HomeMy WebLinkAbout5998_CCv0001.pdf RESOLUTION O. 5998
ARESOLUTION OF THE CITY COUNCIL OF THE CITY OFREDLANDS AFFIRMING
FINDINGS MADE PURSUANT TO T14E CALIFORNIA ENVIRONMENTAL QUALITY ACT,
MAKING DETERMINATIONS WITH REGARD TO THE REELANDS GENERAL PLAN,AND
APPROVING AN AGREEMENT WITH THE COUNTY OF SAN BERNARDENO AND
COUNTY SERVICEAREA NO. 70 EV-1,FOR THE PROVISION OF UTILITIES AND OTHER
MLJNICIPAL SERVICES TO CSA 70 EV-1 AND THE "DONUT HOLE," AND FOR THE
SHARING OF SALES TAXES AND PROPERTYTAXES GENERATED WITHIN THE"DONUT
11OLE"
WHEREAS, the County of San Bernardino, County Set-vice Area No. 70 EV-1, Redlands
Joint Venture, LLC and representatives of the United Donut Hole Property Owner's Association,
have approached the City and entered into negotiations with the City, for, among other things, the
City's provision of water and sewer services to CSA 70 EV-1 and the provision of City police and
fire services to the unincorporated area commonly known as the"Donut Hole;" and
WHEREAS, the County of San Bernardino has also proposed sharing sales taxes and
property taxes t,hat are generated within the Donut Hole with the City pursuant,in part,to California
Constitution Article X1,11, Section 29 and Government Code sections 55700 getLscq; and
WHER-EAS,these negotiations have resulted in a written proposal(the"Proposal")from the
County of San Bernardino and CSA 70 EV-1,to the City,in the fon-n attached hereto as Exhibit"A;"
and
WHEREAS,pursuant to the California Constitution and the GoverfUrtent Code,approval of
the Proposal by the City must occur by ordinance or resolution,and by afibur-fifths vote of the entire
membership of the Redlands City Council; and
WREREAS, the approval of the Proposal constitutes a "project" under the California
Environinental Quality Act ("CEQA"); and
WHEREAS, the County of San Bernardino is the"lead agency"under CEQA for purposes
of the approval of the Proposal and has prepared in environmental impact report("EIR")which was
certified on October 23, 2001, and which purports to encompass the Proposal within its project
description, and
INTIJEREAS.
pursuant to CE A,the City, as aprovider of utilities services to CSA 70 EV-1
and other ri-iamici pal services to the County "Donut Hole" area, is a "responsible agency" under
CEQA for purposes of approval of the Proposal; and
WHEREAS, in.accordance with CEQA, this City Council has undertaken a review of the
October23,2001 ElRand,pursuantto State CEQA Guidelines section 15162,found and determined
that no further environmental documentation is necessary for this City Council to approve the
Proposal; and
WHEREAS,for each significant effect on the environment associated with the Proposal and
the project for which the October 23, 2001 EIR was prepared which cannot be mitigated to a level
of insignificance,this CityCouncilhas adopted findings and a statement of overriding considerations
recognizing that changes or alterations to the Proposal and project are within the responsibility of
another public agency and have been, or should be, adopted by that other public agency; or,'that
specific economic,social,legal,technological or other considerations make infeasible the unit gation
measures or alternatives identified in the October 23, 2001 EI ; and Z,
WHEREAS, this City Council has found, deterruiried and adopted a statement of"Facts,
Findings and Overriding Considerations" that because of the Proposal's overriding benefits to
Redlands' community, this City Council is approving the Proposal despite any potential
environmental harin resulting frorn implementation of the Proposal and the project discussed in the
County's October 23, 2001, EIR; and
WHEREAS,this City Council recognizes that,pursuant to Government Code section 56133,
the City's provision of utilities services to CSA 70 EV-1, and the provision of police and fire
set-vices to the County's "Donut Hole," will require the consent of the Local Agency Formation
Commission of the County of San Bernardino; and
WHEREAS, this City Council further recognizes that an amendment to its 1992 Settlement
Agreement with the Inland Valley Development Authority may be necessary to Implement the
"property tax sharing"provisions of the Proposal; and
WHEREAS, on November 4, 1997;the voters of the City of Redlands approved a citizen
sponsored initiative ordinance, designated on the election ballot as Measure "u,", to amend the
Redlands General Plan; and
WHEREAS, in accordance with law, the provisions of Measure "U" became effective Oil
December 12, 1997; and
WHERE AS, Measure "U" provides in part that "in interpreting this initiative measure or
resolving any anibiguity thereof, the City Council and all other City entities charged with
implementing or enforcing this initiative measure or any part of it, as well as any reviewing court,
shall interpret this initiative measure in the manner which most vigorously and effectively
accomplishes its purposes and operative provisions-" and
WHEREAS, this City Council has recently become aware that questions have arisen in the
Redlands community, and from representatives of the County andlZedlands Joint Venture LLC,
Nmut 2
about the, application and effect of Measure "U" on this City Council's authority to approve and
comply with the Proposal; and
WHEREAS, in its efforts to properly interpret and resolve. any arnbguities that might exist
as to the relationship between Measure "U" and the Proposal, this City Council is guided by the
language of the court in.Bownds v. City, ref Glendale, (1980) 113 Cal.,App.3d 875,883 where it was
stated- "Planning is at best an inexact science. General plans or policy statements are often
serriantical exercises which require considerable interpretation on the part of persons charged with
implementing them" and that "a court cannot and should not involve itself in a detailed analysis of
whether the elements of a General Plan are adequate to achieve its purpose. To do so would involve
the Court in the writing of the Plan. That issue is one for determination by the political process and
not by the judicial process;" and
WHEREAS, in accordance with the directives of Measure "U," this City Council, in the
exercise of its legislative discretion and from time to time when convenient or necessary,has adopted
resolutions to implement and/or interpret Measure "U" to establish City policy, clarify City intent
and assist staff, Redlands' citizens and others in understanding and complying with the initiative
Z�7
measure,
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
REDLANDS AS FOLLOWS:
Section 1. This City Council determines that the above-referenced recitals are true and
correct.
Section 2. A. After a careful review of the County's October 23, 2001 EIR, this City
Council finds and determines that no substantial changes are proposed by the Proposal to the project
that was the subject of that EIR which will require major revisions of the October 23,2001, EIR due
to the involvetnent of new significant environmental effects or a substantial increase in the severity
of previously identified significant effects; and
B: This City Council further finds and detern-fines that no substantial changes have
occurred with respect to the circumstances under which the project will be undertaken which is the
subject of the EIR as a result of the Proposal which will require major revisions of the October 23,
2001 EIR due to the involvement of new siginficant environmental effects or a substantial increase
in the severity of previously identified significant effects; and
CThis CityCouncd further finds and detern-lines that no new infonriation of substantial
importance,which was not known and could not have been known with the exercise of reasonable
diligence at the time the County"s October 23,2001 EIR was certified and adopted which shows that
i. The Proposal will result in the project that is the subject of the EIR having one or
rnore significant effects not discussed in the previous EIR;
fAcatjmResoIS99F,Donut I 10C.,q)d 3
ii. The Proposal will cause significant effects previously examined in the EIR to be
substantially more severe than shown in the October 23, 2001 E1R;
Iii, That the Proposal will cause mitigation measures or alternatives previously found not
to be feasible for the project that is the subject of the E1,R to be, in fast, feasible and
that those measure or alternatives would substantially reduce one or more significant
effects of the Proposal, but the Proposal's proponent (the County)declines to adopt
the mitigation measures or alternatives; and
IN. That the Proposal would result in mitigation measures or altematives being available
which are considerably different from those analyzed In the October 23, 2001 ElR
and which would substantially reduce one or more significant effects on the
environment, but the Proposal proponent (the County) declines to adopt the
mitigation,measures or alternatives.
Section 3. This City Council, through the exercise of its legislative discretion, hereby
finds and determines that this City Council's approval of the Proposal does not violate the goals,
policies or express provisions of the City's General Plan, and in particular that provision of the
General Plan which was added by the voter-initiative commonly referred to as Measure "u,"
because:
A. Section, 1A. (b) of the portion of the General Plan relating to "Principles of
Managed Growth,"does not apply to the Proposal for the reasons that:
I. The City, itself, is not providing public utilities services to any properties,
contiguous or not to the City's boundaries, that are within the City's sphere
of influence or planning area. Rather,the Proposal only obligates the City to
sell water and provide sewage capacity to CSA 70 EV-1. No City facilities
will connect any City water transmission lines, or City sewer trunk lines, to
any particular properties. It is solely within the discretion, control and cost
of the legislative bodies of the County of San Bernardino and CSA 70 EV-I
as to(a)whether CSA 70 EV-I will construct any water distribution lines or
any sewer collection lines that might connect to City facilities,(b)whore will
receive utilities services from CSA 70 EV-1, and (c)whether CSA 70 EV-I
will make any utility services available and physical utilities to any particular
properties,
2. This City Council has deterniffied that the philosophy and goals of Section
I A.20(b) -- that any properties non-contiguous to the City and within the
City's Sphere of hifluence or planning area that are provided with public
utilities by the City pay all capital improvement fees and development fees
as if they were developing within the City-- are satisfied (if persons believe
the City is arguably violating the spirit and intent of Measure "U" by
indirectly serving utilities to such properties) by the City's receipt of sales
taxes and property taxes froin the County,in addition to the City receiving its
DonW Holexkpd 4
actual costs for the provision of utilities services to CSA 70 EV-1, pursuant
to the provisions of the Proposal.
Section 4. The Proposal attached hereto as Exhibit "A" is hereby approved, and the
Mayor and City Clerk are authorized to execute and attest to the Proposal and forward an executed
copy of the Proposal to the Board of Supervisors of the County of San Bernardino acid to the
legislative body of CSA 70 EV-1.
Section 5; Pursuant to Government Code section 55706,the City Clerk is hereby directed
to forward executed copies of this Resolution and the Proposal to the auditor,or officer holding the
equivalent position, of each local agency that is a party to the Proposal.
Section 6. The City's Community Development Director is hereby directed to file, and
obtain evidence of posting, of a"Notice of Determination"with the Clerk for the County of San
Bernardino within five(5) days after this City Council's approval of this resolutions
ADOPTED, SIGNED AND APPROVED this 8th day of January, 2002.
