ENGINEERING, OPERATIONS & WATER RESOURCES COMMITTEE MEETING

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1 ENGINEERING, OPERATIONS & WATER RESOURCES COMMITTEE MEETING BEING HELD AT: Headquarters Office Meridian Parkway, Riverside, CA March 31, :30 a.m. Committee Members: Director Evans Director Galleano -AGENDA ORAL COMMUNICATIONS Any person may address the Committee upon any subject within Western's jurisdiction, which is not on the agenda, at this time. However, any non-agenda matter that requires action will be referred to staff for a report and action at a subsequent Board meeting. Any person may also address the Committee on any agenda matter at the time that matter is discussed, prior to Board Action. 2. CONSENT CALENDAR Consent Calendar items are expected to be routine and non-controversial and are to be acted upon by the Committee at one time without discussion. If any Committee member, staff member, or interested person requests that an item be removed from the Consent Calendar, it will be moved to the first item on the Action Agenda. Page A. Minutes of the February 3, 2014 Engineering, Operations, and Water Resources Committee Meeting DISCUSSION/INFORMATIONAL ITEMS A. Receive and File Update on the Seven Oaks Dam UPCOMING BOARD ITEMS/RECOMMENDATIONS TO BE MADE TO THE FULL BOARD A. Consider Approval of Capital Funds for the Arlington Basin Recharge Project 10

2 Engineering, Operations, and Water Resources Committee Meeting March 31, 2014 Page 2 Page B. Consider Adoption of Resolution 2857 and Approval of Provisional Water Service Agreements (Eng) C. Consider Adoption of Resolutions 2854 and 2855 Dedicating a Source of Revenue for Repayment of and Stating Intent to Reimburse Expenditures Associated with a State Water Resources Control Board State Revolving Fund Loan (WR) D. Consider Execution of Covenant and Agreement with the City of Riverside for Collett Avenue (Eng) REPORTS The following agenda items are reports. They are placed on the Agenda to provide information to the Committee and the public. There is no action called for in these items. A. AGM/COO Report B. Engineering Report C. Operations Report D. Water Resources Report 6. ADJOURNMENT Upon request, this agenda will be made available in appropriate alternative formats to persons with disabilities, as required by Section 202 of the Americans with Disabilities Act of Any person with a disability who requires a modification or accommodation in order to participate in a meeting should direct such request to Tina Barber at (951) at least 48 hours before the meeting, if possible. Pursuant to Government Code Section , any writing that (a) is a public record; (2) relates to an agenda item for an open session of a regular meeting of the Engineering, Operations & Water Resources Committee; (3) is distributed less than 72 hours prior to that meeting, will be made available for public inspection at the time the writing is distributed to the Committee. Any such writing will be available for public Inspection at the District offices located at Meridian Parkway, Riverside, CA In addition, such writing may also be posted on the District's website.

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7 March 31, 2014 TO THE ENGINEERING, OPERATIONS, AND WATER RESOURCES COMMITTEE: Director Thomas P. Evans Director Donald D. Galleano FROM: Craig D. Miller, Deputy General Manager RECEIVE AND FILE UPDATE ON THE SEVEN OAKS DAM RECOMMENDATION: Staff recommends the Engineering, Operations and Water Resources Committee recommend the Board of Directors: 1. Receive and File the update on the Seven Oaks Dam. BUDGET IMPACT: None EXECUTIVE SUMMARY: Western Municipal Water District (Western) and San Bernardino Valley Municipal Water District (Valley District) have supported the conversion of the Seven Oaks Dam from a single-purpose flood control facility into a joint water supply/flood control facility. A series of studies, beginning in the 1990's, were funded with both federal and local funds to accomplish this goal. Due to a lack of substantial progress on these studies, Western and Valley District sent a letter to Colonel R. Mark Toy of the Los Angeles District Office of the US Army Corps of Engineers (US ACOE) in November 2011 expressing concern for this project. Colonel Toy responded to the letter in writing in December 2011, stating the US ACOE fully supports water conservation at Seven Oaks Dam and is committed to completing the studies needed to facilitate that use. During 2012, Western and Valley District continued to work cooperatively with the US ACOE in the development of the Seven Oaks Dam studies. Unfortunately, even with these additional efforts, the schedule continues to slip. Based on the latest information from the US ACOE, the schedule is behind by 14 months. The primary reason appears to be the ACOE's inability to address questions and issues raised by the US Fish and Wildlife Service (USFWS). The USFWS is concerned about the Seven Oaks Dam s impact on native fish habitat downstream; however, the US ACOE does not have the information or background to allay those concerns because those specific scientific studies have not been done. 7

8 Engineering, Operations, and Water Resources Committee March 31, 2014 Page 2 of 2 Valley District recently learned that the USFWS was asking the US ACOE to model storm water releases from Seven Oaks Dam in large flow rates to support native fish. This proposal is in direct opposition to the Valley District/Western water rights permit and the commitment to capture this water for constituent use. If this type of release schedule is implemented, a significant amount of water from the Santa Ana River would be lost from our region. As a result of this potential water loss, Western and Valley District have redirected the course of action. Western and Valley District need to be strategically positioned regarding any effort to modify the release rate or distribution of water from Seven Oaks Dam. Due to water resource management responsibilities and the significant investment in permits and facilities to control and use this native water, Western and Valley District must engage directly with the USFWS on endangered species impacts that might be attributed to Western s and Valley District s projects at Seven Oaks Dam and other locations throughout the service area. Staff is using the proposed Santa Ana River Habitat Conservation Plan (HCP) to obtain permits to build and operate water facilities. In short, project proponents (water agencies) need to develop the hydrologic and biologic science necessary to prove that Western and Valley District are protecting threatened and endangered species while maximizing the capture and use of available water resources. Once the HCP is complete, the Seven Oaks Dam studies can be re-initiated with the endangered species issues resolved. For several months, staff from Western, Riverside Public Utilities, City of San Bernardino Municipal Water Department, San Bernardino Valley Water Conservation District, and Valley District have been formulating an HCP to provide environmental permits for a number of water projects, including water conservation at Seven Oaks Dam. While this significant effort to develop the HCP is in progress, Western and Valley District have requested that the US ACOE suspend the current Water Conservation Study at Seven Oaks and return funding deposited by both agencies. CRAIG D. MILLER Deputy General Manager CDM:sb:tb Attachment: 1. Seven Oaks Dam Water Conservation Study Status Letter from San Bernardino Valley Municipal Water District, dated September 4,

