Item 1 - Settlement Agreement Ramona Municipal Water District G�� F W'�Y
" AGENDA REPORT SUMMARY
TO: Honorable Mayor and Members of the City Council T"F ......� ,• �-�`
C� W THE LQU�
FROM: James L. Bowersox, City Man�
INITIATED BY: James R. Williams, Director of Public Services�
DATE: February 3, 1998
SUBJECT: Settlement Agreement with the Ramona Municioal Water District
Regarding the Sale of Water to the Hidden Valley Ranch
ABSTRACT
Following several meetings to consider entering an agreement with the Ramona Municipal Water
District (RMWD) that would permit them to sell untreated water to the Hidden Valley Ranch, the
Council indicated consensus at the January 8, 1998, workshop that such an agreement is now
acceptable. The proposed agreement, signed by the RMWD General Manager, is presented by
this report for the Council's final review and adoption.
ENVIRONMENTAL REVIEW
This item is not subject to CEQA review.
FISCAL IMPACT
The attached proposed agreement recovers revenues anticipated to be lost by Poway if Ramona
sells water to Hidden Valley Ranch. Therefore, there is no unmitigated fiscal impact to either the
general fund or the water enterprise fund resulting from the proposed agreement.
ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE
A copy of this report has been sent to Mr. Steve Julian, Interim General Manager, RMWD,
members of the Old Coach Steering Committee, and Mr. Ed Malone, Hidden Valley Ranch.
RECOMMENDATION
It is recommended that the City Council approve the attached agreement and authorize the City
Manager to sign the agreement on behalf of the City of Poway.
fEB 3 1998 ITEM 1 -
1/25
- -' AGENDA REPO�. T
G�'C �GqY
CITY OF POWAY
�
�f .. .. s
C� l.\ THE CO��
TO: Honorable Mayor and Members of the City Council
FROM: James L. Bowersox, City Man�l�'
V
INITIATED BY: James R. Williams, Director of Public Services �
DATE: February 3, 1998
SUBJECT: Settlement Agreement with the Ramona Municipal Water District
Regarding the Sale of Water to the Hidden Valley Ranch
BACKGROUND
At the August 27, 1996 meeting, the subject proposed agreement with the Ramona Municipal
Water District (RMWD)was first introduced. Council recommended this item be continued to the
September 24, 1996 meeting and directed staff to pursue additional negotiations that would
consider the groundwater concerns of residents in the Old Coach Road area.
At the September 24, 1996 meeting, Council appointed Councilmembers Cafagna and Rexford to
meet with the RMWD Ad Hoc Committee. Due to the unreliable groundwater supply, the general
consensus at the public meeting of the combined Poway Council and RMWD Board held on
October 30, 1996 was for staff to investigate avenues and associated costs for area residents to
connect to the City's water system. As a result, staff prepared a report to Council at the February
4, 1997 meeting under Item 3.1 to prepare engineering and assessment district feasibility studies
and the formation of an assessment district to finance the costs of installing water lines. However,
at the request of residents, the item was continued to the February 18, 1997 meeting and again
removed from calendar until the Old Coach homeowners received their hydrology report and the
Water Resources Control Board made their findings on Mr. Shoemaker's complaint against the
RMWD. In addition, staff was to check to see if the Department of Fish and Game's water releases
were being made; they were.
At the January 8, 1998 workshop, Council suggested that entering into the agreement with the
RMWDas concerns_their sale of water to Mr. Ed Malone for his Hidden Valley Ranch property
would now be in the City's best interest. Council also asked staff to determine if and what further
study and expense would be necessary to provide definitive conclusions regarding the impact upon
Old Coach Road residential wells and other groundwater considerations in the area of this and
other actions pertaining to surface run-off or other surface releases of water.
ACTION:
z�25 FEB 3 1998 iitM 1
--- Settlement Agreement with RMWD
February 3, 1998
Page 2
FINDINGS
On January 21, 1998 staff confirmed with the Interim General Manager, Steve Julian of the
Ramona Municipal Water District that their earlier signed agreement remains a firm offer.
As such, Attachment (1) is provided for the Council's final review and decision.
Consulting Engineer, Mr. Barry Bevier, of Group Delta, has suggested that the probable
expense associated with more conclusive analysis of groundwater conditions than that
which is presently available is in the range $106,000 to$184,000. Separate from his letter,
Mr. Bevier told me that he cannot guarantee that such a study would provide proof positive
of bedrock fracture inter-connectivity of alt wells in the Old Coach Road area. The Group
Delta Proposal and Cost Estimate are provided as Attachment (2). A more detailed scope
of work and cost estimate would be prepared if Group Delta were assured that they would
be given this study to pertorm.
ENVIRONMENTAL REVIEW
- This action is not subject to CEQA review.
FISCAL IMPACT
The attached proposed agreement recovers revenues anticipated to be lost by Poway if
Ramona sells water to Hidden Valley Ranch. Therefore, there is no unmitigated fiscal
impact to either the general fund or the water enterprise fund resulting from the proposed
agreement.
ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE
A copy of this report has been sent to Mr. Steve Julian, Interim General Manager, RMWD,
members of the Old Coach Steering Committee, and Mr. Ed Malone, Hidden Valley Ranch.
