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HomeMy WebLinkAbout2007-03-20; City Council; 630; Bressi Gardenlane reimbursement ratification1 CARLSBAD MUNICIPAL WATER DISTRICT - AGENDA BILL AB# 630 MTG. 3/20/07 DEPT. ENG APPROVING RATIFICATION OF REIMBURSEMENT AGREEMENT WITH BRESSI GARDENLANE, LLC, FOR REIMBURSEMENT OF COSTS TO CONSTRUCT OVERSIZED POTABLE WATER PIPELINES IMPROVEMENTS DEPT. HEAD CITYATTY. CITY MGR. "=^ P^tiW^ 35S> RECOMMENDED ACTION: Adopt Resolution No.1292 approving the Ratification of Reimbursement Agreement with Bressi Gardenlane, LLC, for reimbursement of costs to construct oversized potable water pipeline improvements. ITEM EXPLANATION: In connection with the development of the Bressi Ranch project, CT 00-06, Bressi Gardenlane, LLC, constructed oversized potable water pipelines. Based on the Facilities Master Plan development for Bressi Ranch the developer needed to install a 12-inch diameter potable water pipeline in El Fuerte Street and an 8-inch diameter potable water pipeline in Poinsettia Lane to meet the needs of the residential and industrial areas to be built within the Project (the "Project Requirements"). In addition to completing the Project Requirements, Planning Commission Resolution No. 5206, Condition No. 54F required the developer to oversize public water transmission mains to be constructed as part of this project and eligible for reimbursement. The oversize public water transmission mains include the oversizing of a 12-inch diameter water pipeline in El Fuerte Street to a 30-inch diameter and 24-inch diameter potable water transmission pipeline, and oversizing an 8-inch diameter potable water transmission pipeline in Poinsettia Lane to a 16-inch diameter pipeline, plus all appurtenances. The oversized pipelines are a portion of the Capital Improvement Program Project Nos. 3816 and 3913. The developer agreed to incorporate the oversized water transmission pipeline and appurtenances in El Fuerte Street and Poinsettia Lane within the scope of their project work provided that they receive reimbursement for the increase in cost necessitated by such incorporation. Staff agreed to process a reimbursement agreement for Council approval; however, due to a change in ownership of part of the property, the time for processing such agreement was outside the timeframe desired by the developer. The developer agreed to assume the financial risk for the processing of the work without benefit of Council approval of the reimbursement request with the understanding that the developer would be allowed the opportunity to process a request for reimbursement of costs to perform the additional work (in excess of the requirements of the Project) upon completion of the work. The developer of Lennar Communities Carlsbad Tract CT 00-06 (Bressi Ranch), Bressi Gardenlane, LLC, has completed construction of the oversized potable water transmission pipeline in El Fuerte Street and Poinsettia Lane. The oversized diameter potable water transmission pipeline benefits CT 00-06, as well as existing and proposed developments outside CT 00-06. Government Code Section 66485 allows the City to require a subdivider to construct improvements benefiting property outside the subdivision and Government Code section 66486 requires the City to enter into a reimbursement agreement for such improvements. FOR CITY CLERKS USE ONLY. BOARD ACTION: APPROVED DENIED CONTINUED WITHDRAWN AMENDED I/ Dn D D CONTINUED TO DATE SPECIFIC CONTINUED TO DATE UNKNOWN RETURNED TO STAFF OTHER -SEE MINUTES D D D D Page 2 ENVIRONMENTAL IMPACT: The Planning Commission of the City adopted a series of resolutions on June 20, 2001, approving the Project, Carlsbad Tract Number (CT 00-06). Planning Commission actions were adopted and approved by the City Council on July 9, 2002 (City Council Resolution No. 2002-205), which are on file with and can be reviewed at the Planning Department. The oversized potable water transmission pipeline projects are a part of the Water Master Plan updated in March 2003. A Program Environmental Impact Report, (EIR 03-01) was prepared for the Water Master Plan. The Carlsbad City Council approved the EIR on November 11, 2003, Resolution No. 2003-301. FISCAL IMPACT: The amount to be reimbursed to Bressi Gardenlane, LLC, under this agreement shall not exceed seven hundred twenty one thousand two hundred eighty dollars ($721,280). All reimbursement requests are subjected to audit. Sufficient water funds, appropriated to the Water Distribution System Project Nos. 3816 and 3913, are available to pay this reimbursement. The total cost for the potable water transmission pipeline work covered by the reimbursement agreement is shown in Table 1, and will be paid from the Water Connection Fee funding source. TABLE 1 OVERSIZED 30-INCH, 24-INCH, AND 18-INCH POTABLE WATER TRANSMISSION PIPELINE IN EL FUERTE STREET, AND POINSETTIA LANE CONSTRUCTION COST REIMBURSEMENT Oversized 30-inch, 24-inch, and 18-inch Potable Water Transmission Pipeline in El Fuerte Street, and Poinsettia Lane Construction Cost Reimbursement Overhead @ 5.0% TOTAL "'"" •• -• , ... . ' ,:" . • - $686,933 $34,347 $72t;280 Summary of Water Distribution System Project Nos. 3816 and 3913 Table 2 summarizes the total cost of all the pipeline contracts comprising Water Distribution System Project Nos. 3816 and 3913, including the Bressi Ranch Reimbursement Agreement. TABLE 2 WATER DISTRIBUTION SYSTEM PROJECT NOS. 3816 AND 3913 DESCRIPTION Design Construction (Alga Road to Rancho Pancho) Bressi Ranch (Reimbursement Agreement) TOTAL PROJECT COST CURRENT APPROPRIATION ADDITIONAL APPROPRIATION REQUIRED TOTAL PROJECT COST $65,450 $967,677 $721,280 $1,754,407 $3,141,000 NONE There are sufficient funds available to reimburse the developer and staff recommends approval of the reimbursement agreement with Bressi Gardenlane, LLC, for reimbursement of costs to construct the oversized potable water pipeline for a not to exceed cost of $721,280. Page 3 EXHIBITS: 1. Location Map. 2. Resolution No. 1292 approving the Ratification of Reimbursement Agreement with Bressi Gardenlane, LLC, for reimbursement of costs to construct upsized potable water pipeline improvements. 3. Copy of Ratification of Reimbursement Agreement with Bressi Gardenlane, LLC, for reimbursement of costs to construct upsized potable water pipeline improvements. DEPARTMENT CONTACT: David Ahles, (760) 602-2748, dahle@ci.carlsbad.ca.us LOCATION MAP NOT TO SCALE CITY OF OCEANSIDE HICHWAY OVERSIZED POTABLE WATERLINES PROJECT AREA VICINITY MAP NOT TO SCALE PROJECT NAME AGREEMENT FOR REIMBURSEMENT OF COST FOR OVERSIZED POTABLE WATERLINES WITHIN CARLSBAD TRACT CTOO-06 (BRESSI RANCH) PROJECT NUMBER 3816 & 3913 EXHIBIT 1 DRAWN BY: SCOTT EVANS, CARLSBAD ENGINEERING DEPT. 2/20/07 C: \CAPITAL\AHLES\X16 * 3913.DWG 1 RESOLUTION NO. 1292 2 A RESOLUTION OF THE BOARD OF DIRECTORS OF 3 CARLSBAD MUNICIPAL WATER DISTRICT (CMWD), APPROVING THE RATIFICATION OF REIMBURSEMENT 4 AGREEMENT WITH BRESSI GARDENLANE, LLC, FOR REIMBURSEMENT OF COSTS TO CONSTRUCT OVERSIZED 5 POTABLE WATER PIPELINE IMPROVEMENTS. 6 WHEREAS, the developer of Carlsbad Tract 00-06 ("Project") was conditioned to 7 construct a 12-inch diameter recycled water pipeline in El Fuerte Street and Poinsettia Lane to 8 meet the needs of the residential and industrial areas to be built within Project (the "Project 9 Requirements"); and WHEREAS, Bressi Gardenlane, LLC, has completed developing Lennar Communities Carlsbad Tract CT 00-06 (Bressi Ranch); and WHEREAS, Planning Commission Resolution No. 5206, Condition No. 54F required the developer to oversize public water transmission mains to be constructed as part of this project 14 and eligible for reimbursement, and 15 WHEREAS, Bressi Gardenlane, LLC, has requested CMWD approval of an agreement for reimbursement for the construction of the oversized potable water transmission main (attached hereto, marked Exhibit "1" and incorporated by this reference); and 18 WHEREAS, Bressi Gardenlane, LLC, has submitted a signed Ratification of Reimbursement Agreement for City approval in accordance with City Administrative Procedures; 20 and 21 WHEREAS, the available appropriation in the Water Distribution System Project Nos. 22 3816 and 3913 are sufficient to reimburse Bressi Gardenlane, LLC, in the not to exceed amount 23 of seven hundred twenty one thousand two hundred eighty dollars ($721,280); and 24 WHEREAS, the Water Distribution System Project Nos. 3816 and 3913 is a part of the 25 Water Master Plan updated in March 2003. A Program Environmental Impact Report, (EIR 03-01) 26 was prepared for the Water Master Plan. The Carlsbad City Council approved the EIR on 27 November 11, 2003, Resolution No. 2003-301. 