The URL can be used to link to this page

02-0903_ECO RESOURCES INC_Contract (1)SERVICE CONTRACT FOR THE DESIGN,CONSTRUCTION,FINANCING AND OPERATION OF THE SAN JUAN BASIN DESALTER PROJECT between CAPISTRANO VALLEY WATER DISTRICT,ORANGE COUNTY,CALIFORNIA and ECO RESOURCES,INC. Dated September 3,2002 RECORD OF PROCEEDINGS RELATING TO THE CONSTRUCTION DATE Document Number Description of Documents 1.Certificate of the Capistrano Valley Water District as to Development Period Responsibilities 2.Certificate of ECO Resources,Inc.as to Development Period Responsibilities 3.Closing Certificate ofSouthwest Water Company 4.Construction Performance Bond 5.Payment Bond 6.Letter ofCredit 7.Certificates of Required Construction Period Insurance 8.Audited Financial Statements of the Guarantor 410307.5022806 CLD 9.Joint Acknowledgment ofAcceptance of Certain Construction Date Conditions and Other Related Matters 10.Contract Administration Memorandum No.SC 2002-1 11.Contract Administration Memorandum No.SC 2002-2 12.Contract Administration Memorandum No.SC 2002-3 13.Contract Administration Memorandum No.SC 2002-4 14.Contract Administration Memorandum No.SC 2002-5 2 410307.5022806 CLD Document No.1 CERTIFICATE OF THE CAPISTRANO VALLEY WATER DISTRICT AS TO DEVELOPMENT PERIOD RESPONSIBILITIES Pursuant to subsection 4.3(7)of the Service Contract for the Design,Construction, Financing and Operation ofthe San Juan Basin Desalter Project between the Capistrano Valley Water District,Orange County, California (the "District"),and :S::::O Resources,Inc.,a Texas corporation (the "Company"),dated September 3,2002 (he "Service Contract";capitalized terms used but not defined herein are as defined in the Service Contract),the undersigned, George Scarborough,in his capacity as Dis trict Manager,being familiar with the provisions of the Service Contract,hereby certifies to the Company on behalf ofthe District that,on the basis ofinformation reasonably available to him: The representations ofthe District set forth in Section 2.1 ofthe Service Contract,as modified by that certain Contract Administration Memorandum No.SC 2002-2 dated January 7,2003,are true and correct in all material respects as ofthe date hereof as if made on and as ofsuch date. IN WITNESS WHEREOF,the undersigned has caused this Certificate to be executed as ofthe 7th day of January,2003. NO VALLEY WATER DISTRICT 410307.5022806 CLD Document No.2 CERTIFICATE OF ECO RESOURCES,INC. AS TO DEVELOPMENT PERIOD RESPONSmILITIES Pursuant to subsections 4.2(A)(l7)and 4.2(A)(21)ofthe Service Contract for the Design, Construction,Financing and Operation of the San Juan Basin Desalter Project between the Capistrano Valley Water District,Orange County,California (the "District"),and ECO Resources,Inc.,a Texas corporation (the "Company"),dated September 3,2002 (the "Service Contract";capitalized terms used but not defined herein are as defined in the Service Cortract), the undersigned,an authorized officer of the Company,being familiar with the provisions of the Service Contract,hereby certifies to the District that,on the basis of information reasonably available to him: 1.As of the date hereof,the Company is in substantial compliance with all laws, regulations,rules and orders applicable to its business,noncompliance with which would have a material and adverse effect upon its business or its ability to perform its obligations under the Service Contract. 2.Except as disclosed in the Official Statement relating to the Bonds,the representations of the Company set forth in Section 2.2 of the Service Contract are true and correct in all material respects as of the date hereof as if made on and as of such date. IN WITNESS WHEREOF,the undersigned has caused this Certificate to be executed as ofthe 7 -tZ'"day Of.h,'2e»5. EC~C. By:.UlA-~ Authorized lcer 410307.4 022806 CLD DocumentNo.3 CLOSING CERTIFICATE OF SOUTHWEST WATER COMPANY Pursuant to subsections 4.2(A)(18)and 4.2(A)(21)ofthe Service Contract for the Design, Construction,Financing and Operation ofthe San Juan Basin Desalter Project between the Capistrano Valley Water District,Orange County,California (the "District"),and ECO Resources,Inc.,a Texas corporation (the "Company"),dated September 3,2002 (the "Service Contract";capitalized terms used but not defmed herein are as defined in the Service Contract), and in connection with the related Service Contract Guaranty Agreement from Southwest Water Company to the District dated Septenber 3,2002,the undersigned,Anton G.Garnier,in his capacity as President ofSouthwest Water Company,being familiar with the provisions ofthe Service Contract and the Service Contract Guanuty Agreement,hereby certifies to the District that,on the basis ofinformation reasonably available to him: 1.The Service Contract GuarantyAgreement is and remains in full force and effect. 2.Except as disclosed in the Official Statement relating to the Bonds,the representations and warranties of Southwest Water Company set forth in Section 2.1 of the Service Contract Guaranty Agreement are true and correct in all material respects as ofthe ConstructionDate. IN WITNESS WHEREOF,the undersigned has caused to be executed this certificate to be executed as ofthe ~day of!~AA0'r 'Zcc/I. ERCOMPANY By:_---.,;;~::::;.,..:;_-+------ 'er 410307.4022806 CLD Document No.4 CONSTRUCTION PERFORMANCE BOND 410307.5022806 CLD Document No.5 PAYMENT BOND 410307.5022806 CLD ~lJ07J03 18~54 FAX 949 595 5544 __t --.--- nt Ry,~.B ..MCUOwr"&~~~O~!8IeSj ARB,INC._ 4i58g21n~g;Jan-7-03 4;1B~M; JdI 002 p~ge 3/1~ RlDIIR HID_.IDDFftDNAL GIlL... TrIll ."._".-:hiN tp.,..rfarm.,..-ar..,1IerMt ftUIII-24015060 1 __"3rd . _of JAnUary 2003...-c1 lay .......MlIIIIlt .".....C&wbf*')'..........-.... ~~......wI'fw~.an "'hII'at AHB.lnc. I:::CO Hesourcesl Inc.._.....(ilia"CJD1II •.,. WH~I1IJ~J"'."""""""""~lI.,ot .-#_ ......tdO.conDIDJ .4Qi:lnr.;nMal ..CIdIMRlfl San Juan aeeln OCSQ!tol'Project ~IIJIOII 1M .......or....Pm"and aIIIIQ8I..-..GGnd.nnDY.,..,t4fIIl fig .. Ci!lpl.trano VQUcy Water District and AmbQa Assurance Corporatiq...-.1IddIIonIICIlIaIIM .- ·~d"ObIIaefll"I1.DOnG..,.,.,.~.-.:I~n"OMI-........,...ancI ~~.,tw ,.,...,nlfllnWlO eM...... flRCMf)ID,Haw .,.,.IWlf!M1ror........,..,....ttta .........a--.....,..,.~...Jar.ar.·,•.,.-1I_1and 01=...-R11lKO PlQm8ljlO the PrfnaIPIII ..-........,~..8urJIIr lOr or ....-.....DGIft III tI.Cq1RDI '*'"tlfif PtI~1..,1\_--W1II.ortno CertII8ItI.-~rand 1III1bItn ..tIl,..,..,cf2II ».Dtmmillf--..eonrrur .,...".•.,."1ft__fill,.".,"''''..teIIh:•sf......Of.,..0IIIa bII'IIIlna UDGft ........ ~==~:=.~,==:~~~~=~~~=ar ....Ar.....a~......,.•fIY~dlatID....'011...,........Ita ........Janti. lICIIft.m.."..,....3rc:1 d..,l'f January 2D 03 mrJ 1l'Ie ....,...."'~1dall fIllitlUmD.In"1lll1ta__.._tJ-IIIh......... IN wrrl'fe8lt WHSII!Of'1 ..w Jllt7~Su,...Obt AMIIlotItJI 01_,..".....IrI........l1li..,..,.11._th _01 January ,10 as . ARB,Inc. ,..,.""~I•.., tr..~----------~~------------"'. ~-_2SQ.......-----_......,....., ~------------ ,.-...... " Received Jan-OT-03 04:51pm From-S4S !S!!!44 To-SYCAR !Pa,e OOZ 01/07/03 18:54 FAX 040 505 5544 tnt B"Y:M.I:r.Mceow~n 6.A$liocie'tco} I ARB.INC. 41 FiRs::t21 039:Jan-7-0S 4:10rM; Id)003 PCilgQ 4J1~ CALIFORNIA ALL-PURPOSI!ACKNOWLEDGMI!IIT ~~~~~f;""a;!~~~~~~J:*..c<:'~1:~~,*,~~· SitAffa of Calitomia } CountY or ~:..~_n -__-M. 0"J'an~l"L/..2003 befoteme•.MeJ i RSla Hickson.Notary pUbJ.~~.. n....~MdT...e.-rIe",,-"""'1 a.-.Naa.IJ""'. ['$rRDnBiIYappeared ..____Donna J.Frowd ._.'__. ~0'1~ ISlJea~u"Yknown to moopravedtoI1IeonlhebliUiid or SHJisfBCI.QI'Y evidaftOO to bQ Uw pfl'nclln(!1iii)wh£ws Tlsme(s)lsIare 8UD~1111t1t.1 Lu U\e within inlttnJrnent and JIdcnclwlA0g8d to me'hat helahelthey execuwa lhe :mme in hlslhcrlthair authorb8d capaCltYUeS),Rno tnl.l by hlSlnerllhelr algrumne(8'on tl'\o inctrumont'the p8cson(S).or In.entity upon b.nalf ot whICh 1he Pllnsgll(ts) aC1Vd,cmeeuted the InstI"t.IInAnr WITNESS my ha~n'AIIIjBIs....~~-&ft-III/IIIIR "p~ID~.----- --------------OPTIONAL ..,.----------ThDlll:lh theInIannaflGrabelowJs norrsQllirplbylaw,if msyptrMi ~II)persons fetyIng an ,,,e C1OIUn8nI anr1 CO&IIQ pll'tltllJI budurenl remoVBI snd",.r/fIeIvrJsntDfthiBIwm .,lJIIorPet document. D8BcriptiGl1 of AtlllohllCl Document ___-----NumhAr of Pages: TItle orTypv vr DU"'"LII1"'1Il;---_ DooumentOatcl Signorlc)01l18r Than Named Above:.... eapaolty(l8S)Claimed by Signer ., Slgtlflf&Name;--------_-__,__- _ C ,"dlvldual I ,Corporate Officer -T1Ue(s):C1 PQrtn~r -CJ Umited n Genera-~l---------------, 1..1 AUOtney-iIl..Paet CJ TruSUle IC)B~,~anQrC~tMoPther:-......_ Signer 18 Fleprv&enling:,--_ I~~~.,\f,~".~~~~.~~~~~~~.~~05!~~~..~~_.~~~~"'...............i'-'AalDUlDn·1r.aJu.....",...p.o.80.~.~CA9I:113M111·.....l1I8I..nlJlBlY..1g RIGljYld J~n-a7-aa a~:&lp.From-U~U &U&&&~~To-SVCIR &Pea,1 aDa 01/07/03 16:54 FAX 949 595 5544 ARB,INC.-------- 415SQ2103A; Itl 004 page 5/13 80098~. Rlolivld Jan-OT-OS 04:51pm From-949 595 5544 To-SVC&R 5 Pa..004 Ii]005 Pagfll R/134:14PMj~an·7-03 ARB.INC._ 41~Ag2'Oa9; Bond No.24nl~ubO P~~ium.$e5~eoo.oo FORM OF CONSTRUCTION PERFORMANCE BOND 01/07/Q3 18:54 FAX 949 595 5544 IlntBy:M.H.MOGow~q &.Associ8tOS; I i .KNOW ALL MEN BY THESt-:PRESBNTS_thal ARB,Inc=.,liS Principal. and Liberty Mutual Insunmce Company with l1ndenvriting office at 50S South Main Street,Suite 830,Onu1gc,CA 92868,to whicl1 all communicadun~in regard to thi~bond should be:;addl-essed.a.corporation organized and exitiling under tho Inw15 of. .MassachUsCtts and duly authorized to do hu..c;iness in the Slml'ufCalifomia,as SU1"ety,are held and tiJ:mly bound unto ECO Resource~~Inc.•as Obligee..ill the pQ11rAl sum of Sixteen Milliun Five TTundred Thousand and 00/100 Dollars (the "Bonded SumU ),tor the paywcllt which well and truly mado,we hereby joinlly and.severall ourselves,our heirs..executors,administrators,Buoeessor~and assIgns.nnnly cnt5.. Wlll-:KEAS,the Pnn\,iipal has ~the San Juan Basin [JesRlter Proj~cL.dated ._"-3-ed into a conTrRct with tht: Obligee.for the construet1o~of Lh~San Juan Basin DeAalter Project (the "Projt.cf'Y)all in accordance with 1he terms u1":sucl1 wntraet,whioh contract is by reference made a part hereot;and is h.ereinafter referred to as the Construction Agreement: .NOW,THEREFORE,the condition of this obligation i:)~U'-ih that,if the PrilJ~ipal shall promptly and faithfully do and perform.all ofthe P."illcipal's obligatio":l under the Construction Agreement thrOugh completion of cousuuetion then thi~ obli~iLtiunshall be null and void,otherwise it shall Temain in full forc~WIU c!i"ct,il being t:xpr~bSlyWlderstocd that tbe liability ot"the SurelY for any and all .,;lahlls hereunder shall in DU ~~cntQxwecd the Bonded Sum. 1.Whenever th~l'l"inc:;!pal shall be.,and shall be declared by the Obligee to be,in default under thG Construction Agreement,the ObligE".A having perfonned the Obligee·s material obligations thcr(;under,the Surety shaH promptly· romedy the dctftlllt whatever it may be or shall promptly: (a)I'erfonn the Construction Agreement in a.ccurclts.ll~c 'with all of it:s L~Ju.s and conditions;01' (b)(1btam bids fur sublni~5toll to the Obligee for pcrfonning The Construction Agreement in accortlanuc with its terms and condition~,and upon ~Ulual determination by the Obligc::e and the Surely of the lowest responsible lltidder.arrange for a.contracL b'itwcen such bidder and the Obligee and make ~vaiJable as work progresses (even thuugb there will be a default or a sucoessiQn of defaults under the contl'a~~ur OOntt"Clc;t.:s for perfOflllance arranged under this para.graph)~1.1fficicnt fUnds lu pay the C05ts or performance of the t~t)nmuction -f\greement,less lbe unpaid bDlunoe of the contTact p~icc;but not excccd'n~r incillding other cu~ts and damages tor which the Surety may be liable to Obli~ "hereunder...the::aLl10unt set forth in the first paragraph hereof. .,.,"., Received Jan-OT-03 04:61pm From-949 5~5 5544 To-SVC&R 5 PI.e 005 __-00_'_-:---_.__.__..-.---.----- 01/07/~3 18:55 FAX Q4Q 5Q5 5544 "t oy:M.B.MOGo,uc:an &AssocJ.stes; I I ARB.INC._ 415SD210SQ; -~--.-- Jan·j-U3 4:15PM; .Idl 008 PGgCil'7/1~ Nomnt.hstanding the Principal's obligations under BUy provisions of the Cnnstrncdon Agreement,it is understood that any l'U1YIlltl-nt lnadc by the Surety in gdod faith under thIs bond shall reduce thA penal sum by a like amount.The 'term ·';halance of Lbe contraot price"as llsed in this paragraph,shall mean the tolJl1 .amount uc auld payable by the Ob'tgee to the Principa.l undQr the Consttuetion °Agreem t ancl any amClldments theretoja less the amowlt pa.id by the Obligee to the Prin ipa]ill aGcorchmce with the terms ofthe Con~tructionAgreement. No al~tion,mu~it1cation or supplement to rhe terms of°Lh~ COWitIUction eement or Any subcontr&..~or the nature of the work to be performed ° t11Cl-cundcr,inc uding sny extension or linlc for pcrionnnnce..shall in any wily atrect the obligations of e Surety nnder thi.s bond.The Surety wai,,~s notice of any alteration, modificntion,s pl~.nt or extension uftUllC. igned and sealed tbis 3rd dQY ofJanuary,200:~° ARB,Inc. I.Affix Corporate Seal ofPrincipal] IN PRESEN E U.1-":Liberty MutuD11nsurance CompanyrAffixCotpOTQtogealofPrincipalj BY:~~~N2LlnC;B J..Prowd ·ritle-:Attorney-in-fact. I I ..I!•.•-::! Note:rrhis bond lnust he acknowloogtnl bcfofQ notary publics and a legally suLfi,,-:ieT t'I power of attorney mll.llt be auaehed lu the bond to VQrify the authority of any p signing on behaltOoftbc :iuretY. / 1I ,,*CIt. Received Jan-07-0S 04:51pm From-949 595 5544 To-sycaR 5 Pa..DD6 01/07/03 18:55---:--L~--I n'l:0Y'11.11.lIesln FAX 949 595 5544 -'---.--- &Assoo)"ateSj ARB.INC._-----_.-- Jan-I-03 4i15PM; IdJ 007 Page 811::\ to be ttl.pen:on(lIi)",hose nams(a)isllU1I su'tlScr1bed.to \ne WJmln iu~llunl ..n'and Gcknowladged to mCil mat ~hellh.y executed me same In IliWller/Lhelr authorized capRelty(lIil1S).and that bY "as/her'LMlIlr slgna1Urs(.s)on the instrumenttho per8OCl(sl,or''''P.p.ntiTy ugon behalf gf whlcll 1tIe PS/liDII(:S) a~d,.~OQUtcd \h8 In&'UUmgnt. I. CALIFORNIA ALL-PURPOS!;ACKNDWLEDGMEJlT~~~~~~~1"~~~~~~~lf',.I..-<"~~~~~~~~; . .'I ~. BUUS Dr Cl:llUomia } I ~~c4umy of ~:r:n __' II ani _J'mLUiI,ry :3,2003 ...Melissa.Hickson.Notary Publi.c,.._.....",mora me,__IIDIIcN8IIIIand,....~0If'arIe...~Dna.~PlIIlII:') p~rSonal1y ap~,D-o-D....D..---a J.F~o'Wd. I '~..~;c.~t-------- ' I ~personally known Lv me I ••• _ •••~v1::":10 "'"on the bllSis gf UIIs1aclOlY/19 Mas \ IE .....I'I~-1Ii..:,;::n-~_"ZT:.-: ; i I IiII OPUONAL··--,---- / 7frOugtI ".InIOrmiIUC/t,~•nar,.."tMmdlitlaw.11 mayprc.tW'uaAMblP.~1lEYBDIB rv&Jl'ltI DI1 Uw ltgcumonlsntJcoUldp~L (n'Ldllwllt'lflfloWIIaM~""""IfIfJhill """,Ie'"NJlhAr~,",anL. IlDe8cr:iptlGn ofAttached IlMoment ITtt&e orType of nncumant _..,-_ 1l),;,rJ tI"nAnT l)at8~Numbarof Pag'",,,;_-__ i Signer(s,Other Than Nanlll!\J Above:-_ --...11...'- Signer's NamQJ:_ capaclly("')Claimed bY Signer . r ,llnclMduai01Corporate OffiDor .-litle(s):_.,-----Bl Partner -U L.imited r.l GtlI.eral U ~tkJmey.in..FaetoTrusteeoAlliudlanorConservatorL~Other:_••~,~_,_ I srM'IsReI>-"'Ir_~-'-.'.."~.;~~~~~~~~~~*~ o1888"'I~/llllCIIJMIDII""-liIUODeo..-Ay-.,ao.lIlIttlI.fIIII•n""'_Ih.0"'~1."'.~DrJ 1InlO,'"....,tft:ORIS:\oe"""'"'I~•..- Kllill YIIll.i J6t1l-Or-03 04;51 pm Frum-848 585 8844 Tu-SYCIK 8 Pilil oar Jan-I-03 4.15PM; ~1/07193 18:55 FAX 949 595 5544 ARB.INC, ..-,-----.--.-,----.- I --_.-----. n~Dy:M.S.UcGnWAn &ASS0016teSj 415802103g;I • I I ! PAYMENT BOND IdJ 008 P9g&Q/1~ »004 NUa 24015060 P1:'cm.iu.m~IuC!I.1Jtled an PerforJllance But'ld 1<NOW AT....L ME~DY THESB PRESRN-rS)Tnat ARB.Inc.•as Principal, and Liberty lVfunlsl Insuranco Company with underwriting office at 50S South Main .Street,Suite ~:'Ul)OianEe..CA 92868,to which all communications in regaru to thi~bond should b'e addressed,tL corporation organized and e'Xisting under the laws of the Massa(~hllset~and duly autbQ~cdto do business in the State ofCalifurnia.as Surety,are held and'firmly bound unto BCO ResQurees,Inc.,as Obligee,for the usc and benefit of c:laim.ants (as hercina1.\er defined),in the penal gum nf Sixteen Million Five Hundr.od Tholl~~~nd and 00/100 Dollars (the "Bonded Sum")"for the paymem wbi~h well and truly made,we hereby juintly and severally bind ours~I'\1e§,0 U"s.Q"Xccutont, admjniSIrd.tors,SUCCtiSt-iV1"S and assigns,fum!}'by these presen WI-iliREAS,the Principal bas btY !lIe A Sall Juan Biltiin Desalter Project,dated Q9-()3-D.,...into Q.contract ""71th the Obligee for the construction ofthe San Juan B~i&1 Desalter Project (the "ProjectU ),all in 4CNotdQIlcQ with 'the tenns nf ~uch contract.wWch contract is by ref'eJ'8nce made a part hc;rwQr,and is hereinafterrcierred to as the Conslructiuu Agreement; NOW,l·HERllFORE,ifPrincipal or any af itl:l !'lnhcontractors,l fails tu JULY for any mar.erlalsp equlplJlcnt,or other supplies.,Of'tor raltal ofsame used in ~oIWection with th~performance of work (;ontracted to be pertOrmed under the COns1IUc.tiull Agreement or tor work or lubor thCt'eon or any kind or tAl 1~to pay any claimant anlOW1U due under the Unemployment Insurance Code with respect to work or labor P"dormcd by any ~nc'h claimant or for allY mnounts required to be dednr:ferl,withheld and paid 10 the Employment Devt;lu"nu~ntDopDrtm"nt from the wages ofemployees orthe Principal and its snbcontractors pw'suant to Section 13020 of the lTllclnployment lnsurd.l1ce Code with re~pectto such work wul labor and all other applicable laws ofthe statt:ofCalifornia and rules and regulations ofits agencies,then said Surety wi]I pay for the same ill WI iWlOunt 001:exceeding the SWll apccificd above.However...rhis ohligat;on shall be subject to the following conditions: 1.A claimant is defined fur pUlposes hcroor os one having a dut".('.t contraot \vith the PrincipAl)or with a Subcontractor ofthe Principal tor labor.mAT.erials, or both,u.~ed or reasonably required for usc 10 the;pcrCoJD1tUlce of the ConstnlcTion Agr~~cnt GIld/or those 1"er~nns deflned in Section 3181 of the California Civil Code; labot and materials being construed alsu lu inGlude that purl ofwater.gas,power.light,. ht:al,0ll,gasoline.telephot1t':~ervice or rental of equipment directly applica.ble TO the ConstrucUOl1 Agreement. 2.The I'rincipal and Su.rety he-rehy joimly and sevcrl:l.Uy agree with the f.JbJigc;:that CVC1'Y claimant as defined herein,.Who has not been paid in full before the f:xlliratlon or a period of90 days after the nate on which Lh~l~t ofsuch olAimant's work nr labor Wtl:li done 01:perforll1e~or materials were runJi~hed by such claimant,lDay sue on Iht~buucJ for the use of such cl~,imant.prosecule Lbo suit to finQl judgment tOr suC'.h R",lv,d Jin-Or-03 04:51pm From-848 585 5544 To-SYCIR 5 Pl.'008 -------ARB.INC._~1/07/03 18:55 FAX 040 505 5544 - Intoy~M.e.MoGo\AlClln &Assocl.ates;41580210ag;Jan-(-03 4;1SPMj li!1ooo Prage 1011'::\ sum or sums as .may be justly due elairnanti and have executIon th~&JOll.Th~ObliStI'e shall not ~liable tor me payll1ent ofany cost.~or expense ofany such ~uil.. 3.No suit or action shall be commt=nced hereunder by a claimant other. than in a C(JW1 ofcompetent jurisdicT.ion in the SUite of California or in the United States J,{strict COULl for the Central lli"mct or Cali furula (Southern Division),and not ,elsewh~. 4.No alt0nli.io.ll,modification OJ,"supplement to the l~s of ~c . Co.nstruc(,illn Agre-.ement or any subcontracts or the nature of the work 10 be pet:funncd thereunder,~ncl\lding any exren~iullof time for performance..shall ;n any way affect the obligations ot·the ~llTetY WIllen this bond.The SLkl'Cty wai\le~notice or any uJ1uration, modification..stlPJ11ement or ~ALen5ionoftime. S.Upon request by any person or wtity appearing to be a potential beneficim'Y ofthis bond~the Princ;pal shall promptly rw'nish a copy ofthis bond or shall permit f.L ,:opy to be made. 6.The amowll ofthis bond shall be reduced by and to the exr.ent ofany pp.yment or payment~made In guuu faith hereunder,incJu.q,ive of the payment by Surety of mechanics·HenA which ulay be rued of record against the Project.whether or not claim tor the amount of ~u.ch lien be;pr~cnled under and against this bonlt. Signeu WIU tjcalcd this 3rd day ofJanuary,2nU:i. IN PRHSENCR OP: TN PRESENCE C.Jt~·: ARR,Inc. [AffixC By:~~~~~:::::::===- Lib~'T1.y Mutuallnsuranc:e Company [Affix Corporate Seal ofPrincipAl] By:~-.;~:;' Nam~:n na J.Frowd /. Ti1Je:Attomcy.-in-fact ;-. ", -., Note:This boud must be acknuwlcdgcd before notary publics,a..,tt A legally SUm~~l power ;of att.omey must be iSuache:;d La the bond to verifY 1hc 8nthority of each party signing on behalf"o£lhe ~w'Cly.. RII&i1l1 vlld Jim-aT-os 04:51 pm Frum-848 585 5544 Tu-SYCIR 5 Pillli 008 01/07/03 18:55 FAX 040 505 5544..ARB.INC. 41 50921 OaQ; ------- Jan-(-U3 4;1ePMj IdJ 010 Prage 11/13 !I II, IIII I Note:This bond mu~t be acknowledged before notary I1uhlics..and tl legally ~ufficicllt .power of /at.torney mll~be att:a.chcd to the bond to verify the auLhority of each party signing onbehalfofthe surety. "'4101 Received Jan-OT-o!04:51pm ~rom-848 585 5544 TO-SYCIR 5 Pa..010 01/07/03 18:55 PAX 040 505 5544 ,.ARB.INC._ 41SQ9210SQ; ------- Jan-(-03 4;10PMj IdJ 011 Page 1?/1 3· 0"January ~..1 2003 berate mo.MeJ.ieaa ~aiakBon.Nntary Pu~~c Q8I NIuM ~T.wlClIIIl:8I (e.....Jane Doe,~PI'*") personalty :appearea Donl1Cl J.1i'~owd---.-....------,...._~r:----'------...-. ~personallvknown to lilt: CJ praYed k)me on the basis Cif SatlSfDCEDIY eVidence til be the p8r~n(c)whose narnA(R)islare subscribed to rhe wlLnln Intsllume"t and acknowledged to mo that he/shAlthey execuleCltn.sarna In hillilhorltheir tunhonzGd cap~~ty(les).~nd thai bV nlSlnerlU1elr slgnalur&(&)uti U\6 lr1sInJment the personCs}.or the srrtity upon behaJf Of W'tIit:h me pun;un(a) ~led.execut&d tho inctnlment. -------------OPTIONAL --------------ThoUtm rhe i"fotT7fliJJlOn b81O",•nut Ir:t,Jui,..dby.-...if MltYpfDWI "",fusa"Inpgl8tJtdI8IYIng QP1118 dtx:vr'IfIf,f~t:OUk1",-vtml"~181mi1,,1II ••ld._~fIII.-ttlfm kJ~document. De8c::rJptlon of Attachad DoeumARr l1t1e orType of DoCUl'ft4M'''_---_..- DoDumont Dato:__-__-Numberof P~gaR:_ Signer(A)ntherThan Named AbOw~_ L ~pacity(ics)Claimed by Signer I8;gner'e Name:__--__ Io II'IdMduaJUuorporata orf1cer-Titl~c;}:_..'_._n Partner-C1l1mited 0 GeneraloAUumey-in-raotoTrusteeoGuardianorCo~Mrtor[J Otner:,._ Siyr.rb neprecommg:,__--_ Ia~~c~~~~~~~~~· .1...~NDIIIy~.8a&a1Jll6OlO-..r.o.a..ua..~CA!I'3W44G1·~PlDQ.lW.Qftf ..........0-........'...,...827 I RIGliVld Jan-Dr-OS 04;51pm From-848 685 5544 To-SYCIR 5 Pa..011 ," 01/07/03 18:55 FAX 949 595 5544 Jan..7-U:.i IdJ 012 .page 13/1:'-l R'G'iv,d Jan-Or-OS 04i51pm From-848 585 5544 To-svcaR 5 Pl.'012 32400 PASEO ADELANTO SAN JUAN CAPISTRANO,CA 92675 (949)493·1171 (949)493·1053 FAX www.sanjuancapistrano.org April 20,2007 MEMBERSOF THE CITY COUNCIL SAMALLEVATO THOMAS W.HRIBAR MARK NIELSEN JOE SOTO DR.LONDRES USO Bank of America Standby letter of Credit Department 1000 South temple Street,7th Floor Los Angeles,CA 90012 Re:Irrevocable Letter of Credit #3053326 dated January 8,2003 Dear Ms.Alpuche Enclosed please find the original Irrevocable Letter of Credit #3053326 dated January 8,2003.The City of San Juan Capistrano is the successor agency to the Capistrano Valley Water District which was dissolved effective July 29,2004 (see attached LAFCO certificate of completion). The City is surrending this letter of credit for cancellation. Please notify upon completion of this cancellation at crussell@sanjuancapistrano.org or (949)443-6301. Sincerely, f!ux-Ila {R~d;J;h~~vC-Russell Administrative Services Director cc:Eric Mills,ECO Resources Eric Bauman,Water Engineering Manager Margaret Monahan,City Clerk San Juan Capistrano:Preserving the Past to Enhance the Future,. \..,Printed on recycled paper ~ankof America ~ IRREVOCABLE LETTER OF CREDIT January 8,2003 Capistrano Valley Water District 32400 Paseo Adelanto San Juan Capistrano,California 92675 Ladies and Gentlemen: 1.At the request and for the account of Southwest Water Company,a Delaware corporation,Bank ofAmerica,N.A.(the "Bank")hereby establishes in your favor our direct-pay irrevocable Letter ofCredit No.3053326 (the "Letter ofCredit"),in the amount ofThree Million Four Hundred Thirty Thousand Dollars ($3,430,000)(the "Stated Amount"),effective immediately.Capitalized terms used but not defined herein are used as defined in the Service Contract referred to below. 2.We hereby irrevocably authorize you to draw drafts on us at sight in accordance with the terms and conditions hereinafter set forth.The aggregate amount drawn hereunder shall not exceed the Stated Amount. 3.This Letter ofCredit is efffective immediately and will initially expire on January 8,2004 (the "Stated Termination Date").The initial Stated Termination Date shall be automatically extended each year thereafter for an additional year unless the Bank gives written notice to you at least 120 days prior to the then current Stated Termination Date of its intention not to extend the Stated Termination Date beyond the current Stated Termination Date. 4.Subject to the foregoing and the further provisions of this Letter of Credit,a demand for payment may be made by you by presentation to us ofyour sight draft,accompanied by your written and completed certificate,signed by you,in substantially the form of Annex A hereto (such certificate being your "Drawing Certificate"),in an amount not exceeding the Stated Amount,representing amounts payable to you by ECO Resources,Inc.,a Texas corporation (the "Company")under and pursuant to the Service Contract for Design,Construction,Financing and Operation of the San Juan Basin Desalter Project,dated September 3,2002,between the Company and the Capistrano Valley Water District,Orange County,California (the "Service Contract") 5.Each sight draft drawn under this Letter ofCredit must bear on its face the clause "Drawn under Irrevocable Letter ofCredit No.3053326." l3ank ofAmerica,N.A.Trade Operations Mail Code:CA9-703-19-09 333S.Beaudry Avenue.19th Floor,Los Angeles.CA 90017 00-35-020INSB 9-1<)99_CNJ 19 1 Bankof America ~., 6.Demand for payment may be made by you under this Letter of Credit prior to the expiration hereof at any time during the Bank's business hours at its address at 333 South Beaudry Avenue,19th Floor,Standby Letter of Credit Department,Los Angeles,California 90017,on a Business Day (as hereinafter defined).As used herein,the term "Business Day" means a day in which the Bank at our aforesaid office is opened for the purpose of conducting commercial banking business.We hereby agree that all sight drafts drawn under and in strict conformity with the terms ofthis Letter ofCredit will be duly honored by us upon delivery ofthe sight drafts and certificates.If we receive any of your sight drafts and certificates,all in strict conformity to the terms of this Letter of Credit,at our aforesaid office not later than 9:00 a.m., California time,on a Business Day on or before the Stated Termination Date hereof,we will honor the same by 5:00 p.m.,California time,on the same day in accordance with your payment instructions.Ifwe receive any ofyour sight drafts and certificates,all in strict conformity to the terms of this Letter of Credit at such office after 9:00 a.m.,California time,on a Business Day, on or before the Stated Termination Date hereof,we will honor the same not later than 5:00 p.m., California time,on the next succeeding Business Day in accordance with your payment instructions.If requested by you,payment under this Letter of Credit may be made by Federal Reserve Wire Transfer of funds to your account in a bank on the Federal Reserve Wire Facility or by deposit ofsame day funds into a designated account that you maintain with us. 7. hereunder. The Stated Amount shall be reduced automatically by the amount of each drawing 8.This Letter of Credit is transferable in its entirety (but not in part)to your transferee and may be successively so transferred.Transfer of this Letter of Credit to such transferee shall be effected upon the presentation to us ofthis Letter ofCredit accompanied by a certificate in the form ofAnnex B attached hereto. 9.Only you (or a transferee as provided in paragraph 8 hereof)may make a drawing under this Letter ofCredit.Upon the payment to you or your account ofthe amount specified in a sight draft drawn hereunder,we shall be fully discharged ofour obligation under this Letter of Credit with regard to that payment,and we shall not thereafter be obligated to make further payments under this Letter of Credit with regard to that payment to you. 10.This Letter ofCredit,except as otherwise stated herein,in subject to International Standby Practices 1998,International Chamber of.Commerce Publication 590 1998 (the "ISP98")and shall be governed and construed in accordance with the laws of the State of California and applicable U.S.federal law. 11.Communications with respect to this Letter ofCredit shall be in writing and shall be addressed to us at our address at Bank ofAmerica,N.A.,Trade Finance Services,Mail Code CA9-703-19-23,333 South Beaudry Avenue,19th Floor,Standby Letter of Credit Department, Los Angeles,California 90017,specifically referring to the number ofthis Letter ofCredit. [Jank ofAmeriea.N.A.Trade Operations Mail Code:CA9-703-I'I-09 333 S.BeaudryAvenue,19th Floor.Los Angeles,CA 90017 00-35-020INSB 9-1999J'A'I 1'1 2 Bankof America ~ 12.This Letter of Credit sets forth in full our undertaking and such undertaking shall not in any way be modified,amended,amplified or limited by reference to any document, instrument or agreement referred to herein (including,without limitation,the Service Contract), except only the certificates and sight drafts referred to herein and ISP98;and any such reference shall not be deemed to incorporate herein by reference any documents,instrument or agreement, except for ISP98,such certificates and sight drafts. Very truly yours, BANK OF AMERICA,N.A. By: Name:Sandra Leon Title:Vice President B)f:2/~'k~ Naliie:MargciretKWiatek Title:Vice President Bank ofAmerica,N.h..Trade Operations Mail Code:CA9-703-14-09 333 S.BeaudryAvenue,19th Floor,Los Angeles,CA 90017 OO-:15-02!1INSB 9-199l)J·A9 19 3 ~an~of America ~ ANNEX A TO IRREVOCABLE LETTER OF CREDIT CERTIFICATE FOR DRAWING IN CONNECTION WITH PAYMENT OF AMOUNTS UNDER THE SERVICE CONTRACT Irrevocable Letter ofCredit No.3053326 The undersigned,a duly authorized representative ofthe Capistrano Valley Water District,Orange County,California (the "Beneficiary"),hereby certifies to Bank ofAmerica, N.A.