RECOMMENDATION
It is recommended the City Council approve the attached agreement and authorize the City
Manager to sign the agreement on behalf of the City of Poway.
JLB:JRW:P4
Attachments (1) SettlementAgreement
(2) Proposal and Cost Estimate
D:�DI RSDATAIW PFILES\COUNCILGSTAFF.RPT799BVtM W D0203.400
�„F F�6 3 1998 f��Y 1
CETTLEMENT AGRERMENT
THIS SETTLEMENT AGREEMENT(hereinafter referred to as ("Agreement"), made
and entered into this 4th day of February, 1997, between RAMONA MUNICIPAL WATER
DISTRICT ("RMWD") and the CITY OF POWAY ("POWAY"),
WITNESSETH
WHEREAS, RMWD has agreed to settle the claims (hereinafter individually and
collectively referred to as the "settled claims'� of one of POWAY's customecs, Hidden Valley
Kanch, Edwazd C. Malone and Bazbaza J. Malone, conceming water rights as described in the
Settlement Agreement annexed as Exhibit "A" to this Agreement;
WHEREAS, Exhibit"A"to this Agreement requires RMWD to supply water to certain
real property (hereinafter"Malone Properry");
WHEREAS, POWAY asserts that its consent is required before RMWD may sell water to .
the Malone Properry, and RMWD asserts it may do so without such permission; and
WHEREAS, RMWD and POWAY desire to settle the dispute concerning the release of
water to the Malone property;
NOW, THEREFORE, IN CONSIDERATION OF THE PREMISES AND TI�
MUTUAL AGREEMENTS HEREINA.FTER SET FORTH, POWAY and RMWD agree as
follows:
1. This Agreement fiilly settles and compromises the claims of POWAY to reshict
water sales by RMWD to the Malone Properry, according to the separate agreement, Exhibit "A."
2. The parties will execute, acknowledge and deliver to each other a Mutual General
Release in the form-annexed as E:chibit "B", on or before the settlement closing date.
3. In consideration for this settlement compromise, and the promises of the parties
herein, POWAY and RMWD agree as follows:
a. POWAY agrees to allo�v RIvfWD to deliver, via constructed coaveyance �
systems (e.g. pipelines), up to and including 300 acre feet of untreated (raw) water per yeaz to the
Malone Property at no charge by RMWD.
b. POWAY a�re�s to allow RI�tWD to sell to the Malone property,untreated (raw)
water beyond the initial 300 acre feet per year delivered via the same constructed coaveyance
4/25 ATTACAMENT 1 fE8 3 1998 ITEY 1
systems (pipelines).
c. POWAY receives no compensation for the first 300 acre feet delivered to the
Malone Property per year. For each acre foot which RMWD sells or delivers to the Malone
Property in each calendar year above 300 acre feet up to and includin� 550 acre feet, POWAY
will receive compensation accordin� to this formula: the difference between 1) the San Diego
County Water Autttority's "raw water rate"per acre foot, plus $8435, and 2) PO WAY's
published rate per acre foot for sales to POWAY customers. The pacties will-use this formula
even if the San Diego County Water Authority's "raw water rate" or POWAY's published rate
varies after the parties sign this Agreement.
d. After RMWD's deliveries to the Malone Property exceed 300 acre feet in any
calendaz yeaz, payments aze due to POWAY monthly under this Agreement, by the 20th day of
the month following the delivery.
e. RMWD, will conduct an uurial study to determine if there has been an
environmental effect to the creek as a result of the change in the September 1995 release point to
the Malone Property. RMWD shall provide a copy of the initial study to Poway within three
days of its completion. If required under CEQA, RMWD will retain a firm of its own choosing
to perform any review beyond an uutial study. Upon completion of any required studies,
RMWD will perform all necessary mitieation, if any, required by the environmental re��iew and
within RMWD's power and legal authority. Under paragraph 5 of this Agreement. PO�VAY
retains the right to seek enforcement of RivIWD's legal obligations under CEQA.
f. RMWD may not sell or deliver more than 550 acre-feet of water to the Malone
Property in any calendaz yeaz.
4. POWAY and RMWD enter this Agreement in good faith for the purpose of
completely settling, as benveen each other, all claims associated with RMWD's release of water
to the Malone Property. This Agreement does not constitute an admission of liability on the part
of any party to this Agreement.
5. The parties must submit any dispute concerning this Agreement to binding
azbitration as follows:.
