HomeMy WebLinkAboutR30- Economic Development Agency CITY OF SAN BERNARDINO ORIGINAL
ECONOMIC DEVELOPMENT AGENCY
FROM: Emil A.Marzullo SUBJECT: East Valley Water District - Agreement for
Interim Executive Director Removal of Water and Sewer Lines at the North
Arden Guthrie Property (IVDA Redevelopment
Project Area)
DATE: April 27,2010
Synopsis of Previous Commission/Council/Committee Action(s):
On January 7, 2010, Redevelopment Committee Members Johnson and Brinker unanimously voted to recommend that the
Community Development Commission consider this action for approval.
Recommended Motion(s):
(Community Development Commission)
Resolution of the Community Development Commission of the City of San Bernardino approving and authorizing the
Interim Executive Director of the Redevelopment Agency of the City of San Bernardino ("Agency")to execute that
certain agreement by and between the Agency and the East Valley Water District for the removal of water and sewer
lines at the North Arden Guthrie Property(IVDA Redevelopment Project Area)
Contact Person(s): Brian Turnbull Phone: (909)663-1044
Project Area(s): IVDA Ward(s): 7
Supporting Data Attached: 0 Staff Report 0 Resolution(s)0 Agreement(s)/Contract(s)0 Map(s)0 Letter(s)
FUNDING REQUIREMENTS: Amount: $ -0- Source: N/A
Budget Authority: N/A
Signature: Fiscal Review:
Emil A. caul cutive Director Lori Pap) o Il t dministrative Services
Director
Commission/Council Notes: 2SPJ
euu�C�Tm 20i"o -io rasv eywuQO -wm.,i dw, &se SKB COMMISSION MEETING AGENDA
Meeting Date: 05//033//200110
Agenda Item Number: X Jt/
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
EAST VALLEY WATER DISTRICT -AGREEMENT FOR REMOVAL OF WATER AND
SEWER LINES AT THE NORTH ARDEN GUTHRIE PROPERTY
(IVDA REDEVELOPMENT PROJECT AREA)
BACKGROUND:
The Redevelopment Agency of the City of San Bernardino ("Agency") is the owner of seventeen (17)
acres of vacant property in the area bounded by Highland Avenue, Arden Avenue, 200, Street and
Guthrie Avenue, commonly known as the North Arden Guthrie Area ("Site") in the City of San
Bernardino ("City").
The Site is the product of a land assembly project which combined 73 separate properties over the past
15 years. A future commercial development has been proposed for the Site. For the past 6 months,
Agency Staff has worked with the contractor to clear the Site and prepare it for the proposed future
commercial development. The final task in this process is removing the streets, curb and gutter and
relocating the utilities, including the water and sewer lines.
CURRENT ISSUE:
On November 20, 2006, the Agency entered into a Redevelopment Project Study and Exclusive Right
to Negotiate Agreement ("ERN") with Home Depot U.S.A, Inc. (the "Developer"), to study the
possibility of developing the site into a retail center to include several retail stores and restaurants and
to be anchored by a third Home Depot store in the City. The ERN has now expired and Agency Staff
is preparing a Disposition and Development Agreement("DDA") for development of the Site.
I
On November 2, 2009, the Agency entered into a contract with B & B Contractors, Inc., to complete
the clearance of the Site. Prior to removing the water and sewer lines, the Agency and the East Valley
Water District ("District") must enter into an agreement to authorize the removal of the water and
sewer lines (the "Agreement"). The District requires that certain covenants and indemnities be made
to the District prior to the removal of the water or sewer lines. The Agreement contains covenants and
indemnities to the District in the event of damage caused by the removal of the lines.
