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HomeMy WebLinkAboutMINUTES - 07082008 - D.3 BOARD OF SUPERVISORS — CONTRA o. _rlAll,i� ,� COSTA _.uM: John Cullen, County Administrator � ' = COUNTY SpA.COUNj DATE: July 8, 2008 SUBJECT: Out of Area Service Agreement for Water Service to the Clayton Regency Mobile Home Park SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATION(S): 1. APPROVE and AUTHORIZE the Chair, Board of Supervisor, to execute the Out of Area Service Agreement for Water Service to the Clayton Regency Mobile Home Park ("Agreement"), substantially in the form attached, with the Contra Costa Water District and Clayton Regency, LLC. 2. Direct the County Administrator and the Department of Conservation and Development to take actions necessary to implement this Agreement. FISCAL IMPACT: There is no direct fiscal impact to the County associated with this Agreement. Clayton Regency, LLC, will pay for all costs related to the provision of water service to the Clayton Regency Mobile Home Park by the Contra Costa Water District. BACKGROUND/REASON(S) FOR RECOMMENDATION(S): A Land Use Permit for development of the Clayton Regency Mobile Home Park (the "Park") was originally approved by the County Planning Agency in 1962 and construction was completed in approximately 1970. The Park is located at 16711 Marsh Creek Road in unincorporated Contra Costa County and owned by Clayton Regency, LLC ("CR-LLC"). The Park is permitted for 192 pre-manufactured homes and at the current time there are approximately 280 residents. CONTINUED ON ATTACHMENT: RYES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR_REC ENDATION OF BOARD COM TTEE APPROVE _OTHER SIGNATURE(S): S4, ACTION OF BOA O APPROVED AS RECOMMENDE THER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A UNANIMOUS(ABSENT ) TRUE AND CORRECT COPY OF AN AYES: NOES: ACTION TAKEN AND ENTERED ABSENT: ABSTAIN: ON MINUTES OF THE BOARD OF SUPERVI RS ON THE DATE SHOWN. Contact: Jason Crapo,335-1021 90 4 ATTESTED CC,. Catherine Kutsuris,DCD LEN,CLERK OF Wendel Brunner, HSD HE ARD OF SUPERVISORS Linda Wilcox,County Counsel AND COUNTY ADMINISTRATOR -2- The Park is located outside the boundaries of any water district. Drinking water was initially provided onsite until the well water became too brackish to meet State standards. Later, reverse osmosis (RO)treatment produced potable water for the Park, but the Central Valley Regional Water Quality Control Board ordered the Park to stop onsite disposal of the RO brine (byproduct). After offsite disposal of brine was determined to be too costly, the County Health Officer allowed the temporary use of water hauled in from an approved source, in lieu of closing the Park. The source of hauled water is currently the City of Brentwood. The Park owner operates two State-certified potable water trucks that transport up to 16 loads of water per day, as needed, to two 63,000 gallon water storage tanks. This arrangement, initially established as temporary, has continued since 2001. The County Health Services Department issued a citation for contaminated water at the Park in October 2005. Since that time, the County has worked with CR-LLC and the Contra Costa Water District(CCWD)to address public health risks of the trucked water service at the Park. In a June 18, 2007, letter to CCWD, the County Public Health Director advised that the potential for contaminating potable water with pathogenic bacteria and viruses during filling, transport and delivery presented an unacceptable risk of waterborne diseases to the residents of the Park; that the residential density of the Park compounded the risk of waterborne, and then possibly communicable, diseases; and that contamination of a single water truck had the potential to impact a large number of individuals. Based on his evaluation of these conditions, the Public Health Director concluded that there was a"severe public health hazard that constitutes a public health emergency" at the Park. The Public Health Director indicated that the Health Services Department viewed water service from CCWD as the only available option that would resolve this public health hazard and requested CCWD's assistance. Pursuant to Government Code section 56133, CCWD, by contract or agreement, may provide extended water service outside its jurisdictional boundary to respond to an existing or impending threat to public health or safety of the residents of the affected territory, but only with the prior written approval of the Contra Costa Local Agency Formation Commission ("LAFCO"). This Agreement is intended to be such an agreement. If approved by LAFCO, the Agreement will allow for safe, sustainable long-term water service to the Park by CCWD, eliminating the health risks associated with the current trucked water service and the potential threat of having to close the Park due to unsafe drinking water. Under the Agreement, CCWD would provide interim water service from a new fill station near the termination of CCWD's existing infrastructure. The interim service is intended to serve the Park during construction by CCWD of a pipeline extension, which is required for long-term water service to the Park. The pipeline extension is to run generally east along Marsh Creek Road from approximately Gill Drive to the Park boundary. Long-term water service would commence after completion of the pipeline. CR-LLC would continue to be responsible for water distribution equipment within the Park boundaries. Barring unforeseen circumstances, it is expected that the issuance of all required approvals and completion of design and construction of the long- term water service facilities will take approximately 30 to 36 months. Clayton Regency, LLC, will be responsible for all costs associated with the design and construction of the new water pipeline extension. As part of this Agreement, Clayton Regency, LLC, waives any and all rights it may have pursuant to the County Ordinance Code to seek an increase