� a. The party inivating arbitration must (a) notify the other in �vriting; and (b)
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5/25 FEB 3 1998 I�EM 1
request the San Diego office (or other office located in the San Diego area) of the Judicial
Arbitration and Mediation Services, Inc. ("7AMS") to provide to both POWAY and RMWD a
list of retired judges from which POWAY and RMWD wiil select the arbitrator. Within five
days of their receipt of the list of potential azbitrators, POWAY and RMWD must attempt in
good Faith to meet and agree which of the potential arbitrators will serve as the arbitrator of the
controversy. If POWAY and RMWD fail to agree to an arbitrator in that five day period, the
party initiating the arbitration must ask JAMS to provide to both POWAY and RMWD a list of
ihree retired judges. Within five days of their receipt of the list of three retired judges, POWAY
and RMWD must each retum that list to JAMS with one name crossed out. JAMS must then
select the arbitrator from the list of three retired judges, but may not select an azbitrator whose
name either RMWD or POWAY crossed out from the list. If JAMS does not have an o�ce in
the San Diego azea when a dispute under this Agreement azises, POWAY or RMWD may initiate
azbitration before the American Arbitration Association("AAA"). But AAA may provide
attomeys at law to serve as azbitrators if AAA has no retired judges available.
b. The azbitration must take place in San Diego, Califomia, before one azbitrator.
The azbitrator must conduct the azbitration in accordance with the California Arbitration Act,
Califomia Code of Civil Procedure sections 1280 et seq. In addition to other powers, the
azbitrator has the authority to grant equitable relief. The decision of the azbitrator is binding and
conclusive on POWAY and RiViWD. The prevailing party is entitled to reasonable costs,
expenses and attomeys' fees, including the costs and fees chazged by JAMS (or AAA, if
applicable), including the fees of the azbitrator, in addition to any other relief;ranted.
6. This Agreement, and the blutual General Release to be annexed hereto as E�chibit
"B," constitute the entire agreement benveen the parties hereto and all the terms of these
documents aze contractual and not mere(y a recital.
7. RMWD must give POWAY thiriy day written notice before a�reeing to any
modification or cancellation of the separate agreement, Exhibit "A" to this Agreement.
8. This Agreement does nut create any legal rights in any third parry, specifically
including but not limited to the o��rer or owners of the Malone property.
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FEB 3 1998 REM 1 �
APPROVED AS TO FORM AND CONTENT:
DATED: /— L7- 9� McDOUGAL, LOVE, ECKIS & GRINDLE
By: ' ���
T EN M. ECKIS
ttomeys for CITY OF PO WAY
DATED: f S1 �Y�b , R
>
���� ���
BY. I
CHRIST PHER LARSEN
Lazsen & Crickmore
Attomeys for RMWD
IT IS SO AGREED:
� DATED: �� �/ �G RAMONA MUNICIPAL WATER DISTRICT
�BY� � --
1ELL
General Manager
DATED: CITY OF POWAY
By:
JAMES BOWERSOX
Ciry Manager
_ o�wvv��ca�rsun�wwuuon
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FEB 3 1998 ITEM 1
7/2s
EXHIBIT. "A'.'
SETTL.EMENT AGREE?v1EN'C
THIS SE'ITL.EMENT AGREEMENT (here' ter reEerred to as
"Agreement") is made and entered into this 28th day f February, 1995, by and
' among EDWAIZD C. MALONE, BARBARA J. MA NE and HIDDEN VALLEY
R.�NCH (hereinafter refened to as "plaintiEfs") d RAMONA MUr1ICII'AL WATER
DISTRICT (hereinafter refeaed to as the "def ndant").
� SETH
4VfiEREP.S, there is curren y pending an action in the Superior Court
of the State oE CaliEornia for the Coun of San Diego, East County Branch, entitled
HIDDE�7 VAL EY RAi�1CH and ED ARD . MALO vs. RAMONA MUNICII'AL
WATER DISTRICI'. et al.. Case N . BE 543598 (hereinafter referred to as "the
Action").
WHEREAS, the ction was brought by plainb.ffs for inverse
/
condemnation, trespass, de�azation of water rights and violation of dvil rights and
resulted in the Judgment d Permanent Injunction entered in this matter on
November 18, 1988.
WHERE , defendant enters into this agreement based on plaintiffs'
promise that if defe{idants' price of water is less expensive than other sources of
%
wate�, plainciffs �ill purchase additional water, as needed, from defendant
_�-L/
wpi�REAS, plaintiffs on the one hand and the defendant on the other
hand have settled all daims except those claims pertaining to water releases,
declaratory. relief and interference with water rights under the terms of Section 1 of
the Judgment and Permanent Injunction, and now desire to settle as betcveen them,
$�Z5 1 FEB 3 1998 ITEM 1
- -� ,�i��i��:�/ 02- 3—�d'
_- SETTLEM .NT A F M NT
THIS SETTLEMENT AGREEMENT (hereinafter referred to as ("AgreemenY'), made
and entered into this 628th day of�'ebraaryAugust, 1996�, between RAMONA MUNICIPAL
WATER DISTRICT ("RMWD") and the CITY OF POWAY ("POWAY"),
WITNESSETH
WHEREAS, RMWD has agreed to settle the claims(hereinafter individually and
collectively referred to as the"settled claims")of one of POWAY's customers, Hidden Valley
Ranch, Edward C. Malone and Bazbaza J. Malone, concerning water rights as described in the
Settlement Agreement annexed as Exhibit "A" to this Agreement;
WHEREAS, E�chibit"A"to this Agreement requires RMWD to supply water to certain
real property (hereinafter"Malone Property");
WHEREAS, POWAY asserts that its consent is required before RMWD may sell water to
the Malone Property, and RMWD asserts it may do so without such permission; and
WHEREAS, RMWD and POWAY desire to settle the dispute concerning the release of
water to the Malone property;
NOW, THEREFORE, IN CONSIDERATION OF THE PREMISES AND THE
MUTUAL AGREEMENTS HEREINAFTER SET FORTH, POWAY and RMWD agree as
follows:
1. This Agreement fully settles and compromises the claims of POWAY to restrict
water sales by RMWD to the Malone Property, according to the sepazate agreement, Exhibit "A."
