrity of local government, the disclosure of ethics training 34 records for local agency officials is an issue of statewide concern 35 and not a municipal affair, as that term is used in Section 5 of 36 Article XI of the California Constitution. Therefore, this act shall 37 apply to all cities, including charter cities. 38 SEC. 5. If the Commission on State Mandates determines that 39 this act contains costs mandated by the state, reimbursement to 40 local agencies and school districts for those costs shall be made 96 -5— AB 148 1 pursuant to Part 7 (commencing with Section 17500) of Division 2 4 of Title 2 of the Government Code. CS U-1 AMENDED IN ASSEMBLY APRIL 14, 2011 AMENDED IN ASSEMBLY MARCH 15, 2011 CALIFORNIA LEGISLATURE- 2011 -12 REGULAR SESSION ASSEMBLY BILL No. 253 Introduced by Assembly Member Smyth (Coauthors: Assembly Members Jeffries, Norby, and Portantino) (Coauthor: Senator Correa) February 3, 2011 An act to amend-Seeaon- 53o9'r Section 52891 and 53892.2 of, and to add Sections 53891.2 and 53891.3 to, the Government Code, relating to local agencies. LEGISLATIVE COUNSEL'S DIGEST AB 253, as amended, Smyth. Local agencies: accounting. Existing law requires the Controller to prescribe uniform accounting and reporting procedures that are applicable to specified types of local agencies, including special districts. This bill would instead require the Controller to prescribe uniform accounting procedures that are applicable only to specified types of special districts, subject to these provisions. The bill would require the Controller to prescribe uniform accounting procedures for cities, subject to specified criteria, in collaboration with the Committee on City Accounting Procedures, which would be created by the bill. Vote: majority. Appropriation: no. Fiscal committee: yes. State - mandated local program: no. 97 AB 253 4 5 6 flf, 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 —2— The people of the State of California do enact as follows: SECTION 1. Section 53891 of the Government Code is amended to read: 53891. The officer of each local agency who has charge of the financial records shall famish to the Controller a report of all the financial transactions of the local agency during the next preceding fiscal year. The report shall be furnished within 90 days after the close of each fiscal year and shall be in the form required by the Controller. If the report is filed in electronic format as prescribed by the Controller, the report shall be furnished within 110 days after the close of each fiscal year. However, in the case of local agencies filing annual financial materials with the California Health Facilities Commission or any successor thereto pursuant to Section 441.18 of the Health and Safety Code, the audited report shall be furnished within 120 days after the close of each fiscal year. Further, in the case of community redevelopment agencies filing annual reports with the Controller pursuant to Section 33080 of the Health and Safety Code, the report shall be furnished within six months of the end of the agency's fiscal year. The Controller shall prescribe uniform accounting procedures which shall be applicable to all special districts, as defined in Section 12463, except for special districts which substantially follow a system of accounting prescribed by the Public Utilities Commission of the State of California or the Federal Pier Commission Federal Energy Regulatory Commission. The procedures shall be adopted under the provisions of Chapter 3.5 (commencing with Section 1 1340) of Part 1 of Division 3 of Title 2. The Controller shall prescribe these procedures only after consultation with and approval of a local governmental advisory committee established pursuant to Section 12463.1. Approval of the procedures shall be by majority vote of the members present at a meeting of the committee called by the chairperson thereof. SEC. 2. Section 53891.2 is added to the Government Code, to read: 53891.2. The Controller shall, in collaboration with the Committee on City Accounting Procedures created pursuant to Section 53891.3, prescribe for cities uniform accounting and reporting procedures conforming to the generally accepted accounting principles. The procedures shall be adopted under the 9 1 2 3 4 5 6 7 8 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 -3— AB 253 provisions of Chapter 3.5 (commencing with Section 11340) of Part ;. of Division 3 of Title 2 and shall be published in the California Code of Regulations either in their entirety or by reference. SEC. 3. Section 53891.3 is added to the Government Code, to read: 53891.3. The Committee on City Accounting Procedures is hereby created and shall consist of 10 members appointed by, and who shall serve at the pleasure of, the Controller. Five of the members shall be city finance officers, three of the members shall be city managers, and two of the tnernbets shall be eity eoureil one cf the members shall be a public auditor, and one of the members shall be an individual with a demonstrated history of profersional experience analyzing local government