28 1 NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of Carlsbad Municipal 2 Water District (CMWD) of the City of Carlsbad, California, as follows: o 1. That the above recitations are true and correct. 2. That the President is authorized to execute the Ratification of Reimbursement4 Agreement with Bressi Gardenlane, LLC, for Reimbursement of Costs to Construct Oversized O Potable Water Pipeline Improvements in El Fuerte Street and Poinsettia Lane. 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 " 24 " 25 " 26 " 27 28 " 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED AND ADOPTED at a Special Meeting of the Board of Directors of the Carlsbad Municipal Water District of the City of Carlsbad on the 20th day of March, 2007, by the following vote: AYES: Board Members Lewis, Hall, Packard NOES: None. ABSENT: Board Member Kulchin. ATTEST: LORRAINE M. WOODrSecretary (SEAL) mi RATIFICATION OF AGREEMENT FOR REIMBURSEMENT OF COSTS FOR THE CONSTRUCTION OF OVERSIZED POTABLE WATER PIPELINE IMPROVEMENTS WITHIN LENNAR COMMUNITIES CARLSBAD TRACT CT 00-06 (BRESSI RANCH) Between CARLSBAD MUNICIPAL WATER DISTRICT, a Public Agency organized under the Municipal Water District Act of 1911, and a Subsidiary District of the City of Carlsbad AND BRESSI GARDENLANE, LLC, -1 - RATIFICATION OF AGREEMENT FOR REIMBURSEMENT OF COSTS FOR THE CONSTRUCTION OF OVERSIZED POTABLE WATER PIPELINE IMPROVEMENTS WITHIN LENNAR COMMUNITIES CARLSBAD TRACT CT 00-06 (BRESSI RANCH) Ratification of Agreement for Reimbursement of Costs for the Construction of Oversized Potable Water Pipeline Improvements within Lennar Communities Carlsbad Tract CT 00-06 (Bressi Ranch), dated as of fii'tyv OC^A cfclfyns^ttfl ("Agreement") is made at San Diego County, California, by and between tW OARLSBAD MUNICIPAL WATER DISTRICT, a Public Agency organized under the Municipal Water District Act of 1911, and a Subsidiary District of the City of Carlsbad ("District"), and BRESSI GARDENLANE, LLC, ("Developer") a Delaware limited liability company, with reference to the following recitals: RECITALS A. Developer is developing certain real property commonly known as Lennar Communities Carlsbad Tract CT 00-06, Bressi Ranch ("Project") located in the City of Carlsbad, California (the "City"), more particularly described as Carlsbad Tract No. 00-06, filed in the Office of the County Recorder of San Diego County on May 29, 2003, as File No. 2003- 0631052. B. The Planning Commission of the City adopted a series of resolutions on June 20, 2001, approving the Project, Carlsbad Tract Number (CTOO-06). Planning Commission actions were adopted and approved by the City Council on July 9, 2002 (City Council Resolution No. 2002-205). C. The Project approvals require Developer to install a 12-inch diameter potable water pipeline in El Fuerte Street and a 8-inch diameter potable water pipeline in Poinsettia Lane to meet the needs of the residential and Industrial areas to be built within Project (the "Project Requirements"). D. In addition to completing the Project Requirements, the District has requested the Developer to oversize the potable water pipelines by installing a 24-inch diameter potable water transmission pipeline and appurtenances in El Fuerte and 24-inch and 16-inch potable water transmission pipelines and appurtenances in Poinsettia Lane, collectively referred to as the "Potable Water Work" and described more particularly in Section 3 (a) below. E. The District and Developer recognize that the Potable Water Work exceeds the infrastructure otherwise required of Developer in connection with its build-out of the Project. Developer agrees to install or cause the installation of the Potable Water Work, and the District agrees to reimburse Developer as set forth in this Agreement. F. District and Developer acknowledge that Government Code Section 66485 allows the District to require a sub-divider to construct improvements benefiting property outside the subdivision; and Government Code Section 66486 requires the District to enter into a reimbursement agreement for such improvements. The parties intend that this agreement satisfies the requirements of Government Code Section 66486. NOW, THEREFORE, the District and Developer agree as follows: -2- °( 1. Recitals. The Recitals, above, are true and correct and incorporated herein by this reference. 