ENVIRONMENTAL IMPACT:
The approval of the Agreement does not meet the definition of a"project" under Section 15378 of the
California Environmental Quality Act ("CEQA"), which states that a "Project" means the whole of an
action, which has a potential for resulting in either a direct physical change in the environment, or a
reasonably foreseeable indirect physical change in the environment.
enemm�urc®ms W201uwsaMOa vamywm dwm COMMISSION MEETING AGENDA
Meeting Date: 05/03/2010
Agenda Item Number:
Economic Development Agency Staff Report
East Valley Water District— Water&Sewer Lines
Page 2
FISCAL IMPACT:
Account Budgeted Amount: $ 0- Balance as of: April 27, 2010
Balance after approval of this item: N/A
RECOMMENDATION:
That the Community Development Commission adopt the attached Resolution.
Emil A. Marzullo,Interim Executive Director
eue��TK 201"w 3-10F VtllYw=w a-�dwm&s a Sks COMMISSION MEETING AGENDA
Meeting Date: 05//03/2010
Agenda Item Number: Aso-
I RESOLUTION NO. C 0 PY
4r..- 2
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF
3 THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING
THE INTERIM EXECUTIVE DIRECTOR OF THE REDEVELOPMENT
4 AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") TO
EXECUTE THAT CERTAIN AGREEMENT BY AND BETWEEN THE
5 AGENCY AND THE EAST VALLEY WATER DISTRICT FOR THE
6 REMOVAL OF WATER AND SEWER LINES AT THE NORTH ARDEN
GUTHRIE PROPERTY(IVDA REDEVELOPMENT PROJECT AREA)
7
WHEREAS, the Redevelopment Agency of the City of San Bernardino ("Agency") is a
8
9 community redevelopment agency duly created, established and authorized to transact business and
10 exercise its powers, all under and pursuant to the California Community Redevelopment Law
11 ("CRL"), codified under Division 24, Part 1 of the California Health and Safety Code commencing
12 at Section 33000 and is authorized to construct improvements located within the approved
13 redevelopment project areas in the City of San Bernardino ("City")in accordance with the CRL; and
14
WHEREAS, the Project Area displays substantial and pervasive symptoms of blight and
15
cannot be remedied by private parties acting alone without community redevelopment assistance;
16
17 and
18 WHEREAS, the District is a County Water District organized and operating pursuant to
19 California Water Code Section 30000, et seq.; and
20 WHEREAS, the Agency owns certain real property within the boundaries of the District,
21 which is located south of Highland Avenue west of Arden Avenue comprising approximately 17
22
acres of land in the City of San Bernardino, County of San Bernardino, State of California
23
24 (hereinafter the"Property"); and
25 WHEREAS,the Agency desires to sell and cause the-development of the-Property,however,
26 the Property currently contains water and sewer lines that are located in the City street rights-of-
27 way ("Facilities") which will be vacated and with the intent to revert the entire area to a single
28 legal parcel pending development thereof for a higher and better use to promote the economic
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1
I vitality of the Highland Avenue retail and commercial corridor; and
2 WHEREAS, the Agency desires to remove, or cause the removal of, the Facilities in order
3 to sell the Property to a master developer for the accomplishment of the redevelopment and
4
economic development goals of the Agency; and
5
WHEREAS, the purpose of that certain agreement by and between the Agency and the East
6
7 Valley Water District for the removal of water and sewer lines at the North Arden Guthrie
8 Property ("Agreement") is to provide the terms and conditions under which the Agency will
9 remove, or cause the removal of,the Facilities with the approval of the District.
10 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE
11 CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER AS
12
FOLLOWS:
13
Section 1. The information set forth in the above recitals of this Resolution is true and
14 correct.
15
Section 2. That the Interim Executive Director of the Agency is hereby directed and
16
authorized by the Commission to execute on behalf of Agency, the Agreement, a copy of which is
17
attached hereto as Exhibit"A".
18
Section 3. This Resolution shall take effect from and after its date of adoption by this
19
Commission.