financial data produced by the Controller. The members of the committee shall serve without compensation, but shall be reimbursed for their necessary traveling and other expenses incurred in attending meetings of the committee. These expenses shall be paid by the city of which the member is an officer. The Controller shall designate a member of the committee to serve as chairperson. The committee shall meet at the call of the chairperson and each member shall be given written notice of a meeting at least 10 calendar days prior to the date of the meeting. The committee may discuss topics that include, but are not limited to, financial transaction reports. SEC. 4. Section 53892.2 of the Government Code is amended to read: 53892.2. Pursuant to Section 53892, the report shall also contain the following information: (a) For all issues of general obligation bonds, revenue bonds, improvement district bonds, limited obligation bonds, and special assessment bonds state: (1) The purpose of the bonds. (2) The amount of issued and unmatured bonds. (3) The amount of any delinquent principal and interest payments which are due upon issued and matured bonds. (4) The amount of authorized but unissued bonds. (b) For each issue of general obligation bonds and improvement district bonds where the revenues of any revenue - producing 97 AB 253 1 2 3 4 5 6 10 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 —4— enterprise have been pledged as additional security for such bonds, state the nature and extent of such pledge. (c) For each issue of revenue bonds where any income, other than the revenues of the enterprise financed by said revenue bonds, has been pledged as additional security for said bonds, state the nature and extent of such pledge. (d) For each issue of improvement district bonds state the assessed valuation of all taxable property in such improvement district, determined in the manner provided in subdivision (e) of Section 53892. (e) For each issue of limited obligation bonds, state the nature and source of taxes from which principal and interest is payable. (f) For special assessment bonds which are payable, directly or indirectly, from any source other than special assessments, state the nature and extent of such sources. (g) For all lease - obligations state: (1) The purpose of the lease - obligation. (2) The nature of the lease - obligation, whether by lease, contract, or otherwise, and the parties thereto. (3) The person, partnership, corporation, legal entity or governmental agency providing any moneys expended for making any acquisition or improvement authorized or required for the purpose of such lease - obligation. (4) The total future rentals or other payments which would be required if the local agency completed the unexpired term of the lease - obligation. (h) For construction financed by the United States or the State of California pursuant to a contract with, or a loan or grant to, the localagency: (1) The date or purpose of the contract or grant. (2) The maximum repayment obligation under the contract, and the amount expended by the United States or the State of California to date. (3) The estimated payment schedule. (4) The payments to date and delinquencies, if any. The following definitions shall apply to this section: "Bonds" means all bonds, warrants, notes or other evidences of' indebtedness or liability for which the reporting local agency is liable for payment of principal and interest thereon. 9i 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 -5— AB 253 "General obligation bonds" means bonds payable, both principal and interest, from the proceeds of ad valorem taxes or ad valorem assessments which may be levied within the entire territory of the local agency, without limitation as to rate or amount, upon all property subject to taxation or assessment. "Revenue bonds" means bonds issued by a local agency payable, both principal and interest, from the revenues of a revenue- producing enterprise. "Improvement district bonds" means bonds payable, both principal and interest, from the proceeds of ad valorem taxes or ad va:.orem assessments which may be levied within a fixed and defined portion or portions of the local agency, without limitation as to rate or amount, upon all property subject to taxation or assessment. "Limited obligation bonds" means any bonds payable, both principal and interest, from any taxes, other than taxes or assessments levied upon property. "Special assessment bonds" means any bonds issued to represent unpaid assessments upon lands in an area fixed and defined by the local agency, the lands within such area being specially benefited by and assessed or to be assessed to pay the costs and expenses of a public acquisition or improvement. "Lease- obligations" means (i) leases for a term or more than 10 years under which the local agency is the lessee and has the right, by option or otherwise, to acquire ownership of the property leased or (ii) contracts whereby a local agency is obligated to make instafiment payments for a period of more than 10 years for an acquisition or improvement, such payments being made from a special fund, provided, that revenue bonds or any contract, indenture, resolution or ordinance providing for the issuance of revenue bonds shall not be deemed a lease - obligation. The information required by this section shall be submitted in such form and detail as may be prescribed by the uniform reporting procedures adopted pursuant to Section 53894 53891.2. 