2. The parties will execute, acknowledge and deliver to each other a Mutual General
Release in the form annexed as Exhibit "B", on or before the settlement closing date.
3. In consideration for this settlement compromise, and the promises of the parties
herein, POWAY and RMWD agree as follows:
a. POWAY agrees to allow RMWD to deliver,via constructed conveyance
systems(e.g. pipelines), up to and including 300 acre feet of untreated(raw) water per yeaz to the
Malone Property at no chazge by RMWD.
b. POWAY agrees to allow RMWD to sell to the Malone property, untreated(raw)
water beyond the initial 300 acre feet per yeaz delivered via the same constructed conveyance
fE8 3 1998 tTE�A 1 �e
all remauting unsettled claims, demands, rights and causes oE action in the Action
and as described in the Mutual General Release annexed as Exhibit "A" to this
Agreement (hereinafter individually and collectively refened to as "claims").
NOW, THEREFORE, IN CONSIDERATION OF TF� PROMLSES AND
' THE MLJTUAL AGREEMEI�ITS HEREINAFTER SET FORTH, it is hereby agreed by
and among plaintiffs and the deEendant as follows:
1. The claims of plaintifFs shall be and hereby aze fully settted and
compromised.
2. Subject to the provisions of Paragraph 5 below, plaintiffs shall dismiss
with prejudice all claims identified in the Mutual General Release annexed as
Exhibit "A" to this Agreement
3. The parties shall execute, acknowledge and deliver to the other parties a
Mutual Generai Release in the form annexed as Exhibit "A;' on or before the
settlement closing date.
4. In consideration for this settlement compromise, and the promises of the
parties herein.
_ a. Defendant agrees to deliver to plaintiffs 300 aae feet of water, or
such lesser amount as requested by plaintiffs, per annum, measlaed from January 1
to December 31, without charge and in full saGSfaction of plaintiffs' prior and vested
riparian and overlying water rights.
b. Defendant also agrees to make available for purchase by and
,_ delivery to plaintiffs an additional minimum amount of 250 acre feet of water per
annum, measured hom January 1 to December 31. Defendant shall have the fust
right to sell to plaindffs at a less eYpensive price water for agriculturai purposes. If
9/25 ,, FEB 3 1996 17CM 1
defendanYs price of water is less expensive than any other source, plaintiffs agree
that any water purchased over and above the 300 acre feet defined in subsection (a)
will be purchased from defendant. Plaintiffs shall pay for any water delivered in
excess of 300 aae feet per annum, measured from January 1 to December 31.
' Defendant will deliver water when and as requested by plaintiffs. Water delivered
upon plaintiffs' request in excess of 300 acre feet per annum, measured from
January 1 to December 31, will be availabie, measured, and billed in the same
manner as any other of defendanYs agricultural customers using similar unlseated
water. On reasonable notice to defendant, plaintiffs shall have the right to inspect
and test for accuracy any meters or other measuring devices installed in connection
with the delivery of water to plaintiffs under this Agreement
c Plaintifis further agree to consider purchasing from defendant
additional water if they are able to purchase more than 250 aae feet, or obtain the
delivery of more than 550 aae feet.
d. The rate for purchased water shall be at defendant's rate for
un�eated water less defendanYs cost of pumping to the Kennedy tanks.
_ The rate for the purchased water delivered at the Ramona Lake
Pump Station (RI.PS) shall consist of the sum of the Metropolitan Water Dis�icYs per
aae foot cost of water, plus the San Diego County Water Authority's per acre foot
cost of water, plus the per aQe foot average pumping costs to Lake Ramona, plus the
per aae foot general administrative, overhead and maintenance costs, less the
interruptible agriculhual program discount. For illustration purposes, the F.Y.
