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2012/09/19 Eastern Municipal Water District (EMWD)EXHIBIT "B" MEMORANDUM OF UNDERSTANDING FOR SEPTIC SYSTEM MITIGATIONS BETWEEN EASTERN MUNICIPAL WATER DISTRICT, ELSINORE VALLEY MIUNICIPAL WATER DISTRICT, THE COUNTY OF RIVERSIDE, THE CITY OF MENIFEE, THE CITY OF CANYON LAKE, AND THE QUAIL VALLEY ENVIRONMENTAL COALITION FOR THE QUAIL VALLEY SUBAREA 9 PHASE 1 SEWER SYSTEM PROJECT This Memorandum of Understanding ("MOU") is made and entered into this 19th day of September, 2012, between and among EASTERN MUNICIPAL WATER DISTRICT, a public agency (hereinafter "Eastern"); ELSINORE VALLEY MUNICIPAL WATER DISTRICT, a public agency (hereinafter "Elsinore"), THE COUNTY OF RIVERSIDE, a political subdivision of the State of California ("County"), THE CITY OF MENIFEE, a municipal corporation (hereinafter "Menifee"), THE CITY OF CANYON LAKE, a municipal corporation (hereinafter "Canyon Lake"), and THE QUAIL VALLEY ENVIRONMENTAL COALITION, a non- profit organization (hereinafter "QVEC"). Eastern, Elsinore, County, Menifee, Canyon Lake, and QVEC are hereinafter sometimes referred to individually as a Party and collectively as the "Parties." RECITALS WHEREAS, the Quail Valley Subarea 9 Phase 1 subdivision is a residential disadvantaged community originally built in the 1960s. The community is located in the boundaries of Menifee, along the southerly boundary of the City, as shown and depicted as the "Project Site" on the map attached hereto as Exhibit "A"; and WHEREAS, the Phase 1, Project site is comprised of 225 lots on approximately 63 acres. Each lot varies in size from 6,000 square feet to one-half acre. All residences rely on individual septic systems that often fail during the wet season posing a documented health concern with the potential to come into contact with Canyon Lake, which serves as an intake water storage reservoir for Elsinore Valley Municipal Water District; and WHEREAS, in light of the severity of the situation and the urgent need to design and construct sewer system facilities to replace the failing septic tank systems, Eastern is preparing the design of a sewer system to replace the existing septic tank systems (the "Quail Valley Subarea 9 Phase 1 Sewer System Project," or "Project"), with Eastern being the lead agency; and WHERAS, to fund a portion of the construction of the Project, Eastern is preparing an application to the Santa Ana Watershed Project Authority ("SAWPA") for a grant in the amount of up to Seventy Five percent (75%) of the total Project costs, which are estimated to be Five Million Six Hundred Thousand Dollars ($5,600,000) under the One Water One Watershed ("OWOW") Program; and NOW, THEREFORE, in consideration of the above recited premises, which are incorporated herein by reference, together with the mutual covenants herein contained and attached hereto, it is agreed that: 1 AGREEMENT 1. EASTERN'S RESPONSIBLITIES. Eastern shall be the lead agency for the construction of the Project in accordance with the Plans and shall have primary responsibility for inspection and construction of the Project. Eastern shall be the grant recipient and administrator for the OWOW grant. Eastern shall also be responsible for choosing and paying (with grant and matching funds) for a contractor to complete the demolition, abandonment, and connection work contemplated under the Project. Eastern will provide the Match Funding of at least Twenty Five percent (25%) of the total costs for the Project. Match Funding may include planning and design costs incurred by Eastern after September 30, 2008. It is anticipated that Eastern will own and operate the gravity collection lines upon completion of the Project. Eastern shall ensure that all of the Parties are named as additional insured under any policy of insurance related to construction of the Project. 2. ELSINORE'S RESPONSIBILITIES. Elsinore shall be responsible for a portion of the collaborative planning efforts for the Project, and will support and assist the effort to eliminate further contamination to the groundwater basin and Canyon Lake Reservoir, a potable water supply for Elsinore. 3. COUNTY'S RESPONSIBLITIES. County, through its Environmental Health Department, shall be responsible for collaborative planning efforts for the Project, and will support and assist the effort to eliminate further contamination to the groundwater basin and Canyon Lake Reservoir, a potable water supply for Elsinore. 