0 97 CALIFORNIA LEGISLATURE - 2011 -12 REGULAR SESSION ASSEMBLY BILL No. 527 Introduced by Assembly Member Roger Hernindez February 15, 2011 An act to amend Sections 1090 and 1091 of, and to add Section 1096.5 to, the Government Code, relating to public officials. LEGISLATIVE COUNSEL'S DIGEST AB 527; as introduced, Roger Hernandez. Public officials: financial interests. Existing law prohibits Members of the Legislature, and state, county, district, judicial district, and city officers or employees from being financially interested in any contract made by them in their official capacity, or by any body or board of which they are members. Existing law defines what is a remote interest in a contract that does not present a prohibited conflict of interest under these provisions. Existing law authorizes a body or board to make a contract that involves a remote interest of a member of the body if, among other things, the remote interest is disclosed to the body or board and noted in its official records, and thereafter the body or board authorizes, approves, or ratifies the contract in good faith by a vote of its membership sufficient for the purpose without counting the vote or votes of the officer or member with the remote interest. Violation of these provisions is a crime. This bill would additionally require that the remote interest be disclosed at a public meeting of that body or board and would require the counsel or other legal advisor of the body or board to identify a statutory basis for classifying the interest as a remote interest. By increasing the scope of actions that constitute a crime, this bill would impose a state- mandated local program. 99 AB 527 —2 — This bill would also prohibit the specified officers or employees from authorizing the expenditure of public funds, as specified, if any member of the body or board is financially interested in the person or entity that receives the expended funds. This bill would also prohibit a body or board of a city or county frore approving any project, plan, permit, or conveyance of land in which a member ofthatbody is financially interested, as defined, unless specified conditions are met, including disclosing the financial interest at a public meeting of that body or board, requiring the financially interested member to abstain from voting on the item, and requiring the body or board to approve the item by a vote of its membership sufficient for the purpose without the vote or votes of the member with the remote interest. The bill would make a violation of these provisions a crime. thereby imposing a state - mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. Vote: majority. Appropriation: no. Fiscal committee: yes. State- mandated local program: yes. The people of the State of California do enact as follows: 1 SECTION 1. Section 1090 of the Government Code is amended 2 to read: 3 1090. Members of the Legislature, state, county, district. 4 judicial district, and city officers or employees shall not be 5 financially interested in any contract made by them in their official 6 capacity, or by any body or board of which they are members. Vor 7 shall any state, county, district, judicial district, and city officers 8 or employees authorize the expenditure ofpublic funds, regardless 9 of whether a contract is made in furtherance of the expenditure, 10 if any member of the body or board is financially interested in the 11 person or entity that receives the expenditure. Nor shall state, 12 county, district, judicial district, and city officers or employees be 13 purchasers at any sale or vendors at any purchase made by them 14 in their official capacity. 15 As used in this article, "district" means any agency of the state 16 formed pursuant to general law or special act, for the local qq 2 3 4 5 6 7 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 -3— AB 527 performance of governmental or proprietary functions within limited boundaries. SEC. 2. Section 1091 of the Government Code is amended to read: 1091. (a) An officer shall not be deemed to be interested in a contract entered into by a body or board of which the officer is a member within the meaning of this article if the officer has only a remote interest in the contract-and, if the fact of that interest is disclosed to the body or board of which the officer is a member and noted in its official records at a public meeting of that body or board, and the counsel or other legal advisor of the body or board has identified a statutory basis for classifying the interest as remote at a public meeting of the body or board, and thereafter the body or board authorizes, approves, or ratifies the contract in good faith by a vote