in mobile home space rent at the Park as a means of recovering its capital costs. This will help preserve the low-cost housing provided by the Park. CR-LLC would be required under the Agreement to apply for and obtain an amendment to its Land Use Permit to, among other things, allow for the change in water service. Both the Land Use Permit amendment and the water service project to be undertaken by CCWD will require review under the California Environmental Quality Act ("CEQA"). Under the Agreement, the County would act as lead agency, and approval of the necessary environmental documents would be within the County' sole discretion. County staff will also work with CCWD staff to prepare documents required by the U.S. Bureau of Reclamation ("USBR") for compliance with the National Environmental Policy Act("NEPA"). Construction of long-term water service to the Park would not commence until USBR has approved the Park for inclusion in the CCWD Central Valley Project service area. Following completion of the environmental review and satisfaction of various other conditions as set forth in the Agreement, upon the County's request, CCWD would be required under the Agreement to submit an application to LAFCO for approval of the Agreement. As part of this process, the Agreement would require the County to request LAFCO to expressly condition its approval of the Agreement on water service being provided only to the Park and to no other properties, because the health risks identified by the Public Health Director specifically apply only to the Park and to no other properties. For this same reason, it is anticipated that the pipeline extension will have the capacity to serve only the Park, and not any surrounding properties. The Agreement -3- would require the County to take the lead role regarding public communications with Park resident, neighbors and other interested parties concerning the project. The County and CCWD would have liability protection under the Agreement from CR-LLC, which will be required to defend, indemnify and hold harmless the County and CCWD from and against claims, costs and lawsuits that arise from or are related to the operation, maintenance or replacement of the water distribution system within the Park, and the County and CCWD would be listed as additional insureds under CR-LLC's liability insurance policies. Under the Agreement, contractors hired by CCWD for the design and construction of the interim fill station and pipeline extension would also be required to defend and indemnify the County and CR-LLC for claims, costs and lawsuits arising from that work, and to maintain insurance naming the County and CR-LLC as additional insureds through the duration of the project. CONSEQUENCES OF NEGATIVE ACTION The Park will continue to rely on a source of drinking water that has unacceptable health risks, as determined by the County Public Health Director. Addendum D.3 July 8, 2008 Out of Area Service Agreement for Water Service to Clayton Regency Mobile Home Park Jason Crapo, County Administrator's Office, Dr. Wendel Brunner, Public Health Director, and Catherine Kutsuris, Community Development Department,presented the staff report. Ms. Kutsuris said that the department was aware of the sensitive nature of placing new water service connections outside the urban limit line. She informed the Board that the mobile home park was approved in the 1960's,prior to adoption of the urban limit and that other options had been explored and determined not feasible. Supervisor Glover cited a need for outreach and education to make it clearly understood that this measure is in response to an emergency situation and not to be viewed as any type of opportunity for policy changes in regard to construction activity outside the urban limit line. Supervisor Gioia said that the agreement contained provisions to restrict any growth inducing impacts, and suggested that when the matter returns that staff include details of those restrictions. Supervisor Uilkema said that in her opinion, LAFCO could be expected to request tight restrictive controls to ensure very little latitude in relation to this venture in order to address concerns of future events such as closure or sale of the mobile home park. Chair Glover called for public comment. The following people spoke: John O'Meara, Clayton Regency LLC, in support of the agreement; Frederick Schiff, resident of Clayton, cited concerns in regard to water service promised for the approximately 17 family properties between the end of the Contra Costa Water District Line to the mobile home park,that was not approved and his appreciation of the continuance to receive more information. Supervisor Piepho said she supported the action and appreciated the additional time to meet with concerned parties. Supervisor Bonilla requested that city officials of Clayton be notified of the upcoming meetings. By unanimous vote, with all Supervisors present, the Board: CONTINUED to an undetermined date to consider approving and authorizing Chair, Board of Supervisors to execute an Out of Area Service Agreement with the Contra Costa Water District and Clayton Regency, LLC, to provide water service to the Clayton Regency Mobile Home Park. 'f ✓'W l j �- '1.. i cn -CD ° • : . 