(the "Bank"),with reference to Irrevocable Letter ofCredit No.3053326 (the "Letter of Credit";terms defined therein and not otherwise defined herein being used herein as therein defined)issued by the Bank in favor ofthe Beneficiary,as follows: 1.The Beneficiary is a party to the Service Contract for the Design,construction, Financing and Operation of the San Juan Basin Desalter Project,dated September 3,2002 (the "Service Contract")by and between the Beneficiary and BCO Resources,Inc.(the "Company") regarding the design,construction,financing,start-up acceptance testing,operation, maintenance,repair,replacement and management ofthe Beneficiary's water treatment plant in the City ofSan Juan Capistrano. 2.The Beneficiary is making a demand for payment under the Letter of Credit in the amount of $and such amount does not exceed the Stated Amount.------ 3.The Beneficiary hereby certifies as follows (insert those which are applicable): (a)Delay liquidated damages,not in the aggregate to exceed the Stated Amount,are due and payable,and have not been paid,by the Company under the terms and conditions ofSection 7.9 ofthe Service Contract. (b)The Beneficiary has terminated the Service Contract pursuant to Section 13.2 of the Service Contract in accordance with the procedures and requirements of such Section,Section 15.3 and the other applicable provisions of the Service Contract,and the Beneficiary has determined that the amount set forth above represents the estimated damages suffered by the Beneficiary,not to exceed the Stated Amount. ,(c)The Letter of Credit will expire within 30 days,and the Letter of Credit has not been extended,renewed or replaced in accordance with Section 15.3 of the Service Contract.The amount set forth above represents the full Stated Amount. (d)The Company or the Guarantor has filed a petition of voluntary bankruptcy under the Bankruptcy Code,the Company or the Guarantor ~aa~~~~:;n~~~;:7~3~i9:~~d~Opcrations 4 333 S.Beaudry Avcnue.19th Floor.Los Angeles,CA'10017 00-35-0201NSB '1-1999_CA'I 19 ~an~of America ~ has consented to the filing of any bankruptcy or reorganization petition against the Company or the Guarantor,or the Company or the Guarantor has filed a petition to reorganize the Company or the Guarantor pursuant to the Bankruptcy Code.The amount set forth above represents the full Stated Amount. (e)A court of competent jurisdiction has issued an order appointing a receiver,liquidator,custodian or trustee of the Company or the Guarantor or of a major part of the Company's or the Guarantor's property, respectively,or a petition to reorganize the Company of the Guarantor pursuant to the Bankruptcy Code has been field against the Company or the Guarantor,and such order has not been discharged or such filing has not been dismissed within 90 days after such issuance or filing.The amount set forth above represents the full Stated Amount. 4.Payment of the amount described hereby shall be made by wire transfer to the following account:[wire transfer instructions]. IN WITNESS WHEREOF,the Beneficiary has caused this certificate to be executed and delivered by its duly authorized representative as ofthis __day of ,20_ THE CAPISTRANO VALLEY WATER DISTRICT By: Title: BankofAmcrica,N.A.Trade Opcrations Mail Code:CA9-703-19-09 Y\3 S.lkaudryAvenue,19th Floor.LosAngeles,CA 90017 OO-:l5-020INSB ()-1999J'A9 19 5 B k fA ·~~,an,0 merlca ~ ANNEX B TO IRREVOCABLE LETTER OF CREDIT TRANSFER CERTIFICATE Bank ofAmerica,N.A. Trade Operations Center Mail Code CA9-703-19-23 Standby Letter ofCredit Department 333 South Beaudry Avenue,19th Floor Los Angeles,CA 90017 RE:Irrevocable Letter ofCredit No.3053326 Ladies and Gentlemen: For value received,the undersigned Beneficiary hereby irrevocably transfers to [Name ofTransferee] [Address ofTransferee] all rights ofthe undersigned Beneficiary to draw under the above Letter ofCredit in its entirety. By this transfer,all rights ofthe undersigned Beneficiary in such Letter ofCredit are transferred to the transferee and the transferee shall have the sole right as the Beneficiary thereof, including sole rights to any amendments whether increases or extensions or other amendments and whether now existing or hereafter made.All amendments are to be advised directly to the transferee without necessity ofany consent ofor notice to the undersigned beneficiary. Such transferee is a permitted transferee under such Letter ofCredit. The Letter ofCredit is returned herewith,and we ask you to endorse the transfer on the reverse thereof,and forward it directly to the transferee with your customary notice oftransfer. SIGNATURE AUTHENTICATED (Bank) (Authorized Officer) BanK orAmerica.N.A.Trade Operations Mail Code:C[\<I-70)-\<)-09 333 S.Beaudry \"el1ue.J9th Floor,Los Angeles,Ci\90017 ()(1-35-020\N'>B 9-1999.C/\9 19 6 THE CAPISTRANO VALLEY WATER DISTRICT By:_ Title:--------------- .'12-14-84 15 ;18 :.,," From-oranl.CQunty lAFCO 11~83~ZS43 T-.&O P D06ID01 F-536 ~ecord'"in Official Records,Orange County Tom Daly.Clerk-Recorder 11111111111111111 NO FEE 2004000690271 03:17pm 07129104 130 15 C1&2 0.00 0.00 0.00 O.DO 0.00 0.00 0.00 0.00 -.c:\FQr.Pnl"'~~ ]'a"'-"G<M.CHIlSdtnl6113,""'tlML«tIlAp.qF...-e-..,.",~~U~#1, sll,,11 N tII""-,,,,dleji6lJg·f.is~'lru AUG Jl!!J102004. Recorded at the request ofand return by Interoffice mail to: LOCAL AGENCY FOEWATION COUU~ ORANGE LOCAL AGENCY FORMAnON CoMMISSION 12 Civic CenterPlaza,Room 235 Santa Ana,CA92701 CERTIFICATE OFCOMPLETION Pursuant to Government Code section 57200.this Certificateis issued bythe ExecutiveOffic:eroftheLocal Agency Fonnalion Commission ofOrange COunty7 California 1.The sbon..tenI1 designation,as determined by LAFCO,is: City ofSanJuan Capistrano and Capistrano Valley Water Di&lrict Reorganization (R.O 96-1S) 2.The name ofeach district orcity involved in this change oforganization or reorganization and the kind ortype ofchange oforganization ordered for each cityor district are as follows: CITY DISTRICT:CityofSan Juan Capistrano and Capistxano Valley Water District TYPE OF CHANGE OF ORGANIZATION:Merger 3.The above listed cities and/or districts are located within the following county(ies):Orange 4.A description ofthe boUDdaries:the boundaries match the cOtpOrate boundaries for the CityofSan Juan Capistrano. 5.The territoJY is inhabited. 6.This cbaoge oforganization has been approved subject to the following terms andconditions: a.The effective date sbalJ be the date ofrecordation. b.A signed agreementbetween theCityofSanJuanCapistranoandthesuccessoragencytothe SouthCoast Water District shall be submitted to LAFCO.The agreement shall address the provisionsgoverning andregulatingthecontinued provision ofwaterservicetoParcel 4,the area located in the City ofDaoaPoint and currently served bythe CVWD. c.The City ofSan Juan Capistrano shall submit to LAFCO a signed agreement bet\Vc:cn the City of San Juan CapistraDo and property owner ofParcel 2,the Schuller Ministries, regarding the provisions governing and regulating the provision ofwater service to Pacce12 Cerdfae:ate ofCompJetioD.RO 96-1 S Page 1 of2 12-14-04 15:18 ...' Fro.-oran,8 County LAFCO 714834260 T-46D P 0011007 F-536 through an out-of-agency contract. d.The Moulton Niguel Water District shall submit to LAFCO a resolution requesting annexation ofParcels 1 and 3.LAFCOshall agree to waiveits fees for the processingofthe annexations. e.The City ofSan Juan Capistrano shall be the successor agency to the functions,assets (including cash 011 band and monies due but uncollected),liabilities,debts,conttaets, obligations,enforoement and responsibilities of the CVWD.Funds held in trust by the CVWD for a prescribed purpose shaIl only be used by the successor for said PfefClibed PlIIpOse.All delinquent fees,charges and any other collection orassets whichacctue shaIl accrue and be trausfetted to the successor agency.Any assessment levied OIl behalf ofthe CVWD oranybiDs orstatements rendered byor onbehalfoftheCVWDshallcontinue to be a debtorobligation ofthe ofthe personorpropertyagainstwhom they were levied,assessed or tendered unless relieved by the City of San Juan as successor agency prior to the recordation date. f.All real orpeISOnal property andappuneDBDces held bytheCVWDasoflheeffectivedate of this reorganization shall be transferred to the successor agency. g.The successor agency bas the discretionary authority to impose and collect all charges)fees and or assessments previously approved by the CVWD.Nothing in these terms and conditions shall be deemed to limit the ability ofthe CityCouncil ofthe CityofSan Juan Capistrano to establish and levycharges,fees and/orassessments as it determinesnecessary. h.LAFCOshall retainjlUisdictionpriortoissuance ofthe certificateofcompletion to hear and amend,ifnecessary,any terms andconditionsthat require agreement between parties. 7.The resolution (No.RO 96-1 S)ordering this change oforganization withnotice and hearing was adopted OD September 2,1998 bythe Local Agency Formation Commission. I herebycercifyuoderpenaltyofperjurythat I have examined the resolution cited above;including any tenns and conditions. Orange County Local Agency Fonnation Commission Bob A1dri~Acting Executive Officer DATE:July29,2004 Certificate ofCompletion.RD 96-15 Page 2 of2 32400 PA,Se;O ADELANTO SAN JUAN CAPISTRANO,CA 92675 (949)493-1171 (949)493-1053 (FAX) lVWW.sanjuancap;strano.org February 5,2003 MEMBERS OFTHE cnv COU\ICll DIANEL BATHGATE JOHN S.GaFF WYATTHART JOESOTO DAVIDM.SWERDUN CITYMANAGeRGEORGESCARBOROUGH NOTIFICATION OF ACTION BYTHE CAPISTRANO VALLEY WATER DISTRICT BOARD OF DIRECTORS On February 4,2003 the Capistrano Valley Water District Board of Directors met regarding:"Acknowledgment of Dissolution of the Capistrano Valley Water District."(Item No.C1) The folloWing action was taken at the meeting:Dissolution of the Capistrano Valley Water District formally acknowledged,received and filed;and staff directed to transfer title of all assets from the name of the Capistrano Valley Water District to the City of San Juan Capistrano If you have any questions regarding this action,please contact Cindy Russell, Administrative Services Director at 443-6301 for more detailed information. Thank you, Cc:Mr.Dana Smith.Local Agency Formation Commission·~y Russell. Administrative Services Director :!:~\I 1~(~,.f·~~I::":,:.;Ilr':..', "..:.Ii ~).-,,-,'.'..::;~ll FEB -J;~!103 ;::.iU ~....):.' San Juan Capistrano:pr.eserving the Past to Enhance the Future"8y ....; 32400,PASEO ADELANTO SAN JUAN CAPISTRANO,CA 92675 (949)493-1171 (949)493-1053 (FAX)www.sanjuancapistrano.org MEMBERS OFTHe:ClTY COUNCILDIANEl.1WHGATE COLLENECAMPeEU.JOHNS.GEl.FFWVATTHART DoWID M.SWERDUN CITY MANAGER .GEORGE SCARBOROUGH January 23,2003 Ms.Dana M.Smith local Agency Formation Commission 12 Civic Plaza,Room 235 Santa Ana·,CA 92701 Re:Recordation of the "Merger ofthe Capistrano Valley Water District and the City ofSan Juan Capistrano"(RO 96-15) Dear MI:Smith, In response to your letter dated January 16,2003,staff has contacted Mr.Ken Lee and requested that the dissolution date be extended at least thirty days.This time is necessary to allow the Water District Board of Directors to formally acknowledge the dissolution and allow the City Council to constitute the WaterAdvisory Commission,a District commission,as a commission ofthe City of San Juan Capistrano.Mr.Lee has indicated that March 3,2003 would be an acceptable date for the recording of the Certificate·of Completion for the project.This letter is to confirm March 3,2003 as the date for final dissolution. Please contact Cindy Russell at (949)443-6301,ifyou need any additional information. San Juan Capistrano:Preserving the Past to Enhance the Future / ...:' -JAFC0 -------------------Lo-ca-t-A-ge-n-cy-R-o-rm-a-ti-on-O-o-mm-is.-'$-io-n- Orange County January 16,2003 CHAIll PETERBERWG COUNCJLMAN CITYOF LAKE FOREST VICBCHAIR ARLBNESCHAFER. DIRECTOR COSTA MESA SANITARY DlSTRlCT RANDALJ.BRESSETrE COUNCILMAN CflYOFLAGUNA mu.s CYNTHIAP.eOAD SUPERVISOR FOURTH DISTRICT CHARLES V.SMmi SUPERVISOR FIRSTDrsnuCT SUSAN WILSON RBPRESBNrATlVEOF GENERALPUBLIC JOHNB.WITHERS DIRECTOR IRVINERANCH WATER DISTRICT ALTERNATE ROBERT BOOER MAYOR CITY OfLAGUNA WOODS ALTERNATE RHONDA McCUNE REPRESENTATIVBOF GENERAL PUBUC ALTERNATE JAMES W.SILVA SUPERVISOR SECOND DISTRICT ALTERNATE CHARLEYWILSON DIllECTOR SANTAMARGARITA WATERDISTRICT DANAM.SMITH EXECtmVEOFFICER George Scarborough,City Manager City ofSan Juan Capistrano 32400Paseo Adelanto San Juan Capistrano,CA 92675 SUBJECT:Recordation of the <'Merger of the Capistrano Valley Water District and the CityofSan Juan Capistrano"(RO 96-15) Dear Mr.Scarborough: Over the past year and a halt:we have been working with staff from your public works and finance departments to conclude the "Merger ofthe Capistrano Valley Water District and the City of San Juan Capistrano"(RO 96-15).The Commission approved the merger on September 2,1998 subject to a number of tenns and conditions,including several that required the execution of various contractual agreements.Last year,your staff sent a packet of documents that satisfied all of LAFCO's tenns and conditions but requested that LAFCO delay the recordation ofthe merger until the City was able to complete its bond issuance process for CVWD.Your staff subsequently informed us that that process was complete but requested that we continue to delay recordation ofthe merger until a few loose ends could be tied up. We would like to wrap up the merger and will be recording a Certificate of Completion for the project on Wednesday,January 29,2003.Iffor any reason the City would like LAFCO to continue to further delay recordation of the merger,please contact me or my staffbefore that date.Also,please be assured that 'the terms and conditions approved by LAFCO for the merger provided for a smooth transition from District to City,including the transfer of assets,bonded indebtedness,etc. If you have any questions or concerns,please feel free to contact either Ken Lee (klee@orange.lafco.ca.gov)or myself (dsmith@orange.lafco.cagQv)!,:.~t,.(714)\..oJ--,..i')I -"--'-834-2556.--,r~.tINj ;;~~I (i~rt?'ii--ift;I~~(.:"j .f}71ff<CN 3 ~oD?J f!n1 ~1..,,}I.J ~~;!!!Y SIncerely,/tt!11 JAN 2 '!It'!~t-JU 0 20U3 I;::irJ;{JItW~q -'9.v...__I~? -"'~i DanaM.Smith "-."~-'--'-"""'~~-:-:-::f Executive Officer .. ePd1d7K'/J/7S ;o~f#S'E/P/~£72:J ~~S 12 Civic CenterPlaza.Room 235.Santa Ana,Cf\.92701 JAN 1.7 2003 (714)834-2556 FAX (714)834-2643 http://www.orange.lafco.ca.gov R096·15 RESOLUTION OF THE LOCAL AGENCY FORMATION COMMISSION OF ORANGE COUNTY,CALIFORNIA MAKING DETERMINATIONS AND ,ApPROVING A ZERO SPHERE OF INFLUENCE FOR THE CAPISTRANO VALLEY WATER DISTRICT, AND THE MERGER OF THE CAPISTRANO VALLEY WATER DISTRICT AND THE CITY OF SAN JUAN CAPISTRANO ". 12-14-04 15:17 From-Oran••County LAFCO \ 7148342643 1-4&0 P ooZ/007 F-53B September 2,1998 On motion of Commission Huntley~duly seconded and cmied,the following resolution was adopted: WHEREAS,the proposed merger ofthe Capistrano Valley Water DiS1Xict and the City ofSan Juan Capistrano,designated as £lCity of San Juan Capistrano and Capistrano Valley Water District Reorganizatioo"-(R096-15),in theCOlmlyofOrangewasheretofore tiled with and at:eepted for filing on June 3,1998 by the ExecutiveOfficerofthis Local Agency Formation Commission punuanttoTitle 5~Division 3,commencing with Section 56000 et seq ofthe Government Code;and WHEREAS,the Executive Officer,pursuanttoGovernment Code Section 56838 set September 2~1998 as the hearing date ofthis proposal;and WHEREAS,the Executive Officer,pursuant to Government Code Section 56833 has reviewed this proposal and prepared a report including her recommendation thereon,and has furnished a copy of this report to each person entitled to a copy;and WHEREAS,the proposal consists oftbemerger ofthe Capistrano Valley Water District and the City of San Juan Capistrano and the designation of the City as the successor agency to the District; designation ofa zero sphere ofinfluence for the Capistrano Valley Water District,annexation ofparcels 1 and 3 to the MoultonNiguel Water Distri~annexatioD ofparcel 4 to the SouthCoast Watcf District, and a request for apptoval ofan out-of-agency service agreement for parcel 2;and WHEREAS,this Commission at a hearing held on September 2~1998 considered the proposal and the report along with the proposal and report ofthe Executive Officer,and considered the factors determined by the Conunission to he relevant to this proposal.including,but not limited to,factots specified in GO"emment Code Section 56841;and Resolution No.R096-15 1 12-14-04 15:17 From-Qran'8 County LAFCO 7148342643 T-460 P 003/007 F-536 ThesphereofiDflueoce oftheCapistranoValleyWaterDistrictishereby amended to a &&~»dcsigwdioD,and the attached Statement ofDetenn.inatioDS is hereby adopted. The merger ofthe Capistrano Valley Water District and the City ofSan Juan Capistrano is hereby approved,subject to the following terms and conditions cont.aiDed herein: The effective date shall be thedate ofrecordation.(Govt.CodeSed.S6844(P)}. A sigoed agreement between the City ofSao Juan Capistrano and the successor agency to the South Coast Water District shall be submitted to LAFCO.The agreement shall address the provisioDS governing and regulating the continued provision ofwater service to Pan:e14.the area located in the CityofDana Point and cun:ent1y served by the CVWD {Go\'t.Code Sect.56844(v)}. The City of San Juan Capistrano ,ball submit to LAFCO a signed agreement between the City of San Juan Capistrano and property owner of Parcel 2,the Schuller MiDistrics,regarding the provisiollS goveming and regulating the provision ofwater serrice to Parcel 2 through an out-of-agency contract. The MoultoD Niguel WaterDistrictshallsubmittoLAFCOa resolution requesting annexation of Parcels I and 3.LAFCO shall agree to waive its fees for the a) b) c) d) Section 2. WHEREAS,this Commissioncalledforand helda public hearing OD the proposal on September 2,1998)and atthe hearing,this Commission beard and received all oral and written protests.objectioos and evidence which were mad~presented or filed,and aU persons presem were given an opportunity to hear and be heard with respect to this proposal and the report ofthe Executive Officer;and WHEREAS.the Executive Officer determined that the project is categorically exempt from the California Environmental QualityAct(CEQA)as a reorganizationoflocaI govemmentnotchanging the geogl8phicaI areainwhich previouslyexistingpowers are exercised (C1a5s 20;State CEQA Guidelines Section 15320). NOW~THEREFORE,the Local Agency FonnationCommission ofthe County ofOtauge based on the findings,discussion and conclusions set forth in the Executive Officer's report.which is incorporated herein by this reference,DOES ~BY RESOLVE,DETERMINE and ORDER as fonows: Section 1. Resolution No.R096-15 2 15:17 From-Oran'8 County lAFCO \ 7148342643 T-460 P 004/001 F-536 ." e) f) g) h) Section 3. Section 4. processing ofthe annexations {Govt.Code Sect.56844(v)}. The City ofSan Juan Capistrano shall be the successor agency to the functions, assets (including cashon hand andmonies due but uncollected),liabilities,debtsy contracts,obligations,enforcement andresponsibilitiesofthe CVWD.Funds held in trust by the CVWD for a ptescribed purposeshall onlybe used by the successor for saidprescribed purpose.All delinquent fees,charges and any other collection orassets which accroeshall UCnteand be transferred tothe successor agency.Any assessment levied on behalfofthe CVWD or any bills orstatements rendered by oron behalfofthe CVWD shall continue to be a debt or obligation ofthe ofthe person or property against whom they were levied,assessed or rendered unless relieved by the City ofSan Juan as successor agency prior to the recordation date (GOYL Code Sect.56844(m)}; All real or personal property and appurtenances hdd by the CVWD as ofthe effective date oftbis reorganization shall be transfened to the successoragency {Govt.Code Sect 56844(h)}; The successor agency has the discretiouary authority to impose and collect all charges,fees and or assessments previously approved by the CVWD.Nothing in these terms and conditions shall be deemed to limit the ability ofthe City Council ofthe City ofSan Juan Capistrano to establish and l~charges,fees and/or assessments as it determines necessary {Govt.Code Sect.56844(t)}; LAFCO shall retainjurisdiction prior to issuanceofthe certificateofcompletion to hear and amend.ifnecessary,any terms and conditionsthatrequire agreement between parties {Govt.Code Sect_S6844(v)}. The territory su~ject to the reorganization includes the entire area ofboth the Capistrano Valley Water District and the City of San Juan Capistrano,and is found to be inhabited.Said tenitoryis found to bein the County ofOrange and is assigned the following distinctive short-form designation:'~ity ofSan Juan Capistrano and Capistrano Vaney Water District R.eorganization"(R096-15). The CityorSan Juan Capistrano is designated as the conducting authority and is hereby directed to conduct proceedings with notice and hearing,pursuant to Resolution No.R096-15 3 ,1Z-14-04 15:18 From-Oran••County LAFCO 7148342643 TM46D P 005/007 F-536 S~tion5. Government Code Sections 56839 (a)and 57081,and in compliance with this resolution. The Executive Officerishereby authorized and directed to mail certified copies ofthis resolution as provided in Section 56853 ofthe Government Code. AYES=COMMISSIONERS:HUNTLEY,HERZOG,WILSON"WIlHERS AND STEINER,AND VICE-CHAIR SMlllI,AND CHAIR BRESSETIE NOES:NONE ABSTAINED:NONE STATEOFCALIFORNIA ) ss COUNlYOF ORANGE ) I.,DANA M.SMJ.TIL ExecutiveOfIiceroftheLocal Agency Formation CommissionofOraDge COUD.ty,California,hereby certify tbar the above and foregoing resolution was duly aod regularly adopted bysaid Commission at a Jegular meeting thereo(held onthe 2-day ofSeptember 1998. IN WITNESS WHEREOF,I have hereunto set my baud this 2-day ofSeptember,1998. DANA M.SMIlH ExecutiveOfficer ofthe .Local AgencyFormation Commission F;\LAFCOUtO 96-1S\Ra.1IIpd Resolution No.R096...1S 4 Document No.6 LETTER OF CREDIT \\!. ,\\\'''', '!f ~,~.v F< (.,\ \j l\ ), ,I .1,: 410307.5 022806 CLD DIRECT DIAL:(949)725-4053 JKRAWIEC@SYCR.COM VIAFEDEx STRADLING YOCCA CARLSON &RAUTH A PROFESSIONAL CORPORATION ATTORNEYS AT LAW 660 NEWPORT CENTER DRIVE,SUITE 1600 NEWPORT BEACH,CA 92660-6422 TELEPHONE (949)725-4000 FACSIMILE (949)725-4100 January 8,2003 SAN FRANCISCO OFFICE 44 MONTGOMERY STREET.SUITE 4200 SAN FRANCISCO.CALIFORNIA 94104 TELEPHONE (415)283-2240 FACSIMILE (415)283-2255 SANTA BARBARA OFFICE 302 OLIVE STREET SANTA BARBARA.CALIFORNIA 93101 TELEPHONE (805)564-0065 FACSIMILE (805)564-1044 Ms.Cynthia L.Russell Administrative Services Director Capistrano Valley Water District 32400 Paseo Adelanto San Juan Capistrano,CA 92675 Re:$31,555,000 San Juan Basin Authority Lease Revenue Bonds (Ground Water Recovery Project)Issue of2002 Dear Cindy: Please find enclosed the original "Irrevocable Letter of Credit"issued by Bank of America in connection with the closing of the above-referenced financing,for your safekeeping. Very truly yours, STRADLING YOCCA CARLSON &RAUTH Judie Krawiec Senior Public Finance Paralegal Enclosure DOCSOC\944262vl\22658.0017 Ba'nkofAmerica ~ IRREVOCABLE LETTER OF CREDIT January 8,2003 Capistrano Valley Water District 32400 Paseo Adelanto San Juan Capistrano,California 92675 Ladies and Gentlemen: 1.At the request and for the account of Southwest Water Company,a Delaware corporation,Bank ofAmerica,N.A.(the "Bank")hereby establishes in your favor our direct-pay irrevocable Letter ofCredit No.3053326 (the "Letter ofCredit"),in the amount ofThree Million Four Hundred Thirty Thousand Dollars ($3,430,000)(the "Stated Amount"),effective immediately.Capitalized terms used but not defined herein are used as defined in the Service Contract referred to below. 2.We hereby irrevocably authorize you to draw drafts on us at sight in accordance with the terms and conditions hereinafter set forth.The aggregate amount drawn hereunder shall not exceed the Stated Amount. 3.This Letter ofCredit is efffective immediately and will initially expire on January 8,2004 (the "Stated Termination Date").The initial Stated Termination Date shall be automatically extended each year thereafter for an additional year unless the Bank 'gives written notice to you at least 120 days prior to the then current Stated Termination Date of its intention not to extend the Stated Termination Date beyond the current Stated Termination Date. 4.Subject to the foregoing and the further provisions of this Letter of Credit,a demand for payment may be made by you by presentation to us ofyour sight draft,accompanied by your written and completed certificate,signed by you,in substantially the form of Annex A hereto (such certificate being your "Drawing Certificate"),in an amount not exceeding the Stated Amount,representing amounts payable to you by ECO Resources,Inc.,a Texas corporation (the "Company")under and pursuant to the Service Contract for Design,Construction,Financing and Operation of the San Juan Basin Desalter Project,dated September 3,2002,between the Company and the Capistrano Valley Water District,Orange County,California (the "Service Contract") 5.Each sight draft drawn under this Letter of Credit must bear on its face the clause "Drawn under Irrevocable Letter ofCredit No.3053326." BankofAmerica,N.A.TradeOperations Mail Code:CA9-703-19-09 333 S.Beaudry Avenue,19th Floor,LosAngeles,CA 90017 00-35-0201NSB 9-1999_CA9 19 1 Bank of America ~ 6.Demand for payment may be made by you under this Letter ofCredit prior to the expiration hereof at any time during the Bank's business hours at its address at 333 South Beaudry Avenue,19th Floor,Standby Letter of Credit Department,Los Angeles,California 90017,on a Business Day (as hereinafter defined).As used herein,the term "Business Day" means a day in which the Bank at our aforesaid office is opened for the purpose of conducting commercial banking business.We hereby agree that all sight drafts drawn under and in strict conformity with the terms ofthis Letter ofCredit will be duly honored by us upon delivery ofthe sight drafts and certificates.Ifwe receive any ofyour sight drafts and certificates,all in strict conformity to the terms of this Letter of Credit,at our aforesaid office not later than 9:00 a.m., California time,on a Business Day on or before the Stated Termination Date hereof,we will honor the same by 5:00 p.m.,California time,on the same day in accordance with your payment instructions.Ifwe receive any of your sight drafts and certificates,all in strict conformity to the terms ofthis Letter ofCredit at such office after 9:00 a.m.,California time,on a Business Day, on or before the Stated Termination Date hereof,we will honor the same not later than 5:00 p.m., California time,on the next succeeding Business Day in accordance with your payment instructions.If requested by you,payment under this Letter of Credit may be made by Federal Reserve Wire Transfer of funds to your account in a bank on the Federal Reserve Wire Facility or by deposit ofsame day funds into a designated account that you maintain with us. 7. hereunder. The Stated Amount shall be reduced automatically by the amount ofeach drawing 8.This Letter of Credit is transferable in its entirety (but not in part)to your transferee and may be successively so transferred.Transfer of this Letter of Credit to such transferee shall be effected upon the presentation to us ofthis Letter of Credit accompanied by a certificate in the form ofAnnex B attached hereto. 