20
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7
I RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF
THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING
2 THE INTERIM EXECUTIVE DIRECTOR OF THE REDEVELOPMENT
3 AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") TO
EXECUTE THAT CERTAIN AGREEMENT BY AND BETWEEN THE
4 AGENCY AND THE EAST VALLEY WATER DISTRICT FOR THE
REMOVAL OF WATER AND SEWER LINES AT THE NORTH ARDEN
5 GUTHRIE PROPERTY(IVDA REDEVELOPMENT PROJECT AREA)
6 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community
7 Development Commission of the City of San Bernardino at a meeting
8 thereof, held on the day of 2010, by the following vote to wit:
9 Commission Members: Aves Nays Abstain Absent
10 MARQUEZ
11 DESJARDINS
12 BRINKER
13 SHORETT
14 KELLEY
15 JOHNSON
16 MC CAMMACK
17
18 Secretary
19
20 The foregoing Resolution is hereby approved this day of 2010.
21
22
23 Patrick J. Moms, Chairperson
Community Development Commission
24 of the City of San Bernardino
25 Approved as to Form:
26
27 By:
' Agenc C msel
28
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1 EXHIBIT "A"
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EXHIBIT"A"
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AGREEMENT
FOR REMOVAL OF WATER AND SEWER LINES
BY AND BETWEEN THE
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
AND
EAST VALLEY WATER DISTRICT
THIS AGREEMENT FOR REMOVAL OF WATER AND SEWER LINES (this
"Agreement") is made this 3rd day of May, 2010, by and between the REDEVELOPMENT
AGENCY OF THE CITY OF SAN BERNARDINO, a public body, corporate and politic (the
"Agency")and EAST VALLEY WATER DISTRICT, a public agency(the "District").
RECITALS
A. The District is a County Water District organized and operating pursuant to California
Water Code Section 30000, et seq.
B. The Agency is a public body,corporate and politic organized and existing pursuant to
the California Community Redevelopment Law(Health and Safety Code Section 33000, et seq.).
C. The Agency owns certain real property within the boundaries ofthe District,which is
located south of Highland Avenue west of Arden Avenue comprising approximately 17 acres of land
in the City of San Bernardino,County of San Bernardino,State of California(hereinafter refereed to
as 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.
D. The Agency desires to sell and cause the development of the Property,however,the
Property currently contains water and sewer lines that are located in the City street rights-of-way(the
"Facilities")which will be vacated and with the intent to revert the entire area to a single legal parcel
pending development thereof for a higher and better use to promote the economic vitality of the
Highland Avenue retail and commercial corridor.
E. The Agency desires to remove,or cause the removal of,the Facilities in order to sell
the Property to a master developer for the accomplishment of the redevelopment and economic
development goals of the Agency.
F. The purpose of this Agreement is to provide the terms and conditions under which the
Agency will remove,or cause the removal of,the Facilities with the approval of the District.
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 REMOVAL OF FACILITIES. The Agency agrees to design the
removal of the Facilities from the Property in the following manner and according all applicable
Rules and Regulations of the District:
I
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a. The Agency shall design the removal of the Facilities from the Property in
coordination with the District, in accordance with any and all District requirements, and
subject to the District's approval in the exercise of its sole discretion. In this regard,prior to
the removal of any Facilities form the Property,the Agency shall famish the District with
design documents showing the work to be performed. The designs shall be submitted to the
District in a complete form with sufficient information to enable full review by the District.
The District may request certain changes to the designs, which the Agency agrees to
incorporate into the work to be performed for the removal ofthe Facilities from the Property.
b. The Agency shall furnish the District with any and all easements necessary
for any portion of the Facilities to remain on the Property following removal of the other
portions hereunder. All easements shall be submitted to the District for review and approval
by the District in the exercise of its sole discretion.
C. The Agency shall submit all plans, drawings, specifications, and contract
documents,for all work to be performed in connection with the Facilities,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 Agency with
authorization to proceed. The Agency shall not proceed with the removal of any Facilities
until the District so authorizes.