44 rt I j � e ° y o I � e CD CL — — — m 0 CD 114 0 r O r CD ' 4 00 i- low OUT OF AREA SERVICE AGREEMENT FOR WATER SERVICE TO CLAYTON REGENCY MOBILE HOME PARK This Out of Area Service Agreement for Water Service to Clayton Regency Mobile Home Park ("Agreement") is made and entered into this.,FA day of 2008 ("Effective Date"), by and between the Contra Costa Water District. a county w ter district organized under the County Water District Law ("CCWD"), Clayton Regency, LLC, a Delaware limited liability company ("CR-LLC'') and Contra Costa County, a political subdivision of the State of California("County"). The parties hereto may collectively be referred to as the "Parties"or individually as a"Party." RECITALS A. The Clayton Regency Mobile Home Park("the Park"). owned and operated by CR-LLC, is located at 16711 Marsh Creek Road,within an unincorporated area approximately seven(7) miles southeast of Clayton, California in Contra Costa County. The Park was originally approved by the County Planning Agency on February 26, 1962 (County Land Use Permit#26-62). Land Use Permit#194-69, approved on October 15, 1969, amended Land Use Permit#26-62 to allow for expansion of the Park. Construction of the Park was completed in approximately 1970. An additional land use permit(LUP#032033) was approved on September 8, 2004, which expanded the area of the Park for the sole purpose of installing a new septic system. Land Use Permits#26-62, 194-69 and 032033 are collectively referred to as the"County Land Use Permit." The County Land Use Permit allows for a maximum of 192 pre-manufactured homes and 8 additional spaces for temporary use by recreational vehicles, and common areas. B. The Park is outside of CCWD's current service area boundary and sphere of influence, outside of the authorized service area for delivering Central Valley Project (CVP) water under CCWD's Long Term Renewal Contract for CVP Water(Contract No. 175r-3401A- LTR1, hereinafter called "Contract") and outside of CCWD's Los Vaqueros Project Area. C. Potable water at the Park is currently provided to residents within the Park property through a system of pipes, pumps and tanks that are owned, operated and maintained by CR-LLC. Water is currently obtained on a temporary basis from the City of Brentwood. CR-LLC owns and operates two State-certified potable water trucks which transport water(up to 16 loads per day, depending on demands) from a fire hydrant in Brentwood to two 63,000 gallon water storage tanks at the Park. The trucked water serves as the source of potable water and water for fire protection on the Park property. CR-LLC does not serve water outside of the Park boundary. D. In a June 18, 2007, letter to CCWD (attached hereto as Exhibit 1 and incorporated herein by reference), the Public Health Director for the County of Contra Costa("Public Health Director") advised that the potential for contaminating potable water with pathogenic bacteria or viruses during tilling, transport and delivery presented an unacceptable risk of waterborne diseases to the residents of the Park, that the residential density of the Park Out of Service Agreement lbr Water Service to Clayton Regency Mobile l lome Park Nee l of 15 compounded the risk of waterborne, and then possibly communicable, diseases, and that contamination of a single water truck had the potential to impact a large number of individuals. Based on his evaluation of these conditions, the Public Health Director concluded that there was a"severe public health hazard that constitutes a public health emergency"at the Park. The Public Health Director advised that Contra Costa Health Services("CCHS") viewed water service from CCWD as the only available option that would resolve this public health hazard and requested CCWD's assistance. E. In response to Exhibit I, CCWD has agreed to provide such assistance on a contract basis subject to the terms and conditions for such service described in their entirety in this Agreement. CCWD's sole obligation under this Agreement is to provide potable water service meeting the requirements of this Agreement. F. Pursuant to Government Code section 56133, CCWD has the authority to provide extended water service outside its jurisdictional boundary to respond to an existing or impending threat to public health or safety of the residents of the affected territory. Providing such water service requires that an out of area service agreement be entered into and approved by the Local Agency Formation Commission (LAFCO). This Agreement is intended to be such an agreement. G. The East Contra Costa County Fire District ("Fire District") has determined that CCWD has no obligation to provide water for fire protection purposes at the Park because State regulations require CR-LLC to be solely responsible for the fire protection system and for providing required fire flows at the Park. That determination was set forth in a June 1, 2007, letter from the Fire District to CCWD (attached hereto as Exhibit 2 and incorporated herein by reference). Accordingly, CCWD has no responsibility under this Agreement to provide fire flows to the Park or to property along any portion of the length of the pipeline serving the Park, fire facilities or equipment, or fire protection. NOW, THEREFORE, for and in consideration of the mutual promises and agreements contained herein, CCWD, CR-LLC and County agree as follows: AGREEMENT 1. PURPOSE The sole purpose of this Agreement and the sole basis upon which water service is being provided by CCWD is to assist the CCHS in addressing its concerns with water service at the Park and responding to the assessment of CCHS that water service from CCWD is the only available option that would resolve the public health hazard at the Park, as set forth in Exhibit 1. CCWD has not undertaken any new obligation, commitment or responsibility to the Park or CCHS beyond what is expressly described in this Agreement. The Parties agree that each of the Recitals set forth above is a part of this Agreement. Out of Service Agreement for water Service to Clayton Regency Mobile Home Park Page 2 of 15 j. CR-LLC agrees that it will retain its ownership of the Park until the long-term water service has been initiated pursuant to this Agreement,unless sale of the Park and assignment of CR-LLC's obligations under this Agreement are consented to in writing by CCWD and County, as described in Section 13 of this Agreement. k. CR-LLC will acquire and pay all application fees for all permits required by any local, state or federal agency with jurisdiction over the Project. 