9 Attachment 1 ynnardino a le mu l I( IIIN Y WATER DISTRICT WESTERN MUNICIPAL WATER DISTRICT September 4, 2013 Josephine R. Axt, Chief Planning Division US Army Corps of Engineers, Los Angeles District 915 Wilshire Blvd., 14th Floor Los Angeles, CA SUBJECT: Seven Oaks Dam Water Conservation Study Status Dear Ms. Axt, As you know, our Districts have been cooperating with the Army Corps of Engineers ( USACOE) since the early 1990's on a series of studies to determine the best way to implement water conservation functionality into the Seven Oaks Dam. Although some progress has been made recently, it has become apparent over the last year that endangered and threatened species issues have and will continue to cause delays in the implementation process. In light of this, and after collaboration with the US Fish and Wildlife Service, our Districts have decided to initiate a comprehensive planning process to facilitate the development of projects like Water Conservation at Seven Oaks Dam. The Santa Ana River Habitat Conservation Plan ( HCP) has been authorized and will begin in the next month. We continue to encourage active participation from the USACOE in the HCP. However, we have been directed by our Boards to request that the USACOE, immediately 1) place the Water Conservation Study at Seven Oaks Dam on inactive" status while we complete the HCP and 2) return all unused funds previously provided by our Districts. We want to thank you and your staff for helping us understand what the impacts of this status change might mean in the future. We fully understand the implications and hope to be able to re- initiate the study when the species issues have been better defined and ameliorated. Please let us know if there is any further information you need to make this status change and provide the refund. Sincerely, Douglas D. Headrick General Manager San Bernardino Valley Municipal Water District John V Rossi Genera Manager Western Municipal Water District 9

10 March 31, 2014 TO THE ENGINEERING, OPERATIONS, AND WATER RESOURCES COMMITTEE: Director Thomas P. Evans Director Donald D. Galleano FROM: Jeffrey D. Sims, Assistant General Manager/COO Derek Kawaii, Director of Engineering CONSIDER APPROVAL OF CAPITAL FUNDS FOR THE ARLINGTON BASIN RECHARGE PROJECT RECOMMENDATION: Staff recommends the Engineering, Operations and Water Resources Committee recommend the Board of Directors authorize the General Manager to: 1. Increase the adopted Fiscal Year (FY) Capital Spending Plan for the Arlington Basin Recharge Project under Arlington Desalter System Improvement Fund 414 by $1,401,316 from $444,364 to $1,845,680; 2. Increase the Arlington Basin Recharge Project 9021 budget by $1,845,680 from $454,320 to $2,300,000 for amounts approved in the adopted FY Capital Spending Plan with the aforementioned amendment; and 3. Enter into negotiations for property acquisition for recharge basins subject to approval of property purchases by the Board of Directors. BUDGET IMPACT: The proposed actions increase the adopted FY Capital Spending Plan by $1,401,316 from $444,364 to $1,845,680 for Arlington Basin Recharge Project under Arlington Desalter System Improvement Fund 414; and increase the Arlington Basin Recharge Project 9021 budget by $1,845,680 from $454,320 to $2,300,000. The estimated total cost for the Arlington Basin Recharge Project (a.k.a. Arlington Basin Groundwater Improvement Project) is approximately $10 million, which will be reduced by funding for construction costs from two agencies: 1) $1 million from Riverside County Flood Control and Water Conservation District s FY Budget; and 10

11 Engineering, Operations, and Water Resources Committee March 31, 2014 Page 2 of 6 2) $1 million from Santa Ana Watershed Project Authority awarded through Proposition 84, Round 1. The net cost of the project, including grant commitments, is $8 million. The Arlington Basin Recharge Project (Recharge Project) is anticipated to be eligible for Metropolitan Water District s (MWD) Local Resource Project (LRP) funding. In addition, Western Municipal Water District (Western) is applying for federal grant funding, which could yield an additional $1 million. An intra-fund loan may also be used for project financing and will be paid using a portion of revenues from Arlington Desalter (Desalter) water sales. EXECUTIVE SUMMARY: Potable water is produced from the Desalter and sold to the cities of Norco and Corona. The Recharge Project includes property purchases, installation of a new well, and construction of recharge basins over the Arlington Groundwater Basin. This water could serve as an additional local supply for Western s potable water system via the proposed La Sierra pipeline. The Recharge Project will result in a number of direct benefits to Western, including: Stabilization of declining groundwater levels by the introduction of captured storm water Increased utilization of the Desalter production capacity Improved basin water quality through the capture and recharge of high quality storm water that would otherwise be lost Increased local supply resulting in less dependence on imported water Increased system reliability in the event of imported water disruption Potential for future recharge of recycled water Less uncontrolled storm water flowing to the Santa Ana River resulting in decreased erosion and flow damage Additionally, the Recharge Project could be enhanced through partnerships with community and environmental groups to offer public education and environmental benefits such as landscaping for wildlife habitat, walking trails/exercise paths, or urban gardens. DETAIL: The Desalter s capacity is 7.2 million gallons per day (MGD) when membranes are operating at peak efficiency; however, production capacity decreases over time requiring bi-annual service and cleaning of the membranes. Historically, Western has produced between 4,500 and 6,000 acre-feet per year (AFY) of potable water from the Desalter. The recent Promenade Connection establishes opportunities to provide water to the city of Corona, as well as the existing connection to the city of 11

12 Engineering, Operations, and Water Resources Committee March 31, 2014 Page 3 of 6 Norco. The proposed La Sierra pipeline provides an opportunity to pump Desalter water into Western s Riverside potable water system, enhancing system reliability in the event of disruption to imported Metropolitan Water District (MWD) supplies. The Recharge Project includes three recharge basins, a production well, and a pipeline of 18,500 feet. The Recharge Project includes full-scale testing of the recharge capability prior to land purchase, and all property purchases will be brought back to the Board of Directors (Board) for consideration prior to finalization. After the property is purchased, design will commence on recharge basins, the additional well, and the pipeline. Staff will seek Board authorization for the award of any consultant or construction contract exceeding $100,000. On October 17, 2012, the Board adopted the Arlington Groundwater Management Plan (Groundwater Plan). The goal of the Groundwater Plan is to provide a framework to operate and manage the groundwater basin in a sustainable manner and ensure long-term reliable supply for beneficial uses among all stakeholders in the Arlington Groundwater Basin (Arlington Basin). Western is the primary extractor from the basin. Other groundwater extractors are La Sierra University, California Baptist University, and owners of small private wells. Modeling results indicate groundwater extractions would not be sustainable with the Desalter operating at its maximum production capacity of 7,200 AFY without artificial recharge. The modeling indicates without recharge, groundwater levels could fall below the bottom of the wells during sustained drought conditions. In addition to concerns about drought impacts, overall production in the Arlington Basin has had an impact on groundwater levels. Groundwater levels within the basin fell from 2007 through 2010 and the average total extraction from all extractors from the basin was 8,250 AFY. Western extracted as much as 8,000 AFY (including water discharged as brine) in 2004, and recent extractions have been reduced to below 6,000 AFY due to improved process efficiency and reduced demand from the city of Norco. Demands are expected to increase with sales to the city of Corona and Western s Riverside potable system as a result of the proposed La Sierra pipeline. Groundwater modeling studies estimate the sustainable yield of the basin, without the recharge, ranges between 6,200 and 8,500 AFY. Historically, the maximum groundwater extractions of users other than Western has been about 1,400 AFY. In order to ensure sustainable groundwater levels, the maximum extraction available to Western, under these assumptions, would range from 4,800 to 7,100 AFY. This corresponds to a Desalter production rate ranging from 4,000 to 5,900 AFY. The lower end of this production range (4,000 AFY) generates challenges regarding Western s contractual obligation to produce and sell 4,400 AFY of Desalter water to 12