1994-1995 cost of un�eated agricultural water delivered to plaintiffs at RLPS will be:
io/z5 FE8 3 1998 iTE�I 1
-3-
MWD Cost of Water �335.00
CWA Cost of Water 70.00
Pumping Costs to Lake Ramona 50.00
G.A., overhead, maintenance +14 .00
Subtotal �598.00
Less interruptible AG discount -113.00
Total $4g5-pp
.' e. Upon completion of construction of the water delivery system
contemplated in Paragraphs 4.f. and 4.g. below, defendant will deliver all water at
the RLPS, unless plaintiffs and defendant agree upon some other mutually acceptabie
delivery point
f. Plaintiffs will cause to be constructed at their own expense all
pipelines, connections, valves, pumps and appurtenant fadlities necessary to take
_ delivery from RLE'S. 'I'he direct connection to the IZLl'S will be in accordance with
and as directed by defendant's engineer. Plaintiffs will submit plans and
spedfications for review for all facilities on defendanYs property. Provided plainbffs
and defendant can agree upon mutually acceptable terms, plaintiffs may engage
defendant and its engineers to design various pipelines, connections, valves, pumps
and appurtenant facilitres necessary to take delivery from RLPS. IF plaintifEs dedde
_ to engage the services of defendanYs staff they will pay the reasonable value of such
time. Subject to plaintiffs' right to review expenses, plaintiffs will pay for the
reasonable costs for all permits, easement acquisitions, and any other associated
expenses. Plaintiffs will cons�uct their own facilities in accordance with good
engineering practice and agricultural standards so as to ensure that delivery can take
,_ piace uninterrupted �vhen and as requested by plaintiffs in the same manner as other
of defendant's agricultural customers using untreated water. r�.11 pipelines,
connections, valves, pumps and appurtenant facilities plainaffs corutruct to take
i1/2s FE8 3 1998 �7�&1 1
-'-
delivery from RLPS shall remain the property of plaintiffs. In the event the parties
change the locaaon for delivery of water under this Agreement or in the event of
termination of this Agreement, plaintiffs shall have the right to remove and keep all
pipelines, connections, valves, pumps and appurtenant fadlities plaintiffs constructed
` to take delivery from RLPS. Defendant shall maintain and keep in good repair all
pipelines, connections, valves, pumps and appurtenant fadlities installed in
connection with the delivery of water to plaintiffs under this Agreement, except any
pipelines, connections, valves, pumps and appurtenant facilities installed on any
portion of the plaintiffs' real property described in the Judgment and Permanent
Injunction, dated November 18, 1988 ("the Premises"). (A legal desaiption of the
Premises is attached hereto as E�ibit "B" and incorporated herein by reference.)
Plaintiffs shall reimburse defendant for the cost of the maintenance of all pipelines,
connections, valves, pumps, and appurtenant facilities installed pursuant to this
agreement, except those installed on plaintiff's premises. Plainbffs shall maintain
and keep in good repair all pipelines, connections, valves, pumps and appurtenant
facilities installed on the Premises in connection with the delivery of water to
- plaintiffs under this Agreement. Plaintiffs shall reimburse defendant all electrical
costs for the operation of any pumps installed pursuant to ti�is agreement.
g. If necessary, defendant will use its best efforts to obtain an
ease}nent or right of way across City of Poway property for the delivery facilities. If
necessary, defendant will commence eminent domain proceedings to acquire an
easement or right of way across City of Poway property for the delivery facilities.
Subject to plaintiffs' right to review expenses, all reasonabie costs including the
i2/25 FEB 3 1998 lTEM 1
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reasonable value of defendanYs stafF time shall be borne by plaintiffs after plaintiffs
have been notified in advance by defendant of the need to incur such costs.
h. Plaintiffs agree that the water delivered under the terms of this
Agreement is untreated water. Notwithstanding, plaintiffs may purchase water from
� defendant for any other purposes at defendanYs full price or according to future
agreements or arrangements.
i. This Agreement shall inure to the benefit of, and be binding
upon, the successors, assigns, heirs, executors, and administrators of the parties
hereto, and any parent, subsidiazy or affiliated entity of each such successor, assign,
heir, executor and adminis�ator. The right to delivery without charge of 300 aae
feet of water shall be fully transferable. The right to water releases under the terms
of this Aa eement constitutes a property right, which shall run with the land and be
appurtenant to the Premises, with the Premises beina the dominant tenement and
defendant's reai property being the servient tenement. In the event piaintiffs tansfer
or sell a portion of the Premises, plaintiffs shall have the right, in their sole
disaetion, to apportion the right to receive water under this Agreement between
- plaintiffs and any other owners of the Premises. In the event of any transfer or sale
of all of the Premises, the subsequent owner shall have the right to receive releases of
water from defendant under the terms of this Agreement.
�._ j. Defendant shall have the right ro remove and keep any
monitoring systems or devices required to be installed under the terms of the
Judgment and Permanent Injunction, dated November 18, 1988, so long as defendant
retvrns the affected portion of the Premises to its original state before the filing of the
Judgment and Permanent Injuncrion, dated November 1S, 19SS.
13/25 FEB 3 1998 ITE� 1 �t
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k. Either party hereto may record an abstract of the provisions of
this Agreement with the County Recorder, County of San Diego, which shall
constitute due notice to everyone of the rights of the parties pertaining to water
rights appurteriant to the Premises under ttus Agreement.
, 5. Plaintiffs and defendant agree that they enter this Agreement in good
faith for the purpose of completely settling the Action and compromising disputed
claims as between piaintiffs and defendant. This Agreement dces not constitute an
admission of liability on the part of any party to this Agreement. The parties agree
that in the event any action is filed in the Superior Court of the State of Califomia, in
the United States District Court or in any other court of competent jurisdiction
between the parties hereto, which concems the subject matter of this Agreement or
which may impact ttte intent of the parties under this Agreement, and in the event
the court determines said action is not subject to arbitration in accordance with
Paragraph 8 below, this Agreement (including the Mutual General Release) shall
become null and void, the Superior Court of the State of Caliiomia, County of San
Diego, East County Branch, shall vacate nunc pro tunc the dismissal of the Action,
and the parties shall again be subject to the terms of the Judgment and Permanent
Injunction, dated November 18, 1988, under the jurisdiction of the Superior Court of
the State of California, County of San Diego, East County Branch.