of its membership sufficient for the purpose without counting the vote or votes of the officer or member with the remote interest. (b) As used in this article, "remote interest' means any of the following: (1) That of an officer or employee of a nonprofit entity exempt from taxation pursuant to Section 501(c)(3) of the Internal Revenue Code (26 U.S.C. Sec. 501(c)(3)) or a nonprofit corporation, except as provided in paragraph (8) of subdivision (a) of Section 1091.5. (2) That of an employee or agent of the contracting party, if the contracting party has 10 or more other employees and if the officer was an employee or agent of that contracting party for at least three years prior to the officer initially accepting his or her office and the officer owns less than 3 percent of the shares of stock of the contracting party; and the employee or agent is not an officer or director of the contracting party and did not directly participate in formulating the bid of the contracting party. For purposes of this paragraph, time of employment with the contracting party by the officer shall be counted in computing the three -year period specified in this paragraph even though the contracting party has been converted from one form of business organization to a different form of business organization within three years of the initial taking of office by the officer. Time of employment in that case shall be counted only if, after the transfer or change in organization, the real or ultimate ownership of the contracting party is the same or substantially similar to that which 99 AB 527 —4— 1 existed before the transfer or change in organization. For purpose s 2 of this paragraph, stockholders, bondholders, partners, or other 3 persons holding an interest in the contracting parry are regarded 4 as having the "real or ultimate ownership" of the contracting party. 5 (3) That of an employee or agent of the contracting party, if a It 6 of the following conditions are met: 7 (A) The agency of which the person is an officer is a local publi; 8 agency located in a county with a population of less than 4,000,000. 9 (B) The contract is competitively bid and is not for personal 10 services. I1 (C) The employee or agent is not in a primary management 12 capacity with the contracting parry, is not an officer or director of 13 the contracting party, and holds no ownership interest in the 14 contracting party. 15 (D) The contracting party has 10 or more other employees. 16 (E) The employee or agent did not directly participate in 17 formulating the bid of the contracting party. 18 (F) The contracting party is the lowest responsible bidder. 19 (4) That of a parent in the earnings of his or her minor child for 20 personal services. 21 (5) That of a landlord or tenant of the contracting party. 22 (6) That of an attorney of the contracting parry or that of an 23 owner, officer, employee, or agent of a firm that renders, or has 24 rendered, service to the contracting party in the capacity of 25 stockbroker, insurance agent, insurance broker, real estate agent. 26 or real estate broker, if these individuals have not received and 27 will not receive remuneration, consideration, or a commission as 28 a result of the contract and if these individuals have an ownership 29 interest of 10 percent or more in the law practice or firm, stock 30 brokerage firm, insurance firm. or real estate firm. 31 (7) That of a member of a nonprofit corporation formed under 32 the Food and Agricultural Code or a nonprofit corporation formed 33 under the Corporations Code for the sole purpose of engaging in 34 the merchandising of agricultural products or the supplying of 35 water. 36 (8) That of a supplier of goods or services when those goods or 37 services have been supplied to the contracting parry by the officer 38 for at least five years prior to his or her election or appointment 39 to office. 99 -5— AB 527 1 (9) That of a person subject to the provisions of Section 1090 2 in any contract or agreement entered into pursuant to the provisions 3 of the California Land Conservation Act of 1965. 4 (10) Except as provided in subdivision (b) of Section 1091.5, 5 that of a director of, or a person having an ownership interest of, 6 10 percent or more in a bank, bank holding company, or savings 7 and loan association with which a party to the contract has a 8 relationship of borrower or depositor, debtor or creditor. 9 (11) That of an engineer, geologist, or architect employed by a 10 consulting engineering or architectural firm. This paragraph applies 11 only to an employee of a consulting firm who does not serve in a 12 primary management capacity, and does not apply to an officer or 13 director of a consulting firm. 14 (12) That of an elected officer otherwise subject to Section 1090, 15 in an), housing assistance payment contract entered into pursuant 16 to Section 8 of the United States Housing Act of 1937 (42 U.S.C. 17 Sec. 1437f) as amended, provided that the housing assistance 18 payment contract was in existence before Section 1090 became 19 applicable to the officer and will be renewed or extended only as 20 to the existing tenant, or, in a jurisdiction in which the rental 21 vacancy rate is less than 5 percent, as to new tenants in a unit 22 previously under a Section 8 contract. This section applies to any 23 person who became a public official on or after November 1, 1986. 