2. Satisfaction of Obligation. Developer's agreement to perform the Potable Water Work, as set forth herein, and the actual construction thereof, shall fully satisfy and constitute compliance with all requirements regarding the Project solely with respect to the Potable Water Work as described above in paragraph B. 3. General Developer Obligations. (a) In consideration of the District's reimbursement and other undertakings as set forth herein, Developer agrees to cause the construction of the Potable Water Work, which work shall include the following improvements, as shown on City Drawing No. 397-2K, Sheets 1-36, dated February 12, 2003, prepared by Kimley-Horn & Associates, Inc. and City Drawing No. 400-8E, Sheets 1-24, dated February 21, 2003, prepared by Project Design Consultants (together, the "Plans") and as shown in the attached Exhibit "A", which are incorporated herein by this reference: (i) Potable water pipeline, showing: (1) oversizing of approximately 4,788 lineal feet of a 12-inch diameter PVC pipe to a 24-inch diameter welded steel pipe and approximately 712 lineal feet of a 12-inch diameter PVC pipe to a 30-inch steel CML&C pipe in El Fuerte Street; and (2) oversizing of approximately 106 lineal feet of a 12-inch diameter PVC pipe to a 24-inch diameter welded steel pipe, approximately 57 lineal feet of a 12-inch diameter Dl pipe to a 30" steel CML&C pipe, and approximately 947 lineal feet of an 8" PVC pipe to a 16" PVC pipe in Poinsettia Lane. The Potable Water Work shall include all necessary valves and appurtenances, including those necessary to connect the Potable Water Work to the District's pipelines. (b) Any portion of the Potable Water Work completed before the effective date of this Agreement shall be included as a part of the Potable Water Work for reimbursement, subject to the other provisions of this Agreement. (c) Developer shall cause the construction of the Potable Water Work substantially in compliance with the District-approved plans and specifications, and other design documentation for the Potable Water Work. (d) Developer shall cause construction of all Non-Reimbursable Work at Developer's cost. (e) By entering into this Agreement, Developer waives any and all potential constitutional objections (Nolan/Dolan) relating to the Potable Water Work improvements. (f) It shall be the responsibility of the Developer to observe and follow the requirements of District for retention of records and the submittal of information in connection with the Potable Water Work Improvements, as specified in this Agreement. -3- lo (g) Developer shall require Performance and Payment Bonds from the Contractor. General District Obligations. (a) (b) The District shall reimburse Developer an amount (the "Reimbursement Amount") equal to: (i) the actual authorized reimbursement Total Cost for construction of oversizing, plus (ii) an allowance for overhead as described in Section 6 (f) below. The actual Total Reimbursable Cost shall include all costs associated with the installation of the Potable Water Work noted in the attached Exhibit "B" which are incorporated herein by reference and approved change orders either lump sum or time and material as described in Section 6(h). The Total Reimbursable Cost for oversizing is $721,280 calculated as follows: Description Reimbursement for oversizing of 12- inch to 24- and 30- inch diameter potable water pipelines in El Fuerte Street Reimbursement for oversizing of a 12- inch to 24- and 30- inch diameter and an 8-inch to a 16- inch diameter potable water pipelines in Poinsettia Lane Total Oversizing Contract Cost $602,249 $84,684 $686,933 5.0% Overhead Allowance $30,113 $4,234 $34,347 Total Reimbursable Cost $632,362 $88,918 $721,280 District agrees to reimburse Developer for Reimbursable Potable Water Work as described in Sections 6 and 7 below. 