9.Only you (or a transferee as provided in paragraph 8 hereof)may make a drawing . under this Letter of Credit.Upon the payment to you or your account ofthe amount specified in a sight draft drawn hereunder,we shall be fully discharged of our obligation under this Letter of Credit with regard to that payment,and we shall not thereafter be obligated to make further payments under this Letter ofCredit with regard to that payment to you. 10.This Letter ofCredit,except as otherwise stated herein,in subject to International Standby Practices 1998,'International Chamber of Commerce Publication 590 1998 (the "ISP98")and shall be governed and construed in accordance with the laws of the State of California and applicable U.S.federal law. 11.Communications with respect to this Letter ofCredit shall be in writing and shall be addressed to us at our address at Bank of America,N.A.,Trade Finance Services,Mail Code CA9-703-19-23,333 South Beaudry Avenue,19th Floor,Standby Letter of Credit Department, Los Angeles,California 90017,specifically referring to the number ofthis Letter ofCredit. Bank ofAmerica,N.A.TradeOperations Mail Code:CA9-703-19-09 333 S.Beaudry Avenue,19th Floor,Los Angeles,CA 90017 00-35-020INSB 9-1999_CA9 19 2 Bank of America ~ 12.This Letter ofCredit sets forth in full our undertaking and such undertaking shall not in any way be modified,amended,amplified or limited by reference to any document, instrument or agreement referred to herein (including,without limitation,the Service Contract), except only the certificates and sight drafts referred to herein and ISP98;and any such reference shall not be deemed to incorporate herein by reference any documents,instrument or agreement, except for ISP98,such certificates and sight drafts. Very truly yours, BANK OF AMERICA,N.A. By: Name:Sandra Leon Title:Vice President B~'k~ Name:Margaret Kwiatek Title:Vice President Bank ofAmerica,N.A.TradeOperations Mail Code:CA9-703-19-09 333 S.BeaudryAvenue,19thFloor,LosAngeles,CA90017 00-35-0201NSB 9-1999_CA9 19 3 Bank of America ~ ANNEX A TO IRREVOCABLE LETTER OF CREDIT CERTIFICATE FOR DRAWING IN CONNECTION WITH PAYMENT OF AMOUNTS UNDER THE SERVICE CONTRACT Irrevocable Letter of Credit No.3053326 The undersigned,a duly authorized representative ofthe Capistrano Valley Water District,Orange County,California (the "Beneficiary"),hereby certifies to Bank:ofAmerica, N.A.(the "Bank"),with reference to Irrevocable Letter ofCredit No.3053326 (the "Letter of Credit";terms defined therein and not otherwise defined herein being used herein as therein defined)issued by the Bank in favor ofthe Beneficiary,as follows: 1.The Beneficiary is a party to the Service Contract for the Design,construction, Financing and Operation of the San Juan Basin Desalter Project,dated September 3,2002 (the "Service Contract")by and between the Beneficiary and ECO Resources,Inc.(the "Company") regarding the design,construction,financing,start-up acceptance testing,operation, maintenance,repair,replacement and management of the Beneficiary's water treatment plant in the City ofSan Juan Capistrano. 2.The Beneficiary is making a demand for payment under the Letter ofCredit in the amount of $and such amount does not exceed the Stated Amount.------ 3.The Beneficiary hereby certifies as follows (insert those which are applicable): (a)Delay liquidated damages,not in the aggregate to exceed the Stated Amount,are due and payable,and have not been paid,by the Company under the terms and conditions ofSection 7.9 ofthe Service Contract. (b)The Beneficiary has terminated the Service Contract pursuant to Section 13.2 of the Service Contract in accordance with the procedures and requirements of such Section,Section 15.3 and the other applicable provisions of the Service Contract,and the Beneficiary has determined that the amount set forth above represents the estimated damages suffered by the Beneficiary,not to exceed the Stated Amount. (c)The Letter of Credit will expire within 30 days,and the Letter of Credit has not been extended,renewed or replaced in accordance with Section 15.3 of the Service Contract.The amount set forth above represents the full Stated Amount. (d)The Company or the Guarantor has filed a petition of voluntary bankruptcy under the Bankruptcy Code,the Company or the Guarantor ~a~~~~~~~:c;:7~ti9~~;de Operations 4 333 S.BeaudryAvenue,19th Floor,Los Angeles,CA 90017 00-35-020INSB 9-1999_CA9 19 Bank of America ~ has consented to the filing of any bankruptcy or reorganization petition against the Company or the Guarantor,or the Company or the Guarantor has filed a petition to reorganize the Company or the Guarantor pursuant to the Bankruptcy Code.The amount set forth above represents the full Stated Amount. (e)A court of competent jurisdiction has issued an order appOIntIng a receiver,liquidator,custodian or trustee of the Company or the Guarantor or of a major part of the Company's or the Guarantor's property, respectively,or a petition to reorganize the Company of the Guarantor pursuant to the Bankruptcy Code has been field against the Company or the Guarantor,and such order has not been discharged or such filing has not been dismissed within 90 days after such issuance or filing.The amount set forth above represents the full Stated Amount. 4.Payment of the amount described hereby shall be made by wire transfer to the following account:[wire transfer instructions]. IN WITNESS WHEREOF,the Beneficiary has caused this certificate to be executed and delivered by its duly authorized representative as ofthis __day of ,20_ THE CAPISTRANO VALLEY WATER DISTRICT By:_ Title:--------------- Bank ofAmerica,N.A.Trade Operations Mail Code:CA9-703-19-09 333 S.Beaudry Avenue,19th Floor,Los Angeles,CA 90017 00-35-020INSB 9-1999_CA9 19 5 Ba'nk of America ~ ANNEX B TO IRREVOCABLE LETTER OF CREDIT TRANSFER CERTIFICATE Bank ofAmerica,N.A. Trade Operations Center Mail Code CA9-703-19-23 Standby Letter ofCredit Department 333 South Beaudry Avenue,19th Floor Los Angeles,CA 90017 RE:Irrevocable Letter ofCredit No.3053326 Ladies and Gentlemen: For value received,the undersigned Beneficiary hereby irrevocably transfers to [Name ofTransferee] [Address ofTransferee] all rights ofthe undersigned Beneficiary to draw under the above Letter of Credit in its entirety. By this transfer,all rights ofthe undersigned Beneficiary in such Letter ofCredit are transferred to the transferee and the transferee shall have the sole right as the Beneficiary thereof, including sole rights to any amendments whether increases or extensions or other amendments and whether now existing or hereafter made.All amendments are to be advised directly to the transferee without necessity ofany consent ofor notice to the undersigned beneficiary. Such transferee is a permitted transferee under such Letter ofCredit. The Letter ofCredit is returned herewith,and we ask you to endorse the transfer on the reverse thereof,and forward it directly to the transferee with your customary notice oftransfer. SIGNATURE AUTHENTICATED (Bank) (Authorized Officer) Bank ofAmerica,N.A.Trade Operations Mail Code:CA9-703-19-09 333 S.Beaudry Avenue,19th Floor,Los Angeles,CA 90017 00-35-020INSB 9-1999__CA9 19 6 THE CAPISTRANO VALLEY WATER DISTRICT By:_ Title:--------------- Document No.7 CERTIFICATES OF REQUIRED CONSTRUCTION PERIOD INSURANCE 410307.5022806 CLD lOO lied 98280t£8lB-WOJ~Wdll:£O £O-lO-uer PIAI·~·H ARTHUR J.GALLAGHER &CO. INSURANCE BROKERS OF CALIFORNIA.INC. 505 North Brand Boulevard,Suite 800.Glendale.California 91203-3944 Main Phone:(818)539-2300 Corporate Ucense:0728293 Main Fax:(81B)53A.2.101 DATE: PAX TO: Company: Fax. Phone # RE: Dear Tom: January 7.2003 SauthwlllIt Water Company ECO Resources.Inc. II OF PAGES FROM: DaniTriandos Phone (818)539-1416 Fax (818)539-2301 E-Mail:DanLtriandos@ajg.com U~ 5 As rc:.questecl,Attached please find a fax copy uf lhe l'Cvi~ala;ertificate of insurance for the City of San Juan Capistrano. The original is being sent out via overnight mail today toMs.Herring u requested. ~~... I nand Senior Account Manager Phone (818)539-1416 Fax (SIS)539·2301 DanLtriandos@ajg.com CONFIDENTIALITY NOTICE:The documents accompanying this telscopy transmission contains confidentiallnfolTMtIon bsIonglng to the $.n~r which ~privilegsd.This information Is IlltdnCMr:J 0I11y fur 1/11:1 (Ai"uflIItI i"dlvldual Drentlrynamedabove.Ifyou are notme inrencl8t1 recipient you are hereby nofJlltld thst any disclosufS.copying,distribution artaking nfIInylfction in rs/lancs on this ItIIscopyIs pn:Jhlbltvd. Ifyou have rsceivsd this telscopy in srror.pleasephone us at the numbershown above. S0/l0°d 98Z60P£BlB 'O~~~~"~D 'r ~nHl~~9Z:Sl ~00z-~~r ZOO lied 9BZ80tE BlB-WOJ~Wdll:EO £O-LO-uer PIAII~IH ".ACORD,.CERTIFICATE ~~L~ABILITY INSURANCE;dB ~DATE(IIIMIOIn') 01/0'7/03...THIS CEFmFlCATE IS ISSUED AS A MAneROF INFORMATIONAzt:bur J.Gal1acruzo A CQllpazay ONLY ANDCONFliA8 NO RIGHTS UPON ntIE CERTIRO"ftLicea..'0?2&293 HOLDER.THIS CERTIFICATE DOES NOT AMEND,EXTEND OR 50S ••a~...D1Y4,8u£~.GOO ALTER THE COYEFlAOI!APrOADeD BYTHE POUQe8 BtLOW" GleD4al.C&91203-394'INSUReRSAFFORDING COVERAa.PhaQe:818-539-2300 FaxI 818-53J-2301.,"".UAIiQ INSUREI\A:GraDi~.SCaee %D.~aaa.Co INSURER B:zurich InsuraDCe C IC:~a••ourc..%DC.INSUFlERC:.atl.tDl:Lcm.Pire Da Co of .A i.t:·ce:tif-Ma9BJi'st...200 INeUAEAD.zurich ~:riclID ZZ18urana8 Co. I IIl/Al'RII5t~· COVERAGI!S THe POliCIES OF INSURANCELISTEDBeLOW HAVEBEEN ISSUEO TO TliE INSURED NAMED ABOVe FOftnfEPOUCV PEiRIOCJ INDICATED.NOlWITHSTANDINCI AN"!5tIlOlIlREMENT.TEAM0IIlCONDrT'ION O~ANY CONTMCTOR OTHEnDOCUMc:NTWITlI AImPECTTOWHICHTt113 O£:ftllP'ICATeMAY BE 1S$Ut:1J U" MAY PERTAIN.THE INSURANCE AFfIORDED BY THE POLICIES DESCFUBEDHEREIN ISSUBJECT TOAU.THE lERMS.EXCLUSIONS AND CONDmONSOF SUCH POLClI;S.MGAEQI\TEUMfTS£HOWN ~"v•lAveDE:CNMEDUCED BY PAIDCI.I\I-. t'tI nJlIF.OPJN~E POLICY NUMBEn ~~lMMllJUtTiJ·~UM~ GENERALLlA8tUTV IlEAC...OCC:URJUiiNCtii C 1.000,000.....-LX&343763-01 09/01/03 09/01/03 FIRE DAMAGE eArlYCln8fire).A X COMME~CIAL GENERAL LIABILITY .1,000.DOO IaAlMS MADa rn OCCUR MEn EXP CAnvone I*SOft)S ~,OOO X .o11u~:L0ZI.L:laJ».'1,000,000 LDa'1'PERSONAL.&ADV INJUIW S 1,000,000~$250,000 DBDUCT%BLB 12,000.000~PL-C!LUJ18 ImDII BENEML AGGREGATI! GI!iN'L AGQRF.AATI=IWITAPJII ••PeA:PP'lODUOTS •cc.t1CP Alili .3.000,000~POUOY ril~n LOC'.Aln'OMOBILE UABIUTY CQUDINIIiDSINGlLa LIMfT 11,000,000'--BAP929S955-02 eMS)09/01/02 09/01/03 (Ea -=icfInt)B X ANfAUTO-08/01/02 09/01/03 --AU.OWNEDAUTOS '1'U921895&-02 CD)BODILY INJURY-IPorpaIDM)S8CHEDUu:D~-~HIRGD AUTOS BODD.YINJURY •Z NON-OWNED AUTOS (Pet&lDClld1nt) -PRnPPRTV nAUar...c:•(Per8CC1111ftt) ClAl'lAGt ua....I1.,AUTOONLV·EAACCIDENT SRN,VNJTO ont&R~EAACC •AUTOom::ACQ • EXCElSLIAIIUTY EACH OCCUM&NCIi .10,000,000 C ~OCCUR U ClAIMS IW);BB1399640 09/01/02 OJ/01/03 AGGREGATE s 10.000,000 sqUkUUC11&1I • 5t&TliNTlON I •XI~~Ir.~'tn.1 IU.lR"WORK_AS COMPENSATION AND D EMPLOy....•UAIIUTY WC2795955-04 01/01/02 09/01/03 E.L.EACHACOIDIHT S 1...000..000 E.L DISEASi·EAEMPL~~•1,000,OO,C!...- c.L.DISEASE·POLICV UMrr .1,000,000 omll.. J)Jtra£•••iOZla1 -oa 371S183 02 11/08/02 1~/08/03 Lha:Lt $2,000,000 Liabilit:y DeSCAIPnON OFO....ATlONa'LOCAllONSNENCL&SIEXCWSIONS ADDED BY ENDOABEMENTJSPEClAL PAOVIIIONS *10 z:m.Y IIOT%CJS OF ~'1'J:Ql\l FOB I\IOLVAYI'J:E1l('1"OP PJUDIXlJII.ALL POLICY TBRIIS, C01U":t~:J:OIISI.LDI:J:.A.:EOIfS AJB:t BXCLUS:J:OIIS AJlPLY. ..··J)e.a~:l.pt.iOD per attached 11QTBPA!)Addendum·** CERnFiCATE HOLD&R Iy I ADDITIONAL INSURED:INSUAERL&1TIR:A ..CANCELLATION CZ'n'OI'S SHOULDAlffOF 'nIEMOVEDESCRIBED POUCIES IE CANCElLED &&FORI'Ttl!EXPIAATJQN DATITHEREOF.THEISSUING INSUReRWILL ENDEAVOR10lUlL ..1Jl:!..DAveWII1T&N Ci~~of gaD ~Cap~.~~aDO NO'.ICt:IU I"I!Cr=HTIFiCATE HOLDER NAMEDTO THE LEFT.BUTFA'WRETO DO so SHALL Attn:CiDdy au••ell Ia4POSINOOaUGATIONORLJABlun orANYKIND UPONTHEIN.U......IT.MINTS0 ..32400 P•••o AdelaDto SaD ~.D C~i.trana C&92G75 REPRESENTATIVE&. aTM!-~.r::·TJ;;;.I :,:'7~'~.AII ... I C.I__-~...- ACORD'"(7/1T) Sl2I/c;l2I"d 9ec:612117£BtB OACOHP GOfIPORAnON '988 EOO lied S ~':lAS-0.L 99280tE 9l9-WOJ~ _8jli~[~~.MR(~i.~Jal~~~~~~~.~:;~:Dl••zoJ.at:.,t:ho Bo....o.J)j,I:'eC~OZ'.o£~_D:l.8b:l:";Lgb,~be C:~,"y,~!le C:i.~r Council and each of thei~~.P.ctiV8 o!£ic.~.,officials.aG8D~a, volUDt••Z'a aD4 employe..ahall :be i4eDt::1£:l.ed as A44it::t.oaal %DIIU:r:ed.as t:beir :lD.1:.:nI8t:.may app8~...,Z'especea CltlDeral L:Lab:Ll:L~y per .:D4arS8III8Jl't. CG2026 (11/85)attache4.The ....appli••to WaiV8Z'af SUbrocra1:1aD •• re.p.a~.GeDeral Liability per eD40raement CG2404 (10/93)a~~aabed• ..'!he :De4uc~lt»1••under .11 :POlici••4a Dot GPlY CO t.he Addit:icmal %ZL81I:r:ede*IJ!Ih.Medical Jbr.Ptua••Li.Id.~UlUSoz-~.~1 Liab:ll:L~:F i.wiebo'll:.nlg.~,"0 laval liability.AD¥cl.~i~exa•••of $5,000 au~amaticallY t:raD8fer8 ~o ebB nB0411y XDiu~·l~t:of $1,000,000*~c.~i£iea1:.Ko1"~aame4 aa aD A44it:iODal %D.u~4 baa ~.D .u4gr••4 ~o ECO ae80UZ'G••,%1Ia.-8 "Southwest Water CCIq)any-~eral Liability poJ.:l.c:y •niar.gar4 .~aD4ar4 .£et=4iaela:l.mazo laBg"11&p iDCIia..~"-asr -!Ol:' iDfazmatioaal PUZ'PO••S only· SI2l/~I2I·d 98G6I21V£818 tOO lied Wdll:£D £D-lD-uer PIAIIOIH POLICY NUMBER:LX6343763-01 COMMERCIAL GENERAL LIABILITY CG 24 04 10 93 THIS ENDORSEMENT CHANGES THE POLICY.PLEASE READ TT r.nR~~ULLY. WAIVER OF TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US This endorsement modifies insurance provided under the follow1na: COMMERCIAL GEl'i~.w.J.AJ:U.Ll.'l'!l t:OVKRAGE PART SCHEDULE NameofPerson or Organization: The Distrlet,the Board ofDiroctors otthc District,the City,the City COlIDeJl and each of their respective offleers,officisk.a8f!n~. V01UDe••:r8 aDd 8DlP1o:v••• (If no ent~appearA ~hnvAr informa~ion required to oomplete thic endorsement will be shown in the Declarations as applicable to this endorsement.J The 'l'RANBFBR OF RJ:OHTS OF nECOVDftY AGAJ:NST OTHER.S TO US COl,ullL.l.UlJ (Section IV -COMMERCIAL GENERAL LIAB~LITY CONDITION~)iA ~mpnd__d by the addition of the following:' We WA1VI!:CUll'.L19l1L.uJ:.L'c=:c.:UV"-''Y we may have aga1nst:Che person or orgBn~~~~inn ~hnwn in the Sehedule abovQ DQOaUSe of paymcnec We mnke ~or injury or damage arising out of your ongoing operations or "your work" done unaer a contract with that person or organizaeion and included in the pproduc~s-cample~eaoperations hazara".This waiver applies only to the pe~con or orgQnicaticn shown in the Schedule Above. CG 24 04 10 .93 Copyright,Insurance Services Office,Inc.,1992 S0/Pe'd 98c60v£BiB SOD IJld 98Z8DtE 8l8-waJ~Wdll:ED ED-lD-Ulr PIAII~I~ POLICY NUMBER:LXD6343763-o1 COMMERCIAL GENERAL LIABILITY nus ENDORSEMENT CHANGES nIBPOLICY"PLEASeREADIT CAlt.W4ULLY. ADDITIONAL INSURED..·DESIGNATED PERRON OR ORGANIZATION This clldo'6e..."uL lIlooiLi~in~urllnce provided under the following: COMMERCIAL GENBRAL LIABILITY COVERAGE PART. SCHEDULE Name ofPerson or Orpnizadon: The Dishict.the Board ofDirectorsofthe District,the City,the City CODllcil and each or tIlelr respediftomeen,omcials,agenu. volunteelos and empluyct:ll (Ifno entry appears above.information required to complete thil endorsement wJ11 be shown jn the Declarations as applicable to this endorsement.) WHO IS AN INSURBD (SectionII)is nmcndcd to includo as aD insured the person or organization shown in the ~~h,..duleas an insured but only with respect to liabilityarising out ofyour operations or premises owned by or rented to you. CG 20 261185 CUl'yria:bL.InsUlIlDCC Services Omce,Inc.,1984 S0/S0"d 98e60P£BlB Document No.8 AUDITED FINANCIAL STATEMENTS OF THE GUARANTOR 410307.5 022806 CLD UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON,D.C.20549 FORM lO-Q (Mark One) -LQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30,2002 OR __TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to _ Commission file number:0-8176 ----- •--==Southwest Water Company (Exact name ofregistrant as specified in its charter) Delaware (State or other jurisdiction of incorporation or organization) 225 North Barranca Avenue,Suite 200 West Covina,California (Address of principal executive offices) 95-1840947 (I.R.S.Employer Identification No.) 91791-1605 (Zip Code) (626)915-1551 (Registrant's telephone number,including area code) Indicate by check mark whether the Registrant (l)has filed all reports required to be filed by Section 13 or 15(d)of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports),and (2)has been subject to such filing requir.ements for the past 90 days.Yes X No _ Indicate the number of shares outstanding ofeach ofthe issuer's classes of common stock,as of the latest practicable date.On November 12,2002,there were 9,286,017 common shares outstanding. Item 1. SOUTHWEST WATER COMPANY AND SUBSIDIARIES INDEX Financial Information: Financial Statements: Page No. Condensed Consolidated Statements ofIncome - Three and Nine Months Ended September 30,2002 and 2001 Condensed Consolidated Balance Sheets - September 30,2002 and December 31,2001 2 Condensed Consolidated Statements ofCash Flows - Nine Months Ended September 30,2002 and 2001 3 Notes to Condensed Consolidated Financial Statements 4 Item 2.Management's Discussion and Analysis of Financial Condition and Results of Operations 8 Item 3.Quantitative and Qualitative Disclosures About Market Risk 14 Part II.Other Information: Item 1.Legal Proceedings 15 Item 4.Submission ofMatters to a Vote of Security Holders 16 Item 6.Exhibits and Reports on Form 8-K 16 Signatures 17 PART I -FINANCIAL INFORMATION item 1.Financial Statements Southwest Water Company and Subsidiaries CONDENSED CONSOLIDATED STATEMENTS OFINCOME (unaudited) Three Months Ended Nine Months Ended September 30,September 30, 2002 2001 2002 2001 (in thousands except per share data)(in thousands except per share data) Operating Revenues $34,574 $32,035 $95,488 $83,088 Operating Expenses: Direct operating expenses 26,934 23,191 73,570 61,738 Selling,general and administrative expenses 3,726 4,358 13,709 12,046 30,660 27,549 87,279 73,784 Operating Income 3,914 4,486 8,209 9,304 Other Income (Expense): Interest expense (1,058)(1,046 )(3,277)(2,833) Interest income 163 8 195 40 Water-related cost reimbursement 1,616 Other (128)104 1,016 627 (1,023)(934 )(450)(2,166) Income Before Income Taxes 2,891 3,552 7,759 7,138 Provision for Income Taxes 1,011 1,279 2,715 2,641 Net Income 1,880 2,273 5,044 4,497 Dividends on Preferred Shares 6 6 20 20 Net Income Available for Common Shares $1,874 $2,267 $5,024 $4,477 Earnings per Common Share: Basic $0.20 $0.25 $0.54 $0.49 Diluted $0.19 $0.24 $0.51 $0.47 Cash Dividends per Common Share $0.06 $0.05 $0.17 $0.16 Weighted Average Outstanding Common Shares: Basic 9,272 9,092 9,251 9,046 Diluted 9,885 9,588 9,877 9,500 )ee accompanying notes to condensed consolidatedfinancial statements. 1 Southwest Water Company and Subsidiaries CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) September 30, 2002 December 31, 2001 ASSETS Current Assets: Cash and cash equivalents Customers'accounts receivable,net Other current assets Property,Plant and Equipment: Utility Group property,plant and equipment -at cost Services Group property,plant and equipment -at cost Less accumulated depreciation and amortization Other Assets (in thousands) $1,715 $789 17,178 21,443 11,025 8,939 29,918 31,171 233,193 218,696 17,827 14,317 251,020 233,013 65,449 61,889 185,571 171,124 25,975 22,891 $241,464 $225,186 LIABILITIES AND STOCKHOLDERS'EQUITY Current Liabilities: Current portion oflong-term debt and bank lines ofcredit Accounts payable Other current liabilities Long-Term Liabilities: Long-term debt Bank lines ofcredit Advances for construction Deferred Credits: Contributions in aid ofconstruction Deferred income taxes Other liabilities and deferred credits Total Liabilities and Deferred Credits Stockholders'Equity: Preferred stock Common stock Paid-in capital Retained earnings Total Stockholders'Equity See accompanying notes to condensed consolidatedfinancial statements. 2 $ $ 2,078 5,539 19,248 26,865 53,491 5,245 7,975 66,711 66,186 9,040 13,493 182,295 513 96 38,543 20,017 59,169 241,464 $ $ 5,029 6,211 15,127 26,367 44,200 13,863 7,482 65,545 53,619 8,354 16,346 170,231 513 92 37,663 16,687 54,955 225,186 Southwest Water Company and Subsidiaries CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) Cash Flows From Operating Activities: Net income Adjustments to reconcile net income to net cash provided by (used in)operating activities Net cash provided by operating activities Cash Flows From Investing Activities: Additions to property,plant and equipment Other investments,net Net cash used in investing activities Cash Flows From Financing Activities: Gross proceeds from issuance oflong-term debt Contributions in aid ofconstruction and advances for construction Net proceeds from dividend reinvestment plan, employee stock purchase plan and stock option plans Repayment oflong-term debt Net borrowing (repayment)on bank lines ofcredit Dividends paid Repayments on advance contracts,net ofadditions Net cash provided by financing activities Net increase (decrease)in cash and cash equivalents Cash and cash equivalents at beginning ofperiod Cash and cash equivalents at end ofperiod Supplemental Disclosure ofCash Flow Information: Cash paid during the period for: Interest Income taxes Depreciation and amortization Non-cash contributions in aid of construction Non-cash investing and financing activities: Purchase ofbusinesses Fair value ofassets acquired Cash paid Notes issued Stock issued Liabilities assumed See accompanying notes to condensed consolidatedfinancial statements. 3 Nine Months Ended September 30, 2002 2001 (in thousands) $5,044 $4,497 6,290 (3,049) 11,334 1,448 (13,119)(11,446) (835)(3,530) (13,954)(14,976) 10,000 20,000 7,527 2,254 725 533 (2,209) (10,747)(8,422) (1,575)(1,464) (175)(208) 3,546 12,693 926 (835) 789 1,379 $1,715 $544 $3,559 $1,690 $1,160 $1,630 $5,279 $4,392 $5,693 $899 $9,119 (3,530) (3,000) (1,300) $1,289 SOUTHWEST WATER COl\'IPANY AI~D SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEl\'[ENTS (unaudited) Note 1.-Basis ofPresentation Southwest Water Company was incorporated in California in 1954 and reincorporated in Delaware in 1988.Southwest Water Company and our subsidiaries (Southwest Water,the Company,or "we","us"or "our")provide a broad range of services including water production and distribution, wastewater collection and treatment,public works services and utility submetering.The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (US GAAP)for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X.They do not include all information and notes required by US GAAP for complete financial statements.However, except as disclosed in Note 7 to the condensed consolidated financial statements,there have been no material changes in the information disclosed in the notes to the consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31,2001 (the 2001 Annual Report).The unaudited condensed consolidated financial statements reflect all adjustments which,in our opinion,are necessary to present fairly the financial position of Southwest Water as of September 30, 2002,and our results of operations and cash flows for the periods ended September 30,2002 and 2001. These adjustments are ofa normal recurring nature. Certain amounts in our prior period financial statements have been reclassified to conform to the current period presentation. Note 2.-Operating Segments Our operating structure includes our Services Group and our Utility Group.We have not changed the basis of segmentation or measurement ofsegment profit or loss from the information reported in our 2001 Annual Report. Our Services Group consists of contract service businesses within which we operate and manage water delivery and wastewater treatment facilities owned by cities,public agencies,municipal utility districts and private entities in Texas,New Mexico,California,Mississippi and Georgia.We also provide contract public works services in Mississippi and Georgia.Nationwide,we provide utility submetering and billing and collection services.Our Services Group companies may be subject to regulatory oversight;however,the pricing ofour services is not subject to regulation. Within our Utility Group,we own and operate rate-regulated public water and wastewater utilities in California,New Mexico and Texas.State regulatory agencies oversee the operations ofour utilities and establish the rates that we can charge for our water delivery and wastewater services. 4 Information about Southwest Water's operations by operating segments is as follows: Services Utility Total Segment Group Group Information Other Consolidated (in thousands) Nine Months Ended September30,2002 Revenues from external customers $55,609 $39,879 $95,488 $$95,488 Segment operating profit 1,822 10,224 12,046 (3,837)8,209 As ofSeptember 30.2002 Segment assets $48,616 $188,735 $237,351 $4,113 $241,464 Nine Months Ended September 30,2001 Revenues from external customers $46,174 $36,914 $83,088 $$83,088 Segment operating profit 1,836 10,721 12,557 (3,253)9,304 As ofSeptember 30,2001 Segment assets $46,296 $172,244 $218,540 $3,570 $222,110 Note 3.-Seasonality Our Utility Group water operations are seasonal because rainfall and weather conditions affect water consumption.The second and third quarters of each year typically account for the highest volume of water consumption when weather tends to be hot and dry.The results of operations for one quarter do not indicate results to be expected in another quarter.Drought conditions may result in lower revenue due to consumer conservation efforts and a shortage ofwater.Drought conditions may also result in increased water costs to us,which could adversely affect our profitability.Conversely,unusually wet conditions may result in decreased customer demand,lower revenues and lower profit in our utility operations. Utility Group wastewater operations are generally not affected by seasonality. Our Services Group operations can be affected by weather and rainfall.In general,heavy rainfall or storm conditions may limit our ability to perform certain billable work such as pipeline maintenance, manhole rehabilitation and other outdoor services.Severe weather conditions may also result in additional labor and material costs to us that may not necessarily be recoverable from the various cities that have operations and maintenance contracts with us. Note 4.-Earnings Per Share,Stock Options and Stock Dividends We record earnings per share (EPS)by computing "basic EPS"and "diluted EPS"in accordance with US GAAP.Basic EPS measures our performance over the reporting period by dividing net income available to common stockholders by the weighted average number ofcommon shares outstanding during the period.Diluted EPS measures our performance over the reporting period after giving effect to all potentially dilutive common shares that would have been outstanding if the dilutive common shares had been issued.Stock options,convertible debentures and warrants give rise to potentially dilutive common shares.On September 25,2001,our Board ofDirectors declared a five percent stock dividend,payable on October 22,2001 to stockholders of record on October 1,2001.All per share amounts and numbers of shares outstanding reflect this dividend. 5 Note 5.-BalancingAccount Our California water utility has recorded a balancing account receivable in the amount of approximately $2,300,000,representing certain uncontrollable costs that we incurred over the past few years.Historically,the California Public Utilities Commission (CPUC)allowed such balancing accounts to be recorded in the income statements of water utilities,with a corresponding liability or asset on the balance sheet.However,on December 1,2001,the CPUC adopted a resolution that changed its long- standing policies and procedures with respect to balancing accounts,effectively eliminating such accounts for future periods.In April 2002,our California water utility filed a rate case and has applied to recover the $2,300,000 balancing account receivable.During 2002,our California water utility has recognized all water costs as incurred and will attempt to recover these costs in future regularly scheduled rate hearings. Note 6.-Accoullting Pronouncements Effective January 1,2002,we adopted Statement ofFinancial Accounting Standards (SFAS)No. 142,Goodwill and Other Intangible Assets,under which goodwill is no longer subject to amortization over its estimated useful life.Instead,goodwill is reviewed for impairment on an annual basis (or more frequently if circumstances indicate a possible impairment)by means of a fair-value-based test.As of September 30,2002,goodwill totaled approximately $14,030,000. The following table provides information about prior goodwill amortization and its impact on basic and diluted EPS. Reported net income (thousands) Add back:Prior goodwill amortization (thousands)(I) Adjusted net income (thousands) Basic earnings per share: Reported EPS Add back:Prior goodwill amortization (I) Adjusted EPS Diluted earnings per share: Reported EPS Add back:Prior goodwill amortization (I) Adjusted EPS For the Nine Months Ended September 30, 2002 2001 $5,044 $4,497 102 $5,044 $4,599 $0.54 $0.49 0.01 $0.54 $0.50 $0.51 $0.47 0.01 $0.51 $0.48 (I)Net of income taxes. Effective January 2002,we were subject to SFAS No.144,Accounting for the Impairment or Disposal of Long-Lived Assets.SFAS No.144 requires that long-lived assets be tested for recoverability when events or changes in circumstances indicate carrying amounts may not be realizable.SFAS No.144 does not apply to goodwill impairment, which is accounted for under SFAS No.142.SFAS No.144 further clarifies the methods ofaccounting for assets that are disposed of.We regularly review assets for impairment.The implementation ofSFAS No.144 did not have any effect on our results of operations or financial condition. 6 Note 7.-Acquisitions AquaSource,Inc.(AquaSource) During the third quarter of 2002,we completed negotiations for the acquisition of a part of AquaSource's water and wastewater contract operations.The acquisition includes AquaSource's contract operations in Colorado and the Houston,Texas,area.We expect the purchase price,after adjustments,to exceed $10,500,000 in cash,and we expect closing of the acquisition to occur in the fourth quarter of 2002. Master Tek International,Inc.(MasterTek) From April 3,2000 through March 31,2002,we owned 800/0 of Master Tek.Under the terms of our purchase agreement,the minority owner of Master Tek may require us to purchase his initial minority interest in 50/0 increments at a price not to exceed $1,000,000 per year over four years.In April 2002 we paid $1,000,000 to the minority owner for an additional 50/0 interest in Master Tek in accordance with the purchase agreement,and we may be required to purchase the remaining minority interest over the next three years. Note 8.