13 Engineering, Operations, and Water Resources Committee March 31, 2014 Page 4 of 6 the city of Norco. The upper end of the production range (5,900 AFY) is the minimum production to sustain water billing rates without significant increases. The Recharge Project enables the Desalter to produce up to 7,200 AFY without over-drafting the basin. To achieve the desired production rate, artificial recharge of 2,300 AFY of storm water is required. The Recharge Project will balance groundwater extractions across the basin and prevent the outflow of recharge water from the basin to the Santa Ana River. Recharge water will include urban and storm water runoff with low concentrations of TDS and Nitrate. Over time, the Arlington Basin water quality and salt management function of the Desalter will improve. Recharge Basins Project Costs Property Purchase Modifications Total Victoria Basin $ 670,000 $1,038,000 $1,708,000 Gibson Basin $ 134,000 $640,000 $774,000 Indiana Basin $1,400,000 $981,000 $2,381,000 Well A-11 Construction $2,000,000 Groundwater Pipeline Construction $2,229,000 Contingency (10%) $908,000 Total $10,000,000 Potential Credits Secured Grant Funding ($2,000,000) (credit) Potential Federal Grant ($1,500,000) LRP Funding (credit over time) ($10,608,000) Project Cost Analysis The Recharge Project enables the Desalter to produce up to 7,200 AFY at an initial cost of $977 per acre-foot (AF) in year MWD LRP funds reduce this cost to $930 per AF. In comparison, MWD s 2017 costs for water are expected to be $1,030 per AF for Tier 1, and $1,195 per AF for Tier 2. Desalter water could be sold to the cities of Norco and Corona in lieu of MWD imported water to avoid Western approaching the Tier 2 allocation. In order for Western s retail service area to benefit from this water, the proposed La Sierra pipeline or alternative conveyance will need to be constructed. The cost breakdown of the proposed La Sierra pipeline project will be addressed in a separate letter to the Board. 13

14 Engineering, Operations, and Water Resources Committee March 31, 2014 Page 5 of 6 The cost of water production at the Desalter, including the cost of the Recharge Project with MWD LRP credits, initially compares favorably to anticipated MWD Tier 1 rates. In subsequent years, increasing operation and maintenance (O&M) expenses will cause production costs to exceed MWD Tier 1 rates. When financing for the Recharge Project is paid in 2044, and the LRP subsidy concludes, Desalter production costs (assuming 5% annual inflation) will exceed the MWD Tier 2 rate by approximately $150 per AF. This project will allow the Desalter to produce up to 7,200 AFY and secure a consistent water supply. The price of water under the Recharge Project compares favorably to the no project alternative, which assumes a sustainable production rate of 4,850 AFY. Other benefits of the Recharge Project include securing a local and reliable supply of water and introducing high quality water to the Arlington Basin. By recharging the basin with storm water, which has much lower salt content than the native groundwater, future extractions by the Desalter will also have a lower salt content, potentially reducing the O&M cost of product water. A summary of this analysis follows: Year Desalter Production Costs No Project ($/AF) Desalter Production Costs w/ Project ($/AF) Desalter Production Cost w/ LRP ($/AF) MWD Tier 1 Rate ($/AF) MWD Tier 2 Rate ($/AF) 2017 $ 998 $ 977 $ 930 $ 1,030 $ 1, ,597 1,541 1,478 1,467 1, ,333 2,272 2,209 1,971 2, (LRP ends) 2044 (Project Loan Paid off) 2,978 2,874 2,874 2,424 2,650 3,277 3,066 3,066 2,424 2,811 Note: Desalter production costs (with the Recharge Project) do not reflect the value of water quality and reliability benefits. The Recharge Project is subject to the requirements of the California Environmental Quality Act (CEQA). An initial study concluded the Recharge Project will not have a significant impact on the environment after mitigation. On February 15, 2012, the Board adopted a Mitigated Negative Declaration (MND) under CEQA for the 14

15 Engineering, Operations, and Water Resources Committee March 31, 2014 Page 6 of 6 Recharge Project. The MND will be amended to include purchased properties for the Recharge Project. JEFFREY D. SIMS, P.E. Assistant General Manager JDS:DGK:jrg:tb Attachment: 1. Exhibit 1 Project Map 15

16 16 Attachment 1 Arlington Basin 91 Freeway Vicinity Map Adams Street Proposed Pipeline Non Potable Pipeline Arlington Basin Water Quality Improvement Project Map

17 March 31, 2014 TO THE ENGINEERING, OPERATIONS, AND WATER RESOURCES COMMITTEE: Director Thomas P. Evans Director Donald D. Galleano FROM: Jeffrey D. Sims, Assistant General Manager/COO Derek E. Kawaii, Director of Engineering CONSIDER ADOPTION OF RESOLUTION 2857 AND APPROVAL OF PROVISIONAL WATER SERVICE AGREEMENTS RECOMMENDATION: Staff recommends the Engineering, Operations and Water Resources Committee recommend the Board of Directors: 1. Adopt Resolution 2857 to reflect changes to the Distribution System Fee (DSF) in Ordinance 381; 2. Authorize the General Manager to: a. Allocate existing funding in Riverside Potable Water DSF Fund 203 and Murrieta Water DSF Fund 223 for construction of new distribution pipelines to eliminate existing long services; b. Eliminate the DSF that Western Municipal Water District (Western) currently charges; c. Direct staff to calculate a fee for the customers share of future construction of a pipeline via the Provisional Water Service Agreement up to $30,000, and adjusted annually by the Engineering News-Record Construction Cost Index (ENR CCI); and d. Execute Provisional Water Service Agreements when a customer s share of costs does not exceed $30,