6. The settlement closing date shall be . 199_.
, .
Nevertheless, the parties shall remain subject to the terms of the Judgment and
Permanent Injunction, dated November 18, 1988, until the water delivery system
contemplated under this Agreement is constructed and fully operational. This
Agreement is conangent upon the construction and operation of the water delivery
14/25 _�_ fE8 3 1998 ���CpA 1
system contemplated under Paragraphs 4.f. and 4.g. above. If the event the parties
are unable to secure a completed and fully operational water delivery system within
a reasonable time after entering this Agreement, this Agreement (including the
Mutual General Release) shall become null and void, the Superior Court of the State
, of Califomia, County of San Diego, East County Branch, shall vacate nunc pro tunc
the dismissal of the Action, and the parties shall again be subject to the terms of the
Judgment and Permanent Injunction, dated November 18, 1988, under the jurisdiction
of the Superior Court of the State of California, County of San Diego, East County
Branch.
7. Defendant expressly represents and wanants that Kevin Walsh has full
authority as defendanYs general manager to enter into this Agreement on behalf of
defendant and that defendant enters into this Ao eement with the full knowledge
and consent of defendanYs board of directors.
8. In the event of a dispute concernino this Aa eement, the pazties shall
submit the matter to arbitration in accordance with the provisions of this paragraph
Arbitration shall be conducted before either Judidal Arbitration and Mediation
Services, Inc. ('7AMS") or the American Arbitration Association ("AAA"). In the
event the pazties cannot agree upon the entity to conduct the arbitration, then upon
application by either party, and upon notice to the other party, the then Presiding
Judge of the Superior Court of the State of California, County of San Diego, shall
,..
determine the entity to conduct the arbi�ation (either JAMS or AAA). If either
plaintiffs or defendant requests that any such controversy be arbitrated, it shall (a)
notify the other in writing; and (b) request the San Diego office (or other office
located in the San Diego area) of JAMS or AAA to provide to both plaintiffs and
15/25 -s- FEB 3 1998 �ieM 1
defendant a list of arbi�ators from which plaintiffs and defendant may select the
arbi�ator. Within five (5) days of plaintiffs' and defendant's receipt of the list of
potential arbilrators, plaintiffs and defendant shall attempt in good faith to meet and
agree which of the potential azbitrators will serve as the arbitrator of the controversy.
� If plaintiffs and defendant fail to agree to an arbi�ator in such five (5) day period,
the party requesting the arbitration shall request jA:�iS or AAA to provide to both
plaintiffs and deFendant a list of three (3) arbitrators from which plaintiffs and
defendant may select the arbitrator. Witran five (5) days of plaintiffs' and
defendanYs receipt of the list of three (3) potential arbi�ators, piaintiffs and
defendant shall return that list to JAMS or AAA with one name crossed out. JAIvLS
or A� shall then select the arbitrator from the list of three arbitrators, but shall not
select an arbi�ator whose name was crossed out from the list in accordance with the
preceding sentence.
Tne arbitration shall be conducted in San Diego, California before one
arbitrator. The azbitration shall be conducted in accordance with the California
Arbitration AC, California Code of Civil Procedure sections 1280 et se�. In addition
to other powers, the azbitrator shall have the authority to grant equitable relief. The
deasion of the arbitrator shall be binding and conclLUive on plaintiffs and defendant.
In any dispute concerning this Agreement, the party prevailing therein shall be
entitled to reasonable costs, expenses and attorneys' fees, including the costs and fees
,..
charged by J.�.�LS (or AAA, if applicable) (induding the fees of the arbitrator), in
addition to any other relief granted.
16/25 _q_ FfB 3 1998 ITEM 1
` 9. This Agreement and Mutual General Release to be annexed hereto as
Exhibit "A" constitutes the entire agreement between the parties hereto and all the
�terms of these documents aze mntractual and not merely a recital.
APPROVED AS TO FORM AND CONTEM:
DATED: �'C6 l6 1`I9S GRAY CARY WAItE & FREIDENRICH
. A Professional Corporation
BY: T• l./.�rn
CHr1ItLES L. DEEM
Attorneys for Plaintiffs
DATED: � �-2 c —�s ENDE�tifATV, LINCOLN, TLTREK &
HEATER
_. � /
By: �� .�r�
DAVID SEMELSBERG
Attorneys for Defendant
IT IS SO AGREED:
DATED: �:° �==���'r" �v`%� RrL�fON�1 VfLTNICII'AL WATER
DLSTRICf
- By: '�:h '�.. /���
KEVIN WALSH
General Manager
DATED: 07 — /lo — / `!�� HIDDEN VALLEY 1ZANCH
,..
By: ,��� 1�,�
ED4Ve12tD MALONE
1��25 -10- FEB 3 1998 iitM 1
DATED: !