Mayor of the City of Redlands
Attest.,
C k
1,LolTie Power.City Clerk-of the City of Redlands hereby certify that the foregoing resolution was
adopted by the City Council at a regular meeting thereof held on the 8th day of January,2002 by the
following vote:
AYES: Couricilmembers Peppler, Gilbreath, Harrison; Mayor Haws
NNOES: Council member George
ABSENT: None
ABSTAIN, None
Cl ,City Cl-
Donut ffolewpd 5
EXHIBIT "A" TO RESOLUTION Na. 5998
1"
AGREEMENT
2 CONCERNING THE "DONUT HOLE"
3
4 THIS AGREEMENT CONCERNING THE 44DONUT HOLE" (hereafter the
"Agreement"), is by and between the County of :pan Bernardino (hereafter the
8 `COUNTY-) and the City of Redlands (hereafter the "CITY"), County Service Area 70,
7 Improvement Zone EV-1 (hereafter "CSA 70 EV"-1"), collectively referred to herein as
8 the "Parties", and is effective as of the date last approved by the Parties (the "Effective
9 Date"
10
11 W I T N E S S E T Hit
1
13 WHEREAS, the geographic area known as the `Donut Mole" (more fully
14 described on Exhibit "A" DONUT HOLE DESCRIPTION hereto) is located in the
15 unincorporated area of the COUNTY but is completely surrounded on all sides by the
18 incorporated CITY; and,
17
18 WHEREAS, bath the COUNTY and the CITY have an interest in developing,
19 promoting and maximizing the beneficial use of the Donut Hole as an emerging regional
20 business center, and,
21
22 WHEREAS, businesses seeking locations in the Donut Hole should not become
23 entangled in disputes between the COUNTY and the CITY over water and sewer
24 services, police and fire services, tax revenue allocations and other jurisdictional issues,
2E and,
26
27 WHEREAS, the CITY has engaged in litigation against the COUNTY as well as
28 property owners within the Donut Hole for the purpose of asserting jurisdiction over the
Pagel RAH 18573110 0110 00
Donut Hale; and,
2 WHEREAS, such litigation has been settled pursuant to a Settlement Agreement
3 dated February 2, 2001; and,
WHEREAS, the COUNTY has approved by unanimous vete of the Board of
5 Supervisor amendments to the General Plan, repeal of the East Valley Corridor Specific
8 Plan, amendments of the County Development Code, modifications to previous
7planning approvals and certified an Environmental Impact Report for such actions; and,
8 WHEREAS, CSA 70 EV-1 is pursuing alternative options for obtaining water and
serer from sources other than the CITY; and,
10 WHEREAS, an agreement with the CITY must be approved by January 8, 2002
11 or CSA 79 EV-1 will seely alternative sources of water and sewer service; and,
12 WHEREAS, the COUNTY and the CITY desire to set forth their agreement on
13 how to resolve the aforementioned lingering jurisdictional issues and disputes between
14 the two entities on developing the [donut Hole; and,
15 WHEREAS, COUNTY and CITY desire to share, for a limited ;period of time,
16 sales tax avenue generated from development in the Donut dale; and
17 WHEREAS, the voters of California, on November 3, 1998, approved Proposition
18 No.. 11 which amended Article XIII, Section 29 of the California Constitution to allow
19 cities and counties to enter into agreements to share sales and use tax revenues with
20 the approval by the legislative bodies of both entities by a two-thirds vote; and
21 WHEREAS, the State Legislature amended Governmental Code section 55700
22 et seq. to provide the option for approval of sales tax revenue:sharing agreements; and
23 WHEREAS, the COUNTY and CITY desire to agree to a distribution of sales tax
24 revenue generated from development in the Donut Hale, irrespective of jurisdictional
25 boundaries, consistent with this Agreement.
26 NOW, THEREFORE BE IT RESOLVED, in consideration of the promises and
27 mutual covenants and conditions contained herein, the Parties hereto do hereby agree
28 as follows.
Page 2 RAH 785733.70 00812
1 Section 1. WATER AND SEINER SERVICES.
1.1 Bulk water and sewer capacity for the Donut Hole will be provided by the
CITY to CSA 70 EV-1. The CITY warrants and represents that it will provide adequate
capacity in its water and waste water collection systems to CSA 70 E -1 to meet the
5 demands of development within the Donut dole as that development occurs, and that it
6 has adequate capacity in its waste watertreatment plant to serge the Donut Hole.
7 During the term of this Agreement, the CITY shall be unconditionally obligated to sell
8 adequate water and provide seiner capacity to CSA 70 EV-1 so that CSA 70 EV-1' can
9 provide water and sewer service to the Donut Hole properties as necessary to
10 accommodate development of such properties subject to the preconditions that (i) water
11 supply be reasonably, physically available to the CITY, with the CITY obligated to use
12 best efforts to obtain such water, and, (ii) the CITY is not prohibited from providing
13 service as a result of its compliance with Federal and State laws. Such provision of
14 water and sewer service by the CITY to CSA 70 EV-1 shall not be subject to moratorium
15 or water conservation measures, unless, (i) that moratorium or water conservation
16 measure is enacted by the CITY in accordance with state or federal mandates, or (ii) is
17 a water conservation'measure implemented by the CITY under the Redlands :Municipal
18 Code to apply' in the same manner as applied to the CITY's then-existing water
19 customers and does not constitute a defacto moratorium on building within the Donut
0 Hole. The Parties hereto acknowledge that (i) CITY is in the process of implementing a
21 non-potable water system which will deliver non-potable water' through local non-
22
potable water mains- and extensions installed by CSA' 70 E -1 and connected to the
23 CITY constructed master planned non-potable water facilities (as shown on Exhibit "D",
4 RED CADS WATER AND SEINEN MASTER PLANS, Page 3 of )-for landscaping and
25 other cion-potable water uses, and (ii) existing wells located within the Donut Dole could
26 also be used for landscaping and other non-potable water uses. CSA '70 EV-1 ,shall
7 require new development within the Donut bole to install local non-potable water mains
8 and extensions to connect to the CITY constructed master planned non-potable water
Page 3 RAH 185733.10 0110812002
1 system (as shown on Exhibit "I3", REDLANDS WATER AND SEWER MASTER PLANS,
2 Page 3 of ) In accordance with the CITY's requirements. In the event CITY's non-
potable system is not available at the time of issuance of the first certificate of
4 occupancy for any project within the Donut Hole, CITY agrees to service the non-
5 potable system with potable water (charging at rater rates based on the actual cost for
6 the potable water supplied [potable water usage rates], but the Water Capital
7 Improvement Charges will be at the rates' applicable to non-potable water) until such
8 time as non-potable water is available to service the non-potable system. The Parties
acknowledge that the rates for non-potable water have not been established' as of the
10 Effective Date. CITY' agrees to establish such non-potable water rates on a consistent
11 CITY-wide basis as quickly as practicable following execution of this Agreement. Any
12 such non-:potable rates and charges will be based on a consistent rate structure which
13 shall be based on the actual cost to provide non-potable water service to properties
14 located within zones within the CITY's service area.
15
16 1.2 Capacity, impact and/ or connection fees ("'mater and Sewer Capital
17 Improvement Charges") to access the CITY's system will be pard to CITY by
18 CSA 70 EV-1 at the time of project building permit issuance by the COUNTY. Such
19 fees will be reimbursed to CSA 70 V-1 from the property owner at no markup.
20 Capacity or connection fees will be based on the same fee structure for properties
21 located within the CITY's service area that access CITY water and sewer services. No
22 additional or special fees or charges shall be imposed in connection with the sale of
23 water and sewer capacity to CSA 70 E11-1. Attached hereto as Exhibit "S" WATER
24 AND SEWER CAPITAL IMPROVEMENT CHARGES, is a complete and exclusive list of
25 capacity, impact and/or connection fees charged in connection with accessing CITY'
26 water' and sewer system. CITY shall have the right to modify the Water and Sewer
27 Capital Improvement Charges set forth on Exhibit "B" WATER AND SEWER CAPITAL
28 IMPROVEMENT CHARGES, from time to time, so long as such modifications are
Page 4 RAH 185733.10 01108+2002
I applied uniformly throughout CITY's service area; provided, however, the Water and
Sewer Capital Improvement Charges set forth on Exhibit "B", WATER AND SEWER
8 CAPITAL IMPROVEMENT CHARGES, shall remain in effect for the following time
4 periods without modification with respect to any project which obtains final project
5 approvals and a development agreement from the COUNTY on or before October 1,
6 2002:
7 (i) for a single phased project, the Water and Sewer Capital Improvement
8 Charges set forth on Exhibit "B", WATER AND SEWER CAPITAL IMPROVEMENT
9 CHARGES, shall remain in effect for a period of three years from the date (herein
10 "Approval Bate") of project approval and entryinto a development agreement with
11 COUNTY; and
12 (ii) for a m ltiph sed project, the Water and Seaver Capital Improvement
13 Charges set forth on Exhibit "°B", WATER' AND: SEWER CAPITAL IMPROVEMENT
14 CHARGES, shall remain in effect for a period of three years from the Approval Gate
15 with respect to the fiat phase of such project and shall remain in effect for five years
16 from the Approval Date with respect to subsequent phases of the project;.
17
18 1.3 The cost of monthly water and sewer services to GSA 70 EV-1 will be
19 calculated at the CITY's actual cost of providing the service as shown in Exhibit "C",
20 CUSTOMER SERVICE CHARGES, as "Inside Rates" provided that the CITY shall have
21 the right to modify the Customer Service Charges and rates shown In Exhibit "C",
22 CUSTOMER SERVICE CHARGES, from time to time, so long as such modifications are
28 applied uniformly throughout CITY's service area in the same manner calculated for
24 other similar customers of the CITY; provided, however, that the parties hereto
25 recognize and agree that CITY is providing water and sewer service to CSA 70 EV-1 on
28 a bulls basis and CITY will not be providing new water and sewer service to any property
27 owners within the Donut Hole. CSA 70 EV-1 shall provide meter reading and billing,
28 therefore, since the CITY will not incur those costs the 'Water Service Charge will be
Page 5 PAH 185733.10 011081200
1 reduced by deleting the customer service component of the 'CITY rate structure.