-Non-Recurring Items Groundwater Settlement The water supply of our California water utility has been affected by the presence of certain groundwater contaminants.These contaminants consist mainly of chemicals disposed of by various industrial companies in the 1940s and 1950s.In 2001 and 2002,this contamination necessitated the shut- down ofa number ofour wells,and we have had to purchase water at a cost substantially higher than the cost of water pumped from our own wells. In May 2002,a settlement was reached among some of the alleged polluters and a number of water companies,including our California water utility.As part of the settlement,in the second quarter of 2002,we accrued income of approximately $1,616,000 and received payments,primarily representing reimbursement ofcertain water and energy costs incurred in 2000 and 2001.(Additionally,as part of the settlement,we have received payments in 2002 and expect to continue to receive payments in future periods from this settlement for the incremental cost of purchasing water rather than pumping from our shut-down wells.We bill and collect this reimbursement each month,and the amounts are recorded as a reduction of water costs included in direct operating expenses.The settlement also provides capital contributions to construct additional interconnections with other water sources.Funds from the settlement will also be used to develop long-term solutions that will potentially enable us to use our own less costly groundwater supplies in the future). Pension Plan Termination Southwest Water terminated a non-contributory defined benefit plan (the Pension Plan)as of December 30,1999.In January 2002,the net assets of the Pension Plan were distributed to plan participants as specified by the Employee Retirement Income Security Act and its related regulations (ERISA).Following distribution of approximately $14,400,000 to satisfy the pension benefit obligation and settlement of expenses paid by the Pension Plan in accordance with ERISA,the Pension Plan had excess assets of approximately $1,200,000.Under the provisions of SFAS No.88,Employers' Accounting for Settlements and Curtailments of Defined Benefit Pension Plans and for Termination Benefits,we recognized a pretax termination gain ofapproximately $980,000 in the first quarter of2002. 7 Item 2:Management's Discussion andAnalysis ofFinancial Condition and Results ofOperations RESULTS OF OPERATIONS Net Operating Revenues and Operating Income Services Group Services Group operating revenues for the third quarter of 2002 were $19,243,000,an increase of 13%from $16,967,000 in 2001.For the first nine months of2002,operating revenues were $55,609,000, an increase of 20%from $46,174,000 in 2001.Both the quarter and the year-to-date increases were due primarily to the acquisition of Operations Technologies,Inc.(OpTech)in August 2001.Services Group third quarter and year-to-date revenues increased overall;however,submetering revenues decreased, primarily as a result of a large construction project completed during 2001 with no similar project in 2002. Services Group operating income decreased to $815,000 in the third quarter of 2002,a decrease of 16%from $968,000 in the comparable period of 2001.For the first nine months of 2002,Services Group operating income decreased 1%to $1,822,000 from $1,836,000 in 2001.In the third quarter of 2002,Services Group operating income decreased $153,000 primarily due to significant increases in liability insurance costs,legal expenses,payroll-related expenses and rent expenses.Services Group 2002 operating income for the third quarter and year-to-date reflects the acquisition ofOpTech in August 2001; however,decreased operating income from submetering offset much of this benefit because of a large construction project completed during 2001 with no similar project in 2002. Utility Group Utility Group revenues for the third quarter increased 2%to $15,331,000 from $15,068,000 in the comparable period of 2001.Year to date,utility revenues increased to $39,879,000,an increase of 8% from $36,914,000 in 2001.Water operations are seasonal because rainfall and weather conditions affect customer water consumption.Water usage increased 1%for the quarter and 80/0 overall at our California utility because of hot,dry weather in the third quarter and drought-like conditions during the first nine months of 2002.Water usage increased 1%for the quarter and 4%overall in New Mexico,primarily reflecting a 10%addition ofnew customers.The effects ofa rate increase at one ofour Texas utilities also contributed to the increase in operating revenues. Utility Group operating income decreased 21 %to $3,707,000 in the third quarter of 2002 from $4,682,000 in the comparable period of 2001.Year to date,Utility Group operating income decreased 50/0 to $10,224,000 from $10,721,000 in 2001.The decrease in operating income primarily resulted because of the effect of higher water-volume-related expenses for the 2002 periods incurred at our California utility.In addition,in 2001,our California utility was able to defer recognizing certain costs until future rate cases through the use ofa balancing account.As of December 1,2001,the CPUC eliminated the use ofbalancing accounts which negatively impacted our California utility's operating income.This decrease was partially offset by a rate increase at one of our Texas utilities,which positively impacted operating income. Selling,General and Administrative Expenses Total selling,general and administrative expenses decreased 15%to $3,726,000 during the quarter ended September 30,2002,compared to $4,358,000 for the comparable period in 2001.Total selling,general and administrative expenses increased 14%to $13,709,000 during the nine months ended 8 September 30,2002,compared to $12,046,000 for the same period in 2001.In the third quarter of 2002, health-insurance-related expense decreased by approximately $400,000,as we adjusted our liability for unreported claims to reflect current claims activity.Our health insurance plan year ended June 30,2002. We incurred health claim expenses at a lower rate than anticipated at the beginning ofthe plan year. Selling,general and administrative expenses increased during the nine months ended September 30,2002 as a result of increases in liability insurance,payroll-related expenses and marketing and new business development expenses.Reflected in the first nine months of 2002 is approximately $830,000 of marketing and new business development expenses incurred primarily in the second quarter associated with the potential design-build-finance-operate concept for a reverse osmosis water treatment plant in California,expenses related to a potential major new contract in Florida,and expenses related to a possible acquisition.During the third quarter of2002,certain events occurred with respect to these three initiatives.First,we were unsuccessful in obtaining the major new contract in Florida and we recognized marketing and new business development expenses for the Florida project.Second,we incurred additional marketing and new business development expenses associated with the potential design-build- finance-operate concept for a reverse osmosis water treatment plant in California,bringing our total expenses to date for this project to approximately $614,000.We cannot assure you as to the successful completion of the negotiations relating to this water treatment plant.Finally,we were successful in negotiating the acquisition of the majority of AquaSource,Inc.'s water and wastewater contract operations business. Other Income andExpense Interest Expense Total interest expense increased 1%to $1,058,000,during the quarter ended September 30,2002, compared to $1,046,000 for the comparable period in 2001.Total interest expense increased 160/0 to $3,277,000 during the nine months ended September 30,2002,compared to $2,833,000 in the same period of 2001.The increase reflects interest expense on our 20-year convertible subordinate debentures that were issued in July 2001.This increase was partially offset by decreases in the interest expense on our bank lines ofcredit because we paid down a portion ofour line ofcredit borrowing with the proceeds from the debentures.Our year-to-date and third quarter interest expense on the bank lines of credit also decreased due to generally lower interest rates in 2002,compared to 2001.The reduction in capitalized interest during the year-to-date and third quarter of2002,compared to the same periods in the prior year was due primarily to a reduction in company-financed utility projects. The major components of interest expense for the three months ended September 30,2002 and 2001 are as follows: Interest expense -convertible subordinate debentures Interest expense -bank lines ofcredit Interest expense -mortgage bonds and bank term loan Interest expense -other Total interest expense before capitalized interest Capitalized interest Total interest expense 9 $ $ 2002 2001 (in thousands) 344 $270 30 193 605 597 84 57 1,063 1,117 (5)(71) 1,058 $1,046 The major components of interest expense for the nine months ended September 30,2002 and 2001 are as follows: 2002 2001 (in thousands) Interest expense -convertible subordinate debentures Interest expense -bank lines of credit Interest expense -mortgage bonds and bank term loan Interest expense -other Total interest expense before capitalized interest Capitalized interest Total interest expense Water-Related Cost Reimbursement $ $ 1,025 340 1,695 327 3,387 (110) 3,277 $270 1,050 1,789 128 3,237 (404) $2,833 In the second quarter of 2002,we accrued income for a reimbursement of approximately $1,616,000 for water-quality-related expenses incurred in 2001 and 2000.Additionally,in 2002 we received and will continue to receive payments from this settlement for the incremental cost ofpurchasing water rather than pumping from our shut-down wells.We bill and collect this reimbursement each month and the amounts are recorded as a reduction against water costs included in direct operating expenses. Other In the first quarter of2002,we recorded a one-time pre tax gain on a pension plan termination of $980,000.This increase in other income was partially offset by amortization of contracts related to the purchase ofOpTech in August 2001. Income Taxes Our effective tax rate was 35%for the third quarter of 2002 and the first nine months of 2002, compared to 37%for both comparable periods in 2001.Our effective tax rate was impacted when we recorded a one-time gain on termination of a pension plan,which is excluded from ordinary taxable income.For the calendar year 2002,we expect our ongoing tax rate to be between 33%and 35%. FINANCIAL CONDITION Liquidity and Financial Position Our liquidity is influenced primarily by cash flows from operations,and by capital expenditures at our Utility Group for the addition,replacement and renovation of water and wastewater utility facilities. Our capital resources are used for debt service on our bonds and debentures and are also influenced by investments in new business opportunities,including the acquisition of companies,funding of projects and acquisition ofcontracts. As of September 30,2002,we had cash and cash-equivalent balances totaling $1,715,000 and aggregate lines ofcredit totaling $24,000,000 consisting ofthree separate unsecured lines of credit from three commercial banks.Two of the lines of credit expire in July 2004.The remaining $4,000,000 line, with no balance outstanding as of September 30,2002,was renewed in April 2002 and now expires in April 2004.As of September 30,2002,we had $5,245,000 outstanding on these lines ofcredit.During the first nine months of 2002 our outstanding line of credit borrowings decreased by $10,747,000.We paid 10 down our lines of credit primarily with the net proceeds of approximately $9,750,000 from a new bank term loan secured by our Texas utility (and discussed below),the cash received as paYment for the reverse osmosis plant,and from paYments received for water-quality-related reimbursements.We also paid in full our New Mexico utility Series A First Mortgage Bonds in the amount of $2,000,000,and we purchased certain utility property. In addition to our lines of credit,we have excess borrowing capacity under our First Mortgage Bond Indentures of approximately $63,000,000 as of September 30,2002.However,the additional borrowing available under our current commercial lines of credit is limited by financial covenants that restrict additional borrowing at September 30,2002 to an amount no greater than the remaining unused credit line amount.Additional borrowing outside our lines ofcredit requires bank approval. We expect to maintain our lines of credit in the normal course of business.Each of the line of credit agreements contains certain financial covenants.As ofSeptember 30,2002,we were in compliance with all applicable covenants ofeach ofthe line ofcredit agreements. We anticipate that our available line ofcredit borrowing capacity and cash flows generated from operations will be sufficient to fund our activities during the next 12 months.Ifwe were unable to renew our existing lines of credit,our capital spending or acquisitions would be reduced or delayed until new financing arrangements were secured.Such financing arrangements could include seeking debt or equity financing through a private placement or a public offering.Similarly,if additional cash were needed to fund an acquisition,financing arrangements could include long-term borrowing or equity financing. Net Cash Flow Provided by Operations In the first nine months of2002,net cash provided by operations totaled $11,334,000 compared to $1,448,000 in the same period of2001.Increased cash flows from operations were primarily the result of the collection of significant receivables in connection with the completion of a reverse-osmosis water treatment plant constructed by one of our Services Group companies.In addition,we received approximately $2,000,000 in cash paYments for certain water-quality-related expenses incurred in prior years and for prior year capital cost reimbursements. Financing Activities Our financing activities include net proceeds from the issuance oflong-term debt,net borrowings on our lines ofcredit,dividend paYments and stock transactions among other items. In August 2002 we entered into a ten-year,$10,000,000 secured bank term loan.The net proceeds ofapproximately $9,750,000 were used to pay down our bank lines of credit.The term loan bears interest at a rate equal to LillOR plus 1.75%,with principal paYments of $125,000 due quarterly,beginning in November 2002.The note is secured by substantially all ofthe assets ofone ofour Texas utilities. On July 20,2001,Southwest Water issued $20,000,000 of 6.85%fixed rate convertible subordinate debentures,due July 1,2021,and received net proceeds ofapproximately $18,890,000 from the sale after underwriting discounts,commissions and other expenses of the offering.The net proceeds from the sale ofthese debentures were used to reduce borrowings on our revolving bank lines of credit. The debentures are convertible into shares of our common stock at a conversion price of $17.007 per share,and are convertible at any time prior to maturity unless previously redeemed.We may redeem the debentures in whole or in part at any time,at a redemption price of 105%at July 1,2003 and declining 1%annually to par (100%of face value)after June 30,2008.The issuance costs of the 11 convertible subordinate debentures in the amount ofapproximately $1,110,000 are being amortized over 20 years.We are subject to certain financial covenants under the terms ofthe indenture agreement for the convertible subordinate debentures.As of September 30,2002,we were in compliance with all applicable restrictions. I"vesting Activities Our investing activities include company-funded acquisitions of plant and equipment as well as acquisitions. Property,Pla"t and Equipment During the first nine months of 2002,our additions to property,plant and equipment were $18,812,000,representing an increase of $6,467,000 from 2001.Additions to property,plant and equipment were primarily utility plant for our Utility Group,including new well and transmission lines at our New Mexico utility and the construction of a lift station and force main,and an elevated storage tank at one of our Texas utilities.In addition,we completed expansion of an office building in Austin,Texas. Developers made contributions in aid of construction (CIAC),Living Unit Equivalent (LUE)fees and advances totaling $13,220,000 during the first nine months of2002,of which $7,527,000 was received in cash and $5,693,000 was received as non-cash contributions of property.Company-financed capital additions were $5,592,000 funded primarily by cash flow from operations.We estimate that our total company financed capital additions in 2002 will be approximately $11,000,000,primarily for utility plant, and that our cash flows from operations,borrowings on our lines of credit and CIAC will fund these additions. Acquisitions Under the terms ofour purchase agreement for Master Tek,the minority owner ofMaster Tek has the option to require us to purchase his initial 20%minority interest in 5%increments at a price not to exceed $1,000,000 per year over four years.The minority owner exercised this option to sell us 5%of Master Tek stock for which we paid $1,000,000 in cash in April 2002.Under the terms of the OpTech purchase agreement,we have the right to acquire the remaining 10%of OpTech after five years based on a formula relating to the profitability ofOpTech.In addition,after two years,the minority shareholder of OpTech has the option to sell the remaining 10%of OpTech to us using the same profitability formula which has a minimum threshold of$I,OOO,OOO. CRITICAL ACCOUNTING POLICIES We consider certain accounting policies critical in preparing our consolidated financial statements.Certain ofthese policies require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of certain contingent assets and liabilities at the date ofthe consolidated financial statements,as well as amounts ofrevenues and expenses during the reporting periods.Actual results could differ from those estimates.Our 2001 Annual Report includes detailed descriptions of both our critical and significant accounting policies.The critical estimates and judgments made by management which influence the financial statements include the following: 12 BalancingAccount Our California utility has recorded a balancing account receivable in the amount ofapproximately $2,300,000,representing certain uncontrollable costs that we incurred over the past few years. Historically,the California Public Utilities Commission (CPUC)allowed such balancing accounts to be recorded in the income statements of water utilities,with a corresponding liability or asset on the balance sheet.However,on December 1,2001,the CPUC adopted a resolution that changed its long-standing policies and procedures with respect to balancing accounts,effectively eliminating such accounts for future periods.We believe that Suburban will be able to recover the $2,300,000 recorded in its balancing account through the rate case filed with the CPUC in April 2002.However,there can be no assurance that the CPUC will allow recovery of all or some of this balance.We have not recorded any allowance against the $2,300,000 asset on Suburban's balance sheet. Collectibility ofCustomer Receivables We periodically evaluate the collectibility of our customer receivables,and provide an allowance for uncollectible receivables based upon an estimate by management of the amount of receivables that might not be collectible.This estimate is predicated upon a number of factors,including historical receivable write-off experience,a review of customer accounts with past due uncollected balances, probable costs of collection and the general credit worthiness of our customers.During the second and third quarters of 2002, we recorded increases of $200,000 and $25,000,respectively,in our allowance for uncollectible receivables relating to our submetering subsidiary accounts.We believe that our allowance for doubtful accounts is adequate as ofSeptember 30,2002. Inventory We have approximately $2,000,000 of inventories included in other current assets as of September 30,2001.Our inventories consist primarily of transmitters and related parts used by our submetering business in its construction activities,as well as materials and supplies used in our water supply and wastewater activities.We believe that we have adequate reserves to offset the amount of obsolete inventory as of September 30,2002. DISCLOSURE CONTROLS AND PROCEDURES Our principal executive officer and principal financial officer are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14)for Southwest Water,and we have designed such disclosure controls and procedures to ensure that material information relating to Southwest Water,including its consolidated subsidiaries,is made known to us by management within these entities,particularly during the period in which this quarterly report is being prepared.In connection with this,our certifying officers have evaluated the effectiveness of our disclosure controls and procedures as of a date within 90 days prior to the filing date of this Report on Form 10-Q for the quarter ended September 30,2002 (the September Report).We have presented in the September Report our conclusions about the effectiveness ofthe disclosure controls and procedures based on our evaluation in November 2002. FORWARD-LOOKING STATEMENTS Certain written and oral statements made by our Company and subsidiaries or with the approval of an authorized executive officer of our Company may constitute "forward looking statements"as defined under the Private Securities Litigation Reform Act of 1995,including statements made in this report and other filings with the Securities and Exchange Commission.Generally,the words "believe," 13 "expect,""intend,""estimate,""anticipate,""project,""will,"and similar expressions identify forward- looking statements,which generally are not historical in nature.All statements which address operating performance,events or developments that we expect or anticipate will occur in the future,including statements relating to volume growth,share of sales and earnings per share are forward-looking statements.Forward-looking statements are subject to risk and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations or projections.When made,we believe that these forward-looking statements are reasonable.However,caution should be taken not to place undue reliance on any such forward-looking statements since such statements speak only as of the date when made.We undertake no obligation to publicly update or revise any forward-looking statements,whether as a result ofnew information,future events or otherwise. The following are some ofthe factors that could cause our actual results to differ materially from the expected results described in or underlying our forward-looking statements: -Security costs involving the safeguarding ofour water supplies,water production and distribution infrastructure against potential terrorist threat; -Weather and seasonality considerations that may subject our Utility Group and Services Group to fluctuations in revenue and/or operating profit; -Highly competitive conditions in our Services Group that may limit or restrict our ability to successfully grow our water,wastewater management and utility submetering businesses; -Loss ofor inability to renew Services Group contracts; -Failure to effectively manage our growth; -Inability to secure favorable rate increases for our Utility Group for the rates we charge in our regulated businesses; -The uncertainties oflitigation as well as other risks and uncertainties; -Fluctuations in the cost and availability ofour water supply; -Contamination oflocal water supplies in our areas ofoperation; -Seismic activity. This list is not inclusive as to risk factors that we may experience and you are advised to refer to the discussion in our 2001 Annual Report. Item 3:Quantitative and Qualitative Disclosures AboutMarket Risk We have certain indebtedness that is subject to variable interest rates.As a result,Southwest Water's interest expense is affected by changes in the general level of interest rates.Changes in interest rates affect the interest expense that we will pay on both the lines of credit and on our new bank term loan.The highest interest rate that we could be charged on the lines of credit is the banks'prime rate minus one-quarter percent. Southwest Water is using the favorable low interest rates in the current market.In part to mitigate future market interest rate risk,we completed a $20,000,000,20-year convertible subordinate debenture 14 offering in July 2001,which bears a fixed interest rate of 6.85%per annum.The proceeds were used to pay down our variable rate indebtedness.Our long-tenn debentures were sold with a fixed interest rate, and are not subject to market fluctuation of interest rates.Our debentures are convertible into common stock of Southwest Water and,at a certain EPS level,our debentures will become dilutive in computing our earnings per share.Our debentures were sold through a retail distribution network,and we believe they are widely held. PART II -OTHER INFORMATION Item 1.Legal Proceedings In September 2002,one of our subsidiaries was named as a defendant in a lawsuit alleging wrongful death as the result of a chlorine gas leak that occurred at one ofour facilities in July 2000.The decedent who was exposed to the gas leak was treated and released from the hospital on the next day.He subsequently died eleven months later of causes that we believe are unrelated to the chlorine gas exposure.We deny any wrongdoing and will vigorously defend against the claim.Our umbrella liability insurance carrier is currently absorbing the costs ofdefense ofthe lawsuit;however,we cannot predict the outcome of this lawsuit.Based upon infonnation available at this time,we do not expect that this action will have a material adverse effect on our financial position,results ofoperations or cash flows. Southwest Water and one ofour subsidiaries were named as a defendant in four lawsuits alleging injury and damages as the result of a sewage spill which occurred at an Austin,Texas,sewage pumping station that we operate.In 2001,a settlement was reached with three of the plaintiffs.We have been defended and indemnified by our insurance carrier and we were required to pay a $10,000 deductible on settlement of the claims.The remaining lawsuit is pending at this date.Southwest Water continues to vigorously defend against this claim.At this time,we do not believe these actions will have a material adverse effect on our financial position,results of operations or cash flows. Southwest Water and a subsidiary have been named as defendants in several lawsuits alleging water contamination in the San Gabriel Valley Main Basin.The California Supreme Court (the Court) ruled in February 2002 that the plaintiffs cannot challenge the adequacy of the water quality standards established by the CPUC.The plaintiffs may sue and collect damages from CPUC-regulated water companies only by proving that water delivered did not meet CPUC water quality standards.Our subsidiary believes that it has complied with CPUC water quality standards.The Court directed that the cases be sent to a trial court for further proceedings.At this time eleven cases have been consolidated before a single judge.The parties are now engaged in initial discovery and motions to detennine whether, in light of the ruling by the Court,the plaintiffs can plead and prove alleged water contamination. Southwest Water and this subsidiary have requested defense and indemnification from our liability insurance carriers for these lawsuits.Several of the liability insurance carriers are currently absorbing the costs ofdefense ofthe lawsuits.The Company cannot predict the outcome ofthese lawsuits.Based upon infonnation available at this time,we do not expect that these actions will have a material adverse effect on our financial position,results ofoperations or cash flows. 15 Item 4.Submission ofMatters to a Vote ofSecurity Holders None. Item 6.Exhibits andReports on Form 8-K (a)Exhibits furnished pursuant to Item 601 ofRegulation S-K: 99.1 Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of2002 (Subsections (a) and (b)of Section 1350,Chapter 63 of Title 18,United States Code),dated November 11,2002,filed herewith. 99.2 Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes- Oxley Act of2002,dated November 11,2002,filed herewith. 99.3 Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes- Oxley Act of2002,dated November 11,2002,filed herewith. 