Section 2. REMOVAL OF FACILITIES. The Agency agrees to remove or cause the
removal of the Facilities, including construction of permanent disconnections to the Facilities that
are to remain on the Property as designed pursuant to Section 1 of this Agreement,in the following
manner and according to the Rules and Regulations of the District:
a. The Agency shall obtain all necessary permits from all public or private
agencies required for the removal of the Facilities. The Agency hereby grants the District
full access to the Property and all other locations where the work contemplated herein is to
be performed.
b. Removal of the Facilities 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 Agency shall be responsible for providing all
labor, materials and equipment necessary to perform the removal, and such work shall be
performed in a timely and workmanlike manner by a party or entity reasonably acceptable to
the District. All costs and liabilities in connection with the removal of the Facilities shall be
bome solely by the Agency.
C. The District shall inspect and approve all work to be performed under this
Agreement. However, any approval by the District of such work is understood to be
conceptual approval only and will not operate to relieve the Agency or its contractors,
consultants or subcontractors of responsibility for complying with all laws,codes,industry
standards and liability for damages caused by negligent acts, erors, omissions,
p 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
2
P\Agendas\Agent An=hmeasN4eMa AnmhmmssVAg s-Amend 2010105-01-10 EVWf)-Apamemf RemovY ofWNn utl Seuv Uim
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. The Agency shall cause the Facilities that are anticipated to be removed
under this Agreement to be inspected as required by any and all other public or private
agencies, as applicable.
Section 3. AGENCY'S COSTS. In addition to all other obligations imposed upon the
Agency under this Agreement, the Agency shall be responsible for the payment of all of the
following:
a. The Agency shall be solely responsible for the payment of all costs,fees and
expenses associated with the removal of the Facilities,including all costs,fees and expenses
incurred for the environmental analysis, engineering, and design thereof, if any.
b. The Agency shall comply with all Hiles, regulations, resolutions and
ordinances of the District that are currently in place or may hereafter be adopted during the
period of time that the removal of the Facilities is occurring, and the Agency shall pay or
cause to be paid when due any and all fees, deposits, charges, rates, fines,penalties, taxes
and/or assessments that may be levied by the District during the course of work for the
removal of the Facilities.
Section 4. SECURITY.
a. The Agency shall obtain from its contractors and/or subcontractors
performance, completion and/or payment bonds for the minimum amount of not less than
one hundred percent (100%) of the estimated removal costs for the Facilities, and which
shall contain covenants otherwise acceptable to the District.
b. The Agency shall provide a maintenance bond for all construction work
necessary to allow for the removal of the Facilities from the Property. Such maintenance
bond shall be equal to the minimum amount of not less than one hundred percent(100%)of
the estimated construction costs to install caps, fittings, thrust blocks, and all other work
necessary to complete separation of those Facilities to be removed from the Property from
those Facilities to remain on or adjacent to the Property, and which shall also contain
covenants otherwise acceptable to the District. Such bond shall remain in force for at least
twelve(12)months following completion of said construction work.
C. The Agency shall also procure and maintain or cause to be procured and
maintained 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. 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 Agency and/or its officers, directors,
shareholders, guests, invitees, trespassers, agents, contractors, consultants, and employees, or for
3
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property damage, from any cause arising out of, or in any way related to, the removal of the
Facilities and/or the Agency's obligations hereunder.
Section 6. RELEASE. The Agency 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 5 above and for any costs and expenses incurred in connection therewith.
The Agency,notwithstanding the provisions of California Civil Code Section 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 Agency 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 ofany claims that may
arise from the aforementioned whether such claims are currently known or unknown. The Agency
understands and acknowledges the significance and consequences such specific waiver of Civil Code
Section 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 5 above,that may arise in the future whether such
claims are currently foreseen or unforeseen.