5. Reimbursable Potable Water Work. (a) With respect to all hard costs of construction comprising the Potable Water Work Improvements, Construction Manager shall solicit bids from three reputable contractors. Reimbursable Recycled Water Work may be bid together with Non-Reimbursable work for that portion of the Potable Water Work Improvements, which are being bid by such contractor. Upon award of a contract for the Potable Water Work, the costs thereof shall be allocated among the categories consistent with the method and process used in Exhibit "B." The parties agree that the spreadsheet attached hereto as Exhibit "B" is a fair allocation of the costs under such contract as among the categories of Reimbursable Potable Water Work. -4- II (b) During the performance of any Reimbursable Potable Water Work, Developer or Construction Manager shall retain detailed payment records for all items of Reimbursable Potable Water Work, for use by District in auditing subsequent reimbursement requests by Developer. Developer's requests for reimbursement (each a "Reimbursement Request") shall include copies of plans, specifications, engineer's cost estimates, bids received, contracts, change orders, invoices, payment slips, canceled checks (front and back), lien releases and other documentation reasonably required by District to evidence the completion and payment for each item of Reimbursable Potable Water Work. Reimbursement Requests may be submitted by Developer as described in Section 6 (a) below. 6. Audit of Reimbursable Expenses. (a) Expenses for Reimbursable Potable Water Work (including without limitation overhead and the allowance permitted under clause (f) below) are referred to herein collectively as "Reimbursable Expenses." Developer shall be entitled to submit requests for Reimbursable Expenses separately for each construction segment. (b) All Developer's Reimbursement Requests will be processed and audited for District by a reputable consulting engineer selected by District ("Auditing Engineer"). The costs of the Auditing Engineer shall be paid directly by District from Project Funds. (c) The Auditing Engineer shall review all Reimbursement Requests and the payment records submitted in connection therewith and shall within thirty (30) days thereafter issue to District and Developer a report either accepting Developer's submittal or specifying with particularity any reimbursement items or amounts not approved. Any reimbursement items or amounts not approved by the Auditing Engineer may be further pursued by Developer using the dispute resolution provision of Section 8 below. (d) With each Reimbursement Request, following 30-day review by Auditing Engineer, the Auditing Engineer shall forward one copy of each invoice submitted to District by Developer, to the City's Public Works Director ("Director"), together with an invoice for all other components of the Actual Cost not otherwise reflected on the Contractor's invoice. The Director shall confirm and approve the Reimbursement Amount based upon the components of Actual Costs and Overhead Costs set forth in Section 5 of this Agreement. If the Director objects to any items comprising the Reimbursement Amount, the Director shall notify Developer within thirty (30) days of receipt of all invoices forwarded by Developer. Failure to so notify Developer shall be deemed the Director's approval of such invoices. If the Auditing Engineer objects to an invoice he shall authorize payment on all approved items of work except for the disputed work or cost item. -5- (e) District's reimbursement obligations hereunder shall be based upon the actual costs incurred by Developer in performing Reimbursable Work (including overhead and the allowances specified in (f) below). (f) Notwithstanding anything herein to the contrary, and without limitation and in addition to the Reimbursable Work, District specifically agrees that each of the following shall be deemed Reimbursable Expenses: (a) An allowance to cover the allocable portion of premiums paid by Developer for improvement and/or payment and performance bonds relating to the construction of Potable Water Work. (b) An allowance to cover the allocable portion of premiums paid by Developer for blanket liability insurance coverage. (g) Before Developer submits all invoices to Director, Developer shall obtain necessary or appropriate lien releases from all contractors, and shall obtain from the District, and all appropriate governmental agencies, all approvals, certificates, and other documents necessary to indicate the completion of the Reimbursable Work, and the ability to put the Public Improvements into use. The date Developer receives all such final lien releases, approvals, and certificates shall be deemed the date of completion of the Potable Water Work Improvements (the "Completion Date"). In lieu of providing all final lien releases prior to reimbursement, Developer shall have the right to guarantee contractor's payment pending