1. CR-LLC hereby acknowledges and waives any and all rights it may have pursuant to Chapter 540-2.408 and 540-2.410 of the Contra Costa County Ordinance Code to seek an increase in mobile home space rent at the Park as a means of recovering its capital costs of planning, permitting, construction and installation of the Project.. CR-LLC reserves the right to seek recovery from Park residents of the Fee and the cost of the water provided in a manner consistent with the Contra Costa County Ordinance Code. CR-LLC will inform Park residents as to the nature of any such charges and where questions or complaints regarding those charges should be directed. 6. COUNTY RESPONSIBILITIES a. The County Planning Agency will be the Lead Agency and will prepare and certify all documentation required under the California Environmental Quality Act(Pub. Resources Code, § 21000 et seq.) ("CEQA") for the Project. The County Planning Agency will provide the administrative draft CEQA documents to CC" for review prior to public circulation. The terms and conditions for water service described in this Agreement will be reflected in the CEQA documents. Responsibility for completion of the CEQA documents and approval of the Land Use Permit Amendment rests solely with the County Planning Agency and any such approval is left to its sole discretion. b. Following gompletion of the CEQA documents and final approval of the Land Use Permit AmendmeK'the County will request that CCWD prepare and submit an application to LAFCO to provide extended water service outside CCWD's jurisdictional boundary. County will request that LAFCO approve CCWD's application, and that LAFCO expressly condition its approval to apply only to CCWD's extension of water service to the Park, and not to any other properties. c. ,' County's Conservation and Development Department, in coordination with CCWD environmental staff, will prepare all documentation required by the U.S. Bureau of Reclamation ("USBR") for National Environmental Policy Act("NEPA") compliance. d. Under no circumstances may the Pipeline be used to provide water service to any property other than the Park pursuant to this Agreement. If installation of the Pipeline leads to 7quests to CCWD from other persons or entities to receive water service from CCWD from the Pipeline, CCWD may forward the requests to County. In response to such requests, County staff will explain to any person or entity making such a request the unique circumstances leading to the provision of water service by CCWD only to the Park pursuant to this Agreement, consistent with Exhibit 1. If the County determines that emergency public health conditions exist at another location in the vicinity of the Park or along the route of the new water pipeline, County Out of Service Agreement for Water Service to Clayton Regency Mobile Home Park Page 6 of 15 may request CCWD to assist in resolving the public health emergency and to enter into a separate agreement for such assistance. The County recognizes that CCWD has not undertaken any new obligation, commitment,or responsibility pursuant to this Agreement to provide water service to any other location in the vicinity of the Park or along the route of the new water pipeline. e. County staff will take a lead role in and conduct public outreach and community relations regarding the Project. In coordination with CCWD and CR-LLC, County staff will prepare and provide an outline of points to discuss with Park residents and other interested entities or persons. County staff will also (1) contact Save Mt. Diablo and East Bay Regional Park District and advise them of the Project; (2)meet with CCWD to discuss notifications to residents along Marsh Creek Road; and (3) in coordination with CR-LLC, meet with Park residents to advise them of the water service to be provided and the potential cost implications for residents. f. County's Conservation and Development Department will notify CCWD of any entitlement application proposing to change the Park from,a mobile home park to any other use prior to taking action on the proposal. Approval of such,ft proposal by the County constitutes grounds for termination of this Agreement by CCWD pursuant to Section 11 of this Agreement. g. During design of the Project, County's Public Works Department will specify traffic control and paving restoration requirements applicable to construction of the Project within the Marsh Creek Road right-of-way. All work on the Project within the Marsh Creek Road right-of-way must be in accordance with all applicable provisions of Division 1002 of the County Ordinance Code and all terms and conditions of an encroachment permit. In the event of a conflict,the County Ordinance Code will control. County will not add to or revise any of the traffic control or paving restoration requirements after design completion, and these requirements will be reflected in the encroachment permit issued to the contractor. h. Any and all plications for permits for the Project that are submitted to County will be processed expeditiously by the County department responsible for issuing the permit. The permit applicant wprovide a copy of each such application to the County Administrator's Office simultaneously,/with submission of the application to the appropriate County department. 