Section 7. HOLD HARMLESS. Excepting the sole or active negligence or willful
misconduct of the District, the Agency 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
Agency and/or its officers,directors,assignees,guests,invitees,agents,contractors,consultants and
employees in connection with the removal of the Facilities from the Property,the remainder of the
Facilities left on the Property, and the performance of its obligations under this Agreement,
including design defects, even if occurring after the completion of the removal, 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
Agency agrees to defend, indemnify, and hold the District harmless from and against all claims,
losses, liabilities,damages,demands,actions,judgments,causes of action, assessments,penalties,
costs, expenses (including, without limitation, the reasonable fees and disbursements of legal
counsel, expert witnesses, and accountants), and all foreseeable and unforeseeable consequential
damages which might arise or be asserted against the District and/or the Agency with regard to the
removal of the Facilities from the Property,the remainder of the Facilities left on the Property,and
the performance of this Agreement, 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.
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Section S. NOTICES. Any notice,tender,or delivery to be given hereunder by either party
to the other shall be effected by personal delivery in writing or by registered or certified mail,
postage prepaid,return receipt requested,and shall be deemed communicated as of mailing or in the
case of personal delivery,as of actual receipt. Mailed notices shall be addressed as set forth below,
but each party may change its address by written notice in accordance with this section.
If to the DISTRICT: East Valley Water District
Attn.: General Manager
3654 Highland Avenue, Suite 18
Highland, California 92346
If to the Agency: Redevelopment Agency of the City of San Bernardino
Arm.: Emil A. Marzullo,Interim Executive Director
201 North"E" Street, Suite 301
San Bernardino, California 92401
Section 9. 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 parties shall pay the cost of such arbitration equally; however, the
prevailing party in the arbitration shall be entitled to reimbursement of its attorney's fees and other
costs incurred in connection therewith.
Section 10. ATTORNEYS FEES. If a dispute arises which cannot be resolved by
arbitration,regarding the breach or enforcement of the provisions of this Agreement,the prevailing
party therein shall be entitled to recover all attorneys' fees and other costs actually incurred in
connection with reaching a resolution of the dispute whether or not an action, claim, or lawsuit is
filed. In any action brought,the entitlement to recover attorney's fees and costs will be considered
an element of costs and not of damages.
Section 11. 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
Agency in their individual, separate, and/or other capacities.
Section 12. ASSIGNMENT. This Agreement may not be assigned to any individual or
entity without the written consent of the parties hereto.
Section 13. INTEGRATION AND AMENDMENT. This Agreement constitutes the entire
understanding of the parties hereto with respect to the subject matter hereof and supersedes any and
all prior agreements, whether oral or written, between the parties in connection therewith. This
Agreement may not be amended unless in writing and signed by the parties hereto.
Section 14. 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.
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P. ,,endas\Agenda AnahmentsNgerde AtowhmmtMUg Amcod 301ON3-03-10EV .Agranrcnt for Removal of Water a g u Lim.dm
Section 15. INTERPRETATION AND ENFORCEMENT. This Agreement 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 simply by virtue ofhaving drafted the
uncertain or ambiguous 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 Agreement
shall be enforced and governed by and under the laws of the State of California,and venue for any
action brought to interpret and/or enforce any provision of this Agreement shall be in a state or
federal court located in the State of California that would generally have in rem jurisdiction over the
Property.
Section 16. 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 17. 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 18. 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 upon the party.
6
P'.4lgendu�Agnda MamenaUoenda Att¢hm skAam Ame 30100543-10EVWD-Apa.(ur Removald .,and Sewer Lines doe
IN WITNESS WHEREOF,the parties hereto have caused this Agreement to be executed by
their respective officers as of the date first above written.
REDEVELOPMENT AGENCY OF THE CITY OF
SAN BERNARDINO
AGENCY:
Dated: By:
Emil A. Marzullo, Interim Executive Director
Approved as to Form and Legal Content:
By:
Agency Cb& t
EAST VALLEY WATER DISTRICT DISTRICT
DISTRICT:
Dated: By:
President, Board of Directors
ATTEST:
By:
Secretary
7
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