99.4 Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes- Oxley Act of2002,dated November 11,2002,filed herewith. (b)Reports on Form 8-K: None. 16 SIGNATURES Pursuant to the requirements ofthe Securities Exchange Act of 1934,the Registrant has duly caused this report to be signed on its behalfby the undersigned thereunto duly authorized. SOUTHWEST WATER COMPANY (Registrant) Dated:November 13,2002 Dated:November 13,2002 Dated:November 13,2002 lsi Peter J.Moerbeek Peter J.Moerbeek ChiefFinancial Officer through October 23,2002 (Principal Financial Officer) lsi Richard J.Shields Richard J.Shields Chief Financial Officer effective October 24,2002 (Principal Financial Officer) IslThomas C.Tekulve Thomas C.Tekulve Vice President Finance (Principal Accounting Officer) 17 Certification Pursuant to Section 906 ofthe Sarbanes-Oxley Act of 2002 (Subsections (a)and (b)ofSection 1350,Chapter 63 of Title 18,United States Code) EXHIBIT 99.1 Pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a)and (b)of section 1350,chapter 63 of title 18,United States Code),each of the undersigned officers of Southwest Water Company,a Delaware corporation (the "Company"),does hereby certify,to such officer's knowledge, that: The Quarterly Report on Form 10-Q for the quarter ended September 30,2002 (the "Form 10-Q") ofthe Company fully complies with the requirements ofsection 13(a)or 15(d)of the Securities Exchange Act of 1934 and information contained in the Form 10-Q fairly presents,in all material respects,the financial condition and results ofoperations ofthe Company. Dated:November 11,2002 Dated:November 11,2002 Dated:November 11,2002 /s/ANTON C.GARNIER Anton C.Gamier ChiefExecutive Officer /s/PETER J.MOERBEEK Peter J.Moerbeek ChiefFinancial Officer through October 23,2002 /s/RICHARD J.SHIELDS Richard J.Shields ChiefFinancial Officer effective October 24,2002 The foregoing certification is being furnished solely pursuant to section 906 of the Sarbanes- Oxley Act of2002 (subsections (a)and (b)ofsection 1350,chapter 63 oftitlel8,United States Code). Certification ofPrincipal Executive Officer Pursuant to Section 302 ofthe Sarbanes-Oxley Act of 2002 EXHIBIT 99.2 I,Anton C.Gamier,certify that: I.I have reviewed this quarterly report on Form 10-Q ofSouthwest Water Company; 2.Based on my knowledge,this quarterly report does not contain any untrue statement ofa material fact or omit to state a material fact necessary to make the statements made,in light of the circumstances under which such statements were made,not misleading with respect to the period covered by this quarterly report; 3.Based on my knowledge,the financial statements,and other financial information included in this quarterly report,fairly present in all material respects the financial condition,results of operations and cash flows ofthe registrant as of,and for,the periods presented in this quarterly report; 4.The registrant's other certifying officers and I are responsible for establishing and maintammg disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14)for the registrant and we have: a)designed such disclosure controls and procedures to ensure that material information relating to the registrant,including its consolidated subsidiaries,is made known to us by others within those entities,particularly during the period in which this quarterly report is being prepared; b)evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date ofthis quarterly report (the "Evaluation Date"); c)presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as ofthe Evaluation Date; 5.The registrant's other certifying officers and I have disclosed,based on our most recent evaluation,to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent function): a)all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record,process,summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls;and b)any fraud,whether or not material,that involves management or other employees who have a significant role in the registrant's internal controls;and The registrant's other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or other factors that could significantly affect internal controls subsequent to the date ofour most recent evaluation,including any corrective actions with regard to significant deficiencies and material weaknesses. Dated:November 11,2002 /s/ANTON C.GARNIER Anton C.Gamier ChiefExecutive Officer Certification ofPrincipal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of2002 EXIllBIT99.3 I,Peter J.Moerbeek,certify that: 1.I have reviewed this quarterly report on Form 10-Q of Southwest Water Company; 2.Based on my knowledge,this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made,in light of the circumstances under which such statements were made,not misleading with respect to the period covered by this quarterly report; 3.Based on my knowledge,the financial statements,and other financial information included in this quarterly report,fairly present in all material respects the financial condition,results ofoperations and cash flows ofthe registrant as of,and for,the periods presented in this quarterly report; 4.The registrant's other certifying officers and I are responsible for establishing and maintammg disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14)for the registrant and we have: a)designed such disclosure controls and procedures to ensure that material information relating to the registrant,including its consolidated subsidiaries,is made known to us by others within those entities,particularly during the period in which this quarterly report is being prepared; b)evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date ofthis quarterly report (the "Evaluation Date"); c)presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as ofthe Evaluation Date; 5.The registrant's other certifying officers and I have disclosed,based on our most recent evaluation,to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent function): a)all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record,process,summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls;and b)any fraud,whether or not material,that involves management or other employees who have a significant role in the registrant's internal controls;and The registrant's other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or other factors that could significantly affect internal controls subsequent to the date ofour most recent evaluation,including any corrective actions with regard to significant deficiencies and material weaknesses. Dated:November 11,2002 /s/PETER J.MOERBEEK Peter J.Moerbeek ChiefFinancial Officer through October 23,2002 Certification ofPrincipal Financial Officer Pursuant to Section 302 ofthe Sarbanes-Oxley Act of 2002 EXIllBIT99.4 I,Richard J.Shields,certify that: 1.I have reviewed this quarterly report on Form 10-Q ofSouthwest Water Company; 2.Based on my knowledge,this quarterly report does not contain any untrue statement ofa material fact or omit to state a material fact necessary to make the statements made,in light of the circumstances under which such statements were made,not misleading with respect to the period covered by this quarterly report; 3.Based on my knowledge,the financial statements,and other financial information included in this quarterly report,fairly present in all material respects the financial condition, results ofoperations and cash flows ofthe registrant as of,and for,the periods presented in this quarterly report; 4.The registrant's other certifying officers and I are responsible for establishing and maintammg disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14)for the registrant and we have: a)designed such disclosure controls and procedures to ensure that material information relating to the registrant,including its consolidated subsidiaries,is made known to us by others within those entities,particularly during the period in which this quarterly report is being prepared; b)evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date ofthis quarterly report (the "Evaluation Date"); c)presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as ofthe Evaluation Date; 5.The registrant's other certifying officers and I have disclosed,based on our most recent evaluation,to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent function): a)all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record,process,summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls;and b)any fraud,whether or not material,that involves management or other employees who have a significant role in the registrant's internal controls;and The registrant's other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or other factors that could significantly affect internal controls subsequent to the date ofour most recent evaluation,including any corrective actions with regard to significant deficiencies and material weaknesses. Dated:November II,2002 /s/RICHARD J.SHIELDS Richard J.Shields ChiefFinancial Officer effective October 24, 2002 SIGNATURES Pursuant to the requirements ofthe Securities Exchange Act of 1934,the Registrant has duly caused this report to be signed on its behalfby the undersigned thereto duly authorized. SOUTHWEST WATER COMPANY (Registrant) Dated:November 13,2002 Peter J.Moerbeek ChiefFinancial Officer through October 23,2002 (Principal Financial Officer) Dated:November 13,2002 Richard J.Shields ChiefFinancial Officer effective October 24,2002 (principal Financial Officer) Dated:November 13,2002 Thomas C.Tekulve Vice President Finance (Principal Accounting Officer) UNITED STATES SECURITIES AND EXCHANGE COMlVlISSION \VASHINGTON,D.C.20549 FOR1VIIO-Q (i\'lark One) -X.-QUARTERLY REPORT PURSUA!.'lT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHA1'iGE ACT OF 193~ For the quarterly period ended June 30,2002 OR __TRANSITION REPORT PURSUA1'iT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to _ Commission file number:0-8176 ---•••7 Southwest Water Company (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation or organization) 225 North Barranca Avenue,Suite 200 West Covina,California (Address ofprincipal executive offices) 95-1840947 (I.R.S.Employer Identification No.) 91791-1605 (Zip Code) (626)915-1551 (Registrant's telephone number,including area code) Indicate by check mark whether the Registrant (1)has filed all reports required to be filed by Section 13 or 15(d)of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports),and (2)has been subject to such filing requirements for the past 90 days.Yes X No _ Indicate the number of shares outstanding of each of the issuer's classes of common stock,as of the latest practicable date.On July 26,2002,there were 9,278,754 common shares outstanding. Item 1. Item 2. Item 3. Item 1. Item 4. Item 6. SOUTHWEST WATER COMPANY AND SUBSIDIARIES INDEX Financial Information: Financial Statements: Condensed Consolidated Statements ofIncome - Three and Six Months Ended June 30,2002 and 2001 Condensed Consolidated Balance Sheets - June 30,2002 and December 31,2001 Condensed Consolidated Statements ofCash Flows - Six Months Ended June 30,2002 and 2001 Notes to Condensed Consolidated Financial Statements Management's Discussion and Analysis of Financial Condition and Results ofOperations Quantitative and Qualitative Disclosures About Market Risk Other Information: Legal Proceedings Submission ofMatters to a Vote ofSecurity Holders Exhibits and Reports on Form 8-K Signatures Page No. 2 3 4 7 15 16 16 17 18 PART 1-FINA..'\TCIAL INFOR.\IATIO:\' Item 1.Financial Statemellts Southwest JVater Company and Subsidiaries CONDENSED CONSOLIDATED STATE/I-IENTS OFINCOI'rIE (unaudited) Three l\'lonths Ended Six l\(onths Ended June 30.June 30. 2002 2001 2002 2001 (in thousands except per share data)(in thousands except per share data) Operating Revenues $32,746 $27,838 $60.914 $51,053 Operating Expenses: Direct operating expenses 24,752 20,787 46,370 38,547 Selling,general and administrative expenses 5,845 4,109 10,249 7,688 30.597 24,896 56.619 46,235 Operating Income 2,149 2,942 4,295 4,818 Other Income (Expense): Interest expense (1,063 )(795 )(2,219 )(1,787) Interest income 12 13 32 32 \Vater related cost reimbursement (Note 4)1,616 1,616 Other (Note 6)164 563 1,144 523 729 (219 )573 (1,232 ) Income Before Income Taxes 2,878 2,723 4,868 3,586 Provision for Income Taxes 1,008 1,035 1,704 1,363.. Net Income 1,870 1,688 3,164 2,223 Dividends on Preferred Shares 7 7 14 14 Net Income Available for Common Shares $1,863 $1,681 S 3,150 $2,209 Earnings per Common Share (Note 3): Basic S 0.20 $0.19 $0.34 $0.25 Diluted S 0.19 $0.18 $0.32 $0.23 Cash Dividends per Common Share (Note 3)$0.06 $0.06 S 0.11 $0.11 \Veighted Average Outstanding Common Shares (Note 3): Basic 9,257 9,041 9,230 9,004 Diluted 9,962 9,472 9,863 9,437 See accompanying notes to condensed consolidatedfinancial statements. Southwest 1Vater Company and Subsidiaries CONDENSED CONSOLIDATED BALANCE SHEETS June 30. 2002 (unaudited) December 31. 2001 ASSETS Current Assets: Cash and cash equivalents Customers'accounts receivable,net Other current assets Property,Plant and Equipment: Utility group property,plant and equipment -at cost Services group property,plant and equipment -at cost Less accumulated depreciation and amortization Other Assets (in thousands) $798 S 789 15.918 21,443 12,491 8.939 29.207 31.171 228.266 218.696 14.325 14,317 242.591 233,013 64.721 61,889 177.870 171.124 25,130 22,891 $232,207 $225,186 LIABILITIES A1~D STOCKHOLDERS'EQUITY Current Liabilities: Current portion oflong-term debt and bank lines ofcredit $1,426 $5,029 Accounts payable 3,692 6,211 Other current liabilities 17,139 15,127 22,257 26,367 Long-Term Liabilities: Long-term debt 43,991 44,200 Bank lines ofcredit 14,244 13,863 Advances for construction 7,999 7,482 66,234 65,545 Deferred Credits: Contributions in aid ofconstruction 61,073 53,619 Deferred income taxes 8,990 8,354 Other liabilities and deferred credits 15,986 16,346 Total Liabilities and Deferred Credits:174,540 170,231 Stockholders'Equity: Preferred stock 513 513 Common stock 93 92 Paid-in capital 38,398 37,663 Retained earnings 18,663 16,687 Total Stockholders'Equity 57,667 54,955 $232,207 $225,186 See accompanying notes to condensed consolidatedfinancial statements. 2 Southwest JVater Company andSubsidiaries CONDENSED CONSOLIDATED STATEJlENTS OF CASH FLOJVS (unaudited) Cash Flows From Operating Activities: Net income Adjustments to reconcile net income to net cash provided bv (used in)operating activities Net cash provided bv operating activities Cash Flows From Investing Activities: Additions to property.plant and equipment Other investments.net Net cash used in investing activities Cash Flows From Financing Activities: Contributions in aid ofconstruction and advances for construction Net proceeds from dividend reinvestment plan, employee stock purchase plan and stock option plans Repayment of long-term debt Net borrowing (repayment)on bank lines of credit Dividends paid Repayments on advance contracts,net ofadditions Net cash provided by financing activities Net increase (decrease)in cash and cash equivalents Cash and cash equivalents at beginning ofperiod Cash and cash equivalents at end ofperiod Six ~Ionths Ended June 30. 2002 2001 (in thousands) S 3.16-t S 2.223 3,66-t (645) 6.828 1.578 (9,142)(8.539) (835) (9.977)(8.539) 7,728 1.914 581 481 (2,209) (1,748)4,913 (1,043)(970) (151)(184) 3,158 6,154 9 (807) 789 1,379 S 798 $572 Supplemental Disclosure of Cash Flow Information: Cash paid during the period for: Interest Income taxes Depreciation and amortization Non-cash contributions in aid of construction See accompanying notes to condensed consolidatedfinancial statements. 3 s S $ $ 2,544 288 3,563 1,655 $ $ $ S 1,690 40 2,981 775 SOUTH\VEST \VATER COMPA0iY AND SUBSIDIARIES ~OTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS JUNE 30.2002 (Unaudited) 1.South\vest \Vater Company (Southwest \Vater.the Company.or "we","us"or "our")was incorporated in California in 1954 and reincorporated in Delaw-are in 1988.South\vest Water is a publicly traded holding company.All of our business operations are conducted through our subsidiaries which provide a broad range of services including water production and distribution, \vaste\vater collection and treatment.public \vorks services and utility submetering.\Ve serve more than 1.5 million people in 29 states nationwide.Our business is segmented into a Utility Group and a Services Group. In our Utility Group.we own and operate rate-regulated public water and wastewater utilities. State regulatory agencies oversee the operations ofour utilities and establish the rates that we can charge for our water delivery and wastewater services.Our Utility Group operations are performed by four subsidiaries:Suburban \Vater Systems (Suburban),New Mexico Utilities,Inc. (NN[UI)and Hornsby Bend Utility Company (Hornsby),which are wholly owned,and \Vindermere Utility Company (\Vindermere),ofwhich we own 800/0. Our Services Group consists of contract service businesses,Through our wholly owned subsidiary,ECO Resources,Inc.(ECO),we operate and manage water and wastewater treatment facilities owned by cities,public agencies,municipal utility districts and private entities.We also o\\-n a 90~1a interest in Operations Technologies,Inc.(OpTech),a provider of contract water, wastewater and public works services in the southeastern United States.Nationwide,we provide utility submetering and billing and collection services through our 850/0-owned subsidiary,Master Tek International,Inc.(Master Tek).Our Service Group companies may be subject to regulatory oversight;however,the pricing of our services is not subject to regulation. 2.Certain information and footnote disclosures normally included in our financial statements prepared in accordance with accounting principles generally accepted in the United States of America (US GAAP)have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC),Our condensed consolidated financial statements should be read in conjunction with the financial statements and related notes contained in our Annual Report on Form 10-K for the year ended December 31,2001 (the 2001 Annual Report).\Ve are not aware of any new accounting standards that would have a material adverse impact on our financial position,results ofoperations or cash flows. The unaudited condensed consolidated financial statements reflect all adjustments which,in our opinion,are necessary to present fairly the financial position of Southwest Water as of June 30. 2002 and 2001,and our results of operations and cash flows for the periods ended June 30,2002 and 2001.These adjustments are of a normal recurring nature.Certain reclassifications have been made to the 2001 financial statements to conform to the 2002 presentation. 4 3.\Ve record earnings per share (EPS)by computing "basic EPS"and "diluted EPS"in accordance with US GAAP.Basic EPS measures our perfonnance over the reporting period by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period.Diluted EPS measures our perfonnance over the reporting period after giving effect to all potentially dilutive common shares that \vould have been outstanding if the diluti\"(~common shares had been issued.Stock options.convertible debentures and \varrants gIve rise to potentially dilutive common shares.On September 25.2001.our Board of Dm~ctors declared a five percent stock dividend.payable on October 22.200 I to stockholders of record on October 1.2001.All per share amounts and numbers of shares outstanding renect thIS dividend. ..J..As discussed in our 2001 Annual Report.Suburban's water supply has been affected by the presence of certain ground\vater contaminants.consisting of chemicals disposed of by various industrial companies.The contamination necessitated the shut-down of a number of Suburban's wells.and Suburban has had to purchase water at a cost substantially higher than the cost of water pumped from Suburban's own wells.At the end of the first quarter of 2002.a settlement was reached among some of the alleged polluters and a number of water companies,including Suburban.As part of the settlement,in the second quarter of 2002,Suburban accrued income of approximately $1,616,000,primarily representing reimbursement of certain water and energy costs incurred in prior years.Beginning in 2002,Suburban has and \'li11 continue to receive payments from this settlement for the incremental cost of acquiring water rather than pumping from Suburban's shut down wells.Suburban will bill and collect this reimbursement each month and the amounts will be recorded as offsets against water costs included in direct operating expenses.In addition,the settlement provides Suburban '.'lith capital contributions to construct additional interconnections with other water purveyors.Finally,funds from the settlement will be used to develop long-tenn solutions which will potentially enable Suburban to use its own less costly groundwater supplies at some future date. 5.During the first six months of 2002,we recorded approximately $830,000 of marketing and new business development expenses incurred primarily in the second quarter associated with the potential design-build-finance-operate concept for a reverse osmosis water treatment plant in California,expenses related to a potential major new contract in Florida,and expenses related to a possible acquisition.Although we continue to pursue these opportunities and believe they may ultimately be completed,some notable uncertainties arose during the second quarter as to the successful negotiation ofthese developmental efforts. 6.As discussed in the 2001 Annual Report,Southwest Water tenninated a non-contributory defined benefit plan (the Pension Plan)as of December 30,1999.In January 2002,the net assets of the Pension Plan were distributed to plan participants as outlined by the Employee Retirement Income Security Act (ERISA)and its related regulations.Following distribution ofapproximately 514,400,000 to satisfy the pension benefit obligation and settlement of expenses paid by the Pension Plan in accordance with ERISA and its related regulations,the Pension Plan had excess assets of approximately $1,200,000.Under the provisions of Statement of Financial Accounting Standards (SFAS)No.88,Employers'Accounting for Settlements and Curtailments of Defined Benefit Pension Plans and for Tennination Benefits,we recognized a pre-tax tennination gain of approximately 5980,000 in the first quarter of 2002. 5 7.Under the provisions of SFAS No.142,Goodwill and Other Intangible Assets,goodwill incurred after June 30,2001 is no longer subject to amortization over its estimated useful life.Instead, goodwill is reviewed for impainnent on an annual basis (or more frequently if circumstances indicate a possible impainnent)by means ofa fair-value-based test. The following table provides information about prior goodwill amortization and its impact on basic and diluted EPS. For the Six ~lonths Ended June 30, 2002 2001 2000 Reported net income (thousands)53,164 52,224 S1,933 Add back:Prior goodwill amortization (I)66 35 Adjusted net income $3,164 52,158 $1,898 Basic earnings per share: Reported EPS $0.34 50.25 $0.23 Add back:Prior goodwill amortization (1) Adjusted EPS $0.34 50.25 $0.23 Diluted earnings per share: Reported EPS $0.32 50.23 $0.22 Add back:Prior goodwill amortization (1) Adjusted EPS $0.32 50.23 $0.22 (I)Net ofincome taxes. 8.Effective January 2002,we were subject to SFAS No.144,Accounting for the Impainnent or Disposal of Long-Lived Assets.SFAS No.144 requires that long-lived assets be tested for recoverability when events or changes in circumstances indicate carrying amounts may not be recoverable.SFAS No.144 further clarifies the methods ofaccounting for assets that are disposed of."Ve regularly review assets for impairment.The implementation of SFAS No.144 did not have any effect on our results of operations or financial condition.SFAS No.144 does not apply to goodwill impainnent which is accounted for under SFAS No.142,as described in Note 7. 9.From April 3,2000 through March 31,2002,we owned 80%of Master Tek.Under the terms of our purchase agreement,the minority owner of Master Tek may require us to purchase his minority interest in increments not to exceed $1,000,000 per year over four years.In April 2002 we paid $1,000,000 to the minority owner for an additional 50/0 interest in Master Tek in accordance with the purchase agreement,and we may be required to purchase the remaining minority interest over the next three years. 6 W.\Ve have two reportable segments as defined under the requirements of SFAS No.13 L Disclosures about Segments of an Enterprise and Related Information.\Ve have not changed the basis of segmentation nor the basis of measurement of segment profit or loss from the information reported in our 2001 Annual Report. The following table sets forth the disclosures about Southwest Water's reportable segments as required by SFAS No.131. Services Group Utility Group Total Segment Information (in thousands) Other Consolidated Six i\lonths Ended June 30,2002 Revenues from external customers $ Segment operating profit As ofJune 30,2002 Segment assets 36,366 $ 1,007 43,061 24,548 6,517 184,768 $60,914 7,524 227,829 $ (3,229) 4,378 $60,914 4,295 232,207 Six Months Ended June 30,200 I Revenues from external customers $ Segment operating profit 29,207 $21,846 868 6,039 $51,053 6,907 $ (2,089) $51,053 4,818 As ofJune 30,2001 Segment assets 35,159 170,298 205,457 2,595 208,052 Item 2:Management's Discussion and Analysis ofFinancial Condition andResults ofOperations Our liquidity,capital resources and cash flows are influenced primarily by capital expenditures at our utility group for the addition,replacement and renovation of water and wastewater utility facilities. Capital resources are used for debt service and are also influenced by investments in new business opportunities,including the acquisition of companies,funding ofprojects and acquisition ofcontracts.As discussed in Note 4,during the second quarter of 2002,Suburban accrued income of approximately $1,616,000 for water-quality-related expenses incurred in prior years. Under the terms of our purchase agreement for Master Tek,the minority owner of Master Tek has the option to require us to purchase his minority interest in increments not to exceed $1,000,000 per year over four years,The minority owner exercised this option to sell us 5%of Master Tek stock for which we paid $1,000,000 in April 2002.Under the terms of the OpTech purchase agreement,we have the right to acquire the remaining 100/0 of OpTech after a period of five years based on a formula relating to the profitability of OpTech.After two years,the minority shareholder of OpTech has the option to sell the remaining 10%ofOpTech to us using the same formula which has a minimum threshold of $1 ,000,000. As described in our 2001 Annual Report,ECO financed and built a reverse osmosis water treatment plant,which began operating in 2001.In connection with this project,at December 31,2001,ECO had recorded a receivable in the amount of approximately $6,600,000 for the work done.Payment for the full amount was received in January 2002. As ofJune 30,2002,we had cash and cash-equivalent balances totaling $798,000 and aggregate lines ofcredit totaling $24,000,000 consisting of three separate unsecured lines ofcredit from three commercial 7 banks.Two of the lines of credit expire in July 2003.The remaining $4,000.000 line,\\lith a balance of .approximately 52.400.000 as of June 30,2002,was rene\\led in April 2002 and nO\\I expires in April 2004.As of June 30,2002,we had $14,244,000 outstanding on these lines of credit.During the first six months of 2002.our outstanding line of credit borrowing decreased by 51,748.000.\Ve paid down our lines of credit primanly with the cash received as payment for the reverse osmosis plant.and from payment received for Suburban's water-quality-related reimbursement.\Ve also paid in full our NNIUI Series A First Mortgage Bonds in the amount of$2.000.000.and \\le purchased certain utility property. \Ve expect to maintain our lines of credit in the normal course of business.Each of the line of credit agreements contains certain financial covenants.As of June 30.2002,we \vere in compliance with all applicable covenants ofeach of the line ofcredit agreements. In addition to our lines of credit.we have excess borrowing capacity under our First Nlortgage Bond [nd~ntllres of approximately 559,500,000 as of Jun~30.2002.However,the additional borrowing avallable under our current commercial lines of credit is limited by financial covenants that restrict additional borrowing at June 30.2002 to an amount no bTfeater than the remaining unused credit line amount.Additional borrowing outside our lines ofcredit requires bank approval. On July 20.2001,Southwest \Vater issued S20,000,000 of 6.850/0 fixed rate convertible subordinate debentures due July 1,2021,and received net proceeds of approximately S18,890,000 from the sale after undef\vriting discounts,commissions and remaining expenses ofthe offering.The net proceeds from the sale ofthese debentures were used to reduce borrowings on our revolving bank lines of credit. The debentures are convertible into shares of our common stock at a conversion price ofS17.007 per share.The debentures are convertible at any time prior to maturity unless previously redeemed.We may redeem the debentures in whole or in part at any time,at redemption prices from 1050/0 at July 1,2003 and declining 10/0 annually to par (1000/0 of face value)after June 30,2008.The issuance costs of the convertible subordinate debentures in the amount of approximately $1,110,000 are being amortized over 20 years.We are subject to certain financial covenants under the terms of the indenture agreement for the convertible subordinate debentures.As of June 30,2002,we were in compliance with all applicable restrictions. As part of the water utility industry,our Utility Group's financial structure follows three industry practices.First,we maintain a capital structure of approximately 50%debt and 500/0 equity.lVIost state utility commissions prefer this debt to equity ratio which is an integral part ofdeveloping the authorized rates of return and customer billing amounts.Second,we pay cash dividends to our stockholders.Third, our utilities receive utility plant (assets)from developers.These assets are treated as contributions in aid of construction (CIAC)from developers and are recorded on our balance sheet as deferred credits. During the first six months of2002,our additions to property,plant and equipment were S10,797,000, representing an increase of Sl ,483,000 from 2001.Additions to property,plant and equipment were primarily utility plant for our utility group,including new well and transmission lines at NMUI and the construction of a lift station and force main,and an elevated storage tank at Windermere.In addition, ECO completed expansion of an office building in Austin,Texas.Developers made CIAC,Living Unit Equivalent (LUE)fees and advances totaling S9,383,000 during the first six months of 2002,of which $7,728,000 was received in cash and $1,655,000 was received as non-cash contributions of property. Company-financed capital additions were $1,414,000,funded primarily by cash flow from operations.