CSA 70 EV-1 shall provide operation and maintenance of local mains and extensions
and appurtenances. Accordingly, the utility'customer charges will be reduced on a cost
4 basis by an amount equal to the maintenance, operation and depreciation costs
incurred by CSA 70 EV-1 on the potable water, non-potable water and sewer systems
6 owned by CSA 70 EV-1 in the Donut Hole... These charges will be deleted from the
7 normal calculation of service charges of CITY. Attached hereto as Exhibit "C",
8 CUSTOMER SERVICE CHARGES, is a complete and exclusive schedule of the
9 component parts of the monthly service cost that will be charged by CITY to
10 CSA 70 E1/-1. CSA 70 E' -1 will install individual meters for each customer to which it
11 provides water service within the Donut Hole. The monthly charge from CITY to
12 CSA 70 EV-1 shall be paid by CSA 70 EV-1 based upon the cumulative total of all water
13 and sewer service units provided to individual customers and based on meter readings
14 for those customers.. CITY shall have the right to periodically audit meter readings.
15 CSA 70 EV-1 shall test and replace defective meters.
16
17 1.4 The cost of infrastructure development within the Donut Hole shall be paid
13 for by the Donut Hole property owners and conveyed in fee to CSA 70 EV-1.
19 CSA 70 E11-1 shall adopt water, sewer and non-potable water design standards that are
0 consistent with CITY standards, as amended from time to time by CITY. CSA 70 EV-1
21 shall be responsible for installation of extensions and local main linos fronting the
2 developed property. To the extent that CSA 70 EV-1 requires any property owner to
3 oversize such lines, such property owner shall enter into a reimbursement;agreement or
24 other arrangement with CSA 70 EV-1'. Should the formation of a special financing
25 district for primary or oversized infrastructure be deemed desirable, COUNTY will
26 consider the formation of an assessment or special tax district. With respect' to costs
7 incurred by Donut Hole owners prior to the Effective Date in connection with future
28 construction;of primary or oversized infrastructure within the Donut Hole, CSA 70 EV-1
Page 6 RAH 18573 .10 0110&2002
1 and the property owners will enter into an arrangement (such as a Community Facilities
District) to reimburse such costs to the extent legally permissible in accordance with
3 COUNTY policy and spread the costs ratably over the land within the Donut Herb,
4
5 1.5 CITY acknowledges that CSA 73 E '-1 will incur significant capital casts in
5 connection with constructing pipelines and ether infrastructure within the Donut Hale for
7 the purpose of providing retail water and sewer service to the Donut Hole. In order for
8 CSA 70 EV-1 to be financially viable, it must have a stable customer base and a steady
9 source of revenue for repayment of such capital costs as well as for continued
10 maintenance and payment of administrative costs of operating CSA, 70 E -1.
11 Accordingly, CITY agrees that CCA 70 EV'-1 will have the exclusive right to provide
12 water and sewer services to the entire donut Hole until such time as CITY has annexed
13 the entire donut Hole, provided, however, the following rules shall apply to existing
14 CITY water and sewer customerswithin the Donut Hole: (i) CITY shall continue to serve
15 property ("CITY Served Property's) for which the current owner or occupant is an active
15 water and/dr sewer customer of CITY (as shown on Exhibit "ID", REDLANDS WATER
17 AND SEWER MASTER PLANS, pages 1 & 2 of 3), and who must also be currently
15 receiving such services and currently beim billed for such services, but only to the
19 extent that the existing use of the property being served does not change;or significantly
20 expand and the volume and type of water and/or sewer usage remains substantially the
21 same as existing on the Effective tate, (ii) at such time as the use of CITY Served
22 Property changes, or the owner thereof proposes a significant expansion of the use
3 thereof, CITY shall terminate its services to such property and CSA 70 EV-1 shall
24 commence serving such property under the terms of this Agreement, and (iii) prior
25 customers of CITY within the Donut Hole who are not currently receiving services and
26 are not currently being billed by CITY shall receive all water and sewer services from
7 CSA 70 EV-1 in accordance with the terms of this Agreement, except that if the prior
3 customer has an existing meter on-site and desires to reinstate nater and/or sever
Page 7 RAH18573alO 0110&2002
I service for the identicaluse previously served by CITY, CITY shall be entitled to
reinstate service under such circumstances. Although this Agreement anticipates
piecemeal annexation of the Donut Hale into CITY, CITY agrees that CSA 70 EV-1 will
4 continue to provide service to those properties annexed into CITY until the entire Donut
8 Hole has been annexed. Accordingly, CITY agrees that the normal rule that a County
6 Service Area is absorbed into-a CITY upon annexation of affected properties will not
7 apply until the entire Donut Hole has been annexed into CITY.
8
9 1.6 The Parties hereto acknowledge that the CITY General Plan includes
10 provisions commonly Known as [Measure U which provide (among other things) certain
11 rules as to the provision of water and sewer service to areas outside of CITY. The
12 Parties hereto have reviewed and analyzed Measure U and concluded' that this
13 Agreement is in compliance with Measure U. In order to provide; further assurance of
14 compliance, CITY shall cause its CITY Attorney to issue a formal opinion to
15 CSA,70 EV-1 and COUNTY that this Agreement is in compliance with Measure U.
18 Such opinion shall include a detailed analysis of Measure U, a review of applicable case
17 law, statutory law and constitutional provisions, and a detailed application of such law to
18 ` the actual situation presented by CITY's sale of bulb water and sewer service to
19 CSA 70 EV-1 pursuant to this Agreement. The form of such formal opinion shall be
g subject to COUNTY and CSA 70 EW-1 approval prior to execution of this Agreement.
21
22 1.7 CITY agrees to indemnify and hold harmless the COUNTS and
8 CSA 70 E -1 from any suits, claims, oast, liabilities, or attorney's fees incurred by the
4 11COUNTY and/or CSA 70 V-1 arising from or in connection with any claim, suit or
8 determination by any court of law that this Agreement is not in compliance with Measure
8 U. In addition, in the event a lawsuit is filed challenging the validity of this Agreement as
7 in violation of Measure U, and such lawsuit is not finally resolved within six months from
8 the date of filing, CSA 70 EV-1 and/or COUNTY shall be entitled to: terminate this
Page 8 RAH 18573110 0110&'20,02
1 Agreement without any further obligation to CITY or to each other. Notice of such
termination shall be given pursuant to Section 8, NOTIFICATIONS.
3
4 1.8 CSA 70 EV-1 shall own all water distribution and sewer collection
5 infrastructure constructed for its provision of water and sewer to the Donut Dale. CITY
6 shall be entitled to construct and own water transmission and sewer trunk infrastructure
7 set forth in its Water and Sewer Master Plans, as they may be amended from time to
8 time by CITY, that service areas within and outside the Donut Hate. It is the intent of
the Parties hereto that CITY's ownership of infrastructure within the Donut Hole shall b
10 limited to major transmission and trunk lines that are used for the broad transmission of
11 water and collection of wastewater as set forth on Exhibit "U', RELY NDS WATER
12 ANISSEWER MASTER PLANS, as they may be amended from time to time by CITY,
13 specifically excluding any infrastructure used for retail water distribution and sewer
14 collection. 'CSA 70 E -1 shall be entitled to connect to such infrastructure owned b
15 CITY. CITY shall construct such transmission and trunk lines as necessary to
16 accomplish development in the donut Hole in consideration of the Water and Sewer
17 Capital Improvement Charges paid in accordance with Section 1.2 At such time as the
18 entire Donut dole is annexed into the CITY, and CSA 70 EV-1 is dissolved, all
19 infrastructure and assets of CSA 70 EV-1 shall be;transferred to CITY in fee at no cast
20 to CITY.
21
22 1.9 Except as provided in Section 1.2, CSA 70 EV-1` shall pay the CITY's thea
8 current mater and Sewer Capital Improvement Charges for providing water and sewer
24 capacity requested by CSA 70 EV-1, in the amount calculated and provided in a
5 statement by the CITY to CSA 70 EV"-1 as a condition of issuance of a building permit
26 or a tenant improvement building permit (if' the use is a higher demand use than
7 originally assumed in calculating the fee for the original building permits for any
28 development project in the Donut Hole requiring such grater or sewer capacity from
Page 9 RAH 185733.10 0110 200
1 CSA 73 EV-1, In applying such fee structure, incremental demand will be established
2 by CIT 's Municipal Utilities in the same manner as applied to development inside the
3 CITY's water and sewer service area. if a dispute arises between the CITY and
4 CSA 73 EV-1 as to the amount of the Water and Sewer Capital Improvement Charges
statement rendered by the CITY, CSA 70 EV-1 shall nevertheless pay such Water and
6 Suer Capital Improvement Charges. Thereafter, the CITY and CSA 70 EV-1 shall
7 conduct good faith negotiations in an attempt to resolve the dispute for not less than
8 thirty (30) days. If the dispute continues after the thirty (30) days of good faith
9 negotiations and the amount in dispute is less than One Hundred Thousand Dollars
13 ($100,000.00), CSA 70 EV-1 may subsequently submit the dispute to binding arbitration
11 under Rule 31, "Final Offer (or Baseball)" Arbitration Option, of the JAMS
12 Comprehensive Arbitration Rules and Provisions, if the dispute= continues after the
13 thirty (30) 'days of good faith negotiations and the amount in dispute is equal to or
14 greater than One Hundred Thousand Dollars ($100,000.00), CSA 70 EV-1 may
15 subsequently submit the dispute to binding arbitration under JAMS Comprehensive
18 Arbitration Rules and Provisions, modified with the following Party agreed procedure:
17 there< shall be gree (3) neutral Arbitrators under Rule 7, Number of Arbitrators and
18 Appointment of Chairperson. The "amount in dispute" for the purposes of this Section
19 1.9 shall be the difference between the amount of the Water and Sewer Capital
0 Improvement Charges statement rendered by the CITY and the amount CSA 70 EV-1
1 believes should be the Water and Sewer Capital" Improvement Charges. The Parties
22 agree that CSA 70 EV-1, in its sale discretion, may allow any real pard in interest to
3 participate (to the extent determined by CSA 70 EV-1 in its sole discretion) in any of the
4 negotiations and/or arbitrations with the CITY contemplated by this Section 1.9.