7. CCWD DeSPONSIBILITIES a. CCWD's sole obligation under this Agreement will be to provide potable water to the Park. Pursuant to this obligation, CCWD will provide domestic potable water to the Park, meeting/*plicable federal and state drinking water standards at the agreed upon pressure (minti/ftum 20 psi)and flow(100 gallons per minute). CCWD's responsibility for conformance with federal and state drinking water standards during the interim and long-term water service ends at the point of water delivery, which for the purpose of interim water service is the point at which water is drawn from CCWD's existing distribution piping, and for long-term water service is the CCWD water meter which will be located at approximately the Park boundary at a location to be determined by CCWD through the design process. Out of Service Agreement for Water Service to Clayton Regency Mobile Home Park Page 7 of 15 b. CCWD will develop the Design and Construction Agreement with input from CR-LLC. CCWD will include a description of the point of CCWD water delivery in the Design and Construction Agreement. C. CCWD will design and construct the Project in conformance with CCWD standards and all applicable codes and regulations. d. CCWD will operate and maintain, repair and/or replace the Water Service Facilities, as necessary, in accordance with all applicable codes, regulations and water industry standards. e. CCWD will coordinate with USBR and County regarding requirements for compliance with NEPA and regarding the actions needed to include the Park in the service area for delivery of CVP water under CCWD's Contract. USBR is the lead agency under NEPA. Construction of the Long-Term Water Service Facilities will not commence until USBR has approved the Park for inclusion in the CCWD CVP service area. f. Upon request from the County, and in order to accommodate such request, CCWD will prepare and submit all documentation required by LAFCO for its approval of this Agreement pursuant to Government Code section 56133. The application to LAFCO for approval of this Agreement will indicate that CCWD is seeking to provide water service to CR- LLC in response to CCHS' request to assist in addressing its concerns with water service at the Park that are expressed in Exhibit 1. County and CR-LLC will assist CCWD, as needed, in the preparation of the application and supporting materials. The application seeking LAFCO approval of this Agreement will not be filed until after the Effective Date and until after the County has completed the CEQA documents for the Project, approved the Land Use Pen-nit Amendment, and filed a Notice of Determination ("NOD") for the Land Use Permit Amendment. CCWD will file the application with LAFCO within a reasonable time period after the County has filed the NOD. 8. GOOD FAITH PERFORMANCE The Parties agree to diligently proceed in good faith to perform their respective obligations under this Agreement in a timely manner in an effort to avoid any unreasonable or unwarranted delays to the Project. 9. EFFECTIVE DATE This Agreement will be effective as of the earliest date that it has been executed by the duly authorized representatives of all of the Parties ("Effective Date"). 10. CEQA COMPLIANCE The Parties acknowledge and agree that, with the exception of the County's obligations under CEQA set forth in Paragraph 6.a,the obligations of the Parties under this Agreement are conditioned on County completing proceedings under CEQA in connection with the Project and with LAFCO's approval of this Agreement and the expiration of the applicable 30-day Out ol'Sen ice Agreement l'or Water Ser\ice to Clayton Regency Mobite I lone Park Page 8 of 1.5 2. PROJECT The"Project"as that term is used within this Agreement is defined as the detailed design, construction and installation of all facilities required by CCWD to provide interim and long-term domestic potable water service to the Park ("Water Service Facilities"). A separate agreement ("Design and Construction Agreement") will describe the scope of the planned facilities, payment terms and responsibilities of CCWD and CR-LLC with regard to the Project. CR-LLC has submitted a$100,000 deposit to CCWD to fund preparation of a preliminary design in order to develop preliminary data on water demand, determine the size of the water pipeline required to meet that demand and develop a preliminary facilities alignment. However, no detailed design, construction or installation work will occur until after the Design and Construction Agreement has been fully executed by the parties thereto. 3. WATER PIPELINE The new CCWD water pipeline to the Park("Pipeline")will be designed, constructed and installed by CCWD solely to serve the Park, and will have no excess capacity to provide water service for any purpose other than domestic potable water service to the Park. No other properties will be served by the Pipeline. There will be no capability or capacity in the Pipeline to provide any fire service, fire protection, or fire flows at the Park or at any point along the route of the Pipeline. CCWD's responsibility for providing domestic potable water service to the Park ends at the water meter that will be located at or approximate to the Park boundary. The Pipeline, from its starting point to the water meter, is depicted on the figure attached hereto as Exhibit 3 and incorporated herein by reference. CR-LLC has complete responsibility for domestic potable water service at the Park beyond the water meter, including but not limited to installing, operating, maintaining and replacing all necessary facilities on the Park property. 4. WATER SERVICE Water service to the Park under this Agreement will be provided by CCWD on an interim and long-term basis, as follows: a. Interim Water Service Interim water service will be provided in accordance with Section 5.12.100 of CCWD's Code of Regulations, as amended ("Regulations"). Temporary Service, excluding Section 5.12.100 (F) '`Public Fire Protection Surcharge." Interim water service is potable water that will be provided from a new fill station. The fill station will be designed and constructed by CCWD for this purpose at the sole cost of CR-LLC and in accordance with the Design and Construction Agreement. Interim water service shall begin within a reasonable time following completion of all of the following: LAFCO approval of this Agreement; CCWD determination that all necessary approvals have been obtained, all required permits have been issued, and all decisions have been made concerning the Project that are necessary for CCWD to commence interim water service under the Agreement; CCWD determination that all new facilities required for interim water service are complete; CCWD determination that all required property