24 (13) That of a person receiving salary, per diem, or 25 reimbursement for expenses from a government entity. 26 (14) That of a person owning less than 3 percent of the shares 27 of a contracting party that is a for -profit corporation, provided that 28 the ownership of the shares derived from the person's employment 29 with that corporation. 30 (15) That of a parry to litigation involving the body or board of 31 which the officer is a member in connection with an agreement in 32 which all of the following apply: 33 (A) The agreement is entered into as part of a settlement of 34 litigation in which the body or board is represented by legal 35 counsel. 36 (B) After a review of the merits of the agreement and other 37 relevant facts and circumstances, a court of competent jurisdiction 38 finds that the agreement serves the public interest. 99 AB 527 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 Erl� (C) The interested member has recused himself or herself from all participation, direct or indirect, in the making of the agreement on behalf of the body or board (16) That of a person who is an officer or employee of an investor -owned utility that is regulated by the Public Utilities Commission with respect to a contract between the investor -owned utility and a state, county, district, judicial district, or city body or board of which the person is a member, if the contract requires the investor -owned utility to provide energy efficiency rebates or other type of program to encourage energy efficiency that benefits the public when all of the following apply: (A) The contract is funded by utility consumers pursuant to regulations of the Public Utilities Commission. (B) The contract provides no individual benefit to the person that is not also provided to the public, and the investor -owned utility receives no direct financial profit from the contract. (C) The person has recused himself or herself from all participation in making the contract on behalf of the state, count\, district, judicial district, or city body or board of which he or she is a member. (D) The contract implements a program authorized by the Public Utilities Commission. (c) This section is not applicable to any officer interested in a contract who influences or attempts to influence another member of the body or board of which he or she is a member to enter into the contract. (d) The willful failure of an officer to disclose the fact of his or her interest in a contract pursuant to this section is punishable as provided in Section 1097. That \iolation does not void the contract unless the contracting party had knowledge of the fact of the remote interest of the officer at the time the contract was executed. SEC. 3. Section 1096.5 is added to the Government Code. to read: 1096.5. (a) No body or board of a city or county, including, but not limited to, a planning commission, shall approve any project, plan, permit, or conveyance of land in which any member of that body is financially interested unless the fact of that interest is disclosed to the body or board by the financially interested member at a public meeting of that body or board, the financially interested member abstains from voting on the project, plan, permit, "w -7— AB 527 1 or conveyance of land, and thereafter the body or board approves 2 the project, plan, permit, or conveyance of land in good faith by 3 a vote of its membership sufficient for the purpose without counting 4 the vote or votes of the member with the remote interest. 5 (b) For purposes of this section, a member of a body or board 6 shall be financially interested if the approval of the project, plan, 7 permit, or conveyance will have a reasonably foreseeable financial 8 effect on the member, on the real property owned or leased by the 9 member, or on a business entity in which the member is an 10 employee, agent, contractor, or consultant of the business entity. 11 (c) Any project, plan, permit, or conveyance approved in 12 violation of this section shall be void and punishable in the manner 13 provided in Section 1097. 