\Ve estimate that our total capital additions in 2002 will be approximately S14,000,000,primarily for utility plant,and that our cash flows from operations,borrowings on our lines of credit and CIAC will fund these additions. We anticipate that our available line of credit borrowing capacity and cash flows generated from operations will be sufficient to fund our activities during the next 12 months.If we were unable to renew 8 aur existing lines of credit.our capital spending or acquisitions would be reduced or delayed until new tinancing arrangements were secured.Such tinancing arrangements could include seeking debt or equity tinancing through a private placement or a public offering.Similarly,if additional cash were needed to fund an acquisition.financing arrangements could include long-term borrowing or equity financing. Critical Accounting Policies \Ve consider certain accounting policies critical in preparing our consolidated financial statements. Certain of these policies require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure ofcertain contingent assets and liabilities at the date ofthe consolidated tinancial statements,as well as amounts of revenues and expenses during the reporting periods.Actual results could differ from those estimates.Our 2001 Annual Report includes detailed descriptions of both our critical and significant accounting policies.The critical estimates and judgments made by m:.magcment which intluence the tinancial statements include the follo\ving: OUf California utility,Suburban,has recorded a balancing account in the amount of approximately $2,300,000,representing certain uncontrollable costs incurred by Suburban over the past few years. Historically.the CPUC allowed such balancing accounts to be recorded m the income statements of water utilities,with a corresponding liability or asset on the balance sheet.However,on December 1,2001,the CPUC issued a resolution that changed its long-standing policies and procedures with respect to balancing accounts,effectively eliminating such accounts for future periods.We believe that Suburban will be able to recover the $2,300,000 recorded in its balancing account through the rate case filed with the CPUC in April 2002.However,there can be no assurance that the CPUC will allow recovery ofall or some of this balance.We have not recorded any allowance against the $2,300,000 asset on Suburban's balance sheet. We periodically evaluate the collectibility of our customer accounts receivable,and provide an allowance for uncollectible accounts based upon an estimate by management of the amount of accounts receivable that might not be collectible.This estimate is predicated upon a number of factors,including historical account receivable write-off experience,a review of customer accounts with past due uncollected balances,probable costs of collection and the general credit worthiness of our customers. During the second quarter of 2002,we recorded a $200,000 increase in our allowance for uncollectible accounts relating to Master Tek accounts receivable.We believe that our allowance for doubtful accounts is adequate as of June 30,2002. We have approximately $2,000,000 of inventories included in other current assets as of June 30, 2001.Our inventories consist primarily of transmitters and related parts used by Master Tek in its construction activities,as well as materials and supplies used in our water supply and wastewater activities.We believe that there is no significant amount ofobsolete inventory as ofJune 30,2002. During the first six months of 2002,we recorded approximately $830,000 of marketing and new business development expenses incurred primarily in the second quarter.These expenses related to a potential design-build-finance-operate concept for a reverse osmosis plant in California,to a potential major new contract in Florida,and to a possible acquisition.While we continue to pursue these opportunities,and remain hopeful as to their ultimate outcome,some notable uncertainties arose during the second quarter as to the successful conclusion of these developmental efforts. 9 Regulatory Affairs The California Public Utilities Commission (CPUC)regulates the rates of Suburban.The New ~Iexico Public Regulation Commission (N1vlPRC)and the Texas Natural Resources Conservation Commission (1t\fRCC)regulate the rates and operations of NrvIUI and 'vVindennere and Hornsby, respectively.The rates allowed are intended to provide the utilities an opportunity to recover costs and earn a reasonable return on common equity. Under current CPUC practices,customer water rates may be increased through general rate increases or by offsets for certam expense increases.Typically,general rate increases are for three years and include step increases in the second and third years.General rate increases require formal proceedings \vith the CPUC in \vhich overall rate structure,expenses and rate base are examined by CPUC staff. Public hearings are also held.General rate proceedings require approximately 12 months from the time an application is filed to the CPlJC's authorization of new rates.The step increases for the second and third years are intended to compensate for projected expense increases.Prior to their approval,step increases are subject to verification that earnings levels have not exceeded the rate of return authorized at the general rate proceeding.In recent years,Suburban succeeded in achieving efficiencies and cost savings that resulted in the deferral of rate requests.At the direction of the CPUC,Suburban filed a rate application on April 2,2002.This application is expected to take approximately one year to process. Southwest Water and Suburban are unable to predict the outcome of this rate proceeding at this time. Prior to December 1,2001,the CPUC pennitted Suburban (and other regulated utilities)to record the difference between actual and CPUC-adopted water production costs in balancing accounts in the income statement,with a corresponding adjustment on the balance sheet.The CPUC significantly changed this policy by eliminating the use of balancing accounts as of December 1,2001.In place of the balancing account.Suburban will track the difference between actual and CPUC-adopted water production costs in current operations.Such costs will be accumulated in a memorandum account,and Suburban will attempt to recover these costs during its regularly scheduled general rate hearings.\Ve believe that at the conclusion ofthe current general rate hearing Suburban will be able to recover approximately $2,300,000 that was in the balancing account as ofJune 30,2002.However,we cannot assure you of such recovery. £uburban believes that the changed CPUC rules will likely result in greater fluctuations in earnings beginning in 2002. Windennere filed for a general rate increase in June 2001,and new rates became effective in January 2002.NMUI and Hornsby are not currently seeking any rate increase;however,regulatory changes concerning water quality,future construction expenditures and increased operating expenses may result in periodic requests for rate increases. Southwest Water closely monitors legislative,EPA,CPUC,NMPRC and TNRCC developments.The various water industry associations in which we actively participate also monitor these developments.We do not know the possible legislative,EPA,CPUC,NIVIPRC or TNRCC changes that will be enacted or the terms ofsuch changes,ifenacted.Therefore,we cannot predict the impact,ifany,of future legislative changes,EPA,CPUC,NMPRC or TNRCC developments or changes on our financial position,results of operations or cash flows. Our Services Group business pncmg is not subject to regulation by any public regulatory commissions.l\Ilost contracts with municipal utility districts are short-tenn contracts and do not generally include inflation adjustments.Changes in prices are negotiated on a contract-by-contract basis.Our other operations and maintenance contracts are generally longer-tenn water and wastewater service contracts, primarily with cities,and may include inflation adjustments.Most contracts with management companies and o\vners of apartment or condominium communities are short-tenn contracts and do not generally include inflation adjustments.Changes in prices are negotiated on a contract-by-contract basis. 10 \Veather and Seasonality Considerations Our regulated water utility operations are seasonal.Therefore,the results of operations for one quarter do not indicate results to be expected in another quarter.Rainfall and weather conditions affect our UtIlity Group operations.with significant water consumption occurring during the third quarter of each year \vhen \veather tends to be hot and dry.Drought conditions may result in lo\ver revenue due to consumer conservation efforts and a shortage of water.Drought conditions may also result in increased water costs to us and adversely affect our profitability.Conversely,unusually wet conditions may result in decreased customer demand.lo\ver revenues and lower profit in our utility operations. Our Services Group operations can also be seasonal in nature.For example.heavy rainfall limits our ability to perform certain billable work such as pipeline maintenance.manhole rehabilitation and other outdoor services.Severe weather conditions can result in additional labor and material costs to us that may not necessarily be recoverable from the various cities that have operations and maintenance contracts with us. Environmental Affairs Operations of Suburban.NNIUI and \Vindermere and Hornsby fall under the regulatory jurisdiction of the CPUC,the NNIPRC and the TNRCC,respectively.Our utility group operations are also subject to water and wastewater pollution standards and water and wastewater quality regulations of the EPA and various state health regulatory agencies.Both the EPA and state health regulatory agencies require periodic testing and sampling of water.Costs associated with the testing of water supplies have increased and are expected to increase further as the regulatory agencies adopt additional monitoring requirements. In November 2001,the EPA announced a decision to lower the arsenic standard in drinking water from 50 parts per billion to 10 parts per billion.Although our utilities meet the current 50 parts per billion standard,NMUI does not meet the newly adopted arsenic standard.Under current rules,the new standard must be completely met by 2006.We believe the City of Albuquerque has initiated legal actions that challenge the new standard.However,we cannot project the outcome of such legal challenge.NMUI anticipates that significant capital expenditures will be required in order to comply with the new standard. We believe that future incremental costs ofcomplying with government regulations,including any capital expenditures,will be recoverable through increased rates and contract operations revenues.However,we cannot assure you that recovery of such costs will be allowed.To date,we have not experienced any material adverse effects upon our financial position,results of operations or cash flows resulting from compliance with government regulations. As contract operators,ECO and OpTech do not own any of the water sources or utility facilities that they operate for their clients.Although not the owners,ECO and OpTech are responsible for operating these water and wastewater facilities in compliance with all federal,state and local health and safety standards and regulations. Nlaster Tek is a utility submetering,billing and collection services company and does not own or operate any water production or treatment facilities,or wastewater treatment facilities. Results ofOperations Three A-Ionths Ended June 30,2002,Compared to the Three iUonths Ended June 30,2001 Diluted EPS was 50.19 for the quarter ended June 30,2002,compared to diluted EPS of 50.18 in 2001 (after adjustment for a 5%stock dividend on October 1,2001),an increase of 60/0.The 50.19 in 2002 includes a pre-tax gain of approximately $1,616,000 that Suburban accrued for the reimbursement of certain water-quality-related expenses incurred by Suburban in prior years as discussed in Note 4.In addition,the 50.19 reflects approximately $830,000 (pre-tax)ofmarketing and new business development 11 expenses associated with the potential design-build-finance-operate concept for a reverse osmosis water treatment plant in California,expenses related to a potential major new contract in Florida,and expenses related to a possible acquisition,as described in Note 5. Operating revenues Operating revenues for the second quarter of 2002 increased 54,908,000,or 18(~/o,compared to 2001. Services Group revenues increased 53,808,000,or 250/0,due primarily to the acquisition of OpTech in August 2001.The increased revenues were reduced in part by a 42~~decrease in Nlaster Tek revenues as a result of a large construction project during the prior year,and a general decline in the multi-family home construction industry overall.Utility Group revenues increased 51,100,000,or 9~o,as a result of increased water usage at Suburban because of hot.dry weather in the second quarter,and the effect of a rate increase at vVindermere. Operating income Operating income for the second quarter of 2002 decreased $793,000,or 270/0,compared to 200 I and, as a percentage of operating revenues,was 70/0 in 2002 and 11 %in 2001.Services Group operating income increased 5341,000,partially due to the acquisition of OpTech in August of 2001.In addition, ECO incurred fewer marketing and information technology charges in 2002 when compared to the same period in 2001.Operating income of the Utility Group increased $55,000,primarily as a result of a rate increase at Windermere,which was partially offset by the effect of higher water-volume-related expenses for the period since Suburban was not able to use a balancing account. Parent company expenses for the second quarter increased $1,189,000.As described in Note 5,this includes approximately $830,000 of marketing and new business development expenses associated with the potential design-build-finance-operate concept for a reverse osmosis water treatment plant in California,expenses related to a potential major new contract in Florida,and expenses related to a possible acquisition.In addition,parent company expenses also increased by approximately $350,000, due primarily to benefit-related expenses and public company costs. Direct operating expenses During the three months ended June 30,2002,direct operating expenses increased $3,965,000,or 190/0,compared to 2001.As a percentage of operating revenues,these expenses were 760/0 in 2002 and 750/0 in 2001.Services Group direct operating expenses increased $2,938,000,due primarily to the acquisition of OpTech in August 2001.Utility Group direct operating expenses increased $1,027,000, primarily as a result of water-volume-related expenses at Suburban in connection with the increased demand for water. Selling,general and administrative expenses Selling,general and administrative expenses in the second quarter of 2002 increased by 51,736,000, or 42%,compared to 2001.General and administrative expenses of our Services Group increased 5524,000,due primarily to the acquisition of OpTech in August 2001.In addition,we recorded a S200,000 increase in our allowance for doubtful accounts for Master Tek.General and administrative expenses of the Utility Group increased $23,000.General and administrative expenses of the parent company increased $1,189,000,as discussed above. Recovery ofWater Related Costs As discussed in Note 4,during the second quarter of 2002,Suburban accrued income for a reimbursement of approximately $1,616,000 for water-quality-related expenses incurred in prior years. 12 Beginning in 2002.Suburban has and will continue to receive payments during the next few years as reimbursement for the higher incremental cost of purchased water and these reimbursements will be recorded as offsets against water costs included in direct operating expenses. Interest and other Total interest expense increased $268,000 during the quarter ended June 30,2002,compared to 2001. The increase renects interest expense on our 20-year convertible subordinate debentures that \vere issued in July 200 I.Our debentures were sold through a retail distribution network and \ve believe they are widely held.This increase was offset by decreases in the interest expense on our lines of credit because we paid dOV.l1 a portion of our line of credit borrowing with the proceeds from the debentures.Our interest expense on the lines of credit also decreased due to generally lower interest rates in the first quarter of 2002 compared to 2001.The reduction in capitalized interest during the second quarter of2002 compared to the same period in the prior year was due primarily to a reduction in utility projects that were completed in late 2001. The major components of interest expense for the three months ended June 30,2002 and 2001 are as follows: Interest expense-convertible subordinate debentures Interest expense-bank lines ofcredit Interest expense-mortgage bonds Interest expense-other Total interest expense before capitalized interest Capitalized interest Total interest expense 2002 $339 159 526 115 1,139 (76) $1,063 2001 $ 415 596 26 1,037 (242) $795 Si"J',;[onths Ended June 30,2002 Compared to the Six Months Ended June 30,2001 Diluted EPS was $0.32 for the first six months of 2002,compared to diluted EPS of $0.23 in 2001 (after adjustment for a 5%stock dividend on October 1,2001).The $0.32 in 2002 includes a one-time pre-tax gain of $980,000 (or $0.06 per diluted EPS)on the termination and settlement ofour pension plan obligation (pension termination),which was recorded in March 2002.In addition,the $0.32 in 2002 includes a one-time pre-tax gain of approximately $1,616,000 recorded by Suburban for the reimbursement of certain water-quality-related expenses incurred by Suburban in prior years.Operating income was reduced by approximately $830,000 in marketing and new business development expenses associated with the potential design-build-finance-operate concept for a reverse osmosis water treatment plant in California,expenses related to a potential major new contract in Florida,and expenses related to a possible acquisition,as described in Note 5.Total diluted EPS,excluding the gain from the pension termination,was $0.26,an increase of 13%when compared to the same period in 2001. Operating revenues Operating revenues for the first six months of 2002 increased $9,861,000,or 190/0,compared to 2001. Services Group revenues increased $7,159,000,or 25%,due primarily to the acquisition of OpTech in August 2001.The increased revenues were reduced in part by a 350/0 decrease in Master Tek revenues as a result of a large construction project during the prior year and a general decline in the multi-family home construction industry. Utility Group revenues increased $2,702,000,or 120/0,as a result ofincreased water usage at Suburban because of hot,dry weather in the second quarter,and the effect of a rate increase at Windermere. 13 Operating income Operating income for the first six months of 2002 decreased $523,000,or 11 ~/o.compared to 2001 and.as a percentage of operating revenues,was 70/0 in 2002 and 90/0 2001.Services Group operating income increased $139,000,due primarily to the acquisition of OpTech in August 2001.Operating income of the Utility Group increased $478.000.due primarily to increased \vater consumption at Suburban because of.hot,dry weather in the second quarter and the effect of a rate increase at \Vindermere.Parent company expenses increased $1,140,000.As described in Note 5,this includes approximately $830,000 of marketing and new business development expenses associated with the potential desibrn-build-finance-operate concept for a reverse osmosis water treatment plant in California. expenses related to a potential major new contract in Florida and expenses related to a possible acquisitlOn.In addition.parent company expenses also increased by approximately $310,000 due pnmarily to benetit-related expenses and public company costs. Direct operating expenses During the six months ended June 30,2002,direct operating expenses increased $7.823,000,or 200/0, compared to 2001.As a percentage of operating revenues,these expenses were 760;~in 2002 and 200 l. ServIces Group direct operating expenses increased $5,766,000,due primarily to the acquisition of OpTech in August 2001.Utility Group direct operating expenses increased $2,057,000,primarily as a result of water-volume-related expenses at Suburban in connection with the increased demand for water in the first six months of2002. Selling,general and administrative expenses Selling,general and administrative expenses in the first six months of 2002 increased by $2,561,000, or 33%,compared to 2001.General and administrative expenses of our Services Group increased $1,254,000 due primarily to the acquisition ofOpTech in August 2001,and to a $200,000 increase in our allowance for doubtful accounts at Master Tek.General and administrative expenses of the Utility Group increased $167,000,primarily as a result of depreciation,insurance and payroll expenses.General and administrative expenses ofthe parent company increased $1,140,000 as described above. Recovery ofWater Related Costs As discussed in Note 4,during the second quarter of 2002,Suburban accrued income for a reimbursement of approximately $1,616,000 for water-quality-related expenses incurred in prior years. Beginning in 2002,Suburban has and will continue to receive payments during the next few years as reimbursement for the higher incremental cost of purchased water and these reimbursements will be recorded as offsets against water costs included in direct operating expenses. Interest and other Total interest expense increased $432,000 during the six months ended June 30,2002.The increase primarily reflects interest expense on our 20-year convertible subordinate debentures that were issued in July 2001.Our debentures were sold through a retail distribution network and we believe that they are widely held.This increase was partially offset by decreases in the interest expense on our lines of credit because we paid down a portion of our line of credit borrowing with the proceeds from the debentures. Our interest expense on the lines of credit also decreased due to generally lower interest rates in the first quarter of2002,compared to 2001.The reduction in capitalized interest during the second quarter of2002 was due primarily to the completion ofseveral utility projects in 2001. 14 ·The major components of interest expense for the six months ended June 30,2002 and 2001 are as follows: 2002 2001 Interest expense-convertible subordinate debentures S 681 S Interest expense-bank lines ofcredit 310 857 Interest expense-mortgage bonds 1.090 1,192 Interest expense-Dther 243 71 Total interest expense before capitalized interest 2,324 2,120 Capitalized interest (105)(333 ) Total interest expense S 2,219 5 1,787 Other income increased 5621,000.As described in Note 6,in the first quarter of 2002,the parent company recorded a one-time pre-tax gain on pension termination of $980,000.The increase in other income was partially offset by interest income recorded in 2001 by ECO,related to a construction project that was completed in 2001. Item 3:Quantitative and Qualitative Disclosures AboutJ.lJarket Risk We have certain indebtedness that is subject to variable interest rates.As a result,Southwest Water's interest expense is affected by changes in the general level of interest rates.Changes in interest rates affect the interest expense paid on the line of credit borrowings,which is determined based upon an agreed rate with the banks.Contractually,the highest interest rates charged on the lines of credit cannot exceed the banks'prime rate minus one-quarter percent. Southwest Water is using the favorable low interest rates in the current market.In part to mitigate future market interest rate risk,we completed a $20,000,000,20-year convertible subordinate debenture offering in July 2001,which bears a fixed interest rate of 6.850/0 per annum.The proceeds were used to pay down our variable rate indebtedness.Our long-term debentures were sold with a fixed interest rate, and are not subject to market fluctuation of interest rates.Our debentures are convertible into common stock of Southwest Water and,at a certain EPS level,our debentures will become dilutive in computing our earnings per share.Our debentures were sold through a retail distribution network,and we believe they are widely held. 15 PART II -OTHER INFO&'\IATION Item 1.Legal Proceedings ECO \vas named as a defendant in four lawsuits alleging injury and damages as the result of a sewage spill \vhich occurred at an Austin.Texas,sewage pumping station operated by ECO.In 200 I,a settlement was reached with three of the plaintiffs.ECO has been defended and indemnified by its insurance carrier and was required to pay a S10.000 deductible on settlement of the claims.The remaining la\vsuit is pending at this date.Southwest Water and ECO continue to vigorously defend agamst thIS claim.At thIS time.\ve do not believe these actions will have a material adverse effect on our financial position.results ofoperations or cash tlO\vs. SOllthwest \Vater and Suburban have been named as defendants in several lawsuits alleging water contamination in the San Gabriel Valley ~Iain Basin.Defendants include Southwest \Vater,Suburban and others.The California Supreme Court (the Court)ruled in February 2002 that the plaintiffs cannot challenge the adequacy of the water quality standards established by the CPUC.The plaintiffs may sue and collect damages from Suburban and other regulated water companies only if they prove that water delivered did not meet CPUC water quality standards.Suburban believes that it has complied with CPUC water quality standards.The Court directed that the cases be sent to the trial court for further proceedings. \Ve now have eleven pending cases.All cases have been consolidated before a single judge.The parties are now engaged in initial pleadings and motions to determine whether,in light ofthe ruling by the Court, the plaintiffs can plead and prove alleged water contamination.Southwest Water and Suburban have requested defense and indemnification from our liability insurance carriers for these lawsuits.Several of the liability insurance carriers are currently absorbing the costs of defense of the lawsuits.The Company cannot predict the outcome of these lawsuits.Based upon information available at this time,we do not expect that these actions will have a material adverse effect on our financial position,results ofoperations or cash flows. In 1998,the city of Albuquerque (Albuquerque)initiated an action in eminent domain to acquire the operations of NlvIUI.In September 2000,the Albuquerque City Council voted to withdraw the condemnation proceeding.In September 2001,we received a formal withdrawal of the lawsuit and Albuquerque has paid us approximately $115,000 to cover the majority of the costs incurred as a result of the condemnation proceedings.NMUI will attempt to recover the balance of these costs ofapproximately $94,000 however;we cannot assure you that NMUI will be successful in recovering such costs. Southwest Water and its subsidiaries are the subjects of certain litigation arising from the ordinary course of operations.We believe the ultimate resolution of such matters will not materially affect our financial position,results ofoperations or cash flow. Item 4.Submission ofA-'/atters to a Vote ofSecurity Holders At the Annual Meeting of Stockholders held on May 23,2002,James C.Castle and l'vlaureen Kindel, members of the Board of Directors were reelected by the following votes: l'vIr.Castle votes for -7,657,362;and votes abstaining -120,356. Ms.Kindel votes for-7,646,457;and votes abstaining-131,261. No votes were cast against the election ofeither ofthese individuals.The terms of office of directors H.Frederick Christie,Anton C.Gamier,Linda Griego,Donovan D.Huennekens,Peter J.l'vloerbeek and Richard G.Newman continued subsequent to the meeting. 