CERTIFICATE OF SECRETARY
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- Melina Gibbs
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1 Resolution No Resolution of the Board of Directors Marina Coast Water District Authorize an Agreement with California American Water Company for MCWD to Obtain Ownership of the High Density Polyethylene Pipe Located Along the West-Side of General Jim Moore Boulevard December 8, 2009 RESOLVED by the Board of Directors ("Directors") of the Marina Coast Water District ("District"), at a regular meeting duly called and held on December 8, 2009 at the business office of the District, 11 Reservation Road, Marina, California as follows: WHEREAS, the Board of Directors approved Resolution No on December 8, 2008, authorizing an expenditure to fulfill the District's financial obligation for funding construction costs for the various diameters of potable water pipeline, sewer pipeline, and recycled water pipeline within the Fort Ord Reuse Authority's (FORA's) General Jim Moore Boulevard Phase V Improvement Project alignment; and, WHEREAS, the District and California American Water Company (CAW) are desirous of obtaining the mutual benefits that MCWD can provide to the community by owning and reusing High Density Polyethylene (HDPE) pipe that is currently owned by CA W and installed on the surface of the ground running along the west-side of General Jim Moore Boulevard; and, WHEREAS, the District and CA W have negotiated an Agreement for Transfer, Conveyance, and Acceptance of Surplus High Density Polyethylene Pipe between MCWD and CA W and both organizations desire that Agreement to be the vehicle for MCWD to obtain ownership of the HDPE pipe. NOW, THEREFORE, BE IT RESOLVED, that the Board of Directors of the Marina Coast Water District does hereby authorize the General Manager to execute the Agreement between CA W and MCWD so that MCWD may obtain clear ownership of the existing HDPE pipeline located along the west-side of General Jim Moore Boulevard and to take all actions and execute all agreements and documents that give effect to this Resolution. PASSED AND ADOPTED on December 8, 2009, by the Board of Directors of the Marina Coast Water District by the following roll call vote: Ayes: Noes: Directors.:...N~is~h~i"-', M~o~o:.!.:re=...,...!:B~u::!;rn=s,c..!L=!-'e"-"e'-'-,..:::G~u:::::s.:::ta""'fs"'-!o"""n!...- Directors.:...N~o~n~e Absent: Directors None --~== Abstained: Directors.:...N~o~n~e
2 , President Jim Reit CERTIFICATE OF SECRETARY The undersigned Secretary of the Board of the Marina Coast Water District hereby certifies that the foregoing is a full, true and correct copy of Resolution No adopted December 8, Jim~ecretary
3 AGREEMENT FOR TRANSFER, CONVEYANCE AND ACCEPTANCE OF SURPLUS HIGH DENSITY POLYETHYLENE PIPE This AGREEMENT FOR TRANSFER, CONVEYANCE AND ACCEPTANCE OF SURPLUS HIGH DENSITY POLYETHYLENE PIPE, dated as of, 2009 ("Transfer Agreement"), is between CALIFORNIA-AMERICAN WATER COMPANY, a California corporation and regulated public utility ("CAW"), having an address at 511 Forest Lodge Road, Suite 100 Pacific Grove, CA 93950, and MARINA COAST WATER DISTRICT, a County Water District organized and operating under the County Water District Law, Sections and following of the California Water Code ("MCWD"), having an address at 11 Reservation Road, Marina, CA 93933, each individually a Party and together the Parties herein. NOW, THEREFORE, CAW and MCWD hereby agree, in consideration of the mutual covenants in this Agreement, the sufficiency of which are hereby acknowledged and agreed, as follows: 1. Agreed Facts. CAW owns a quantity of high-density polyethylene (HDPE) pipe material currently located in Seaside, CA, along the western edge of General Jim Moore Boulevard between Coe Avenue and Hilby Avenue for a distance of approximately 7,600-feet, including hydrants, laterals, valves, PRV's, and other appurtenances to the HDPE pipe (collectively referred to herein as "the HDPE pipe and appurtenances"). The HDPE pipe varies in diameter and dimension ratio (DR) and is generally described as 18-inch diameter with a DR of The HDPE pipe and appurtenances are surplus to the needs of CAW, but are needed by MCWD for a water supply project along General Jim Moore Boulevard that will benefit CA W. The Parties agree that it is in the interests of CAW, MCWD and the persons served by them for CAW to transfer and convey the HDPE pipe and appurtenances to MCWD for MCWD's use. 2. Transfer and Acceptance of HDPE Pipe and Appurtenances. CAW does hereby transfer and convey to MCWD all right, title and interest in and to the HDPE pipe and appurtenances. MCWD does hereby accept all right, title and interest in and to and responsibility for the HDPE pipe and appurtenances as of the date of this Agreement. 3. Warranty of Title. CAW warrants that the HDPE pipe herein described is free and clear of any encumbrances and claims, that to the best knowledge of CAW, its members, officers, and employees, CA W has title to and the legal right to transfer and dispose of the HDPE pipe and appurtenances, that CA W has followed all necessary procedures and obtained all necessary consents and approvals for this transfer and conveyance, and that CA W will defend such title as vested, by reason of the transfer and conveyance of the property to the District, against any and all claims whatsoever. 4. No Warranty of Condition. CAW does not make any representation or warranty concerning the physical condition of the HDPE pipe and appurtenances nor the fitness of the HDPE pipe and appurtenances for the use contemplated by MCWD. The HDPE pipe and appurtenances are transferred and conveyed by CA W and accepted by MCWD in "as is, where is" condition. CAW represents and warrants that as of the time of this Agreement the HDPE pipe and appurtenances are lawfully located and that CA W has no knowledge of any claim that the HDPE pipe is unlawfully located.