14 SEC. 4. No reimbursement is required by this act pursuant to 15 Section 6 of Article XIIIB of the California Constitution because 16 the only costs that may be incurred by a local agency or school 17 district will be incurred because this act creates a new crime or 18 infraction, eliminates a crime or infraction, or changes the penalty 19 for a crime or infraction, within the meaning of Section 17556 of 20 the Government Code, or changes the definition of a crime within 21 the meaning of Section 6 of Article XIII B of the California 22 Constitution. L 99 AMENDED IN ASSEMBLY APRIL 14, 2011 CALIFORNIA LEGISLATURE- 2011 -12 REGULAR SESSION ASSEMBLY BILL No. 582 Introduced by Assembly Member Pan February 16, 2011 An act to amend Section 54957.6 of the Government Code, relating to public meetings. LEGISLATIVE COUNSEL'S DIGEST AB 582, as amended, Pan. Open meetings: local agencies. (1) The Ralph M. Brown Act authorizes a legislative body of a local agency to hold closed sessions with the agency's designated representatives regarding the salary and compensation of represented and unrepresented employees. This bill would require that proposed compensation increases of more than 5% for- nm'epresenfed specified employees be publicly noticed, as prescribed. By adding to the duties of local officials, this bill would impose a state- mandated local program. (2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bil' would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions. Vote: majority. Appropriation: no. Fiscal committee: yes. State - mandated local program: yes. 98 AB 582 mm The people of the State of California do enact as follows: 4 5 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 W -3— AB 582 :.�u.:a u..• uw4wii b.... ii.:. du :,:�n�.i.w�:� +:, +.:uR= cmiwir�+ 3 hes it „ 4 (d} Foi the FuIposes of this Shall 5 inekn le an afli 6 ftn-eflieer or an emple 7 meml 8 SECTION 1. Section 54957.6 of the Government Code is 9 amended to read: 10 54957.6. (a) Notwithstanding any other-prffft i n-ef law, a 1 I legislative body of a local agency may hold closed sessions with 12 the local agency's designated representatives regarding the salaries, 13 salary schedules, or compensation paid in the form of fringe 14 benefits of its represented and unrepresented employees, and, for 15 represented employees, any other matter within the statutorily 16 provided scope of representation. 17 However, prior to the closed session, the legislative body of the 18 local agency shall hold an open and public session in which it 19 identifies its designated representatives. 20 Closed sessions of a legislative body of a local agency, as 21 permitted in this section, shall be for the purpose of reviewing its 22 position and instructing the local agency's designated 23 representatives. 24 Closed sessions, as permitted in this section, may take place 25 prior to and during consultations and discussions with 26 representatives of employee organizations and unrepresented 27 employees. 28 Closed sessions with the local agency's designated representative 29 regarding the salaries, salary schedules, or compensation paid in 30 the firm of fringe benefits may include discussion of an agency's 31 available funds and funding priorities, but only insofar as these 32 discussions relate to providing instructions to the local agency's 33 designated representative. 34 Closed sessions held pursuant to this section shall not include 35 final action on the proposed compensation of one or more 36 unrepresented employees. 37 (b) Consistent with subdivision (a) of Section 54954.2, a 38 proposed compensation increase of more than 5 percent for a city 39 manager, deputy city manager, county chief administrative officer, 40 deputy chief administrative officer, or similar employee shall be 98 AB 582 —4 — 1 publicly noticed twice for the following purposes and in the 2 following manner: 3 (1) First, for general notice and nonvoting and discussion 4 purposes. 5 (2) Second, in the event of a vote on the matter, no less than I 6 days after the first notice, if the compensation increase is deemed 7 necessary by the legislative bo Jv of the local agency. 8 For 9 (c) For the purposes enumerated in this section, a legislative 10 body of a local agency may also meet with a state conciliator who 11 has intervened in the proceedings. 12 fb) 13 (d) For the purposes of this section, the term "employee" shall 14 include an officer or an independent contractor who functions as 15 an officer or an employee, but shall not include any elected official. 16 member of a legislative body, or other independent contractors. 17 SEC. 2. If the Commission on State Mandates determines that 18 this act contains costs mandated by the state, reimbursement to 19 local agencies and school districts for those costs shall be made 20 pursuant to Part 7 (commencing with Section 17500) of Division 21 4 of Title 2 of the Government Code. 0 9f �EastValley Water District Board Memorandum No. B -15 -2011 From: Brian W. Tompkins / Chief Financial Officer Subject: Investment Report for the quarter ended March 31, 2011 Recommendation: Accept and file the attached report Background: Unrestricted Investments Date: April 26, 2011 LAIF The balance held in LAIF at the beginning of the quarter was $3,025,991. During January, interest earnings of $3,476 related to the fourth calendar quarter of 2010 were posted to the account, leaving an ending balance of $3,029,467. There were no transfers to or from the LAIF account during the quarter. First quarter earnings for 2011 were $3,790 calculated at an apportionment rate of .51 %. This represents an increase after the rate dipped to .46% last quarter. These earnings were posted to our account on April 15, 2011. Citizen's Business Bank Wealth Management The total (book) value of the assets