5
28
7 Section 2 DEVELOPMENT APPROVALS, The Donut bole is located in
8 COUNTY unincorporated area and not within the sphere of influence of the CITY.
Page 10 RAH 18,E 10 0110&2002
1 Therefore, Donut Hale property owners shall process (ander the COUNTY's fee
2 structure) and build their projects in the Donut Hole utilizing COUNTY approvals through
completion of the projects' construction.
4
5 Section 3. ANNEXATION OF DONUT HOLE PROPERTIES
6 3.1 The Parties anticipate that, with respect to any parcel located within the
7 Donut Hole for which a Certificate of Occupancy has been granted (herein "Annexation
5 Parcel"), such Annexation Parol will be annexed into the CITY (concurrently with a
9 change in Sphere of Influence) within fire years of the date of issuance of such
10 Certificate of Occupancy,
11
12 3.2 The Parties agree to use good faith efforts to encourage and assist the
13 annexation of such Annexation Parcels within five years of the date of issuance of such
14 Certificate of Occupancy.
15
16 3.3 CSA 70 EV-1, concurrently with approving water and/or sewer service to
17 ,any parcel in the Donut Hole, shall record a "Notice of Condition" giving record notice of
18 lithe requirements of this Agreement (including, if it has been approved under Section
19 3,5, the one time approval of annexation and change of sphere of influence).
20
21 3.4 CITY shall be responsible for filing annexation applications with LAFCO
22 for all annexations anticipatedpursuant to this Agreement. Such annexation
23 applications shall consolidate as many Annexation Parcels as practicable, and shall be
24 filed no more often than on an annual basis, with the specific date of filing at the
5 discretion of CITY. Such CITY annexation application shall include only parcels for
25 which a Certificate of Occupancy was issued at least fire years prier to the date of the
27 annexation application, except that a Donut Hole properly owner may, within its sole
25 discretion, consent to an annexation following a Certificate of Occupancy for such
Page 11 R,4H 18573110 0110812002
1 parcel but prior to the expiration of five years subsequent to such issuance. To the>
extent practicable, CITY shall attempt to cause annexations to be effective as of the
3 beginning of a fiscal year, namely duly 1. CITY shall pay the entire cost of processing
4 such annexation applications.
5
6 3.5 The Parties hereto acknowledge that, pursuant to Assembly Bill 1544,
7 neither annexation nor a change in the sphere of influence with respect to property
8 within the Donut Hale is effective unless; approved by Donut Hole property owners
9 representing more than 50 percent of the assessed valuation of property within the
10 Donut Hale. In order to effectuate the annexation provisions of this Agreement, the
11 Parties hereto shall use good faith efforts to cause a vote of the Donut Hole property
12 owners to be held within 60 days of the Effective Date of this Agreement for the purpose
13 of obtaining a one-time approval of all annexations and changes in sphere of influence
14 anticipated by this Agreement. If Donut Hale property owners representing more than
15 50 percent of the assessed valuation of properly within the Donut Hole do not approve
15 the ane-time approval'of all annexations and changes in sphere of influence anticipated
17 by this Agreement within one hundred` twenty (1 0) days of the Effective Date of this
18 Agreement any Party shall be entitled to terminate this Agreement by giving written
19 notice to the other parties hereto of its intention to terminate this Agreement within thirty
3 f 30 Mays following expiration of such 120 day period. Upon any such termination, all
1 Parties will be relieved of any and all duties and responsibilities under this Agreement.
2
3 3.5 Notwithstanding the foregoing, the failure of any or even all of the Donut
4 1 dole property owners to consent' to annexation (and concurrent change in sphere of
5 influence) within five (5) years from the issuance of the first Certificate of Occupancy for
5 any parcel on their properly shall not be considered a material breach of this Agreement
7 and shall not be the basis for termination of this Agreement, except during the thirty ( g
3 day period set forth in Section 3.5 hereof.:
Page 12 RAH 18573.x.10 0110&2002
1 Section 4. PERMANENT T SALES TAX SHARING AGREEMENT.:
2 4.1 Unless the context otherwise requires, the terms definedin this Section
3 shall, for all purposes of this Agreement, have the meanings herein specified.
4 Fiscal Year: "FiscalYear" is defined as July 1 through June 30.
5 Sales Tax Revenue:` "Sales Tax Revenue" is defined as the amount of sales and use
6 tax disbursed by the State Board of Equalization to the COUNT` or CITY under
authority granted to the COUNT ' or CITY pursuant to the Bradley-Burns Uniform Focal
8 Sales and Use Tax Law (Revenue and Taxation Code sections 7200 et seq.)'
18 4.2 From and after the Effective Date, the COUNTY and the CITY shall divide
11 Sales Tax Revenue generated by development in the Donut Hole as follows::
12 For each parcel of a project located in the Donut Hole, Sales Tax Revenue generated
13 by such parcel of a project shall be divided as follows:
14 Years Allocation
15 From issuance of first Certificate of
15 Occupancy for each parcel of a
17 project to twelvemonthsthereafter (Year 0) 75% COUNTY/25% CITY
18 1-5 25% COUNTY/75% CITY
19 6 21% COUNTY/79% CITY
20 7 17% COUNTY/83% CITY
21 8 12% COUNTY/88% CITY
22 9' 8% COUNTY/92% CITY
3 10 4% COUNTY/96% CITY'
24 11 and thereafter 8% COUNTY/100% CITY
25
28 The Parties acknowledge that the allocation schedule set forth above applies separately
7 to each parcel of a project within the Donut Hole, To the extent that there are any
8 entities or persons operating on or capable of operating on a parol within the Donut
1 Hole on the Effective date based upon development approvals in effect prior to the
Effective Gate, any Sales Tax Revenue from such entity/person will become subject to
3 the above division only when the first Certificate of Occupancy for said parcel is given
4 after the Effective Cate.
8
6 4.3 The COUNTY shall pay to CITY the appropriate percentage (as
7 determined pursuant to Section 4.2 above) of Sales Tax Revenues received by
8 COUNTY from development in the Donut Hole within 120 days of receipt of such
9 revenues from the Mate Beard of Equalization. If the CITY annexes some or all of the
10 Donut Hole, CITY shall pay to COUNTY the appropriate percentage as determined
11 pursuant to Section 4.2 above) of Sales Tax Revenues received by CITY from
12 development in the Donut, Hole within 120 days of receipt of said revenues from the
13 State Board of Equalization.
14
18 4.4The COUNTY shall provide the CITY with a Statement of ,Account upon
18 request of CITY. The Statement of account shall include the following: Sales Tax
17 Revenue for the Donut Hale receivers by the COUNTY to date for the current Fiscal
18 Year; Sales Tax Revenue for the Donut Hole received by the COUNTY during the
19 preceding Fiscal Year; Sales Tax Revenue for the Donut Hole disbursed pursuant to
20 this Agreement by COUNTY to City during the preceding Fiscal Year; and the total of all
21 Sales Tax Revenues disbursed pursuant to this Agreement by COUNTY to CITY from
22 the Effective Cate. If the CITY annexes some or all of the Donut Hole, CITY small
3 provide the same information to COUNTY upon request,
24
5 4.5 The COUNTY's Auditor/Controller/Recorder may deduct from amounts
26 paid to CITY pursuant to Section 4.3 above the Auditor/Controller/Recorder's
7 reasonable costs of establishing systems to administer and administering the provisions
28 of this Agreement. If the CITY annexes some or all of the donut Hale, CITY's Finance
Page 14 RAH 18573 .10 8110&2002
Department may deduct from amounts paid to COUNTY pursuant to Section 4.3 above
the Finance Department's reasonable crash of establishing systems to administer and
administering the provisions of this Agreement
4
5 Section 5. POLICE AND FIRE SERVICES. Upon receipt of the first Certificate
6 of Occupancy for any parcel of a project in the Donut Hole, the CITY will provide police
and fire services to the entire Donut Hole for a fee that is no more than the CITY's
8 actual cost to provide such services; not to exceed $25,000. The fee charged by the
9 CITY for police and fire services will be paid by the COUNTY, but will terminate after
10 one year and thereafter the CITY shall not charge for the provision of these services to
11 the entire Donut Hole in recognition that the sales tax paid to CITY in accordance with
12 Section 4, PERMANENT SALES TANG SHARING AGREEMENT, and the amounts paid
13 to CITY in accordance with Section 5, PROPERTY TAXES, !hereof, at least equal if not
14 exceed the CITY's cost of providing such services.
1
16 Section 6. PROPERTY TAXES`.. The Parties agree that following
17 annexation of any parcel within the Donut Hole, the property taxes attributable to that
15 parcel will be shared as required by law and/or as previously agreed in the 1992
19 Settlement Agreement between the Inland /alley Development Agency ("IVDA") .and
0 the CITY, the 1990 IVDA Redevelopment Plan, and IVDA/Donut Hole related pass-
21 through agreements, but with no restrictions on the use of that portion received by the
22 IVDA as tax increment revenues. CITY agrees that the ICDA is an express third-party
23 beneficiary for the purposes of the preceding sentence in this Section only. Further, in
4 consideration of the CITY providing police and fire services to the entire Donut Hole as
5 required in Section 5, POLICE ANIS FIRE SERVICES, if annexation of a parcel does not
5 occur with five years from the date of the first Certificate of Occupancy for that
7 parcel, the 'COUNTY agrees to pay to CITY an amount equal to what the CITY would
9 have received in property taxes for that parcel if an annexation had occurred for such
Page 15' Rte-!'185733:10 011OW2002
1 parcel. The COUNT 's obligation to make such payment to CITY will start with the next
Fiscal Year after the annexation should have occurred for such parcel, and shall be paid
3 within sixty (8 days of the CO NTY°s actual receipt of its share of property taxes for
4 that parcel.
5 '
6 Section 7. ASSIGNMENT. Neither this Agreement nor any clause or provision
7 contained herein may be assigned, transferred or released without the express written
consent of the Parties hereto.