16 .Item 6.Exhibits and Reports on Form 8-K (a)Exhibits furnished pursuant to Item 601 of Regulation S-K: 10.9B 10.11 E 10.11 F 10.120 10.13G 10.14F 10.15C Severance Compensation Agreement between Southwest \Vater Company and a certain executive officer approved by the Compensation Committee of the Board of Directors on August 31,2001,filed herewith. Fifth Amendment to Credit Agreement,dated October 22,200 1 between Southwest \Vater Company and Bank of America,N.A.,tiled herewith. Sixth Amendment to Credit Agreement,dated November 9,200 1 between Southwest \Vater Company and Bank ofAmerica,N.A.,filed herewith. Fourth Amendment to Credit Agreement,dated November 9,2001 between Suburban Water Systems and Bank of America,N.A.,filed herewith. Seventh Amendment to the Amended and Restated Credit Agreement,dated September 30,2001 between Southwest \Vater Company and lVlellon 1st Business Bank of California,filed herewith. Sixth Amendment to Credit Agreement,dated September 30,2001 between Suburban \Vater Systems and Mellon 1st Business Bank ofCalifornia,filed herewith. Business Loan Agreement between New Mexico Utilities,Inc.and Bank of the West, dated April 10,2002,filed herewith. (b)Reports on Form 8-K: None. 17 SIGNATURES Pursuant to the requirements ofthe Securities Exchange Act of 1934,the Registrant has duly caused this report to be signed on its behalfby the undersigned thereto duly authorized. SOUTHWEST WATER COMPANY (Registrant) Dated:July 30,2002 Dated:July 30,2002 18 lsi PETER J.MOERBEEK Peter J.Moerbeek Chief Financial Officer (Principal Financial Officer) IslTHOMAS C.TEKULVE Thomas C.Tekulve Vice President Finance (Principal Accounting Officer) UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON,D.C.20549 FORM lO-Q (l\'lark One) -LQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31,2002 OR __TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to _ Commission file number:0-8176 ~-- Southwest Water Company (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation or organization) 225 North Barranca Avenue,Suite 200 West Covina,California (Address ofprincipal executive offices) 95-1840947 (I.R.S.Employer Identification No.) 91791-1605 (Zip Code) (626)915-1551 (Registrant's telephone number,including area code) Indicate by check mark whether the Registrant (1)has filed all reports required to be filed by Section 13 or 15(d)ofthe Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports),and (2)has been subject to such filing requirements for the past 90 days.Yes X No _ Indicate the number of shares outstanding of each ofthe issuer's classes of common stock,as of the latest practicable date.On May 8,2002,there were 9,255,235 common shares outstanding. Item 1. Item 2. Item 3. Item 1. Item 4. Item 6. SOUTHWEST WATER COMPANY AND SUBSIDIARIES INDEX Financial Information: Financial Statements: Condensed Consolidated Statements ofIncome - Three Months Ended March 31,2002 and 2001 Condensed Consolidated Balance Sheets - As ofMarch 31,2002 and December 31,2001 Condensed Consolidated Statements ofCash Flows - Three Months Ended March 31,2002 and 2001 Notes to Condensed Consolidated Financial Statements Management's Discussion and Analysis of Financial Condition and Results of Operations Quantitative and Qualitative Disclosures About Market Risk Other Information: Legal Proceedings Submission ofMatters to a Vote ofSecurity Holders Exhibits and Reports on Form 8-K Signatures Page No. 2 3 4 6 11 11 12 12 13 PART I -FINANCIAL INFORMATION Item 1.Financial Statements Southwest Water Company and Subsidiaries CONDENSED CONSOLIDATED STATEMENTS OFINCOjWE (Unaudited) Operating Revenues Operating Expenses: Direct operating expenses Selling,general and administrative expenses Operating Income Other Income (Expense): Interest expense Interest income Other (Note 4) Income Before Income Taxes Provision for Income Taxes Net Income Dividends on Preferred Shares Net Income Available for Common Shares Earnings per Common Share (Note 3): Basic Diluted Cash Dividends per Common Share Weighted Average Outstanding Common Shares (Note 3) Basic Diluted See accompanying notes to condensed consolidatedfinancial statements. Three Months Ended March 31, 2002 2001 (in thousands, except per share data) $28,168 $23,215 21,618 17,760 4,404 3,579 26,022 21,339 2,146 1,876 (1,156)(992) 20 19 980 (40) (156)(1,013) 1,990 863 696 328 1,294 535 7 7 $1,287 $528 $0.14 $0.06 $0.13 $0.06 $0.056 $0.056 9,199 8,996 9,758 9,431 Southwest Water Company andSubsidiaries CONDENSED CONSOLIDATED BALANCE SHEETS l\'larch 31,December 31, 2002 2001 ASSETS (Unaudited) (in thousands) Current Assets: Cash and cash equivalents $701 $789 Customers accounts receivable 14,201 21,443 Other current assets 10,531 8,939 25,433 31,171 Property,Plant and Equipment: Utility group property,plant and equipment-at cost 224,205 218,696 Services group operations property,plant and equipment-at cost 15,103 14,317 239,308 233,013 Less accumulated depreciation and amortization 63,564 61,889 175,744 171,124 Other Assets 22,401 22,891 $223,578 $225,186 LIABILITIES AND STOCKHOLDERS'EQUITY Current Liabilities: Current portion oflong-term debt and lines ofcredit $6,099 $5,029 Accounts payable 4,485 6,211 Other current liabilities 14,886 15,127 25,470 26,367 Other Liabilities and Deferred Credits: Long-term debt 42,145 44,200 Lines ofcredit 11,179 13,863 Advances for construction 7,634 7,482 Contributions in aid ofconstruction 56,047 53,619 Deferred income taxes 8,460 8,354 Other liabilities and deferred credits 16,763 16,346 Total Liabilities and Deferred Credits 167,698 170,231 Stockholders'Equity: Cumulative preferred stock 513 513 Common stock 92 92 Paid-in capital 37,815 37,663 Retained earnings 17,460 16,687 Total Stockholders'Equity 55,880 54,955 $223,578 $225,186 See accompanying notes to condensed consolidatedfinancial statements. 2 Southwest Water Company and Subsidiaries CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Three Months Ended March 31, 2002 2001 (in thousands) Cash Flows From Operating Activities: Net income $2,274 $535 Adjustments to reconcile net income to net cash provided by operating activities 2,063 651 Net cash provided by operating activities 4,337 1,186 Cash Flows From Investing Activities: Additions to property,plant and equipment (3,522)(3,432) Proceeds from sale ofland 165 Net cash used in investing activities (3,357)(3,432) Cash Flows From Financing Activities: Net (repayments)borrowings on bank notes payable (1,614)1,943 Contributions in aid ofconstruction and advances for construction 1,044 587 Net proceeds from dividend reinvestment plan, employee stock purchase and stock option plans 152 198 Dividends paid (521)(485) Repayments on advances for construction (74)(133) Redemption of long-term debentures (55) Net cash provided by (used in)financing activities (1,068)2,110 Net decrease in cash and cash equivalents (88)(136) Cash and cash equivalents at beginning ofperiod 789 1,379 Cash and cash equivalents at end of period $701 $1,243 Supplemental Disclosure ofCash Flow Information: Cash paid during the period for: Interest $1,326 $906 Income taxes $263 $20 Depreciation and amortization $1,733 $1,643 Non-cash contributions in aid ofconstruction conveyed to Company by developers $2,540 $423 See accompanying notes to condensed consolidatedfinancial statements. 3 SOUTHWEST WATER COMPANY AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31,2002 (Unaudited) 1.Southwest Water Company (Southwest Water,the Company,or "we","us"or "our")was incorporated in California in 1954 and reincorporated in Delaware in 1988.Southwest Water is a publicly traded holding company.All of our business operations are conducted through our subsidiaries which provide a broad range of services including water production and distribution, wastewater collection and treatment,public works services and utility submetering.We serve more than 1.5 million people in 29 states nationwide.Our business is segmented into a utility group and a services group. In our utility group,we own and operate rate-regulated public water and wastewater utilities. State regulatory agencies oversee the operations of our utilities and establish the rates that we can charge for our services.Our utility group operations are performed by four subsidiaries:Suburban Water Systems (Suburban),New Mexico Utilities,Inc.(NMUI)and Hornsby Bend Utility Company (Hornsby),which are wholly owned,and Windermere Utility Company (Windermere), ofwhich we own 80%. In our services group,we own contract service businesses.Through our wholly owned subsidiary, ECO Resources,Inc.(ECO),we operate and manage water and wastewater treatment facilities owned by cities,public agencies,municipal utility districts and private entities.We also own a 90%interest in Operations Technologies,Inc.(OpTech),a provider ofcontract water,wastewater and public works services in the southeastern United States.Nationwide,we provide utility submetering and billing and collection services through our 85%-owned (see Note 7)subsidiary, Master Tek International,Inc.(Master Tek).Our service group companies may be subject to regulatory oversight;however,the pricing ofour services is not subject to regulation. 2.Certain information and footnote disclosures normally included in our financial statements prepared in accordance with accounting principles generally accepted in the United States of America (US GAAP)have been condensed or omitted pursuant to the rules and regulations ofthe Securities and Exchange Commission (the SEC).Our condensed consolidated financial statements should be read in conjunction with the financial statements and related notes contained in our Annual Report on Form 10-K for the year ended December 31,2001 (the 2001 Annual Report).We are not aware of any new accounting standards that would have an adverse material impact on our financial position,results ofoperations or cash flows. The unaudited condensed consolidated financial statements reflect all adjustments which,in our opinion,are necessary to present fairly the financial position ofSouthwest Water as ofMarch 31, 2002,and our results ofoperations for the three months ended March 31,2002 and 2001.These adjustments are of a normal recurring nature.Certain reclassifications have been made to the 2001 financial statements to conform to the 2002 presentation. 3.We record earnings per share (EPS)by computing "basic EPS"and "diluted EPS"in accordance with US GAAP."Basic EPS"measures our performance over the reporting period by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period."Diluted EPS"measures our performance over the reporting period after giving effect to all potentially dilutive common shares that would have been outstanding if the dilutive common shares had been issued.Stock options,convertible debentures and warrants give rise to potentially dilutive common shares.On September 25,2001,our Board of Directors 4 declared a five percent stock dividend,payable on October 22,2001 to stockholders ofrecord on October 1,2001.Per share amounts and shares outstanding reflect this dividend. 4.As fully described in the 2001 Annual Report,prior to December 30,1999,Southwest Water had a non-contributory defined benefit pension plan (the Pension Plan)for employees of Southwest Water,Suburban and NMUI.On August 5,1999,our Board of Directors adopted a resolution to terminate the Pension Plan,freeze the assets of the Pension Plan and cease all benefit accruals as of December 30,1999.In January 2002,the net assets of the Pension Plan were distributed to plan participants as outlined by the Employee Retirement Income Security Act (ERISA)and its related regulations.Following distribution of approximately $14,400,000 to satisfy the pension benefit obligation and settlement of expenses paid by the Pension Plan in accordance with ERISA and its related regulations,the Pension Plan had excess assets of approximately $1,200,000. Under the provisions of Statement of Financial Accounting Standards (SFAS)No.88, Employers'Accounting for Settlements and Curtailments of Defined Benefit Pension Plans and for Termination Benefits,we recognized a termination gain ofapproximately $980,000 in the first quarter of2002. 5.Under the provisions of SFAS No.142,Goodwill and Other Intangible Assets,goodwill is no longer subject to amortization over its estimated useful life.Instead,goodwill is assessed for impairment on an annual basis (or more frequently if circumstances indicate a possible impairment)by means of a fair-value-based test.SFAS No.142 requires that goodwill incurred subsequent to June 30,2001 not be amortized over a fixed period,but rather that it be periodically assessed for impairment. SFAS No.142 also requires that we provide the following information concerning prior goodwill amortization and the impact ofprior goodwill amortization on basic and diluted EPS. For the Three Months Ended March 31, 2002 2001 2000 Reported net income (thousands)$1,294 $535 $430 Add back:Prior goodwill amortization 53 28 Adjusted net income $1,294 $588 $458 Basic earnings per share: Reported EPS $0.14 $0.06 $0.05 Add back:Prior goodwill amortization Adjusted EPS $0.14 $0.06 $0.05 Diluted earnings per share: Reported EPS $0.13 $0.06 $0.04 Add back:Prior goodwill amortization Adjusted EPS $0.13 $0.06 $0.04 6.Effective January 2002,we were subject to SFAS No.144,Accounting for the Impairment or Disposal of Long-Lived Assets.SFAS No.144 requires that long-lived assets be tested for recoverability when events or changes in circumstances indicate carrying amounts may not be recoverable.SFAS No.144 further clarifies the methods ofaccounting for assets that are disposed of.We regularly review assets for impairment.The implementation of SFAS No.144 did not 5 result in any material adverse effect on our results ofoperations or financial condition.SFAS No. 144 does not apply to goodwill impairment which is accounted for under SFAS No.142 as described in Note 5. 7.Through March 31,2002,we owned 800/0 of Master Tek.Under the terms of our purchase agreement for Master Tek,the minority owner of Master Tek has the option to require us to purchase his minority interest in increments.The minority owner exercised this option to sell us 5%of Master Tek stock for which we paid $1,000,000 in April 2002,at which point our ownership percentage increased to 85%. 8.We have two reportable segments as defined under the requirements of SFAS No.131, Disclosures about Segments of an Enterprise and Related Information.We have not changed the basis ofsegmentation or the basis of measurement ofsegment profit or loss from the information reported in our 2001 Annual Report. The following table sets forth the disclosures about Southwest Water's reportable segments as required by SFAS No.131. Services Group Utility Group Total Segment Information (in thousands) Other Total Consolidated Information Three Months Ended March 31,2002 Revenues from external customers $17,177 $ Segment operating profit 496 10,991 2,678 $28,168 $ 3,171 (1,028) $28,168 2,146 As of March 31,2002 Segment assets 42,545 176,681 219,226 4,352 223,578 Three Months Ended March 31,2001 Revenues from external customers $ Segment operating profit 13,826 $ 698 9,389 2,255 $23,215 $ 2,953 (1,077) $23.215 1,876 As of March 31,2001 Segment assets 33,252 165,496 198,748 2,157 200,905 Item 2:Management's Discussion andAnalysis ofFinancial Condition and Results ofOperations Our liquidity,capital resources and cash flows are influenced primarily by capital expenditures at our utility group for the addition,replacement and renovation of water and wastewater utility facilities.Our capital resources are also influenced by investments in new business opportunities,including the acquisition ofcompanies,funding of projects and acquisition ofcontracts.As fully described in our 2001 Annual Report,ECO financed and built a reverse osmosis water treatment plant,which began operating in 2001.In connection with this project,at December 31,2001,ECO had recorded a receivable in the amount of approximately $6,600,000 for the work done.Payment for the full amount was received in January 2002. As of March 31,2002,we had cash and cash-equivalent balances totaling $701,000 and aggregate lines of credit totaling $24,000,000 consisting of three separate unsecured lines of credit from three commercial banks.Two of the lines ofcredit expire in July 2003.The remaining $4,000,000 line,with a balance of approximately $3,200,000 as ofMarch 31,2002,was renewed in April 2002 and now expires 6 i'n April 2004.As of March 31,2002,we had $14,379,000 outstanding on these lines of credit.During the first quarter of 2002,our outstanding line of credit borrowings decreased by $1,614,000.We paid down our lines ofcredit primarily with the proceeds from the outstanding receivable from ECO.We also used the proceeds to pay in full our NMUI Series A First Mortgage Bonds in the amount of $2,000,000,and we purchased certain utility property. Under the terms of our purchase agreement for Master Tek,the minority owner of Master Tek has the option to require us to purchase his minority interest in increments.The minority owner exercised this option to sell us 50/0 ofMaster Tek stock for which we paid $1,000,000 in April 2002. We expect to maintain our lines ofcredit in the normal course of business.Each of the line of credit agreements contains certain financial covenants.As of March 31,2002,we were in compliance with all applicable covenants of each of the line of credit agreements.As of March 31,2002,we were also in compliance with all restrictions under the indenture for our convertible subordinate debentures. In addition to our lines ofcredit,we have existing borrowing capacity under our First Mortgage Bond Indentures of approximately $58,000,000 as of March 31,2002.However,our additional borrowing available under our current commercial lines of credit is limited by financial covenants that restrict additional borrowing at March 31,2002 to an amount no greater than the remaining unused credit line amount.Additional borrowing outside our lines ofcredit requires bank approval. During the first quarter of 2002,our additions to property,plant and equipment were $6,062,000, representing an increase of $2,207,000 over 2001.The increase was due primarily to the addition of utility plant by our utility group,including new well and transmission lines at NMUI and the construction ofa lift station and forced main,and an elevated storage tank at Windermere.In addition,ECO completed expansion of an office building in Austin,Texas.Developers made contributions in aid of construction (CIAC),Living Unit Equivalent (LUE)fees and advances totaling $3,584,000 during the first quarter of 2002,of which $1,044,000 was received in cash and $2,540,000 was received as non-cash contributions of property.Company-financed capital additions were $2,478,000,funded primarily by cash flow from operations and borrowing on the lines of credit.We estimate that our total capital additions in 2002 will be approximately $14,000,000,primarily for utility plant,and that our cash flows from operations, borrowings on our lines ofcredit and CIAC will fund these additions. We anticipate that our available line of credit borrowing capacity and cash flows generated from operations will be sufficient to fund our activities during the next 12 months.If we were unable to renew our existing lines of credit,our capital spending or acquisitions would be reduced or delayed until new financing arrangements were secured.Such financing arrangements could include seeking debt or equity financing through a private placement or a public offering.Similarly,if additional cash were needed to fund an acquisition,financing arrangements could include long-term borrowing or equity financing. Critical Accounting Policies We consider certain accounting policies critical in preparing our consolidated financial statements. These include,but are not limited to:recognition of revenues,impairment of goodwill,and utility accounting.Certain of these policies require management to make estimates and assumptions that affect the reported amounts ofassets and liabilities and disclosure of certain contingent assets and liabilities at the date of the consolidated financial statements,as well as amounts ofrevenues and expenses during the reporting periods.Actual results could differ from those estimates.Our 2001 Annual Report includes a detailed description ofboth our critical and significant accounting policies. 7 Regulatory Affairs The California Public Utilities Commission (CPUC),the New Mexico Public Regulation Commission (NMPRC)and the Texas Natural Resources Conservation Commission (TNRCC)regulate the rates and operations of Suburban,NMUI and Windermere and Hornsby,respectively.The rates allowed are intended to provide the utilities an opportunity to recover costs and earn a reasonable return on common equity. Under current CPUC practices,customer water rates may be increased through general rate increases or by offsets for certain expense increases.Typically,general rate increases are for three years and include step increases in the second and third years.General rate increases require formal proceedings with the CPUC in which overall rate structure,expenses and rate base are examined by CPUC staff. Public hearings are also held.General rate proceedings require approximately 12 months from the time an application is filed to the CPUC's authorization of new rates.The step increases for the second and third years are intended to compensate for projected expense increases.Prior to their approval,step increases are subject to verification that earnings levels have not exceeded the rate of return authorized at the general rate proceeding.In recent years,Suburban succeeded in achieving efficiencies and cost savings that resulted in the deferral of rate requests.At the direction of the CPUC,Suburban filed a rate application on April 2,2002.This application is expected to take approximately one year to process. Southwest Water and Suburban are unable to predict the outcome ofthis rate proceeding at this time. Prior to December 1,2001,the CPUC permitted Suburban (and other regulated utilities)to record the difference between actual and CPUC-adopted water production costs in balancing accounts in the income statement,with a corresponding adjustment on the balance sheet.The CPUC significantly changed this policy by eliminating the use of balancing accounts as of December 1,2001.In place of the balancing account,Suburban will track the difference between actual and CPUC-adopted water production costs in current operations.Such costs will be accumulated in a memorandum account and Suburban will attempt to recover these costs during its regularly scheduled general rate hearings.We believe that at the conclusion of the current general rate hearing Suburban will be able to recover approximately $2,300,000 that was in the balancing account as ofMarch 31,2002.However,we cannot assure you ofsuch recovery. Suburban believes that the changed CPUC rules will likely result in greater fluctuations in earnings beginning in 2002. Windermere filed for a general rate increase in June 2001,and new rates became effective in January 2002.NMUI and Hornsby are not currently seeking any rate increase;however,regulatory changes concerning water quality,future construction expenditures and increased operating expenses may result in periodic requests for rate increases. Southwest Water closely monitors legislative,Environmental Protection Agency (EPA),CPUC, NMPRC and TNRCC developments.The various water industry associations in which we actively participate also monitor these developments.We do not know the possible legislative,EPA,CPUC, NMPRC or TNRCC changes that will be enacted or the terms of such changes if enacted.Therefore,we cannot predict the impact,if any,of future legislative changes,EPA,CPUC,NMPRC or TNRCC developments or changes on our financial position,results of operations or cash flows. Our services group business pricing is not subject to regulation by any public regulatory commissions.Most contracts with municipal utility districts are short-term contracts and do not generally include inflation adjustments.Changes in prices are negotiated on a contract-by-contract basis.Our operations and maintenance contracts are generally longer-term water and wastewater service contracts, primarily with cities,and may include inflation adjustments.Most contracts with management companies and owners of apartment or condominium communities are short-term contracts and do not generally include inflation adjustments.Changes in prices are negotiated on a contract-by-contract basis. 8 Weather and Seasonality Considerations Our regulated water utility operations are seasonal.Therefore,the results of operations for one quarter do not indicate results to be expected in another quarter.Rainfall and weather conditions affect our utility group operations,with significant water consumption occurring during the third quarter of each year when weather tends to be hot and dry.Drought conditions may result in lower revenue due to consumer conservation efforts and a shortage of water supply.Drought conditions may also result in increased water costs to us and adversely affect our profitability.Conversely,unusually wet conditions may result in decreased customer demand,lower revenues and lower profit to our utility operations. Our services group operations can also be seasonal in nature.For example,heavy rainfall limits our ability to perform certain billable work such as pipeline maintenance,manhole rehabilitation and other outdoor services.Severe weather conditions can result in additional labor and material costs to us that may not necessarily be recoverable from the various cities under operations and maintenance contracts with us. Environmental Affairs Operations of Suburban,NMUI and Windermere and Hornsby fall under the regulatory jurisdiction of the CPUC,the NMPRC and the TNRCC,respectively.Our utility group operations are also subject to water and wastewater pollution standards and water and wastewater quality regulations of the EPA and various state health regulatory agencies.Both the EPA and state health regulatory agencies require periodic testing and sampling of water.Costs associated with the testing ofwater supplies have increased and are expected to increase further as the regulatory agencies adopt additional monitoring requirements. In November 2001,the EPA announced a decision to lower the arsenic standard in drinking water from 50 parts per billion to 10 parts per billion.Although our utilities meet the current 50 parts per billion standard,NMUI does not meet the newly adopted arsenic standard.Under current rules,the new standard must be completely met by 2006.NMUI anticipates that significant capital expenditures will be required in order to comply with the new standard.We believe that future incremental costs of complying with government regulations,including any capital expenditures,will be recoverable through increased rates and contract operations revenues.However,we cannot assure you that recovery of such costs will be allowed.To date,we have not experienced any material adverse effects upon our financial position, results of operations or cash flows resulting from compliance with government regulations. As contract operators,ECO and OpTech do not own any ofthe water sources or utility facilities that they operate for their clients.Although not the owners,ECO and OpTech are responsible for operating these water and wastewater facilities in compliance with all federal,state and local health standards and regulations. Master Tek is a utility submetering,billing and collection services company and does not own or operate any water nor any production or treatment facilities. Results of Operations Three Months EndedMarch 31,2002 Compared to the Three Months Ended March 31,2001 Diluted EPS was $0.13 for the first three months of 2002 compared to diluted EPS of$0.06 in 2001 (after adjustment for a 5%stock dividend on October 1,2001).The $0.13 in 2002 includes a one-time gain on the termination and settlement of our pension plan obligation (pension termination)which was recorded in March 2002.Total diluted EPS,excluding the gain on pension termination,was $0.07,which represents an increase of 17%over the 2001 first quarter. 