for the Project has been acquired by CR-LLC in accordance with section 5.h. of this Agreement; and CCWD determination that CR-LLC has made satisfactory arrangements for all required Out of Sen•ice Agreement for Water Ser%ice to Clayton Regency Mobile Home Park Page 3 of 15 payments per the terms of the Design and Construction Agreement including payment in full of the Fee, as defined in Section 5.b of this Agreement. Interim water service will end within one and one-half(1 %) years from the date of initiation of Interim water service, or upon CCWD's initiation of long-term water service, whichever occurs earlier. An extension of time for interim water service will require an amendment to this Agreement, fully executed by all of the Parties. As long as the extension is reasonable under the circumstances, the Parties will timely execute the amendment to extend the term. b. Long-Term Water Service Long-term water service will be permanent and will be provided by CCWD in accordance with Section 5.12.020 of the Regulations, Residential Multiple Unit Service, excluding Section 5.12.020 (E)"Public Fire Protection Surcharge." CCWD will provide long- term water service from the Pipeline. Long-term water service will begin when the Pipeline, other new facilities deemed necessary by CCWD for long term water service and described in the Design and Construction Agreement, and the water service meter(collectively, the"Long- Term Water Service Facilities") are authorized for water service by CCWD, and when CCWD determines that all requirements for service under the Regulations have been met. C. Terms and Conditions In addition to the terms and conditions contained in this Agreement, all other applicable terms and conditions for service described in the Regulations will apply to interim and long-term water service for the Park. 5. CR-LLC RESPONSIBILITIES a. CR-LLC is responsible for payment to CCWD of all fees and charges for the interim and long-term water service that are due according to the Regulations, and CR-LLC will comply with all applicable provisions of the Regulations. In addition, CR-LLC is responsible for payment to CCWD of all costs associated with the Project in accordance with the Design and Construction Agreement. Project costs will be funded in three phases, design, construction of interim facilities and construction of long-term facilities with a"true-up" at Project completion. Details of such funding and financial assurance mechanisms, if necessary, shall be set forth in the Design and Construction Agreement. b. CR-LLC will pay to CCWD a one-time fee representing all costs of future operation, maintenance and replacement of the Long-Term Water Service Facilities ("Fee"). In establishing the amount of the Fee, CCWD will estimate the costs and determine the present value cost to maintain the facilities in perpetuity. The Fee will be specified in the Design and Construction Agreement and will be paid in accordance with the terms of that Design and Construction Agreement. If at any time water service is terminated under any provision of this Agreement, CR-LLC will not receive any refund of the amount paid for future operation, maintenance and replacement. C. CR-LLC will endeavor to ensure that use of water at the Park conforms to the Regulations by notifying Park residents of the applicable use restrictions and, to the extent Out of Service Agreement for Water Service to Clayton Regency Mobile Home Park Page 4 of 15 reasonably feasible, monitoring water usage at the Park. Pass-through of costs for water service to the Park residents shall be in accordance with CCWD regulations and other applicable state and local laws and regulations. d. CR-LLC agrees that the domestic water system at the Park is a "small water system" as defined by Section 414-4.221 of the Contra Costa County Ordinance Code and will comply with all provisions of the Contra Costa County Ordinance Code pertaining to small water systems, including but not limited to Article 414-4.4 e. CR-LLC will apply for and diligently pursue an amendment to the County Land Use Permit("Land Use Permit Amendment")that will (1) reflect changing the source of drinking water for the Park from the current trucked-in water supply to the water service to be provided by CCWD pursuant to this agreement; (2) eliminate the eight temporary recreational vehicle spaces at the Park; (3) eliminate recreational vehicles from being occupied at the Park; (4) limit the maximum number of mobile home spaces to the current 192; (5) prohibit 2-story mobile homes, with the exception of the existing 2-story unit, from being located in the spaces adjacent to Marsh Creek Road; and (6) designate the use of the 1.3 acre property (Assessors Parcel No. 007-191-003) within the Park for community facilities, park and recreation and the Park office, restricting retail business and commercial uses from being established at that location to serve customers other than Park residents. f. CR-LLC is responsible for fire protection systems or facilities and is responsible for providing required fire flows at the Park that meet all applicable federal, state and local requirements. g. After this Agreement is fully executed, this Agreement will be recorded against the title for the Park. CCWD and County hereby acknowledge and certify that this Agreement does not establish real property interests in their favor regarding the Park nor does it establish a right for CCWD or County to attach liens to the Park property. CR-LLC shall give written notice to all current and prospective Park residents of this Agreement and any and all changes in zoning and/or changes in the County Land Use Permit that are related to the provision of domestic water to the Park, pursuant to Civil Code section 798.27. CCWD and County agree to execute, upon CR-LLC's future reasonable request, an estoppel certificate confirming facts relating to the status of the Project at the time of the request, including but not