9
10 Section 8. NOTIFICATIONS. All notices, statements, demands, requests,
11 consents, approvals, authorizations, terminations, appointments or designations
12 hereunder by any party shall be in writing and shall be sufficiently given and sired
18 upon the ether parties personally, or if sent by united States registered mail, return
14 receipt requested, postage prepaid and addressed as follows
15
16 COUNTY County Administrative Officer
County of San Bernardino
17 385 North Arrowhead Avenue, 5th Floor
18 San Bernardino, CA 92415
19
20 CSA 70 EV-1;:: Counter Service Area 70 FV-1;
Special Districts Department
21 157 West Fifth Street
22 San Bernardino, CA 92415-0450
23
24 CI City Manager
25 City of Redlands
35 Cajon Street
8 Redlands, CA 92578'
27
28
Fuge 16 RAH 1&5733.10 0110&2002
1 Section 9. AUTHORITY TO EXECUTE. The person or persons executing this
Agreement warrant and represent that they have the authority to execute this
3 Agreement on behalf of their respective parte,:
4
5 Section 10. TERM ANIS TERMINATION.: This Agreement shallcontinue in full
5 force and effect from its Effective [date until the later of (i) thirty years, or (ii) all of the
7 parcels comprising the Donut Hale become annexed to an existing city or incorporated
8 into any newly created city. No remedy of termination of this Agreement shall be
available to CITE' or COUNTY, or their successors or assigns, with regard to any breach
13 hereof, but all other remedies at law or in equity shall be available with respect to any
11 breach hereof. However, this Agreement may be terminated by CSA 70 V-1 and/or
12 COUNTY in accordance with Section 1.7, and by any of the parties in accordance with
13 Section 3..5 hereof. Additionally, COUNTY shall have the right to terminate this
14 Agreement should a referendum petition challenging the validity of the Agreement be
15 filed with the CITY Clerk and thereafter certified by said Clerk to the CITY Council as
15 containing a sufficient number of verified signatures of registered voters to qualify it for
17 the ballot.
15
19 Section 11. REMEDIES ON DEFAULT. In the event of any material default
20 hereunder by CITY, in addition to any other remedies available to the COUNTY or
21 CSA 70 EV-1 at law or in equity, the following remedies shall be available to COUNTY or
22 CSA 74 EV-1 as appropriate;
23 11.1 The sales tax sharing obligations of COUNTY referenced in Section 4,
24 PERMANENT SALES TAS SHARING AGREEMENT, of this Agreement shall
5 immediately cease. If CITY cures the default with the written consent of COUNTY and
23 CSA 70 EV-1 at a later paint in time, sales tax sharing shall commence as of the date o
27 cure, but COUNTY shall be permanently relieved of its sales tax sharing obligations during
28 the pendency of the default,
Page 17 R4H 16573110 0110612002
1 11`.2 The property tax sharing obligations of COUNTY referenced in Section 6,
PROPERTY TAX SHARING, of this Agreement shall immediately cease. If CITY cures
8 the default with the written consent of COUNTY and CSA 70 EV-1 at a later point in time,
4 property tax sharing shall commence as of the date of cure, but COUNTY shall be
5 permanently relieved of its properly tax sharing obligations during the pendency of the
6 default,
7
g 11.3 The rights of CITY'to file annexation applications pursuant to Section 3,
9 ANNEXATION OF DONUT HOE PROPERTIES, of this Agreement, and the obligation
10 of property owners to cooperate and consent to such annexation, shall terminate. If CITY
11 cures the default with the written consent of COUNTY and CSA 70 EV-1 at a later point in
12 time, CITY's right to fife annexation applications and the property owners' obligation to
13 consent and cooperate shall be reinstated as of the date of cure of such default;::
14
15 11.4 CSA 70 EV-1 shall be entitled to recover the following monetary damages:
16
17 A. Reimbursement by CITY of the full amount of any judgment or claim
18 of any nature (including punitive or consequential damages) successfully asserted against;
19 CSA 76 Eft-1 arising from CITY's failure to timely provide bulk water and sewer services
u pursuant to this Agreement to CSA 70 EV-1, with the result that CSA 70 EV-1 cannot
21 provide water and sewer services to its existing customers or to prospective customers
2 with development projects awaiting availability of water and sewer service; and,
23
. S Reimbursement by CITY to CSA 70 EV-1 of the billing revenues last
5 to CSA 70 EV-1 arising from its failure to provide water and sewer services to its retail
6 customers due to CITY's failure to timely provide bulk water and sewer services pursuant
7 to this Agreement; and,
8
'age 18 RAH 185733.10 0110&2002
I C Interest at ten percent (10%) per annum or the maximum rate
CSA 79 EV-1 may charge under applicable law, whichever is lower, calculated from the
date of loss of revenues by CSA 70 EV-1, or the date of an expenditure by CSA 79 EV-1
4 arising from a breach by CITY, to the date of repayment by CITY.
5
6 11.5 Any other amount necessary to compensate to COUNTY or CSA 70 EV-1
7 for all the detriment proximately caused by CITY's failure to ,perform CITY's obligations
g under this Agreement or which in the ordinary course of things would be likely to result
9 therefrom.
10
11 Section 12. SPECIFIC PERFORMANCE. The Parties understand that the
12 performance required under this Agreement is unique and for that reason, among
13 others, the Parties to this Agreement will be irreparably damaged if this Agreement i
14 not specifically enforced. Accordingly, in the event that CITY fails to timely provide bulk
15 water and sewer service to CSA 70 EV-1, CEA 70 EV-1 will be irreparably damaged if
16 this Agreement is not specifically enforced. Accordingly, in the event of any controversy
17 concerning the CITY's obligation to timely provide bulk water and sewer service
13 hereunder, CITY's obligation to provide such services shallbe enforceable by CSA
19 70 EV-1, in a court of equity by a decree of specific performance or by inunction. The
20 Parties hereto waive any argument that monetary damages are adequate. Such
31 remedies and all other rights and remedies set forth herein shall be cumulative and not
22 exclusive and shall be in addition to any and all other remedies which CSA 79 EV-1 may
3 .have hereunder at law or in equity.
4
25 Section 13.. WAIVER. Any waiver by one of the Parties of any breach of any
fa one or more of the terms of this Agreement shall not be construed to be a waiver of any
7 subsequent or other tem thereof. Failure on the part of one of the Parties to require
g exact, full, and complete compliance with any terms of this Agreement by the other
Page 19 RAH185733.10 01IM2002
1 Party shall not be construed as in any mariner changing the terms of this Agreement,
2 nor stopping the enforcement thereof.
3
4 Section 14. SEVERABILITY. If any provision of this Agreement is held by
5 court of competent jurisdiction to be invalid, void, or unenforceable, the remaining
5 provisions shall nevertheless continue in full force without being impaired or invalidated
7 in any way, except that if the CITY"s obligation to sell bulb water and sewer services
8 pursuant to this Agreement is deemed invalid, void or unenforceable by a court of
9 competent jurisdiction, the remaining provisions of this Agreement shall terminate.
1
11 Section 15. GOVERNING LAW. This Agreement shall be governed by and
12 construed in accordance with the laws of the State of California.
13
14 Section 16. VENUE. This Agreement was entered into and is intended to be
15 performed in San Bernardino County, California. Venue for any action brought by either
16 of the Panties shall be the Superior Court of California, County of Gen Bernardino,
17 Central District. Each of the Parties hereby waives any rule of law or ruffle of court that
18 would allow it to request or demand a change in venue. If any action concerning this
19 Agreement is brought by any third party, the Parties shall use their best efforts to obtain
20 a change in venue to the Central district of San Bernardino County.;
21
22 Section 17. ATTORNEY FEES AND COSTS. If any legal action is instituted to
3 enforce any of the Parties rights hereunder, each of the Parties shall bear its own costs
24 and attorneys" fees, regardless of who is the prevailing party.. This paragraph shall not
5 apply to those costs and attorneys' fees directly arising from a third-party legal action
5 against a party hereto and payable under Section 19, INDEMNIFICATION.
7
28
Page 20 RAH 165733.10 0110
I Section 18. JURY TRIAL WAIVER, COUNTY, CSA 70 EV-1 and CITY hereby
waive their respective rights to trial by jury and agree to accept trial by judge alone for
3 any cause of action, claim, counterclaim, or cross-complaint in any action, proceeding,
4 and/or hearing brought by either of the Parties against the other(s) on any matter arising
5 out of, or in any way connected with, this Agreement, the relationship of the Parties or
5 any claim of injury or damage, or the enforcement of any remedy under any law, statue,
7 or regulation, emergency or otherwise, now or hereafter in effect.
8
5 Section 19. INDEMNIFICATION..
10 19.1 The CITY agrees to indemnify and hold harmless the COUNTY and/or
11 CSA;70 EV-1 and their authorized officers, employees, agents and volunteers from any
12 and all claims, actions, losses, damages, and/or liability arising from CITY's and its
13 authorized officers', employees', agents' and volunteers' acts, errors, or omissions and
14 for any costs or expenses incurred by COUNTY and/or CSA 70 EV-1 on'account of any
15 claim therefore, except where such indemnification is prohibited by law.
15 19.2. The COUNTY agrees to indemnifyand hold harmless the CITY and/or
17 CSA 70 Eli-1 and their authorized officers, employees, agents and volunteers from any
18 and all claims, actions, losses, damages, and/or liability arising from COUNTY's and its
19 authorized'officers', employees', agents' and volunteers' acts, errors, or omissions and
Q for any costs or expenses incurred by CITY on account of any claim therefore, except
21 where such indemnification is prohibited by law.
22
23 19.3 CSA 70 EV-1 agrees to indemnify and hold harmless the CITY and/or
24 COUNTY and their authorized officers, employees, agents and volunteers from any and
25 all claims, actions, losses, damages, and/or liability arising from CSA 70 EV-1's and its
25 authorized officers', employees', agents' and volunteers' acts, errors, or omissions and
7 for any costs or expenses incurred by CITY and/or COUNTY on account of any claim
28 therefore, except where such indemnification is prohibited by laws
Mage 21 RAH186733.10 011
1 Section 20, INDEPENDENT CAPACITY.
2'
0.1 The CITY, its officers, employees, and agents shall act in an independent
4 capacity during the terra of this Agreement and not as officers, employees, or agents of
5 the COUNTY and/or CSA 70 E1/-1, nor shall they have authority to contract for or on
behalf of or incur obligations on behalf of,the COUNTY and/or CSA 70 EV-1.
7
3 20.2 The COUNTY, its officers, employees, and agents shall act in an
9 independent capacity during the term of this Agreement and not as officers, employees,
10 or agents of the CITY and/or CSA 70 EV-1, nor shall they have authority to contract for
11 or on behalf of, or incur obligations on behalf of, the CITY and/or CSA 70 EV-1.