18 Engineering, Operations, and Water Resources Committee March 31, 2014 Page 2 of 4 BUDGET IMPACT: Approval of this action will assign the use of existing funds in Riverside Potable Water DSF Fund 203 and Murrieta Water DSF Fund 223 to build pipeline extensions to maximize the elimination of long service laterals. It will defer the elimination of long service laterals that are in remote, less developed areas of Western where the cost/benefit ratio is unfavorable at this time. The DSF will no longer be collected from new customers. Funds to construct future pipelines will be collected from customers that are directly affected. EXECUTIVE SUMMARY: Western currently charges customers connecting to the Riverside retail service area the DSF based on acreage of the property requesting service. This fee represents the proportionate share of the benefits received from Western s distribution pipeline (typically 12-inches in diameter and smaller). The collected funds are anticipated to fund future extensions and enhancements to the water distribution pipeline system. For the vast majority of parcels, the developer of a subdivision deeds Western the entire distribution system for the tract; therefore, the DSF is considered satisfied. In practice, it is only individual homes that are not built as part of a tract development that currently pay the DSF. Staff recommends the Board of Directors support elimination of this fee and instead approve executing agreements, only with customers that will be directly affected by these costs, to fund future construction of pipeline extensions. DETAIL: The DSF was created and charged to property owners who are able to connect via a service lateral to the existing Western owned water distribution pipeline that can serve their property. Their payment of the DSF represented the contribution towards the distribution system they benefited from and provided for an equitable method of collection, retention, and expenditure of monies to fund future extensions and enhancements to the distribution system. The distribution system consists of a network of water pipelines, 12-inches and smaller in diameter, that convey water from transmission pipelines (pipelines with diameters of 12-inches and greater) to individual property owners. This DSF was initially established by Western s Board in 1990, and in 1992 was revised to establish the rate for other areas within Western s service area. Currently, the DSF is collected based on acreage of the property where service is requested. If the customer funds the main pipeline extension then DSF is not collected. The DSF varies depending whether the property is in the Riverside North Area, Riverside South Area or Murrieta. 18

19 Engineering, Operations, and Water Resources Committee March 31, 2014 Page 3 of 4 Charges are applied to the parcel at a minimum 0.5 acres and a maximum 2.5 acres (i.e. a 0.1 acre parcel is charged as a 0.5 acre parcel and a 4 acre parcel is charged as a 2.5 acre parcel). This fee is currently applicable to all customers whether or not a new main pipeline is required to be built for them (i.e. if their meter sits in front of their property or not). Staff is proposing a change in policy. The proposed new policy will eliminate the DSF and instead execute Provisional Water Service Agreements with customers who require long services because pipeline does not front their property. The Provisional Water Service Agreement will define an Area of Benefit and only customers that directly benefit from the construction of the proposed distribution pipeline will be charged. Historically, when a customer needs a water meter, and they are not close to a water pipeline, Western has allowed the customer to install the meter at the closest existing water pipeline. Then the customer constructs a long service lateral (1-2 inch diameter water pipeline owned and maintained by the customer), up to 1,000 feet in length from the meter to their property, in lieu of constructing a new pipeline. Long services pose operational and practical problems including water quality issues, system control accuracy, and disputes between neighbors. On a go forward basis, staff proposes Western customers will no longer be required to pay the DSF. Customers that do not have an existing pipeline fronting their properties would enter into a Provisional Water Service Agreement with Western defining an Area of Benefit. A cost estimate will be prepared for construction of a new pipeline to be built, in the future, to serve this defined Area of Benefit. Customers in the Area of Benefit will split the cost (per parcel) to pay their proportionate fair share. A long service would be provided to these customers until the pipeline defined in the Provisional Water Service Agreement is built. When 70 percent of the customers in the Area of Benefit have paid, Western will construct the pipeline with these funds and the long services will be relocated to this new pipeline. With this new policy, customers will pay their proportionate fair share of the pipeline that directly benefits them. The Provisional Water Service Agreement will include pipeline construction costs to fund the future pipeline. Staff requests approval to execute Provisional Water Service Agreements, without additional approval from the Board of Directors, when a customer s share of cost ranges up to $30,000. (Will be adjusted annually by ENR CCI). For costs above $30,000, additional Board of Directors approval would be required. As of fiscal year ending June 30, 2013, Western has a balance of approximately $3.8 million in the Riverside Treated Water DSF Fund 203, and approximately $296,000 in 19

20 Engineering, Operations, and Water Resources Committee March 31, 2014 Page 4 of 4 the Murrieta Water DSF Fund 233. Currently Western has approximately 820 long services within the Riverside retail service area and approximately 50 long services in the Murrieta retail service area. With existing funds, staff estimates that approximately 200 long services will be eliminated. Staff recommends these funds be used to build new pipelines in a prioritized manner based on a set of criteria to be developed by staff. Ultimately, some long services will remain until Western s remote service areas are sufficiently developed to justify construction of new distribution pipelines and eliminate the need for all long lateral services. Western s proposed Resolution 2857 will reflect the changes to the DSF in Ordinance 381, effective immediately. JEFFREY D. SIMS, P.E. Assistant General Manager/COO JDS:SH:dk:sc Attachments: 1. Proposed Provisional Water Service Agreement 2. Resolution

21 Attachment 1 RECORDING REQUESTED AND WHEN RECORDED RETURN TO: Western Municipal Water District Meridian Parkway Riverside, California Attention: Western s Record No. Space above this line for Recorder s use only. No Recording Fee Pursuant to Govt. Code PROVISIONAL WATER SERVICE AGREEMENT NO. THIS AGREEMENT ( Agreement ) is made this day of, 2014, by and between the Western Municipal Water District Of Riverside County, a public agency ( Western ) and, a ( Owners ). Western and Owners are referred to herein individually as Party and collectively as Parties. RECITALS A. Owners are the owners of real property ( Property ) which is more particularly described as follows:. The street address of the Property is, California, and the assessor parcel number is. B. The Parties desire to enter into this Agreement whereby Owners will be permitted to install and operate a special long service connection to Western s water system in order to receive service to the Property ( Long Service ). Owners shall pay the applicable fees and charges required by Western s Rules And Regulations Governing Water Service And Water Users ( Rules And Regulations ) for water service to the Property including, but not limited to, requirements for a Long Service and subsequent service through an extended water main pipeline. C. Western and Owners intend by the recording of this Agreement to set forth the terms under which such water service will be made available to the Property. Western and Owners further intend that this Agreement benefit and burden the Property and provide notice to all current and future owners of the Property regarding the matters described herein. NOW THEREFORE, in consideration of the mutual covenants stated herein and other valuable consideration, the sufficiency of which is hereby acknowledged, the Owners and Western agree as follows: 1. Terms And Conditions For Service Approval and initiation of water service to the Property is contingent upon satisfaction of the applicable Rules And Regulations including, but not limited to, the payment of all applicable fees and charges and completion of the applicable application procedures. Such requirements include, but are not limited to, the terms and conditions upon which Owners will be permitted to install and operate a Long Service to the Property which shall be utilized unless or until a new 1 21