EDWARD CLYDE MALONE
Co-Trustee under Dedaration of Trust
dated December 14, 1972
DATED: ! �y���J���ze
BARB LONE
Co-Trustee under Declaration of Trust
.` dated December 14, 1972
,..
575531
is/25 -11- fEB 3 1998 �icM 1
EXHIBIT °A��
MUTUAL GENERAL RELEASE
THIS AGREEMENT OF MUTUAL GEN�,AL RELEASE (hereinafter
referred to as the �Release��) , by and between EDWARD C. MAI,ONE,
BARBP.RA J. Mr1I,ONE, HIDDEN VALLE'f RANCH, and RAMONA MUNICIPAL
� WATER DISTRICT (hereinafter collectively referred to as the
"Parties��) , is a Mutual General Release whereby the above-
mentioned Parties extinguish their autual rights, claims and
actions arising from the disputes desc�ibed herein.
1. Wi*_h the exception of plain�i?fs ' possible claims for
iu�ur_ daaages resulting fron the area of dam failure inundation,
which rights plaintiffs do not release, it is the intention of
a11 the Parties to this Release to relezse and hold ha�less all
of the other Parties to this Release as to all other rights and
obligations pursuant to Court Action Nc. BE 543598 including and
in particular the terms of section 1 of the Court's Jud .�ent anfl
P°r�anent Injunction, dated Nove�be: 18 , 1988 , relating to
plaintiffs� causes of action for declaratory relief and
interference with water rights; the subject matters thereof; and
any matters arising therefrom.
2 . General Release. With the exception of plaintiffs'
possible claims for future damaqes resulting from the area of daa
fzilure inundation, which rights plaintiffs do not release, the
Parties, on behalf of themselves and their descendants,
a:�cestors, dependents, heirs, executors, administrators, assiqns,
- agents, servants, officers, directcrs, partners, limited
19/25 FEB 3 1998 REIIAA 1 �
partners, sureties, insurance companies, shareholders, employees,
representatives and successors hereby fully release and discharge
each other and their descendants, ancestors, dependents, heirs,
executors, administrators, assigns, agents, servants, officers,
directors, partners, limited partners, sureties, insurance
companies, shareholders, employees, representatives and
� successors, from all other rights, claims and actions which each
may have had in the past or may presently have against the other
with respect to San Diego Superior Court Action No. BE 543498,
and any and all other claims therein or unknown, except breach of
this Release, arising therefrom or relatsd thereto, and wi��
respect to the subject matters thereof, including, without being
li�ited thereto, possible clains by any party for malicious
prosecution.
3 . No Admission of Liabilitv. This Release is not an
admission of liability by any of the Parties for any purpose.
4 . Waiver of Civil Code Section 1542 . As pertains to those
matters described in this Release, with the exception of the
breach of any of the te!-ms of this Release, each Party waives for
the benefit of the other Parties, all rights to Section 1542 of
- the California Civil Code, which provides as follows:
A general release does not extend to the
claims which the creditor does not know or
susoect to exist in his favor at the time of
the execution of the Release, which if known
by him must have materially affected his
' settlement with the debtor.
5. Advice of Counsel. This release is freely given and
voluntarily executed, the Parties hereto having been apprised of
20/25 fE8 3 1998 .�icM 1
all relevant information and appropriate advice furnished by
their attorneys.
6 . Full and Fina1 Settlement. No party hereto relied on
any inducements, promises, or representations by any other party
or its attorney, other than those set out in the Settlement
Agreement and this Release, which constitutes the entire
,
. inteqrated understandings of the Parties. Each of the Parties
hereto has read the Settlement Agreement and this Release and has
� had the ter•ns of the Settlement Agreement and this Release
explained by his attorney.
7 . Oblications of the Parties. As a condition of this
Release, and pursuant to the terms and conditions of this
Release, the Parties sha11 do the following acts:
(a) The Parties shall comply in a11 respects with the
Settlement Agreement.
(b) The Parties shall execute this Release where provided
hereinbelow.
(c) Counsel for the Parties sha11 execute the Release,
approving the same as to form and content, where provided
hereinbelow.
- 8 . Bindinq Aqreement. All terms of this Release sha11 be
binding upon and inure to the benefit of and be enforceable by
the Parties hereto, and their respective legal representatives,
successors and assigns.
,..
CONCLUSION
IN WITNESS WFiEREOF, the Parties hereto have affixed their
signatures as of the dates opposite their names.
21/25 FfB 3 1998 �TEM 1
DATED: �/�lO 's HIDDEN VALLEY RANCH
BY� �%G�/.!G��l�
EDW D C. MALONE
DATED: / 6' (/l,�:i�//��
EDWARD CLYDE MALONE, as Co-
� Trustee Under the Declaration of
� Trust Dated December 14, 1972
DATED: pZ — /G - l���
BARSARA J. MA , as Co-
Trustee Under the Declaration oP
Trust Dated December 14, 1972
DATED: 2 RAi40NA ML'NICIPAL WATER DISTRICT
SY: �l�✓�,n � /7ciG'�
IG IN WALSH, General Manager
•
22�25 FF8 3 1998 i��M 1
-- EXHIBIT "B"
M T A • R � A O A T ATM4
FOR VALUABLE CONSIDERATION given to each of the undersigned,
the receipt and sufficiency of which is hereby acknowledged, the
undersigned do hereby mutually release and forever discharge one
another of any liability from any and all claims, acts, damages,
debts, agreements, contracts, promises, judgments, liens,
attachments, and causes of action which they ever had or may have,
whether known or unknown, arising out of any and all transactions
between the undersigned prior to the date hereof, related to the
_- subject matter of that settlement agreement between the parties
hereto dated August 28. , 1996, except as reserved unto the
parties by the settlement agreement.