1
13 23.3 CSA 70 EV-1, its officers, employees, and agents shall act in an
14 independent capacity during the germ of this Agreement and not as officers, employees,
15 or agents of the CITY and/or COUNTY, nor shall they have authority to contract for or
16 on behalf of, or incur obligations on behalf of the CITY and/or COUNTY,
17
18 Section 21. EXHIBITS. All exhibits attached to this Agreement are incorporated
19 herein by reference.
20
1 Section 22. INCORPORATION CE RECITALS. The Recitals are specifically
22 incorporated into this Agreement.
23
24 Section 23. SECTIONS AND CAPTIONS. All references to Sections refer to
5 Sections in this Agreement unless otherwise stated. Captions are for convenience of
26 reference only and do not constitute a portion of this Agreement
27
28
Page 22 RAH 18573 .lO 0110&12002
1 Section 24, FURTHER ASSURANCES. Each of the Parties shall, upon the
2 request of the ether party hereto, take such other actions and sign such other
8 documents (in recordable form, if requited) as may be reasonably required to effectuate
4 the terms of this Agreement.
5
6 Section 25. CONSENT. Whenever consent or approval of any of the Parties is
7 required that Party shall not unreasonably withhold or delay such consent or approval.
8
9 Section 26. CITY OWNED PROPERTY IN DONUT HOLE. Notwithstanding
19 any other provision of this Agreement, real property in the Donut Hole owned by the
11 CITY on the Effective Late of this Agreement, or subsequently acquired by the CITY,
12 shall not be subject to the terms and conditions of this Agreement'.
13
14 Section 27. ENTIRE AGREEMENT. This Agreement contains the entire
18 agreement and understanding between the Parties with respect to the subject matter
18 hereto. There are no oral understandings, terms, conditions or promises, and neither of
17 the Parties has relied upon any representation, express or implied, not contained in this
18 Agreement. This Agreement may only be modified or amended in'writing and must be
19 signed by each of the Parties.
0
21 1N WITNESS WHEREOF, the Parties have executed this Agreement as of the
22 dates below.
2
24 COUNTY QE AN BERNARDINO CITY OF` IEDLAND
25 By: Sy
Fred Aguiar, Chairman Karl N. Maws, Mayor
26 Board of Supervisors
27 Date: JAN - 8 2002 �1.I ik Date:
2
Page 23 R4H 785733.10 01
1 SIGNED AND C RTIFIED`THAT A ATTEST
COPY CSENT HAS
BEEN
3 CHAI
4 J. R E
Cler u ' ors Lorr Poyer Jerk
6 By: 400M Date a
Data: JAN - 8 2002
9 APPROVED AS TO LEGAL FORM
10 ALAN K. MARKS, County Counsel
1 Ban Bernar ' o County, Ca. mia
12 By:
—
13
Date:
14
15 COUNTY SERVICE AREA 70,
16 IMPROVEMffl4T ZONE EV-1
Aelf
17 By:
-ns'ZAO�
16 Fred Aguiar, Chairrna
Board of Supervisors
19 Acting as the Governing Body
of CSA 70 EV-1
20
21 Date:_ ,SAN - 8 200
22 SIGNED AND CERTIFIED THAT A APPROVED AS TO LEGAL FORM
GOP Y OF ENT HAS ALAN K. MARKS, County Counsel
BEED San Bernardino County, California
24 CHAT
25 J. R E By:
Clerk f Ali I's Deputy
26
?
By: `' Date: l �'
4 P0 F
26 Date" JA
Page 24 RWla5733.10 01/0
EXHIBIT "All
DONUT HOLE DESCRIPTION
F, 2867
DETACHMENT PROM THE SPHERE OF INFLUENCE
OF THE CITY OF REDLANDS I;C?ONLIT HOLE)
REVISION NO. 2, 5 OCTOBER 2000
PORTIONS OF SECTION 16,AND 21, TIS, R3W, SBBM, MORE PARTICULARLY DESCRIBED
AS FOLLOWS
FOLLOWING THE VARIOUS COURSES GP THE EXISTING REDLANDS CITY LIMITS
BEGINNING AT THE INTERSECTION OF THE WEST BOUNDARY LINE OF THE CITY OF
REDLANDS AS ORIGINALLY INCORPORATED, SAID LINE ALSO BEING THE
INTERSECTION OF THE NORTH AND SOUTH QUARTER SECTION LIME OF SECTION 21,
Tis, R3W, 588M, WITH THE PAST AND WEST QUARTER SECTION LINE OF SAID
SECTION 21,
(COURSE##1)THENCE WESTERLY ALONG THE NORTH SECTION LINE OF SAID SECTION
21 AND CONTINUING DING ALONG THE EAST AND WEST QUARTER SECTION LINE OF
SECTION 20, TIS,, R3W, S88M,TSI 89036'37"W'2,673 39 FEET;
(COURSE #2) THENCE WESTERLY ALONG THE EAST AND WEST QUARTER SECTION
LINE OF SAID SECTION 21 AND CONTINUING ALONG THE FORTH SECTION LINE OF
SECTION 20, TIS,R3W, SB13M, S 8992-r$4-W 4,032.21 FEET TO ITS INTER6ECT`ION WITH
THE SOUTHERLY PROLONGATION ATION OF THE EAST LINE OF LOTS B AND 3 OF BLOCK+6, OF
THE HENRY L.WILLIAMS TRACT,AS RECORDED IN BOOK 11, PAGE 17 IN THE OFFICE OF
THE COUNTY RECORDED, COUNTY OF SAN BERNARDINO STATE OF CALIFORNIA,LAST'
SAID INTERSECTION BEING 1,320 FEET MORE OR LESS EAST, OF THE INTERSECTION
OF THE CENTERLINES OF LUGONIA AVENUE AND CALIFORNIA STT -EET
('CO RS150) THENCE 01'00°34°48- W 1,306.50 ,FEET ALONG SAID EAST LINE OF LOTS 6
AND 3 AND THE PROLONGATION THEREOF, TO ITS INTERSECTION WITH THE
CENTERLINE OF ALMOND AVENUE
(COURSE ) THENCE N 89649'36" W 1,316.66 !FEET ALONG THE CENTERLINE OF
ALMOND AVENUE 1,316:68 FEET TO ITS INTERSECTION WITH THE CENTERLINE OF
CALIFORNIA STREET; I
(COURSE #6) THENCE ISS 00018'49" W, 3,959.99 FEET ALONG THE CENTERLINE OF
CALIFORNIA STREET TO ITS INTERSECTION WITH THE CENTERLINE OF PALMETTO
AVENUE;
(COURSE 0) THENCE .S 69-2T'49" E-4-646.64-46;64- PE,ET ALONG THE CENTERLINE OF
PALMETTO ,AVENUE TO ITS INTERSECTION WITH THE CENTERLINE OF NEVADA
STREET;
(COURSE#7) THENCE N 110°34'66'E 1,320.22 FLEET ALONG THE CtiNTERLINE OF NEVADA
STREET TO ITS INTERSECTION WITH THE SOUTH LIRE OF PINE STREET(VACATED)
(COURSE #8)`THENCE S 89-27'45" E 1,318.13 FEET ALONG THE SOUTH LINE OF PINE
STREET (VACATED) TO ITS INTERSECTION WITH THE SOUTHERLY PROLONG;ATION�OF
THE EAST LINE OF LQT 3, BLOCK i OF BROWNS SUBDIVISION OF THE HENRY L.
WILLIAMS S T CT AS RECORDED IN BOOR 8 OF MAPS. PAGE 96, IN TIME OFFICE OF THE
COUN'T'Y RECORDER. COUNTY OF SAN BERNA.RDINO,STATE OF OALIFO ;kNIAT
EXHIBIT IFA!' DONUT HOLE DESCRIPTION Page I of
(COURSE #9) THENCE N 0°35'17" E 651,14 FEET ALONG LAST SAID SOUTHERLY
PROLONGATION AND `EAST LINE OF SAID LOT 3 TO ITS INTERSECTION WITH THE
NORTHERLY LINE OF LOTS 3 AND 2, BLOCK 1 OF BROWNS SUBLIIVISIGN
(COORS #10)THENCE S 79040'l 6"E 453.20 FEET"ALONG THE NORTHERLY LINE OF SAID
LOT 2;
(COURSE#f1) THENCE S 56'40'16"E 640.00 FEET;
(COURSE #12) THENCE S 89*10'1 " E 290.61 FET TO TIME WESTERLY RIGHT-OF-WAY
LINE OF ALABAMA STREET,
(COURSE #13) THENCE S I9010-16- E 20.00 FEET ALONG LAST SAID EASTERLY
PROLONGATION'LINE TO THE CENTERLINE OF ALABAMASTREET;
(COURSE#14)THENCE N€0.3 `67" E 88.63 FEET ALONG THE CI~NTERLINE OF ALABAMA
STREET, TO THE WESTERLY PROLONGATION OF THE SHOULDER OF THE BLUFF OF
THE SOUTH BANK OF THE SANTA ANA RIVER:
(COURSE #15) THENCE N 89"39"20" E 49.29 FEET ALONG THE EASTERLY
PROLONGATION OF A LINE DESCRIBED IN GRANT DEED RECORDED OCTOBER 9 1962
IN IS OK 58:32, PAGE 746,OFFICIAL RECORDS OF SAID COUNTY.
N TY.