receipt of final releases through the act of providing a bond security as guaranty of payment. Bond release would then require delivery of missing releases. (h) All change orders shall be subject to approval by the District. At the time of approval, the parties shall determine the portion of each change order, which is allocated to Reimbursable Work. In making such decisions, the parties shall be guided by the principle that a change order may be necessary due to changed circumstances or oversight in original design, or it is required in order to perform the applicable portion of the Potable Water Work Improvements in an orderly, reasonable and prudent manner according to the standard engineering and construction practice applicable to the improvements. (i) An amount fixed at five percent (5%) of the eligible costs for Reimbursable Work, exclusive of this clause (f), to compensate for overhead expenses incurred by Developer including for salary and benefits, for staff of Developer's home office, purchasing department expenses, project supervision, general corporate legal and accounting fees and other normal overhead expenses incurred by Developer. 7. Payment of Reimbursable Expenses. (a) Payment of Reimbursable Expenses shall be made, within thirty (30) days after the Auditing Engineer's determination on any such Reimbursement Request (or determination pursuant to Section 8 if applicable). -6- (b) The District shall not unreasonably withhold acceptance of the Potable Water Work Improvements. (c) Developer and District agree that the City's General Fund is not part of this Agreement. The City has reserved funding earmarked under an approved Capital Improvement Program titled Potable Water Work Improvement Program. 8. Disputes/Claims. If a dispute should arise regarding the performance or interpretation of this Agreement, the following procedure shall be used to resolve any question of fact or interpretation not informally resolved by the parties. Such questions, if they become identified as a part of a dispute among persons operating under the provisions of this Agreement shall be reduced to writing by the principal of Developer or the Director. A copy of such documented dispute shall be forwarded to both parties involved along with recommended methods of resolution which would be of benefit to both parties. The Director, or principal, upon receipt, shall reply to the letter, including a recommended method of resolution within ten (10) days. If the recommended resolution is unsatisfactory to the aggrieved party, a letter outlining the dispute shall be forwarded to the Board of Directors for their resolution through the office of the Executive Manager. The Board of Directors may, but is not obligated to resolve the dispute. If the Board of Directors considers the dispute, and directs a solution, the action of the Board of Directors shall be binding upon the parties involved, although nothing in this procedure shall prohibit the parties from seeking remedies available to them at law. 10. Assignment of Contract. The Developer shall not assign this contract or any part thereof or any monies due thereunder without the prior written consent of the District, which approval shall not be unreasonably withheld. 11. Notices. Unless otherwise specifically provided herein, all notices, demands or other communications given hereunder shall be in writing and shall be deemed to have been duly delivered upon personal delivery, or by Federal Express (or similar reputable express delivery service), or by facsimile transmission with back-up copy mailed the same day, or as of the second business day after mailing by United States Certified Mail, return receipt requested, postage prepaid, addressed as shown below. Notices required to be given to Developer shall be addressed as follows: Lennar Communities Attention: Keith Randhahn, Project Manager; Robert D'Amaro, Director of Operations 1525 Faraday Avenue, Suite 300 Carlsbad, CA 92008-7319 Telephone: (760)918-7765 Fax: (760)918-8868 -7- Notices to District shall be delivered to the following: CARLSBAD MUNICIPAL WATER DISTRICT c/o City of Carlsbad Attention: Public Works Director 1635 Faraday Avenue Carlsbad, CA 92008 Telephone: (760) 602-2730 FAX: (760)602-8562 Each party shall notify the other immediately of any changes of address that would require any notice delivered hereunder to be directed to another address. 