held with CBB increased $1,288 to $4,087,088 during the quarter ended 3/31/11. The purchase and sale of securities is shown on the attached supplemental schedule. Semi - annual interest payments received on securities in the District's portfolio were $13,686, reduced by accrued interest paid at the time securities were acquired of 1,393. Funds held in money market accounts earned $245. These earnings were reduced by losses of $9,617 realized when bonds purchased at a premium, and therefore having a carrying value higher than their face value, matured. Investment manager fees paid during the quarter were $1,633. There were no transfers to or from this investment account during the first quarter of 2011. Restricted Investments Union Bank The 2010 Revenue Bond Issue resulted in four new trustee accounts with Union Bank. Water Acquisition Fund — the Water Acquisition account received $15 million in bond proceeds for use in the construction of 11 water projects. During the quarter ended March 31, 2011 the District submitted reimbursement requests totaling $703,931 for project costs related to the UnionNine, Live Oak, and Bruce /Hillview main replacements. Water Acquisition Fund (Continued) Bal 12/31 /10 15, 00EEa Transfers In Three pmts from EVWD of $158,227 Payments 703nd_ 2 from EVWD Earn in s 14 Ba 1 3/31 / 11 14 , 296 476,202 Sewer Acquisition Fund — the Sewer Acquisition account received $1 million in bond proceeds for use in the construction of the Conejo Street sewer main replacement project. During the quarter ended March 31, 2011 the District submitted one reimbursement request for $263,509 for work on the project. Bal 12/31/10 1,000,014 Transfers In 0 Three pmts from EVWD of $158,227 Payments 2.63,509 Requisitions 1 from EVWD Earnings 14 Bal 3/31/11 736,519 476,202 Revenue Fund — this account accumulates monthly installments from the District to be used for semi- annual debt service payments due April 15t and October 1" Bal 12/31/10 316,457 Transfers In 474,681 Three pmts from EVWD of $158,227 Payments 3.14,938 Transfer for April 1 interest pmt to bondholders Earnings 2 Bal 3/31/11 Bal 3/31/11 476,202 Capitalized Interest Fund — this account received some of the debt service burden from the April 1, account will be exhausted and closed by 10/1/2011. $655,721 in bond proceeds to be used to defray 2011 and October 1, 2011 bond payments. The Bal 12/31/10 655,730 Transfers In 0 Payments 301,294 Transfer for April 1 interest mt to bondholders Earnings 8 Bal 3/31/11 354,444 v N M N M N Q M N r 7 T 7 N �D O •-- Vl �O M M a .. i ��rnM�°�oevoo M .-• 00 °� M �O 7 °� O M lz M N M Fr. � "= zzz c 'c 'c M M V vt O ut ^ M M V y O O O O O O O zzz �a p o 00000 ° °t6 z z z zzzzz Ra z ¢z v w Q Q Q Q Q Q Q Q Q Q u� z z zzzzz �p zzz a U U u 'ro y Ti 6i' � m m 07 C U y y U N N C C C C C o 33 OO ° - °= s' gnci U U v N M N M N Q M N r 7 T 7 N �D O •-- Vl �O M M a .. i ��rnM�°�oevoo M .-• 00 °� M �O 7 °� O M lz M N M C O O O N O O O O O O N O v1 M r d M W M OC O VPi P V P ca 4 P yPj O q � S O W O Q O O 1 O � O O � O - O N O W � O O G V �y u N O ^ M O O > O P O h M O 9 _ p N Q Q N V A C 9 ^ W Q p N VY ^_ /AU L N G O O O O O O O O O a Y F E c o 0 0 0 0 o c o 0 o m o m e o 0 0 0 0 C 0 o O o 0 0 0 0 o c, 0 0 0 V � o e e e e e e e e - } P � a > o 2 M M M P P M M M M P M M M M M M Y C C y Y C N z z 0 N r A Q i Subject to approval: EAST VALLEY WATER DISTRICT March 11, 2011 LEGISLATIVE COMMITTEE MEETING MINUTES Director Morales called the meeting to order at 8:00 a.m. Director Malmberg led the flag salute. PRESENT: Directors: Malmberg, Morales ABSENT: None STAFF: Robert Martin, General Manager; Justine Hendricksen, Administrative Manager LEGAL COUNSEL: None GUEST (S): Charles Roberts (Highland Community News) PUBLIC PARTICIPATION There being no verbal or written comments the public participation section was closed. REVIEW AND DISCUSSION REGARDING THE STATE LEGISLATION The committee reviewed and discussed in detail approximately sixty -two bills that have been introcuced in the Senate and Assembly. REVIEW AND DICSCUSSION REGARDING THE SANTA ANA SUCKER FISH CRITICAL HABITAT The General Manager provided an update to the committee regarding the Santa Ana Sucker Critical Habitat. ADJOURN The meeting was adjourned at 9:12 a.m. Robert E. Martin, Secretary Legislative Contmttee Meeting Minutes 03111/11 Iph San Bernardino Area Chamber of Commerce Cordially Invites You to the Thirty-Fifth Annual Law Enforcement Recognition Dinner Honoring the Outstanding Law Enforcement Officers of 2010 Thursday, May 12, 2011 5:30 P.M. No -Host Cocktails • 6:00 P.M. Dinner Table of Eight - $45 per Person RSVP by May 6th, 2011 fyu04o San Bernardino Area Chamber of Commerce presents the Thirty-Fifth Annual Law Enforcement Recognition Dinner Thursday, May 12, 2011 $45 per Person • $360 per Table of Eight Company Address _ City Phone Please List the First and Last Names of All Persons Attending on the Reverse Side of This Response Card Please Make Reservations Check Enclosed for $ We Also Accept ❑Visa or ❑MasterCard Card No. For Reservations, Call 909 -885 -7515 RSVP by May 6, 2011