THENCE ALONG VARIOUS COURSES IN THE SHOULDER OF THE BLUFF OF THE SOUTH
BANK OF SAID SANTA ANA RIVER,DESCRIBED IN SAID GRANT DEED AS FOLLOWS:
(COURSE 16)THENCE N 89"39'20f-E,ALONG SAID SHOULDER,83,58 FEET;
( OU S15 17)THENCE N 79°43'19"E.ALONG SAID SHOULDER,295.94 FEET",
(COURSE#18)THENCE N 73"08'313"1-ALONG SAID SHOULDER,404,77 FEET;
(COURSE#19)THENCE N 81°19"59"E,ALONG SAID SHOULDER,22.1,48 FEET;
('COURSE#20)THENCE N 88 09'X-E,ALONG SAID SHOULDER.207.10 FEET,
(COURSE#21)THENCE N 83-00-20"E.ALONGSAIDSHOULDER, 149.56 FEET;
(COURSE#22)THENCE N 64-05`28"E,ALONG SAID SHOULDER, 181,82 FEET;
(coURSE*23)THENCE N.86°3 °99"E,ALONG SAID SHOULDER, 191-55 FEET;
(couRS'E'424)THENCE N'67003"32"E,,ALONG SAID SHOULDER,9.58 FEET;
(COURSE#23) THENCE LEAVING THE SHOULDER OF THE BLUFF OF THE SOUTH BANK
OF THE SANTA ANA RIVER S 67°03'32"W 409.89 FE i
(COURSE 9.26)THENCE N"x72'52'22"E 282.23 FEET TO THE RIGHT F WAY OF THE STATE
OF CALIFORNIA FOR STATE HIGHWAY 30;
(COURSE#27) THENCE ALONG SAID STATE (RIGHT OF WAY N 00010018* W 441.13 FEET
TO THE NORTH LINE OF SECTION 17,T1S,R3W,SISISM:
EXHIBIT "A" DONUT" HOLE DESCRIPTION N Page 2 of
(COURSE #28) THENCE S 89-14'56" E 347,32 FEET ALONG THE NORTH LINE OF
SECTIONS 17 AND 16,TlS, R3W, SB6M, TO THE EAST LINE OF THE WEST HALF OF SAID
SECTION 16;
(COURSE #29) THENCE S 00039'45- E 3,89114 ALONG THE LAST LINE OF THE WEST
HALF OF SAID SECTION 16 TO ITS INTERSECTION WITH THE CENTERLINE OF PIONEER
AVENUE;
THENCE WESTERLY ALONG THE CENTERLINE OF PIONEER AVENUE THE FOLLOWING
COURSE$AND DISTANCIES; I I
(COURSE 00) THENCE ALONG A NON-TANGENT CURVE, CONCAVE NORTH-EASTERLY,
'HAVING A RADIUS OF 500.00 FEET.A RADIAL EA TING BEARS S 04059'53*W. THROUGH
A CENTRAL ANGLE OF 1504668",A DISTANCE OF 437.69 FEET;
(COURSE*31)THENCE TANGENT TO SAID CURVE N 69-14'09'W 207-15 FEET;
(COURSE #32) THENCE ALONG A TANGENT CURVE, CONCAVE SOUTHWESTERLY,
HAVING A'RADIUS OF 1,100.00 FEET, THROUGH A CENTRAL ANGLE,OF 20041'66', A
DISTANCE OF 39729 FEET;
(COURSE#33)THENCE TANGENT TO SAID CURVE N E91166'04-W 1218 FEET TO A POINT
1,944.6 FEET EAST OF THE WEST LINE OF SECTION 16,TIS, R3W, SBBK
(COURSE#34)THENCE LEAVING SAID CENTERLINE,IS 0M2'3 I"W 746.36 FEET;
(COURSE#34)THENCE WEST 490.0 FIEEr.
(COURSE #36) THENCE S 01-18'16- W 735.79 FEET TO THE CIENTERLINE OF SAN
BERNARDINO AVENUE
(COURSE #37) THENCE s 89,,55'47" E 1,267.87 FEET ALONG THE CENTERLINE OF SAN
BERNARDINO AVENUE TO ITS INTERSECTION WITH THE NORTH AND SOUTH QUARTER
LINE OF SECTION 21,Ti S. R3W,SBBM',
(COURSE#38)THENCE s 00-19,37" E 2,607.71 ALONG LAST SAID QUARTER LINE TO THE
POINT OF BEGINNING.
CONTAINS 1104 ACRES MORE OR LESS.
AS SHOWN ON EXHIBITSATTACHED HERETO AND MADE A PART HERE OF.
0 E, HORNJR -L-S,7169 EXPIRES 12/31/200
0 7100
0 7159
Epp.
OF
EXHIBIT "A" DONUT HOLE DESCRIPTION Page 3 of 5
0167 171 13 0000 0292 051 09 0000 0292 054 13 0000 0292 072 010000
0292041 050000 0292 051 100000 0292 05414 0000 0292 072 02 0000
0292041 080000 0292 051 110000 0292 05416 0000 0292 072 04 0000
0292 041 090000 0292 051 120000 0292 054'17 0000 0292`07210 0000
0292041 100000 0292 051 130000 0292 055 010000 0292.072 11 0000
0292041 110000 0292 051 140000 0292 055 02 0000 0292 08101 0000
0292 041 120000 0292 051 15 0000 0292 055 030000 0292 08102 0000
0292 041 150000 0292 051 17 0000 0292 055 04 0000 0292 08103 0000
0292 041 160000 02.92 051 19 0000 0292 055 05 0000 0292 08104 0000
0292 041 170000 0292 051 20 0000 0292 055 006 0000 0292 08106 0000
+0292 041 18 0000 0292 051 21 00000 0292 055 07 0000 0292 08107 0000
0292 041 190000 +0292 052 010000 0292 055 08 0000 0292 08108 0000
0292 041 34 0000 0292 052 08 0000 0292 055 09 0000 0292 0181 12 0000
0292 04135 0000 0292 052'04 0000 0292 0;5510 0000 0292 081 14 0000
0292 042 010000 0292 052 06 0000 01292 07106 0000 0292 081 15 00100
0292 042 02 0000 0292 052..08 0000 0292 071 109 0G00 0292 081 18 0000
0292 042 07 0000' 0292 05210 0000 0292 071 15 0000 0292 081 19 0000
03292 042 08 0000 0292 05211 0000 0292'071 18 0000 0292 08122 0000
0292 048 010000 0292 052 12 0000 0292 071210000 .. .�. ...._._. 0000
0292 048 02 0000 02.92 05213 00410 0292 07122 0000 0292 08124 0000
0292 040 03 00300` 0292 05215 0000 0292 07123 0000 0292 08126 0000
0232 043 04 0000' 0292 05216 0000 0292 07124 0000 0292 08127 0000
0292 043 05 0000 0292 053 03 0000 0292 07125 0000 0292 081 28 0000
0292 043 06 0000 0292 053 04 0000 0292 07126 0000 0292 081 29 0000
0292 043 07 0000 0292 053 08 0000` 0292 07127 0000 0292 081 32 0000'
0292 043 08 0000' 0292 053 12 0000` 0292 07128 00030
0292 043 09 0000 0292 05313 0000 0292 0712.9 0000
0292 043 10 0000' 0292 054 032 0000 0292 07130 0000
0292 0143 11 0000 0292 054 03 01000 0292 07133 00 bo
0292 051 010000 0292 054 04 0000 0292 07136 0000
0292 051 02 0000 0292 054 05 0,000 0292 071 36 0000
0292 051 03 0309030 0292 054`06 0000 0292 071390000
0292 05104 0000 0292 054 07 0000 0292 071 4a0 0000
0292 051 05 0000 0292 054 08 0000 0292 071 41 0000
0292 051 06 0000 0292 054 09 0000 0292 07143 0000
0292 051 07 00003 0292 05410 0000: 0292 07144 0000
0292 051 08 0000 0292 05412 0004 0329.2 07145 0000
ASSESSOR'S PARCEL NUMBERS IN DONUT HOLE
EXHIBIT "A" DONUT HOLE DESCRIPTION Page 4 of 5
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EXHIBIT "All DONUT HOLE DESCRIPTION Pace 5 of 5
EXHIBIT"B„
WATER AND SEWER CAPITAL IMPROVEMENT CHARGES
The City of Redlands Municipal Utilities Department's Capital Charges for Development for
water and sewer are listed below and are effective.March 19, 1996:
WATER C'A 7TAL f1NIPR!2))E— IE'�N1T CHARGE
Single Family/Residential $3,600/Residential Unit
Multiple Family&Mobilehomes $1,8 0/Residential Unit
Non-Residential S150]tOO cu.ft. estimated
floes°per month
WATER SOURCE ACQUISITION CHARGE
Single Family,Residential 5720/Residential Unit
Multiple Family&Mbbilehomes S360/Residential Unit
Norl-Residential $30/100 cu.ft.estimated
flow per month
SEWER+EAPITAL IMPROVEMENT CHARGE
Single Family Residential 53. 00fResi ential Unit
Multiple.Fancily&Mobilehornes S3,600/Residential Unit
Residential Dwelling Unit if Building hermit
issued prior to November 1 1961 S350/Residential Unit
Non-Residential S1,74f1/100 gpdestimated
flow
EXHIBIT "C"
CUSTOMER SERVICE CHARGES
CITY OF REDLANDS IRRIGATION WATER RATES
MUNICIPAL UTiUTiES DEPARTMENT
WATER$SEWER SFRVIEE RATE SCHEDULE USAGE CHARGE
(BIMONTHLY) Inside Rate $0:721104 CU.FT.
Outside Rats $0,755 1100 CU.FT,
DOMESTIC WATER RATES DOMESTIC WATER RATES
INSIDE RATES OUTSIDE RATES SERVICE CHARGE(Cutionw S"co Component)
21. Inside Elate $4..70 t METER
USAGE CHARGE USAGE CHARGE 22. Outsida flats $4:701 METER
Codd Cid+
1. First 1000c,f.. 40.30f100cu.1t:, 11. First 1000C.F,.$0,3151100cu.ft. SPECIAL WATER RATES
Over 1000 c.f.: 30,72t100 cu.ft. Over 1Od0 CX:$41.75£1100 cu Et. Ilncludlnl5 Public Apencicsj
SERVICE CHARGE SERVICE CHARGE USAGE CHARGE
2. 5r8' Molar $14.70 12. , 518' Motor $18.2Xs
� 23. Inside, Rata $0.72/1413 CtJ,FT;
3.5 3r4` Motor 519:00 13. 314' Meter $24,00 57.'Outside Rate $0.7561 1154 CU-
FT-4.) 1. Meter $27.30 14. 1* dater $35:20
5.1 111,2' Motor $47'AO t5:- 1112" Moist $92:30
6.1 r Motor $69.001sr. T Meter $91:54
7.) 3* Motor $117.90 17. T Motor $153:54' FIRE.PROTECTION WATER RATES
15.} 4' Mater $100.70 18. 4* Motor $242,30
.) S Molar' $331.70 19. 6 Meter $446.20 30. Usage Rile Inst S-721 100 CU TT
10) a, Motor $487.50 20 W Meter $656.60 31. 2* Molar' $27.