22 water main pipeline extension is installed for service to the Property and the surrounding area of benefit. 2. Long Service Connection Prior to initiation of service, Owners shall satisfy the requirements for installation and use of a Long Service as said requirements are set forth in the Rules And Regulations. Owners shall also comply with the requirements for a Long Service as set forth below. In the event of a conflict between the provisions of this Agreement and the provisions of the Rules And Regulations that apply to a Long Service, the provisions of this Agreement shall be controlling. (a) Design Owners shall be solely responsible for the design of the Long Service, including all costs and expenses therefor. Prior to installation, Owners shall submit to Western plans and specifications for approval by Western. Owners shall be solely responsible for obtaining all required federal, state and local permits and approvals. The plans and specifications shall be approved by Western in its sole and reasonably exercised discretion. (b) Construction And Installation Owners shall be solely responsible for installation and operation of the Long Service, including all costs and expenses therefor. Owners shall be solely responsible for securing appropriate contracts for installation of the Long Service in compliance with applicable federal, state, and local laws, rules and regulations. 3. Water Main Pipeline Extension (a) Area Of Benefit It is anticipated that Western will construct and install a water main pipeline extension ( Main Extension ) which will extend the pipeline and resulting water service to the Property and other properties in the surrounding area ( Area Of Benefit ) which will thereby be benefited by having the Main Extension fronting all such properties for future water service. The Area Of Benefit is further described in Exhibit A attached hereto and incorporated herein by reference. (b) Proportionate Share Of Cost of Main Extension The estimated total cost of the Main Extension is ($ ) ( Total Cost ) Owners proportionate share of the Total Cost is in the amount of ($ ) ( Owners Share ). Owners Share has been calculated based on the following factors:. Upon execution of this Agreement, Owners shall deposit with Western the Owners Share. (c) Payment Of Owners Share In Lieu Of Distribution System Fee ( DSF ) Western s Rules And Regulations include the requirement for payment of the DSF in connection with the extension of water mains for service such as the service requested by Owners. Notwithstanding anything to the contrary in the Rules And Regulations, Owners shall be required to pay Owners Share, and otherwise comply with this Agreement, in lieu of any obligation to pay the DSF in connection with service to the Property under this Agreement. Except as specifically set forth in this Agreement, all applicable provisions of the Rules And Regulations shall apply to service to the Property including, but not limited to, payment of all applicable fees and charges. 22 2

23 (d) Installation Of Main Extension Western shall be responsible for installation of the Main Extension. Western shall only be obligated to proceed with the design and installation of the Main Extension on or after the date that Western determines that it has received sufficient funding to cover at least seventy percent (70%) of the Total Cost of the Main Extension. It is hereby acknowledged and agreed that the only source of funding that will be committed to the cost of the design and construction of the Main Extension will be funds received through payment of the Owners Share and the share of the Total Cost that is required of, and paid by, other owners of property in the Area Of Benefit pursuant to separate Provisional Water Service Agreements. (e) Obligation To Connect To Main Extension Owners shall be obligated to make connection to the Main Extension, and to thereby cease the connection and use of the Long Service, upon notice from Western and subject to the requirements imposed by Western. Owners obligation to make said connection shall be pursuant to this Agreement and the applicable Rules And Regulations. 4. General Provisions (a) Lender Protection. This Agreement shall not impair the security of any mortgage or deed of trust made in good faith and for value, affecting the Property. (b) Indemnification Each Party hereby agrees to indemnify, defend, save and hold harmless the other Party and their respective officers, agents, and employees, of and from any liabilities, claims, demands, suits, action and cause of action arising out of or in any manner connected with any act or omission of such indemnifying Party, performed in connection with such Party's duties and obligations hereunder. (c) Successors And Assigns This Agreement shall inure to the benefit of and be binding on each of the Parties and their successors and assigns. (d) Effective Date This Agreement shall become effective upon full recordation. (e) Term And Termination This Agreement shall expire upon completion of performance of this Agreement by both Parties. In the event either Party defaults in the performance of any of its obligations under this Agreement, the other Party shall have the option to terminate this Agreement upon written notice to the defaulting Party. (f) Entire Agreement; Amendment This Agreement contains the entire agreement of the Parties hereto with respect to the matters contained herein, and supersedes all negotiations, prior discussions and preliminary agreements or understandings, written or oral. No waiver or modification of this Agreement shall be binding unless consented to by both Parties in writing. (g) Waiver No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a party shall give the other Party any contractual rights by custom, estoppel, or otherwise. 3 23

24 (h) Invalidity And Severability If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. (i) Governing Law This Agreement shall be governed by the laws of the State of California. Venue shall be in Riverside County. (j) Incorporation Of Recitals The Recitals are incorporated herein and made an operative part of this Agreement. (k) Authority to Enter Into Agreement The Parties warrant that they have all requisite power and authority to execute and perform this Agreement. Each person executing this Agreement on behalf of their Party warrants that he or she has the legal power, right, and authority to make this Agreement and bind his or her respective Party. (l) Counterparts This Agreement may be signed in counterparts, each of which shall constitute an original. IN WITNESS WHEREOF, the Owners and Western have caused this Agreement to be executed. WESTERN MUNICIPAL WATER DISTRICT OF RIVERSIDE COUNTY John V. Rossi, General Manager Date: OWNERS Date: 24 4