limited to status of payments and construction, to the extent the executing party possesses knowledge of such facts. h. CR-LLC will be solely and exclusively responsible to provide and maintain all distribution piping, storage, and pumping necessary for domestic potable water supply and water quality, fire protection systems, and fire flows on the property, including any improvements that might be necessary as a result of obtaining domestic potable water supply from CCWD at the flow and pressure specified in this Agreement. i. CR-LLC is responsible for acquiring and payment for all property and property rights for new facilities deemed necessary for the Project by CCWD. Property will be acquired on a schedule that will avoid delay of the Project. No interim or long-term service will be initiated by CCWD until all necessary properoy rights for the Project are acquired. Out of Service Agreement tier Water Service to Clayton Regency Mobile Home Park Page 5 of 15 C. Mediation In the event a dispute cannot be resolved through informal conferral within twenty-one (2 1) calendar days, the aggrieved Disputing Party, acting through its governing body, or, in the case of CR-LLC, through its authorized representative, shall give written notice to all other Parties to this Agreement, setting forth the nature of and basis for the dispute and facts demonstrating that such Disputing Party is materially and adversely affected thereby. The Disputing Parties, acting through their designated representatives, including counsel, will endeavor to settle the dispute by mediation. The Disputing Parties will select a neutral third party with appropriate expertise to mediate the dispute. The other Parties may, but are not required to, participate in the mediation. d. Judicial Review The dispute resolution process described above shall be undertaken in good faith and exhausted prior to resort to judicial review; provided, however, that by agreeing to this dispute resolution process, no Party hereby loses or waives its right to sue under any applicable statute of limitations or loses or waives its right to assert the operation of any applicable statute of limitations as an affirmative defense. In the event that an applicable. statute of limitations would run during the pendency of the dispute resolution process described above, the Disputing Parties shall agree in writing to toll such statute of limitations for such period as may reasonably be necessary to complete the dispute resolution process, but in no event will such statute of limitations be tolled for more than ninety(90) calendar days. e. Conduct of Judicial Review Should any Party ultimately seek judicial review of a dispute concerning or relating to the implementation, interpretation or enforcement of, or compliance with, the terms and provisions of this Agreement, all Parties will submit to the jurisdiction of a court of competent jurisdiction; provided, however,that the Parties will cooperate in seeking the appointment of a neutral Judge as defined in California Code of Civil Procedure section 394 to sit in Contra Costa County Superior Court.to preside over any such dispute. f. Equitable Relief Because the amount of damages in the event of a breach of this Agreement may be difficult or impossible to determine, the obligations of the Parties to this Agreement will be enforceable by specific performance or other equitable relief, in addition to any other available remedy. 18. NOTICES Any and all notices required by this Agreement will be in writing, addressed as proylded below or to such other addresses as the Parties may respectively designate by written otice to the other. Notice will be sufficient if given by U.S. first class mail and facsimile-orby overnight Out of Service Agreement for water Service to Clayton RegencN iMobile+kll e Park Page 13 of 15 23. SIGNATURES By affixing his/her signature below, each of the persons signing this Agreement warrants and represents that he/she has read and understands this Agreement, that he/she is authorized to sign this Agreement, and that the Party on behalf of whom he/she signs agrees to be bound by its terms. CONTRA COSTA WATER DISTRICT CLAYTON REGEN Y, LLC By By General Manager Name U-0�►•� �•. 0 .e.•✓� Attest: Title f 11s')P'&'y Secretary Approved as to Form: District Counsel A COSTA �NT By: J ,� hair.. Board of Supervisors Attest: John Cullen, Clerk of the Board of Supervisors and County Administrator By: Deputy Recommended: By: Conservation and Development Dept. Approved as to Form: Silvano B. Marchesi, County Counsel By: Deputy 1637011623636.1 A��? �} bio�'✓ D TIV IS Out of Service Agreement for Water Service to Clayton Regenc% Mobile Hume Park Page 15 of 15 ALL-PURPOSE CERTIFICATE OF ACKNOWLEDGEMENT State of Illinois County of On i,6_ 25D2 oAZOO" before me, �k��' 11 �SAA personally appeared John M. O'Meara who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of Illinois that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Si nat Notary Public (Notary Seal) OFFICIAL SEAL VALERIE L BOULDEN NOTARY PUBLIC STATE OF ILLINOIS MY COMMd11S"EXP 05 OMI12 04404\1416971.1 WILLIAM B.WALKER, M.D. HEALTH SERVICES DIRECTOR C O N T PA COSTA WENDEL BRUNNER,M.D. HEALTH S E R V I C E S DIRECTOR OF PUBLIC HEALTH EXHIBIT 1 Monday, June 18, 2007 Walter J. Bishop General Manager Contra Costa Water District 2411 Bisso Lane Concord, CA 94524-2099 Re: Water Supply — Clayton Regency Mobile Home Park Dear Mr. Bishop: I would like to request your assistance in resolving a severe public health hazard that constitutes a public health emergency at the Clayton Regency Mobil Home Park on Marsh Creek Road ("Park'. The Park, a (concentration of approximately 190 closely packed mobile home residential coaches, currently has no regular water supply. The Park's water is presently trucked in daily from a metered hydrant in Brentwood. The potential for contaminating potable water with pathogenic bacteria or viruses during the filling, transport, and