This is intended as a full settlement and compromise of each,
every and all claims of every kind and nature the undersigned ever
had or may have in connection with the above referenced matter. No
claim, right, cause of action or demand related to or in any way
connected with the above referenced matter is reserved, and the
undersigned hereby expressly waive any and all rights which the may
have under the provisions of Section 1592 of the Civil Code of the
State of California, which provides :
A general release does not extend to claims
which the creditor does not know or suspect to
1
fEB 3 1998 • j•:+w 1
State of California, which providesc
A general release does not extend to claims
which the creditor does not know or suspect to
exist in his favor at the time of executing the
release which, if known by him, must have
materially affected his settlement with the
debtor.
Dated: City of Poway
By:
JAMES L. BOWERSOX, City Manager
Dated: RAMONA MUNICIPAL WATER DISTRICT
BY:
STEVE JENSEN, Interim General Manager
� 2
FEB 3 1998 ITEM 1 �
- _ .
EXHIBIT "B"
MUTUAL RELEASE OF AT•? C arpqa
FOR VALUABLE CONSIDERATION given to each of the undersigned,
the receipt and sufficiency of which is hereby acknowledged, the
. undersigned do hereby mutually release and forever discharge one
another of any liability from any and a11 claims, acts, damages,
debts, agreements, contracts, promises, judgments, liens,
attachments, and causes of action which they ever had or may have,
whether known or unknown, arising out of any and all transactions
between the undersigned prior to the date hereof, related to the
subject matter of that settlement agreement between the parties
„_ hereto dated Auquc± 2g. , 1996 .
This is intended as a full settlement and compromise of each,
every and all claims of every kind and nature the undersigned ever
had or may have in connection with the above referenced matter. No
claim, right, cause of action or demand related to or in any way
connected with the above referenced matter is reserved, and the
undersigned hereby expressly waive any and all rights which they
_ may have under the provisions of Section 1542 of the Civil Code of
the State of California, which provides:
A general release does not extend to claims
which the creditor does not know or suspect to
exist in his favor at the time of executing
1
23/25 F�B 3 tsse ITEM 1
if known bY hlmt �,aithhth
e
cted his settlemen
the relea5e Whlch,
mateTially affe
3ebtor. City of p°waY :
�ated: CitY Manaqer
gy: J�ES L, gOWERSOXr
WATER DISTRICT
/ gpMONA
� � �
pated: eral Manager
BY= T '
2
z4/25 FEB 3 1998 11tM 1
�G U Project ho. 1466-375
^� January 15, 1998
� i
II' ) I'I
� �, -
IDE� � �C������
Mr. Randy Williams �p(� 1 6 1998
Certi�ed DBE/MBE CI'i'Y OF POWAY Public SerF�ic�� �8��:
13325 Civic Center Drive �� � �116 (��(��
"°"`°"'�,"","°"'` Poway, California 92064
cmoP,
N!b�qY�ology �
`�"""„R""`.�"� EVALCIATIOIY OF HYDROGEOLOGIC CONDITf01`IS
��ro,�� OLD COACH ROAD AREA
HydrauLas
E„,.o m„a� POWAY, CALIFORNIA
Enginnnng
Dear Mr. Williams:
As you requested, we have developed a preliminary scope and fee to evaluate the
hydrogeologic conditions in the Old Coach Road area of Poway. The study would
encompass an evaluation of water use, recharge, and hydrogeologic characteristics of
both the Thompson Creek and Warren Creek drainage sub basins.
A preliminary scope of work and fee is summarized below. We anticipate that the study
would take approximately six months to complete.
Data Review &Geologic Mapping $ 4,000 - 6,000
Water-Level Monitoring �Stream Gauging
of Warren &Thompson Creeks 12,000 - 16,000
Recharge &Storaqe Analyses 10,000 - 12,000
Pumping Tests 60,000 - 120,000
(48-to 72-hr tests on 6 to 8 wells @ 570,000 to$15,000 ea)
Analyses & Report 20.000 - 30.000
$106,000 - 184,000
We appreciate the opportunity to work with you on this project. If you have any
questions or require additional information, please call.
Very truly yours,
GROUP DELTA CO[�ISULTI�I`ITS, INC.
_ � /-��
Barry R. evier, Principal Engineer F€8 3
1998 tTEM 1
4455 Murphy Canyon Roa3,�$u�300 ♦ San Diego,Califor � (619)573-0069Jax � gdcsd�aol.com e-mail
25/ 3347 Mi<helson Dnve,Suite 390 � �N�,e,�a�,fom:: ATTACHMENT 2 �5�� g
25 I� ♦ dcoc�aoi.come-mail