25 EXHIBIT A AREA OF BENEFIT 5 25

26 Attachment 2 RESOLUTION 2857 RESOLUTION OF THE BOARD OF DIRECTORS OF WESTERN MUNICIPAL WATER DISTRICT OF RIVERSIDE COUNTY TERMINATING THE FUTURE IMPOSITION OF THE DISTRIBUTION SYSTEM FEE AND ESTABLISHING THE REQUIREMENT OF A PROVISIONAL WATER SERVICE AGREEMENT WHEREAS, Western Municipal Water District of Riverside County ( District ) is a municipal water district established pursuant to Section et seq. of the California Water Code; and WHEREAS, the Board of Directors previously adopted Ordinance 372 which provided for the revision of the format for the Rules and Regulations Governing Water Service ( Rules and Regulations ). As a result, the provisions of the Rules and Regulations which set forth rates and charges were removed from the Rules and Regulations and set forth in separate exhibits including, but not limited to, Exhibit A Rules And Regulations Governing Water Service And Water Users; Exhibit B Water Service Charges; Exhibit C Cost Recovery Fees And Charges; and Exhibit D Added Facilities Charges and Fees; and WHEREAS, Ordinance 372 also sets forth the authority and discretion of the Board of Directors to revise and amend the Rules And Regulations by resolution and adopt and increase rates and charges for water service by resolution. As a result, in the event the Board of Directors adopts revised or amended Rules And Regulations or new or increased rates and charges by resolution in the future, the provisions set forth in the above-mentioned Exhibits may be revised and amended from time to time to include said changes and amendments; and WHEREAS, the Board previously adopted Ordinance 381 which centralized the most current version of all Exhibits, Rules And Regulations, rates and charges, and also incorporated certain amendments and revisions; and 26

27 -2- R-2857 WHEREAS, the rates and charges which are imposed, and other current terms and conditions for connections to the District s water system, are sufficient to cover the costs of connecting to the District s water system. As a result of the current requirements and current application of fees and charges, the Distribution System Fee ( DSF ) no longer needs to be imposed, and is not currently being imposed, in regard to connections to the District s water system; and WHEREAS, instead of imposing the DSF in the future, the District desires to implement a procedure whereby an applicant will be permitted to install and operate a special long service connection to the District s water system in order to receive service ( Long Service ). The applicant will be required to pay the applicable fees and charges for the Long Service and the fees and charges for subsequent service through an extended water main pipeline. Said requirements will be set forth in a Provisional Water Service Agreement that the property owner will be required to enter into with the District; and WHEREAS, the District has determined that in regard to new applicants requesting a new service connection, the existing DSF is no longer necessary and the requirement of a Provisional Water Service Agreement should be imposed instead. The District desires to delete the provisions of the applicable Exhibits which set forth the terms and conditions for imposing the DSF and to otherwise terminate the future imposition of the DSF. The District also desires to revise and amend the applicable Exhibits in order to establish the requirement of a Provisional Water Service Agreement. NOW, THEREFORE, be it resolved by the Board of Directors of the Western Municipal Water District of Riverside County as follows: Section 1. The above-mentioned Recitals are incorporated herein and made an operative part of this Resolution. 27

28 R Section 2. The DSF is hereby terminated and therefore, shall not be imposed on applicants, in the future, for connections to the District s water system. Instead of imposing the DSF, the District will require applicants to enter into a Provisional Water Service Agreement for connections. Section 3. Exhibit A, Rules And Regulations Governing Water Service And Water Users, Article III General Use Regulations and Requirements, Section N. Service Requirements, Subsection 8. Additional Charges, is hereby amended to delete the requirement of the DSF. As a result, Subsection 8 shall hereby read as follows: 8. Additional Charges. The additional charges, to be paid prior to installation, for water service may include but shall not be limited to: a. Main Participation b. Added Facilities Charge c. New Demand Charge (NDC) Section 4. Exhibit A, Rules And Regulations Governing Water Service And Water Users, Article III General Use Regulations and Requirements, Section P. Main Extensions, Subsection 1. Requirements, is hereby amended to delete Subsection 1(j) which included the requirement of the DSF. Section 5. Exhibit A, Rules And Regulations Governing Water Service And Water Users, Article III General Use Regulations and Requirements, Section P. Main Extensions, Subsection 4. Participation, is hereby amended to delete the requirement of the DSF, and add the requirement of Provisional Water Service Agreements for Long Services. As a result, Subsection 4 shall hereby read as follows: 4. (a) Participation. The District will review the area to benefit from service by the water facilities to be constructed, and may determine participation by others for which the Developer may be eligible for reimbursement from 28

29 -4- R-2857 the Participation Amount contained within a Refund Agreement. (b) Provisional Water Service Agreements. A Developer who does not have an existing pipeline fronting their property will enter into a Provisional Water Service Agreement with the District which will set forth requirements for installing and operating a Long Service. Such a Provisional Water Service Agreement will include, but not be limited to, the following requirements. A Long Service will be utilized unless or until a new water main pipeline extension is installed for service to the Developer s property and the surrounding area of benefit. In the event the District installs a water main pipeline extension ( Main Extension ) which extends the pipeline and water service to the Developer s property and other properties in the surrounding area, the Developer will be required to pay its proportionate share of the cost of the Main Extension. Section 6. Exhibit A, Rules And Regulations Governing Water Service And Water Users, Article III General Use Regulations and Requirements, Section P. Main Extensions, Subsection 10. Refund Agreement, is hereby amended to delete the requirement of the DSF. As a result, Subsection 10 shall hereby read as follows: 10. Refund Agreement. When a Developer has constructed water facilities required by the District for the purpose of serving more than the project being developed, the District will make a determination as to the participation in the incremental costs necessary to construct these facilities. If such participation is to be collected from future water users, an agreement for future refunds will be made with the Developer for a period of time up to 10 years after the Grant Deed, or other applicable title, of the water system is recorded. The use and eligibility for such refunds and 29

30 R agreements shall be subject to the District s rules and regulations as determined by the District from time to time. Section 7. Exhibit C, Cost Recovery Fees And Charges, Service Connection Installation Charges, Section 4. Distribution System Fee, is hereby deleted in its entirety. Section 8. If any section, subsection, clause or phrase in this Resolution is for any reason held invalid, the validity of the remainder of this Resolution shall not be affected thereby. The Board hereby declares that it would have passed this Resolution and each section, subsection, sentence, clause, or phrase thereof, irrespective of the fact that one or more sections, subsections, sentences, clauses or phrases or the application thereof be held invalid. Section 9. This Resolution shall be effective as of the date of adoption. The termination of the DSF, and the use of a Provisional Water Service Agreement instead, shall apply in regard to future applicants for connections to the District s water system and shall have no impact on any and all DSF s which have been imposed and/or collected prior to the effective date of this Resolution. PASSED AND ADOPTED this 16th day of April, BRENDA DENNSTEDT President 30

31 -6- R-2857 April 16, 2014 I HEREBY CERTIFY that the foregoing is a full, true, and correct copy of Resolution 2857 adopted by the Board of Directors of Western Municipal Water District of Riverside County at a duly-noticed meeting held on April 16, S.R. AL LOPEZ Secretary-Treasurer 31