4 5. Indemnity. MCWD will indemnify CAW against all liabilities, obligations, losses, actions, suits and causes of action, or claims, of any kind or nature, (the foregoing, collectively, "Losses", and, individually, a "Loss") arising from MCWD's use of the HDPE pipe and appurtenances from and after the date of this Agreement, including but not limited to any claims arising from MCWD's activities to remove the HDPE pipe and appurtenances from its present location. CAW will indemnify MCWD against all liabilities, obligations, losses, actions, suits and causes of action, or claims, of any kind or nature, (the foregoing, collectively, "Losses", and, individually, a "Loss") arising from CAW's use of the HDPE pipe and appurtenances before the date of this Agreement, including but not limited to any claims arising from or related to an alleged breach of CAW's representation in paragraph Insurance. 6.1 MCWD shall procure and maintain with respect to MCWD's use of the HDPE pipe and appurtenances valid and enforceable insurance of the following character: (a) Commercial General Liability Insurance or Comprehensive General Liability Insurance with Broad Form CGL endorsement with limits of not less than $1,000,000 each occurrence and $2,000,000 general aggregate. Equivalent insurance through the ACWA JPIA will satisfy MCWD's obligation under this sub-section. (b) Worker's Compensation Insurance as required by laws and regulations applicable to and covering employees performing under this Agreement. Employer's Liability Insurance protecting employer against common law liability, in the absence of statutory liability, for employee bodily injury arising out of the master-servant relationship with a limit of not less than $1,000,000 each accident, $1,000,000 disease-policy limit, $1,000,000 disease-each employee. Equivalent insurance through the ACWA JPIA will satisfy MCWD's obligation under this sub-section. 6.2 In addition to the foregoing, every insurance policy maintained in accordance with this Section 6 shall: (i) name CAW as additional loss payee as its interest may appear with respect to this Section 6; (ii) provide that the issuer waives all rights of subrogation against MCWD or CAW or any other person insured under such policy, (iii) provide that thirty (30) days advance written notice of Cancellation, material modification, termination or lapse of coverage shall be given to MCWD and CAW; and (iv) be primary relative to the respective party's liability and without right or provision of contribution as to any other insurance carried by MCWD or CAW or any other interested party. 6.3 MCWD shall deliver to CA W, within ten (10) business days after execution of this Agreement, certificates of insurance, reasonably satisfactory to CAW, evidencing all of the insurance required under section 6.1 of this Section 6. Such insurance shall remain in effect for a term of not less than three years from the date of this Agreement. 6.4 MCWD shall comply with all of the terms and conditions of each insurance policy maintained pursuant to the terms of this Agreement to the extent necessary to avoid invalidating such insurance policy or impairing the coverage available thereunder. 6.5 The limits of insurance contained in this Section 6 shall not be construed as limits on the indemnification obligations set forth in Section 5.
5 7. Miscellaneous. 7.1 Integration. This Agreement embodies the _ entire agreement between MCWD and CAW relating to the subject matter hereof and supersedes all prior agreements and understandings, written or oral, relating to such subject matter. 7.2 Successor and Assigns. This Agreement shall be binding upon, and shall inure to the benefit of and be enforceable by, the parties hereto and their respective successors and assigns permitted hereunder. 7.3 Amendments or Waivers. No term or provision hereof may be amended, changed, waived, discharged, terminated or replaced orally except by a written instrument, in accordance with applicable terms and provisions hereof, executed by each of the parties hereto. 7.4 Waivers. No failure, delay, forbearance or indulgence on the part of any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, or as an acquiescence in any breach, nor shall any single or partial exercise of any right, power or remedy hereunder preclude any other or further exercise thereof or the exercise of any other right, power or privilege. 7.5 Severability. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 7.6 Neutral Construction. This Agreement is the product of negotiation between the Parties. No Party is deemed the drafter of this Agreement. 7.7 No Third Party Beneficiaries. Nothing in this Agreement, express or implied, is intended to confer any rights or remedies under or by reason of this Agreement on any persons other than the Parties. Nothing in this Agreement is intended to relieve or discharge the obligation or liability of any third person to any Party. This Agreement does not create any duty, liability or standard of care to any person who is not a Party. 7.8 Controlling Law; Conflicts of Law. This Agreement shall be construed, governed and applied in accordance with the laws of the State of California, without regard to the conflicts of law principles thereof. 7.9 Venue. In connection with this Agreement, CAW and MCWD hereby agree that any action, proceeding, or dispute regarding this Agreement shall be filed in the Superior Court of the State of California, in and for the County of Monterey. Nothing in this section shall be construed as a waiver of CAW's rights under California Code of Civil Procedure section Attorney Fees. If an action shall be brought for the enforcement or interpretation of any provision of this Agreement in which it is found that an Event of Default has occurred, the non-defaulting prevailing party shall be entitled to seek reimbursement of its attorneys' fees and expenses.
6 7.11 Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be an original, and such counterparts together shall constitute but one and the same instrument. IN WITNESS WHEREOF, MCWD and CAW hereto have each caused this Agreement to be duly executed and delivered in their name and on their behalf, respectively, as of the day and year first written above. MCWD MARINA COAST WATER DISTRICT, a California water district CALIFORNIA-AMERICAN WATER COMPANY, a California corporation By: Howard Gustafson, President By: Name: Robert MacLean Title: President By: Jim Heitzman, Secretary APPROVED AS TO FORM: Noland, Hamerly, Etienne & Hoss, A Professional Corporation, Legal Counsel to MCWD By: Lloyd W. Lowrey, Jr., Esq. Tim Miller Corporate Counsel California American Water
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