32. 3" Meter $27.08
33. 4" Meter $27,98
34. 6* Motor $37.22
0 0 410 • 35. 8* Meier= $51.18
SEWER SERVICE RATES 36. 10 Meter ;$79.50
37: 12' (*toter $86:64
RESIDENTIAL 60 Usage Baia Outside $1}.7561 100 CU,FT,
* 30. 2' motor $27.1113
24. Inside date $20.001D.U. 40. 3' Meter $2TQ8
25, Outside Bate $25,6111£S.U. ��� 41„ 4* Motor' $27 8
EFFECTIVE a42, 6' Meter $37.22
RON-RESIt FNPAI 43: 8` Meter $51.11
44, 10" Mater '$79. 1
28. inside,Rate $1.23 1 100 CU.FT. 45, 12* Meter 586,64
27, Outside Rate $1.61 1 140 CU.FT January 31 4, 1 9 9 5 38, Outside Fire Service
sl;"OOLS
to errttry Inside Rate $613.911)140 ADA RESTORATION OF SERV I
Outside Rate $#38.0501 100 ADA (NON-PAYMENT OF SILL) $30.015
Secondary A-
High School Inside Rats $'116:5#51 100"ADA
Outside Rale $143:34 t 100 ADA
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EXHIBIT "D"
REDLANDS WATER AND SEWER MASTER PLANS
(Full size, color ccs Page 1 of 3
copy maintained by County's Clerk of the Board. )
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EXHIBIT "13"
REDLANDS WATER AND SEWER MAS'T'ER PLANS
(Full size, color copy maintained by County's Clerk of the Bard. ) Page 2 of 3
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4A—
EXHIBIT 1113"
REDLANDS WATER AND SEWER MASTER PLAN
(Full size, color coPy maintained by County's Clary of the Board.) (gage 3 of 3
MfN, 'tJTES of an adjourned regular meeting of the City Council of the City of Redlands held
in the Council Chambers, Civic Center, 35 Cajon Street, at 3:00 P.M. on Tuesday,
January 8. 2002, in accordance with Section 2.02.020 of the Redlands Municipal
Code,
PRESENT Karl N. (Kasey) Hawn Mayor
Susan Peppler, Mayor Pro Tem
Pat Gilbreath, Councilmember
Gary George, Councilmember
Jon Harrison, Councilmember
ABSENT None
STAFF John Davidson, City Manager; Daniel J. McHugh, City Attorney;
Beatrice Sanchez, Deputy City Clerk; Michael Reynolds, City
Treasurer; Mel Enslow, Fire Chief. Bonnie Johnson, Finance
Director; Ronald C. Mutter, Public Works Director; Gary G.
Phelps, Municipal Utilities Director; and Jeffrey L. Shaw,
Community Development Director.
The meeting was opened with an invocation by Mayor Haws followed by the
pledge of allegiance.
!LNFINfSHED BUSTHE SS
Resolution No.. 5998 - Donut Hole Services Agreement - Mayor Haws reviewed
the negotiations that have occurred over the past several months for a proposed
utilities services agreement with the County of San Bernardino for the "Donut
Hole." City Attorney McHugh highlighted, for the benefit of the audience, his
memorandum to the City Council outlining that the County of San Bernardino,
County Service Area 70 EV-1 and Majestic Realty Company have made a
proposal for Redlands to provide utilities and other municipal services to CSA 70
EV-1 and the "Donut Hole," The proposal is based upon discussions that the
negotiating team, Mayor Haws and Councilmember George had with County
Supervisor Hansberger over certain initial "deal points." The agreement being
discussed today is the tenth version from the County which directs the City to
provide water and sewer service to CSA 70 EV-1, and police and fire services to
the "Donut Hole" for a one-time payment of S25,000; in exchange, Redlands will
bill CSA 70 EV-1 capacity charges for the infrastructure necessary to connect
each development project in the "Donut Hole" to CSA 70 EV-1, and will also bill
CSA 70 EV-1 for commodity charges which represent the monthly charge of
providing water to those projects. He then asked for direction for one minor legal
issue. The County and Majestic have required that the City Council direct the
City Attorney's office to provide a legal opinion for both entities on the
applicability of Measure "U" to the project. He needed direction on whether the
City Council wishes to waive the attorney-client privilege and have the City
January 8,2002
Page I
Attorney comply with this request. Also, because the County's proposal is a
"Project" under CEQA, the City, as the responsible agency, must undertake
environmental review of the proposal before it is approved. The Community
Development Department has worked with a consultant to prepare the
environmental analysis that was previously distributed. The County, as lead.
agency for the proposal, suggested that the project description within its
October 23, 2001, EIR for its Second Cycle 2001 General Plan Amendments and
modifications to the Majestic project encompass this proposal. Community
Development Department staff has undertaken a review of the proposal in relation
to the County's EM and in relation to the City's 1995 General Plan Amendment
EK the City's 1998 Negative Declaration for its water and sewer master plan
update, and the County's 1989 East Valley Corridor Specific Plan EIR, and
attempted to determine if any additional environmental documentation should be
prepared. Municipal Utilities Director Phelps then addressed Council and
reviewed his analysis. The proposed agreement requires the City to sell water to
CSA 70 EV-1, provide the CSA 70 EV-1 with sewer capacity and requires the
City to provide police and fire services to the"Donut Hole." Thus, the agreement
is a project under CES . He provided a Facts, Findings and a Statement of
Overriding Considerations regarding the proposed agreement and the project
associated with the Final Subsequent EIR for the County's General Plan, Specific
Plan and Development Code Amendments for the IVDA area and associated
water and wastewater facilities plan for unserved IVDA areas and revisions to the
Citrus Plaza Regional Mall project. Mayor Haws then introduced Douglas
Headrick, Chief of Water Resources for the City of Redlands,who greatly assisted
Gary Phelps, Municipal Utilities Director. He added that he and Councilmember
George met separately with Supervisor Hansberger to discuss the IVDA, property
taxes and policy issues. This project is a sales tax producing development;
Redlands should>take the revenue and protect other parts of the City that will be
impacted like downtown. This document is not perfect, but it's in the best interest
of the citizens of Redlands, The alternative to not take this risk is a greater risk,
Councilmember George thanked Supervisor Hansberger for asserting himself into
this fight on our behalf and thanked the Mayor. "We worked on this a long time-
- sorry that we are in different directions." A lot of time was spent on
negotiations and he supported the agreement until December; now he opposes it
and does not recommend approval to the City Council. It is important to note that
the agreement here is not the one we came out to negotiate. Water was to be sold
to the County at the cost that it is sold within the City. This agreement makes one
developer more equal than others not only in Redlands but also in the "Donut
Hole." Mayor Haws recommended approving the agreement "as is." The
following individuals spoke against the agreement: Bill Javert, Gary begirt,
Robert Custer, Jerry Biggs, Bill Cunningham, Dr. Durand Jacobs, Teddy Banta,
Sally Beck (who read a letter from The Redlands Association attorney, Stephen
M. Miles), David Raley, Tex Moore and Robert Frost. Speaking in support of the
agreement were: John Goss and Charles House. Councilmembers then asked a
variety of questions of staff present- Councilmember Gilbreath inquired about
waiving the attorney-client privilege with regard to this issue in order to comply
January 8,2002
Page 2
with the request from the County and Majestic. City attorney McHugh explained'
that the way this agreement is structured we are only assisting another
governmental agency. On motion of Councilmember Gilbreath, seconded by
Councilmember peppier; Council unanimously directed the City ;Attorney to
prepare a legal opinion for both entities on the applicability of pleasure "U"to the
project.
Councilmember Harrison then moved that none of the circumstances identified in
Section 15162 of the Mate CEQ.A Guidelines exist with regard to the City
Council's possible adoption of the 'County/CSA 70 EV-1 proposal. Those
circumstances are as follows.'
1:. Substantial changes are proposed in the project or the proposal which will
require major revisions of any previous EIR or negative declaration due to
the involvement of new significant environmental effects or a substantial
increase in the severity of previously identified significant effects; or
2 'Substantial changes have occurred with respect to the circumstances under
which the project or proposal will, be undertaken which will require major`
revisions of any previous EIR or negative declaration due to the
involvement of new significantenvironmental effects or a substantial
increase in the severity of previously identified significant effects;or
3. New information of substantial importance, which was not'known and could
not have been 'known with the exercise of reasonable diligence at the time
the previous EIR was certified as complete or the negative declaration was
adopted,shows that:
a; The project or proposal will have one or more significant effects not
discussed in any previous EIR or negative declaration;
b. Significant effects previously examined will be substantially more
severe than shown in any previous EIR or negative declaration;
C. Mitigation measures or alternatives previously found not to be feasible
would in fact be feasible, and would substantially reduce one or more
significant effects of the project, but the project proponents decline to
adopt the mitigation measure or alternative; or
d. Mitigation measures or alternatives which are considerably different
from those analyzed in any previous EIR or negative declaration would
substantially reduce one or more significant effects on the
environment, but the project proponents decline to adapt the mitigation
measure or alternative.
Motion seconded by Councilmember Peppier and carried unanimously.
Councilmember Harrison moved to approve the "Facts, Findings and Statement of
Overriding Considerations" (Exhibit "B') in the form attached to the City staff's
report. Motion seconded by Councilmember Peppler'and carried unanimously.
Councilmember Harrison moved to approve Resolution No. 5998, a resolution of
the City Council of the City of Redlands affirming findings made pursuant to the
California Environmental Quality Act, making determinations with regard to the
Januar 8,200
Page 3
Redlands General Plan, and approving an agreement with the County of San
Bernardino and County Service .area No. 70 EV-1, for the provision of utilities
and Cather municipal services to C&A 70 EV-1 and the "Donut ole," and for the
sharing of sales taxes and property taxes generated within the "Donut Hole."
Motion seconded by Councilmember Peppier and carried by the fallowing vote:
AYES- Cnunc lmembers Peppier, Gilbreath, Harrison; Mayor flaws
NOES. Cou.nc lmember Georg
SENT: None
ABSTAIN: Nae
ADJOURNMENT
The City Council meeting adjourned at 8:48 P.M. Next regular meeting
January 1 , 2002:
Deputy City Clerk
i
January 8,200
'age 4