32 March 31, 2014 TO THE ENGINEERING, OPERATIONS, AND WATER RESOURCES COMMITTEE: Director Thomas P. Evans Director Donald D. Galleano FROM: Craig D. Miller, Deputy General Manager Leasa Cleland, Director of Water Resources CONSIDER ADOPTION OF RESOLUTIONS 2854 AND 2855 DEDICATING A SOURCE OF REVENUE FOR REPAYMENT OF AND STATING INTENT TO REIMBURSE EXPENDITURES ASSOCIATED WITH A STATE WATER RESOURCES CONTROL BOARD CLEAN WATER STATE REVOLVING FUND LOAN RECOMMENDATION: Staff recommends the Engineering, Operations and Water Resources Committee recommend the Board of Directors: 1. Approve Resolution 2854, stating the intent to reimburse certain capital expenditures associated with the State Water Resources Control Board Clean Water State Revolving Fund Loan; and 2. Approve Resolution 2855, dedicating a source of revenue for the repayment of the State Water Resources Control Board Clean Water State Revolving Fund Loan. BUDGET IMPACT: Western Municipal Water District (District) anticipates that its gross share of costs for the Chino Desalter Phase 3 Expansion Project will be approximately $58 million. The District has actively sought ways to reduce costs by pursuing grant funding and low interest loans to reduce the net cost to $29 million. Additionally, the La Sierra Pipeline portion of the Riverside Corona Feeder project is anticipated to be approximately $17 million. To help fund these two projects, the District has requested loan funding in the amount of $24 million under the State Water Resources Control Board (SWRCB) Clean Water State Revolving Fund (SRF) Program. The District is not obligated to take out the full $24 million loan; rather at 32

33 Engineering, Operations, and Water Resources Committee March 31, 2014 Page 2 of 3 its discretion the District can use up to $24 million to fund specific and individual elements of the projects. The Clean Water SRF program provides low interest loans for water quality projects. The interest rate is half of the most recent California State General Obligation (GO) Bond Rate at the time of preliminary funding commitment. The interest rate as of October 2013 was 2.1 percent. The term of the loan will be 20 years, with repayment beginning one year after completion of construction. The SWRCB requires a source of revenue be dedicated toward repayment of the SRF Loan. EXECUTIVE SUMMARY: The Chino Basin Desalter Authority is constructing the Chino Desalter Phase 3 Expansion Project. The project expands the existing desalter program such that the groundwater pumping for the desalters would reach 40,000 acre feet per year. The pumping would occur in amounts and at locations in southwestern Chino Basin that the Chino Basin Watermaster believes would contribute to the achievement of hydraulic control. The additional groundwater will be treated and made available for municipal uses. The La Sierra Pipeline portion of the Riverside Corona Feeder project is intended to make the District less dependent on direct delivery of water from the Metropolitan Water District (MWD). It will allow the District to deliver water from the Chino Desalter and the Arlington Desalter to the wholesale and retail service areas. It will also provide for imported water delivery from the Mills Pipeline to wholesale customers. At the completion of the project, it will increase the District s ability to meet MWD s 7-day shutdown requirement. In order to finance the proposed projects, the District has applied to the SWRCB for a Clean Water SRF loan to fund up to $24 million of the total projects costs with low interest loans. Final approval of the SRF loan requires that the District establish one or more dedicated sources of revenue for repayment of the SRF loan, and establish the intent of reimbursement for expenditures paid prior to the issuance of the obligations or the approval by the SWRCB of the project funds. DETAIL: In August 2012, the District applied for an Expanded Use Clean Water SRF loan. The loan application described multiple elements of the Chino Desalter Phase 3 Expansion, including: Additional wells to serve the desalters Intertie pipeline and pump station Modifications at the Chino I Desalter 33

34 Engineering, Operations, and Water Resources Committee March 31, 2014 Page 3 of 3 The SRF application also included a 24-inch diameter pipeline and two pump stations for the La Sierra Pipeline that will deliver Chino and Arlington Desalter water to the District s retail area to provide additional water supply reliability for retail and wholesale customers. Approval of the loan application will lock in the interest rate for the Clean Water SRF loan. The District, at its option, may finance some, all, or none of the elements included in the approved SRF application. Staff recommends the adoption of Resolutions 2854 and 2855 ensuring reimbursement and repayment required for approval of the SRF loan. CRAIG D. MILLER, Deputy General Manager CM:LC:kg:ic:tb Attachments: 1. Resolution Resolution

35 Attachment 1 RESOLUTION 2854 A RESOLUTION OF THE BOARD OF DIRECTORS OF WESTERN MUNICIPAL WATER DISTRICT OF RIVERSIDE COUNTY TO SEEK REIMBURSEMENT OF CERTAIN CHINO PHASE 3 EXPANSION AND CERTAIN RIVERISDE CORONA FEEDER COSTS FROM THE STATE REVOLVING FUND WHEREAS, the Western Municipal Water District of Riverside County ( District ) desires to finance the costs of constructing and/or reconstructing certain public facilities and improvements relating to its water and wastewater system, including certain treatment facilities, pipeline and other infrastructure ( Project ); and WHEREAS, the District intends to finance the construction and/or reconstruction of the Project or portions of the Project with moneys ( Project Funds ) provided by the State of California, acting by and through the State Water Resources Control Board ( State Water Board ); and WHEREAS, the State Water Board may fund the Project Funds with proceeds from the sale of obligations the interest upon which is excluded from gross income for federal income tax purposes ( Obligations ); and WHEREAS, prior to either the issuance of the Obligations or the approval by the State Water Board of the Project Funds the District desires to incur certain capital expenditures ( Expenditures ) with respect to the Project from available moneys of the District; and WHEREAS, the District has determined that those moneys to be advanced on and after the date hereof to pay the Expenditures are available only for a temporary period and it is necessary to reimburse the District for the Expenditures from the proceeds of the Obligations. 35

36 - 2 - R-2854 NOW, THEREFORE, BE IT RESOLVED, by the Board of Directors of the Western Municipal Water District of Riverside County as follows: Section 1. The District hereby states its intention and reasonably expects to reimburse Expenditures paid prior to the issuance of the Obligations or the approval by the State Water Board of the Project Funds. Section 2. The reasonably expected maximum principal amount of the Project Funds is $24,000,000. Section 3. This resolution is being adopted no later than 60 days after the date on which the District will expend moneys for the construction portion of the Project costs to be reimbursed with Project Funds. Section 4. Each District expenditure will be of a type properly chargeable to a capital account under general federal income tax principles. Section 5. To the best of our knowledge, the District is not aware of the previous adoption of official intents by the District that have been made as a matter of course for the purpose of reimbursing expenditures and for which tax-exempt obligations have not been issued. Section 6. This resolution is adopted as official intent of the District in order to comply with Treasury Regulation and any other regulations of the Internal Revenue Service relating to the qualification for reimbursement of Project costs. Section 7. All the recitals in this Resolution are true and correct and this District so finds, determines and represents. 36