4. MENIFEE'S RESPONSIBILITIES. Menifee shall be responsible for collaborative planning efforts for the Project, and will support and assist the effort to eliminate further contamination to the groundwater basin and Canyon Lake Reservoir, a potable water supply for Elsinore. 5. CANYON LAKE'S RESPONSIBILITIES. Canyon Lake shall be responsible for collaborative planning efforts for the Project, and will support and assist the effort to eliminate further contamination to the groundwater basin and Canyon Lake Reservoir, a potable water supply for Elsinore. 6. QVEC'S RESPONSIBILITIES. QVEC shall be responsible for collaborative planning efforts for the Project, and will support and assist the effort to eliminate further contamination to the groundwater basin and Canyon Lake Reservoir, a potable water supply for Elsinore. 7. ALL PARTIES' RESPONSIBLITIES. All Parties agree to enter into additional agreements and execute documents reasonably necessary to carry out the intent of this MOU. The Parties agree 2 to collaborate on an outreach program to encourage the affected residents to connect to the Project 8. NOTICES. Any written communication required or permitted to be given hereunder will be deemed received upon personal delivery or 48 hours after deposit in any United States mail depository, first class postage prepaid, and addressed to the party for whom intended, as follows: If to Eastern: Eastern Municipal Water District PO Box 8300 Perris, CA 92572-8300 Attn: Paul D. Jones II, General Manager If to Elsinore: Elsinore Valley Municipal Water District 31315 Chaney Street Lake Elsinore, CA 92531 Attn: Ron Young, General Manager If to County: County of Riverside Department of Environmental Health PO Box 7600 Riverside, CA 92503 Attn: John Watkins, Deputy Director If to Menifee: City of Menifee 29714 Haun Road Menifee, CA 92586 Attn: William Rawlings, City Manager If to Canyon Lake: City of Canyon Lake 31516 Railroad Canyon Road Canyon Lake, CA 92587 Attn—. Richard Rowe, Interim City Manager If to QVEC: Quail Valley Environmental Coalition 30098 Red Barn Place Canyon Lake, CA 92587 Attn: Scott Mann, President 9. GENERAL. This MOU contains the entire agreement between the Parties with respect to the matters herein provided for and may only be amended by a subsequent written amendment executed by all parties. This MOU may be executed in counterparts, each of which shall be deemed an original but which together shall constitute a single agreement. 10. INDEMNIFICATION.— In contemplation of the provisions of Section 895.2 of the California Government Code imposing certain tort liability jointly upon public entities solely by reason of 3 such entities being parties to any agreement as defined by Section 895 of the Code, the Parties hereto, pursuant to the authorization contained in Section 895.4 and 895.6 of the Code, agree that each Party shall be liable for any damages including, but not limited to, claims, demands, losses, liability, costs and expenses including reasonable attorneys fees, resulting from the negligent of wrongful acts or omissions of their employees or agents in the performance of the MOU, and each Party shall indemnify, defend and hold harmless the other Parties from such demands, damages, losses or liabilities for their negligence. 11. INVALIDITY; SEVERABLITY. If any portion of this MOU is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall constitute in full force and effect. 12. SUCCESSORS AND ASSIGNS. This MOU shall be binding upon and inure to the benefit of the successors and assigns of the parties hereto. 13. SIGNATURE CLAUSE. The signatories hereto represent that they have been appropriately authorized to execute this MOU on behalf of the Party for whom they sign. [End = Signatures on Following Page] 4 IN WITNESS WHEREOF, the parties hereto have executed this MOU EASTERN MUNICIPAL WATER DISTRICT By: Paul D Jones II, G nre r I Manager Date: ELSINORE VALLEY MUNICIPAL WATER DISTRICT By: Ron Young, General Manager Date: COUNTY OF RIVERSIDE DEPARTMENT OF ENVIRONMENTAL HEALTH By: John Watkins, Deputy Director Date: 5 CITY OF MENIFEE By: William Rawlings, City Manager Date: CITY OF CANYON LAKE By: Richard Rowe, Interim City Manager Date: QUAIL VALLEY ENVIRONMENTAL COALITION By: Date: Scott Mann, President