12. Transfer by Developer. The obligations and benefits of this Agreement shall not be transferred upon sale of the Project. 13. Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which counterparts taken together shall constitute one and the same instrument. 14. Governing Law and Venue. This Agreement shall be interpreted and enforced under the laws of the State of California, and venue shall reside in San Diego County, California. 15. Complete Agreement. This Agreement contains the entire agreement between the parties with respect to the subject matter contained herein, and supersedes all negotiations, discussions, and prior drafts with respect to this subject matter. 16. Amendment. This Agreement may be amended by a written instrument executed by District and Developer except that no amendment regarding the provisions for reimbursement to Developer shall be valid unless executed by both the Developer and the District. 17. Term. This Agreement shall be effective as of the date first above written, and shall terminate on January 1, 2008. 18. No Third Party Beneficiaries. This Agreement shall not be deemed to confer any rights upon any individual or entity which is not a party hereto, and the parties hereto expressly disclaim any such third-party benefit. 19. Severability. The invalidity or unenforceability of any provision of this Agreement, as determined by a court of competent jurisdiction, shall in no way affect the validity or enforceability of any other provision hereof. -8- AIRPORT o < o < COPI eno o r^o x CO rs CD omo £ 2O SCALE: 1" =600' POINSETTIA LANE NOTE: WATER LINE SIZE IN PARENTHESES IS SIZE REQUIRED FOR PROJECT ONLY. EXHIBIT A BRESSI RANCH POTABLE WATER FACILITY OVERSIZING z UJs LU O a.i ^ UJ O LU LU 9: %Q. OH ^S~m ^ g S r- ^ < N ^ LU O » X1 < CO -g ... h- LU Om o a: oa. m o o a UJ ZN <to Q£| §1 CD o•z. 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CO 0)Re-chlorinate 30" potable lio>p <d00o> *» V* O)p CD COo> N." to- O 0 ^ ^oi CDCO COto co CO CO «» en o> o0 0 O en CD oO 0 0CO 00 0 O T- O>CO O CMCM CM <* o> o> o^ -^- o 00 00 0Tf ^- O T-_ T-_ 0 CM" co" o>"tO CO CMCM CM v>Subtotal Change OrdersEl Fuerte StreetPoinsettia Laneo o oTt TT O O> LO i Tj-h- LO CM IO ^ T- oo en en>Cf 0 CO T^ CD LO^> v> o> en oo o o co en •*!•CO ^J" 00O> CM CD tO CM TT00 0 00(O CD </» <j> en o** •* o CM •<}• CO i- 0 OIO h- COin T-" co"CO T- CN 00 CM CD^T T_r <A o -a O CD Total Contract and ChancEl Fuerte StreetPoinsettia Lane10 into -^f to CM to ^•* oto co </»Overhead Allowance (5%]El Fuerte StreetoCM^• CO CM •«•Poinsettia Lane^en Is.CM CM <&Total Reimbursable Cost•f om CM T- 00 CO T-co en CM 00CO COCD El Fuerte StreetPoinsettia LaneCO CD IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first above written. BRESSI GARDENLANE, LLC, a Delaware limjffed liability company : Camino Palomar, LLC, a~Delaware|imited liability company, Its Administrative Member By: Lennar Homes of California, Inc. a California corporation, Its Manager A* Its: Vice President ai-ld title of signatory) CARLSBAD MUNICIPAL WATER DISTRICT, a Public Agency organized under thj MunicipakWatefcDistrict Act of 1jpn antf a Subsidiary Qjtynct o/)the/City qpCa&foad, Califc/ni? f / I / I fl / JT \ , President ATTEST: CORPAJNEM. WOODTsecfetafy' (sign here) (print name and title of signatory) (Proper notarial acknowledgment of execution by Contractor must be attached. Chairman, president or vice-president and secretary, assistant secretary, CFO or assistant treasurer must sign for corporations. Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer(s) signing to bind the corporation.) APPROVED AS TO FORM: RONALD R. BALL, General Counsel Deputy GeneTaTObunsel -9- ACKNOWLEDGMENT State of CaliforjiLc County of On personally appeared_ before me, TI0MM/)*. (here insert name and title of th^officer) ./ personally known to me (or provod-tQ-me on the basis ^f gatisfartory »vid^n^-«) to be the person($) whose name(s/) is/are-subscribed to the within instrument and acknowledged to me that he/sbe/they executed the same in his/hor/thoir authorized capacity(ie&), and that by his/befitheir signature(jS) on the instrument the person^), or the entity upon behalf of which the person(^) acted, executed the instrument. WITNESS Signature MARIANNE SIWEK Commteton* 1658667 Notary Public • California San Diego County My Comm. Expires Apr 23,2010 (Seal) 2