37 R ADOPTED, this 16 th day of April, BRENDA DENNSTEDT President April 16, 2014 I HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution 2854 adopted by the Board of Directors of Western Municipal Water District of Riverside County at its regular meeting held April 16, S.R. AL LOPEZ Secretary-Treasurer 37

38 Attachment 2 RESOLUTION 2855 A RESOLUTION OF THE BOARD OF DIRECTORS OF WESTERN MUNICIPAL WATER DISTRICT OF RIVERSIDE COUNTY PLEDGING REVENUES AND FUNDS TO SATISFY REPAYMENT OBLIGATIONS FOR THE FINANCING AGREEMENT WITH THE CALIFORNIA STATE WATER RESOURCES CONTROL BOARD FOR CERTAIN CHINO PHASE 3 EXPANSION AND CERTAIN RIVERSIDE CORONA FEEDER COSTS WHEREAS, the Western Municipal Water District of Riverside County ( District ) desires to finance the cost of construction of certain public facilities and improvements relating to the Chino Desalter Phase 3 Expansion and the Riverside Corona Feeder, including wells, raw water pipelines, product water pipelines, water treatment improvements, and pump stations; and WHEREAS, the District intends to finance the construction of the Projects or portions of the Projects with moneys provided by the State of California, acting by and through the State Water Resources Control Board ( State Water Board ); and WHEREAS, the District shall designate and maintain funding sources for its repayment obligation under the financing agreement with the State Water Board. NOW, THEREFORE, BE IT RESOLVED, by the Board of Directors of the Western Municipal Water District of Riverside County as follows: Section 1. The District hereby dedicates and pledges Net Revenues to payment of any and all Clean Water State Revolving Fund and/or Water Recycling Funding Program financing for certain Chino Phase 3 Expansion elements and certain Riverside Corona Feeder elements contained in the Clean Water State Revolving Fund application CWSRF# ( Project ). Section 2. The District commits to collecting such 38

39 - 2 - R-2855 revenues and maintaining such funds throughout the term of such financing and until the District has satisfied its repayment obligation thereunder unless modification to change is approved in writing by the State Water Resources Control Board on the foregoing funds and revenues without any further action necessary. So long as the financing agreements are outstanding, the District commits to maintaining the funds and revenues at levels sufficient to meet its obligations under the financing agreements. ADOPTED, this 16 th day of April, BRENDA DENNSTEDT President April 16, 2014 I HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution 2854 adopted by the Board of Directors of Western Municipal Water District of Riverside County at its regular meeting held April 16, S.R. AL LOPEZ Secretary-Treasurer 39

40 March 31, 2014 TO THE ENGINEERING, OPERATIONS, AND WATER RESOURCES COMMITTEE: Director Thomas P. Evans Director Donald D. Galleano FROM: Jeffrey D. Sims, Assistant General Manager/COO Derek E. Kawaii, Director of Engineering CONSIDER EXECUTION OF COVENANT AND AGREEMENT REGARDING EASEMENT RIGHTS WITH THE CITY OF RIVERSIDE FOR COLLETT AVENUE RECOMMENDATION: Staff recommends the Engineering, Operations and Water Resources Committee recommend the Board of Directors authorize the General Manager to: 1. Execute the Covenant and Agreement Regarding Easement Rights with the City of Riverside. BUDGET IMPACT: None; approval of the Covenant and Agreement Regarding Easement Rights (Covenant) will not cause Western Municipal Water District (Western) to incur any costs. EXECUTIVE SUMMARY: Western currently has easement rights for a 30-inch diameter pipeline for the Arlington Desalter pipeline. A Covenant has been drafted in order to secure future rights so any forthcoming relocation will not be Western s responsibility. DETAIL: With the acquisition of the Arlington Desalter in December of 2005, Western also acquired and maintains a 30-inch diameter pipeline located in Collett Avenue within an easement that was recorded January 31, The City of Riverside (City) is constructing an extension of Collett Avenue and has requested they be allowed to relocate a portion of the pipeline to be placed within the public right-of-way of Collett Avenue. The pipeline relocation work will be part of 40

41 Engineering, Operations, and, Water Resources Committee March 31, 2014 Page 2 of 2 the City s construction contract and Western will oversee and inspect the work. Western currently maintains prior easement rights for this pipeline and desires to maintain priority of rights pursuant to the existing easement for the relocated portion of the pipeline. The City has agreed to maintain these rights by means of a covenant. By this Covenant, Western will maintain prior rights and any future relocation of the pipeline, within the Collett Avenue extension, will be the responsibility of the party requesting such relocation. JEFFREY D. SIMS, P.E. Assistant General Manager/COO JDS:SH:dk:sc Attachments: 1. Map 2. Covenant and Agreement Regarding Easement Rights 41

42 EW MIT RID GE AM B R CE SD ST EN REV A AV E CO LL E TT AV E HU DD EN ST W HERMAN DR DR R PI E DE AR ST M SU VI Attachment 1 PI KE 42 E SC C NI R TE ST VI RI A AV E E AD M EN A Y PR O IR C ON AY RI A K YU AS TO T W AW AS TO L 200 VD BL DR LA IP L LA CO TC SE EL G:\Projects\Board\C ollettave_id86 99\MXD\Co lle ttave.mxd 0 K EL S TU INC AP CH The information shown on this map was compiled from the Riverside County GIS and Western Municipal Water District GIS. The land base and facility information on this map is for display purposes only and should not be relied upon without independent verification as to its accuracy. Riverside County and Western Municipal Water District will not be held responsible for any claims, losses or damages resulting from the use of this map. Th ursday, Febru ary 20, 2014 Existing Easment AN ST ST A R CI ST ST VE TA T E IPH OL LL CO N NA HA RY C BU BU AY W N Y BE AR ± inch = 400 feet 800 C CO SE HI DR Collett Ave PL CT ER Y LE C VE O TR LO D N IE EG NT NS E VE TA T E L PA NA RN CA CA R BA AV E LL CO C ER PI A QU LN Existing 30" Arlington Desalter Line DR L T O H PA CO CO EP UT C WY S FE L IF IC NT