delivery presents an unacceptable risk of waterborne diseases to the residences of the Park. The residential density of the park compounds that risk of waterborne, and then possibly communicable, diseases. Contamination of a single water truck has the potential to impact a large number of individuals. Steps must be taken immediately to create an acceptable long-term water source for the park. The absence of an appropriate water supply for the Park over the long term represents a serious threat to the health and safety of park residents. An acceptable, safe water supply must be implemented as soon as possible. Over the past few years, the Park has evaluated different methods of obtaining potable water and determined that the only option to ensure a safe, long-term water supply that would comply with the current state and local requirements is an out of service area contract with the Contra Costa Water District (CCWD) to extend a pipeline along Marsh Creek Road. Contra Costa Health Services (CCHS) requests construction of a CCWD pipeline extension to the Park, limited in size to the minimum required to supply potable water only (no fire flow). We have confirmed that the Contra Costa County Consolidated Fire District is requiring the Park to provide all fire flow to meet fire requirements. We understand that the Park is outside CCWD's service area but have, through discussions with LAFCO, determined service could be provided under an out-of-area service agreement meeting any special conditions required to serve the Park. Further, CCHS views water service from CCWD as the only available option that would resolve this public health. hazard. a . v Contra Costa Community Substance Abuse Services a Contra Costa Emergency Medical Services■Contra Costa Enwronmentel Health■Contra Costa Health Plan e ■Contra Costa Hazardous Materials Programs i Contra Costa Mental Health ra Contra Costa Public Health ra Contra Costa Regional Medical Center a Contra Costa Health Centers ra We are aware that there are other, individual dwellings scattered along the Marsh Creek Road area with a variety of individual water sources. There is concern that they could request service from this non-standard out of service area pipeline. However, the criteria used to determine the public health threat at the Park does not apply to them. At the park, a single water contamination event could immediately impact hundreds of people. Please advise how you intend to proceed based on this request. Your assistance in resolving this public health hazard would be greatly appreciated. You may contact me at (925) 313-6712, for further discussion. Sincerely, rte/ - - --- ----- - - Wendel Brunner, MD Director of Public Health Contra Costa Health Services cc: Sherman L. Quinlan, REHS, MPH, Director of Environmental Health Dr. William Walker,. Director, Health Services Department John Cullen, Contra Costa County Administrator Federal Glover, Supervisor, District 5 John O'Meara, Clayton Regency LLC S. Tarantino & A. Bretl, Erier & Kalinowski, Inc. C. Kutsuris, Contra Costa Community Development Department Lou Ann Texeira, Contra Costa County LAFCO ; ^"'i z iz CAD-STA COUNTY� ?ECC.CNED WB:jds JUN `2. 0 2007 Contra Cassa Community Substance Abuse Services j Contra Costa Emergency Medical Services 2 Contra Costa Environmental Health 2 Contra Costa Health Plan 40 .Contra Costa Hazardous Materiels Programs v Contra Costa Mental Health v Contra Costa Puelic Health m Contra Costa Regional Medical Center I Cords Costa Health Centers 1 EAST CO-NTRA .COSTTA FIRE PROTECTION DISTRICT BILL wEISGERBER SERVING THE COMMUNITIES OF: Interim Fire Chief � Bethel Island Discovery Bay :� ,)y-., Brentwood Knightsen � Byron Morgan Territory Oakley June 1, 2007 EXHIBIT 2 Stephen Welch Director of Engineering Contra Costa Water District 2411 Bisso Lane Concord, CA 94524-2099 a Dear Mr. Welch: I am writing to confirm the East Contra Costa Fire District's (ECCFD) understanding that Contra Costa-County and the Clayton Regency Mobile Home Park (the Park) have requested the Contra Costa Water District (CCWD) install a limited service water pipeline extension to the Park to address a serious public health threat to the Park residents with the existing trucked water service. The Park is located at 16711 Marsh Creek Road in Brentwood. ECCFD understands that the proposed water service requested by the County would be solely for the purpose of providing a safe, long term drinking water supply to Park residents, and is not for providing fire flow. Contra Costa Water District has no obligation to provide water for fire protection purposes at the Park. CCWD has no responsibility to provide fire flows at the Park because State regulations require the Park to be solely responsible for the fire protection system and providing required fire flows at the Park. (H&S Code, § 18691) This office has received documentation from the Park that the Park will maintain its water storage tanks such that the minimum required for fire flow of 30,000 gallons at all times. Based on the inspection ECCFD performed at the Park in June of 2006, the Park's current fire protection system, including existing storage tanks, fire pumps and piping, will provide adequate fire protection consistent with current fire protection standards for mobile home parks. Any new fire protection standards that impose new fire flow requirements on at the Park will be the responsibility of the Park to meet. No further consultation will be necessary with this office regarding the proposed water pipeline to the Park. 134 Oak Street, Brentwood, CA 94513 PH:(925)634-3400 FAX: (925)634-1423 WEB:www.ECCFPD.orq If you should have any additional questions or comments, please contact me at (925) 941-3520. Sincerely, Richard Carpenter Acting Fire Marshal cc: Bill Weisgerber, Interim Fire Chief East Contra Costa Fire District Jason Crapo, Contra Costa County Stephen Tarantino, EKI, Inc. 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