9 Operating revenues Operating revenues for the first three months of 2002 increased $4,953,000,or 21 %,compared to 2001.Services group revenues increased $3,351,000,or 24%,due primarily to the acquisition ofOpTech in August 2001.Utility group revenues increased $1,602,000,or 170/0,as a result of increased water usage at Suburban because ofa warm,dry winter and the effect ofa rate increase at Windermere. Operating income Operating income for the first three months of 2002 increased $270,000,or 140/0,compared to 2001 and,as a percentage of operating revenues,was 80/0 in both 2002 and 2001.Services group operating income decreased $202,000.During the first quarter of 2001,ECO had the benefit of a one-time construction project ofa large water treatment plant in EI Paso,Texas,and recognized the related revenue and operating income.There was no comparable project in 2002.The decrease in operating income was partially offset by the acquisition of OpTech in August 2001.Operating income at the utilities increased $423,000,due primarily to increased water consumption at Suburban because ofunseasonably dry,warm winter weather and the effect of a rate increase at Windermere.Parent company expenses decreased $49,000. Direct operating expenses During the first three months of 2002,direct operating expenses increased $3,858,000,or 22%, compared to 2001.As a percentage of operating revenues,these expenses were 77%in 2002 and 2001. Services group direct operating expenses increased $2,828,000,due primarily to the acquisition of OpTech in August 2001.Utility group direct operating expenses increased $1,030,000,primarily in California,as a result ofenergy costs and other water-volume-related expenses at Suburban in connection with the increased demand for water in the first quarter of2002. Selling,general and administrative expenses Selling,general and administrative expenses in the first three months of2002 increased by $825,000, or 230/0,compared to 2001.As a percentage of operating revenues,these expenses were 15.6%in 2002 and 150/0 in 2001.General and administrative expenses of our services group increased $730,000 due primarily to the acquisition of OpTech in August 2001.General and administrative expenses of the utility group increased $144,000,primarily as a result of depreciation,insurance and payroll expense.General and administrative expenses ofthe parent company decreased $49,000. Interest and other Total interest expense increased $164,000 during the first three months of 2002 compared to 2001. The increase reflects interest expense on our 20-year convertible subordinate debentures that were issued in July 2001.This increase was offset by decreases in the interest expense on our lines of credit because we paid down a portion of our line of credit borrowing with the proceeds from the debentures.Our interest expense on the lines of credit also decreased due to generally lower interest rates in the first quarter of2002 compared to 2001. Other income increased $857,000.In March 2002,we recognized a $980,000 one-time gain from the termination and settlement ofthe pension plan obligation as fully described in Note 4. 10 item 3:Quantitative and Qualitative Disclosures About Market Risk We have certain indebtedness that is subject to variable interest rates.As a result,Southwest Water's interest expense is affected by changes in the general level of interest rates.Changes in interest rates affect the interest expense paid on the line of credit borrowings,which is determined based upon an agreed rate with the banks.Contractually,the highest interest rates charged on the lines of credit cannot exceed the banks'prime rate minus one-quarter percent. Southwest Water is using the favorable low interest rates in the current market.In part to mitigate future market interest rate risk,we completed a $20,000,000,20-year convertible subordinate debenture offering in July 2001,which bears a fixed interest rate of 6.850/0 per annum.The proceeds were used to pay down our variable rate indebtedness.Our long-term debentures were sold with a fixed interest rate, and are not subject to market fluctuation of interest rates.Our debentures are convertible into common stock of Southwest Water and,at a certain EPS level,our debentures will become dilutive in computing our earnings per share. PART II -OTHER INFORMATION Item 1.Legal Proceedings ECO was named as a defendant in four lawsuits alleging injury and damages as the result of a sewage spill which occurred at an Austin,Texas,sewage pumping station operated by ECO.In 2001,a settlement was reached with two ofthe plaintiffs and a third suit is nearing settlement.ECO has been defended and indemnified by its insurance carrier and was required to pay a $10,000 deductible on settlement of the claims.The remaining lawsuit is pending at this date.Southwest Water and ECO continue to vigorously defend against the claims.At this time,we do not believe these actions will have a material adverse effect on our financial position,results ofoperations or cash flows. Southwest Water and Suburban have been named as defendants in several lawsuits alleging water contamination in the San Gabriel Valley Main Basin.Defendants include Southwest Water,Suburban and others.The California Supreme Court (the Court)ruled in February 2002 that the plaintiffs cannot challenge the adequacy of the water quality standards established by the CPUC.The plaintiffs may sue and collect damages from Suburban and other regulated water companies only if they prove that water delivered did not meet CPUC water quality standards.Suburban believes that it has complied with CPUC water quality standards.The Court directed that the cases be sent to the trial court for further proceedings. The plaintiffs have filed new briefs and a hearing is scheduled for late May 2002.We now have ten pending cases and we have received notice of the filing of an eleventh case,which has not yet been served.Southwest Water and Suburban have requested defense and indemnification from our liability insurance carriers for these lawsuits.Several ofthe liability insurance carriers are currently absorbing the costs of defense of the lawsuits.The Company cannot predict the outcome of these lawsuits.Based upon information available at this time,we do not expect that these actions will have a material adverse effect on our financial position,results ofoperations or cash flows. In 1998,the city of Albuquerque (Albuquerque)initiated an action in eminent domain to acquire the operations of NMUI.In September 2000,the Albuquerque City Council voted to withdraw the condemnation proceeding.In September 2001,we received a formal withdrawal of the lawsuit and Albuquerque has paid us approximately $115,000 to cover the majority of the costs incurred as a result of the condemnation proceedings.NMUI will attempt to recover the balance ofthese costs ofapproximately $94,000 however,we cannot assure you that NMUI will be successful in recovering such costs. 1I Southwest Water and its subsidiaries are the subjects of certain litigation arising from the ordinary course of operations.We believe the ultimate resolution of such matters will not materially affect our financial position,results ofoperations or cash flow. Item 4.Submission ofMatters to a Vote ofSecurity Holders None. Item 6.Exhibits and Reports on Form 8-K (a)Exhibits furnished pursuant to Item 601 of Regulation S-K: None. (b)Reports on Form 8-K: None. 12 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934,the Registrant has duly caused this report to be signed on its behalfby the undersigned thereto duly authorized. SOUTHWEST WATER COMPANY (Registrant) Dated:May 13,2002 Dated:May 13,2002 lsi PETER J.MOERBEEK Peter J.Moerbeek ChiefFinancial Officer IslTHOMAS C.TEKULVE Thomas C.Tekulve ChiefAccounting Officer 13 SIGNATURES Pursuant to the requirements ofthe Securities Exchange Act of 1934,the Registrant has duly caused this report to be signed on its behalfby the undersigned thereto duly authorized. SOUTHWEST WATER COMPANY (Registrant) Dated:May 13,2002 Peter J.Moerbeek ChiefFinancial Officer Dated:May 13,2002 Thomas C.Tekulve ChiefAccounting Officer 13 Letters from Utilities Providers Exhibit A 410307.5 022806 CLD NOV.18.2002 5:03PM BOYLE ENGINEERING san )l.a Ca:s "EJocb1e On.nv~Ct ~nty ReVlonal om.:e 66Z :amIno De Los Mares ~n C1eIl'1!11te,c:A 9~3-282?' A ~sempra Ene'r'g'1(company Boyle Engineefing Corponation 1501 Quail Stree : Newport Beach,,I ';AI 92660 November 14.~~002 FILENO.PLA 510 PROJ#233597 Dear Mike Dorm~ln: Subject ServiclH t~vailabmty for Electric at various sites as noted below. In accordance wl~h our IIRULES FOR THE SALE OF ELECTRiC ENERGY".fi ad with and approved by the California Public UtiUties Commission and electric facilities c In be made avaHabie to the tol oWing sites. •• •• • ••• CVVVO :tJ11 (old Address 32612 AJipaz)Withi n the new TRACT 15858 -KE,Homes SJBA ~14 'l.livente De Marina SJBA :R1:2 ~26400 Paseo Toscana Desaltel r F~lant -32470 Paseo Adelanto I Delncehall Kinoshi';a .-Alipa~Sf at em Del Avian South 1.1 Jipaz street CaJle JEt !dlin -Optional Mariner -lEast e~td of Mariner Drive Although many of ~hE~se S(tE.s may already be planned for.the above list represen oS the latest submittal for requE!r;~~for electrio power.Our ability to serve these sites are alsc I sUbject to accurate load infom'la1tion provided to the Utility during ti"le time afthe initial workorder )reparation. If purchaser is to p:uy any cost for the installation andlo\·extension of utility service,tj e costs wiU be calcuJated in COrlIblmance with our extension and service rules. Evidence of finand:,1 arrang1ements for the installation of electricity can be obtainE d from the developer and/or OVl 'nE~r based on correspondence from SDG&E on this project Our abiHty to seIVe lfulture pn)jeds in our service territory will depend on the supply Df fuel and other essential mal (:mlals av,ailable to us and on our obtaining govemment authurization to construct the facilitiel~required. SincerelYl -X-'~~, David M.GUmette Customer Project PI:!Inl1er Telephone:(949)3t·1-8040 Orange County ReqioJlI of'SDC&~Serves: Ali:SQ VisjO Cat.,at Ca.l it ."~""F'Oi171 Laguna etiaeh Lagun.NJguflf Fl.attdlD So1lnl'i1 Mar~rilil ~n J ,jIJ'I capl8trano CarnpPent1J.r(Jn Coun~y 0.'CI ·.IIn~ltl 1..~4JQnI Laguna HJ"G ~lssiolt Viejo San ClI!/f1enre 'nll<:gt BO&,lLE 1501 Quail Street Newport Beach,CA 92660-2726 TEL:(949)476-3300 FAX:(949)721-7141 www.boyleengineering.com Al Santos Cox Communications 29947 Avenida de las Banderas Rancho Santa Margarita,CA 92688 TelephonelInternet Services -32470 Paseo Adelanto January 6,2003 Per our previous conversations in December 2002,I am writing to confirm that Cox will be able to provide telephone and internet services to a treatment plant that is being built at 32470 Paseo Adelanto,San Juan Capistrano.The site is located just north of the confluence of San Juan Creek and Trabuco Creek,and is Parcell of Lot 60 of Tract No.103 in the City of San Juan Capistrano. Per your request,also attached for your reference are a general vicinity map and a draft site plan.Service will be required to the site by the middle of 2004. Ifyou need any additional information,please call me at (949)476-3496. Boyle Engineering Corporation Lisa M.Nelson Copy to:Chris Costello,ECO Resources WILL SERVE CONFIRMATION LETTER TO COX 1-6-02.DOC BOYLE ENGINEERING CORPORATION*RecycledPaper Document No.10 CONTRACT ADMINISTRATION MEMORANDUM NO.SC 2002-1 410307.5022806 CLD SC 2002-1 Execution Copy San Juan Basin Desalter Project Contract Administration Memorandum No.SC 2002-1 Date:January 7,2003 This CONTRACT ADMINISTRATION MEMORANDUM ("CAM")is made pursuant to Section 16.2(B)ofthe Service Contract for the Design,Construction,Financing and Operation of the San Juan Basin Desalter Project between the Capistrano Valley Water District (the "District")and ECO Resources,Inc.(the "Company")dated September 3,2002 (the "Service Contract")for the purpose of confirming the agreement of the parties as to matters of interpretation and application which have arisen under the performance and implementation of the Service Contract.All capitalized terms used,but not defined,herein shall have the meanings defined in the Service Contract. Subject:Clarification ofSections 5.4(A),6.11,7.12(B),9.3(L)and 13.3(1)ofthe Service Contract Set forth below are the understandings of the District and the Company with respect to the clarification of certain provisions of Sections 5.4(A),6.11,7.12(B),9.3(L)and 13.3(1)of the Service Contract. 1.The last sentence of Section 5.4(A)shall read,"The Design/Build Price shall be the sum ofthe Fixed Design/Build Price and the Fixed Design/Build Price Adjustments." 2.The last sentence of Section 7.12(B)shall read,"In the even of any such adjustment,delay liquidated damages payable by the Company under Section 7.9,ifany,shall be payable from the adjusted Scheduled Acceptance Date and not from December 4,2004." 3.The second sentence of Section 9.3(L)shall read,"If a ninth or further additional Wells are required,the District shall bear all ofthe capital and additional operating,maintenance, repair and replacement costs ofsuch ninth and additional Wells and related pipelines required to connect the Well to the existing Wellfield." 4.Section 13.3(1)shall read,"At all times during which a policy of municipal bond insurance is in effect as contemplated by Section 5.3 and the Bond Insurer is not in default under such policy,the Bond Insurer,and not the Trustee,shall have the rights and obligations given the Trustee under this Section 13.3." 5.Notwithstanding anything in the Service Contract to the contrary,the District and the Company agree that Cost Substantiation shall not apply to Extra DesignJBuild Work where the parties have negotiated a lump sum price for the performance of such Extra Design/Build Work in accordance with Section 6.11.Accordingly,subsection 6.11(E)shall read as if the second sentence were releted,and subsection 6.11 (F)shall read as if the fourth sentence were deleted. Page 1 of3 409759.4 022806 MEM SC 2002-1 This CAM contains the entire agreement between the parties with respect to the clarification of Sections 5.4(A),6.11,7.12(B),9.3(L)and 13.3(1)ofthe Service Contract and supersedes all oral negotiations and prior writings with respect thereto. This CAM may be executed in any number of original counterparts.All such counterparts shall constitute one and the same CAM. Page 2 of3 409759.4 022806 MEM SC 2002-1 IN WITNESS WHEREOF,the parties have caused this CAM to be executed by their duly authorized representatives as ofthe day and year fITst above written. CAPISTRANO VALLEY WATER DISTRICT, ORANGE COUNTY,CALIFORNIA Signature:_ Printed Name:--------- Title:_ ECO RESOURCES,INC. Signatme :C2tf)~ Printed Name:Pp-T!;R ..:r Mcbf-RJ?~d<. Title:PREs I :D,sN-J Page 3 of3 Signature:_ Printed Name:--------- Title:------------ Signature:~ 409759.4 022806 MEM SC 2002-1 IN WITNESS WHEREOF,the parties have caused this CAM to be executed by their dilly authorized representatives as ofthe day and year first above written. CAPISTRANO VALLEY WATER DISTRICT, ORANGE COUNTY,CALIFORNIA Signature:()>ry\U ~\Aa >i''Sign:n111°&'U'_~--1r"~'--?1""""'7"'1~~_\ PrintedName:AJ'YJ}j AtluvtUU Title:Yu,b{i ~WUYts "'bt (~d-ol2... ECO RESOURCES,INC. Signature:_ Printed Name:_ Title:_ Page 3 of3 Signature:_ Printed Name:--------- Title:_ 409759.4 022806MEM Document No.11 CONTRACT ADMINISTRATION MEMORANDUM NO.SC 2002-2 410307.5022806 CLO SC 2002-2 Execution Copy San Juan Basin Desalter Project Contract Administration Memorandum No.SC 2002-2 Date:January 7,2003 This CONTRACT ADMINISTRATION MEMORANDUM ("CAM")is made pursuant to Section 16.2(B)ofthe Service Contract for the Design,Construction,Financing and Operation of the San Juan Basin Desalter Project between the Capistrano Valley Water District (the "District")and ECO Resources,Inc.(the "Company")dated September 3,2002 (the "Service Contract")for the purpose of confirming the agreement of the parties as to certain matters of interpretation and application which have arisen under the performance and implementation of the Service Contract.All capitalized terms used,but not defined,herein shall have the meanings defmed in the Service Contract. Subject:Resolution of certain title issues listed on the Site Title Lists and Amended and Restated Site Title Lists delivered to the District by the Company pursuant to Section 4.8 ofthe Service Contract Set forth below are the understandings ofthe District and the Company with respect to certain Site title matters appearing on the Site Title Lists and Amended and Restated Site Title Lists delivered to the District by the Company pursuant to Section 4.8 of the Service Contract (the "S ite Title Matters"). 1.The definition of "Preliminary Title Reports"or "PTR"set forth in Section 1.1 of the Service Contract shall be deemed to mean (a)with respect to CVWD Well Site #1,SJBA Well Site #2 and SJBA Well Site #4,the preliminary title report with respect to such Sites obtained by the District from First American Title Insurance Company dated as of September 23, 2002 and bearing order number 2227603,together with all supplements and amendments thereto, and OJ)with respect to all other Sites,the preliminary title reports with respect to such Sites obtained by the Company from Chicago Title Insurance Company each dated as of a date not earlier than 6 months prior to September 30,2002,together with all supplements and amendments thereto. 2.The District and the Company acknowledge that the District does not currently hold fee title to the Booster Pumping Station Site.In the event that the District ultimately acquires fee title to the Booster Pumping Station Site at the site currently indicated in the Service Contract,the District agrees that it will obtain an easement across the open space between the Booster Pumping Station Site and the right ofway for Rancho Viejo Road,along with securing a sufficient ingress and egress easement to the Booster Pumping Station Site,either across the aforementioned open space or from the roadway and utility easement planned to the east ofthe Booster Pumping Station Site. The District and the Company agree that the District may designate an alternative area within the legal parcels owned by the District or the City for the construction of the Booster Page 1 of4 407962.6022806 MEM SC 2002-2 Pumping Station,in which case the District shall issue a Change Order and the parties shall proceed in accordance with the provisions ofSection 6.11 ofthe Service Contract. The District and the Company agree that the Company shall not be obligated to provide a survey ofthe Booster Pumping Station Site pursuant to Section 4.2(A)(7)until the District makes a final designation of a suitable site for the Booster Pumping Station,and in no event shall the delivery ofthe survey for the Booster Pumping Station be a precondition to the occurrence ofthe Construction Date. 3.The District agrees to grant a temporary easement or license in favor of the Company over the remainder of Lot B of Tract 15998 adjacent to the SJBA Well Site #2 for purposes of temporary access in the performance of the Design/Build Work and storage of equipment during the Construction Period on terms that do not unreasonably interfere with or obstruct the rights ofother third parties as reflected in the easements already ofrecord. 4.The District represents that the City Clerk ofthe City will accept the dedication of South Alipaz Street on Tract No.6038 for public street purposes. 5.The District agrees to remove the District's equipment and personal property currently located on the Kinoshita Well Site. 6.With respect to the Plant Site,the District represents the following:(a)the instrument listed on the Preliminary Title Reports granting a permit/franchise to the County of Orange,State ofCalifornia for Orange County Waterworks District No.4 ('OCWD No.4")does not infringe on the right of the San Juan Basin Authority to extract water;and (b)OCWD No.4 is the predecessor to the District and the District is now the holder of the franchise rights to distribute water in the City and in certain parts ofDana Point,California. 7.With respect to CVWD Well Site #1,the District represents that (a)a partial assignment ofdeclarant rights executed by KB HOME Coastal,Inc.in favor of the District has been recorded,and (b)the grant deed of the Alipaz Community Association in favor of the District effecting lot line adjustment No.02-15858-13 has been recorded. 8.The District represents that,with respect to the Kinoshita Well Site,the easement referenced in exception #8 of the Preliminary Title Report has been acquired by the City,all improvements ha\e been made pursuant to the Agreement for Acquisition of Public Right of Way (as identified in exception #8 ofthe Preliminary Title Report relating to the Kinoshita Well Site,the "Acquisition Agreement"),and all of the City's obligations under the Acquisition Agreement have been met. 9.The District represents that,with respect to the Kinoshita Well Site,the drainage easement referenced in exception #9 ofthe Preliminary Title Report has been completed and all of the City's obligations under the Agreement for Acquisition of Drainage Easement (as identified in exception #9 of the Preliminary Title Report relating to the Kinoshita Well Site) have been met. Page 2 of4 407962.6 022806 MEM SC 2002-2 This CAM contains the entire agreement between the parties with respect to the Site Title Matters and supersedes all oral negotiations and prior writings with respect thereto,including, without limitation,the Site Title Lists and Amended and Restated Site Title Lists,certain correspondence from Pamela Privett to the District dated October 14,2002,certain correspondence from Neila Bernstein to Pamela Privett dated October 15,2002,certain correspondence from Pamela Privett to Neila Bernstein dated October 18,2002,and certain email correspondence from Pamela Privett to representatives ofthe District and its counsel dated October 22,2002.Accordingly,the Company acknowledges that all Site Title Matters have been satisfactorily addressed by the undertakings of the District pursuant to this CAM,and agrees to waive its right oftennination set forth in Subsection 4.8(E)ofthe Service Contract. This CAM may be executed in any number of original counterparts.All such counterparts shall constitute one and the same CAM. [Signature Page Follows] Page 3 of4 407962.6022806 MEM SC 2002-2 IN WITNESS WHEREOF,the parties have caused this CAM to be executed by their duly authorized representatives as ofthe day and year first above written. CAPISTRANO VALLEY WATER DISTRICT, ORANGE COUNTY,CALIFORNIA Signature:CimJ4 am 111 ~ PrintedName:/!rnA ~Ih~f ~ Title:f7LlbI/&{J2GYILS ~m ECO RESOURCES,INC. Signature:_ Printed Name:_ Title:_ Page40f4 Signature:_ Printed Name:_ Title:---------- 407962.6 022806 MEM SC 2002-2 IN WITNESS WHEREOF,the parties have caused this CAM to be executed by their duly authorized representatives as ofthe day and year fIrst above written. CAPISTRANO VALLEY WATER DISTRICT, ORANGE COUNTY,CALIFORNIA Signature:_ Printed Name:--------- Title:------------ ECO RESOURCES,INC. Signature:G~~ Printed Name:{tIER -T.Mcb£RBECt;;. Page40f4 Signature:_ Printed Name:-------- Title:----------- Signature:~ Printed Name:STEvw £.RJ(i4i*J>~(/N 407962.6 022806 MEM Document No.12 CONTRACT ADMINISTRATION MEMORANDUM NO.SC 2002-3 410307.5 022806 CLD SC 2002-3 Execution Copy San Juan Basin Desalter Project Contract Administration Memorandum No.SC 2002-3 Date:January 7,2003 This CONTRACT ADMINISTRATION MEMORANDUM ("CAM")is made pursuant to Section 16.2(B)ofthe Service Contract for the Design,Construction,Financing and Operation of the San Juan Basin Desalter Project between the Capistrano Valley Water District (the "District")and ECO Resources,Inc.(the "Company")dated September 3,2002 (the "Service Contract")for the purpose of confmning the agreement of the parties as to matters of interpretation and application which have arisen under the performance and application of the Service Contract.All capitalized terms used,but not defined,herein shall have the meanings defmed in the Service Contract. Subject:District Election as to Foundation Construction Method pursuant to Section 5.4(£)ofthe Service Contract Set forth below are the understandings of the District and the Company with respect to the District's right to elect to have the Company use the pile driving foundation construction method for the Plant pursuant to Section 5.4(E)ofthe Service Contract. 1.The Company acknowledges that it agreed,notwithstanding anything in the Service Contract to the contrary and without adjustment to the Scheduled Acceptance Date,to allow the District until November 15,2002 to make its election under Section 5.4(E)of the Service Contract to require the Company to use the pile driving construction method for the Plant foundation 2.By written notice dated November 13,2002,the District elected to have the Company use the pile driving foundation construction method for the Plant subject to the terms and conditions herein set forth.Accordingly,the Fixed Design/Build Price shall be reduced in accordance with Section 5.4(B)from $25,030,607 to $24,190,607. 3.The Company shall employ a sound attenuation system in connection with the construction of the Plant foundation in accordance with the minimum standards and specification;set forth in the Attachments hereto (the "Sound Attenuation System").All components of the Sound Attenuation System shall corq:>ly with the minimum standards and specifications set forth in the Attachments hereto. 4.The Company agrees to permit,procure,construct,test,utilize and remove the Sound Attenuation System for a fixed price of $584,035.29.The parties acknowledge that the $584,035.29 fixed price for the Sound Attenuation System constitutes a Fixed Design/Build Price Adjustment,increasing the Design/Build Price to $24,774,642.29. Page 1 of7 409539.7022806 MEM SC 2002-3 5.The Company agrees to utilize the Sound Attenuation System and to pay all costs associated with renting the components of the Sound Attenuation System for the duration ofthe pile driving operations relating to the constructio n of the Plant foundation,which shall not exceed 30 working days unless extended by normal construction delays as generally described in Section 6-6,Delays and Extensions of Time,of the 2000 'Greenbook"Standard Specifications for Public Works Construction 6.The Company shall conduct a sound reading test,in accordance with Attachment 3 and the Contract Standards,at its own costs and expense for each of the first three 1-day periods during the performance of the pile driving operations relating to the construction ofthe Plant foundation.The Company shall provide the District with a summary ofthe results ofeach such test within three business days ofthe performance thereof. 7.No later than 14 days before the completion of the pile driving C\'erations,the Company shall notify the District that its pile driving operations are nearing completion.The District shall have five days following such Company notification to elect to require the Company to continue to utilize all or a portion of the Sound Attenuation System for a period of 30 days following completion of the pile driving operations relating to the construction of the Plant foundation;provided that the District shall be responsible for the costs of renting the components ofthe Sound Attenuation System for such additional period in accordance with the following schedule: (a)the cost of renting the sound walls and blankets for the entire Sound Attenuation System shall not exceed $12,077 per month; (b)the cost of renting the sound wall for a portion of the Sound Attenuation System shall not exceed $12.53/LF per month;and (c)the cost of renting the sound blankets for a portion of the Sound Attenuation System shall not exceed $10.15/LF per month. This CAM contains the entire cgreement between the parties with respect to the District's election to require the Company to use the pile driving foundation construction method for the Plant pursuant to Section 5.4(E)of the Service Contract and supersedes all oral negotiations and prior writings with respect thereto. This CAM may be executed in any number of original counterparts.All such counterparts shall constitute one and the same CAM. [Signature Page Follows] Page 2 of7 409539.7022806 MEM SC 2002-3 IN WITNESS WHEREOF,the parties have caused this CAM to be executed by their duly authorized representatives as ofthe day and year fIrst above written. CAPISTRANO VALLEY WATER DISTRICT, ORANGE COUNTY,CALIFORNIA Signature:_ Printed Name:--------- Title:_ ECO RESOURCES,INC. Signature:~~ Printed Name:fEIER ,.Mcf.;F.J<!5f:.E../c' Title:f~Sl1)EN-, Page 3 of7 Signature:_ Printed Name:--------- Title:------------ Signature:~ Printed Name:~T£V£AJ E t?ICUft{t~0,J 409539.7022806 MEM SC 2002-3 IN WITNESS WHEREOF,the parties have caused this CAM to be executed by their duly authorized representatives as ofthe day and year first above written. CAPISTRANO VALLEY WATER DISTRICT, ORANGE COUNTY,CALIFORNIA Signature:~V)am 1Ii~ Printed Name:dM Y AM (f<tl t\J I Tit1e:~tr[lC,LUl>fb ~~cb2. ECO RESOURCES,INC. Signature:_ Printed Name:--------- Title:._---------- Page 3 of7 Signa Title:QerJ!iR&L (}?tWAb'm Signature:_ Printed Name:--------- Title:----------- 409539.7022806MEM SC 2002-3 Attachment 1 Location &Height The sound wall and blankets in question are to be in the locations and have the minimwn heights as depicted the attached sketch titled the "Pile Driving Sound Mitigation System." [Insert Map -pdfFile] Page 4 of7 409539.7022806 MEM SC 2002-3 Attachment 2 Minimum Standards and Specifications The components ofthe Sound Attenuation System,including the sound wall,blankets,and pile driving shroud,will be constructed by the Company to meet the minimum standards set forth below. Pile Driver Shroud 1.During pile driving,the pile and hammer shall be completely enclosed on all sides by an acoustical shroud.The shroud shall extend from the ground to a point at least 5'above the top ofthe pile to be driven.The acoustical shroud,held in place by a crane,shall surround the pile driving assembly during pile driving activities. 2.A 360°-cylindrical metal framework shall be constructed for the shroud to support the weight ofthe attached acoustical blankets.The framework shall be centered on the pile to be driven, and shall have a diameter equal to the diameter ofthe pile plus 6'. 3.Acoustical blankets shall be firmly secured to the outside ofthe framework with the sound absorptive side ofthe blankets oriented towards the interior ofthe shroud (i.e.,towards the pile).The blankets shall be overlapped by at least 6"at seams and taped so that no gaps exist in the shroud.The largest blankets available shall be used to form the shroud in order to minimize the number ofseams.The blankets shall be draped on the ground to eliminate any gaps at the base ofthe shroud. 4.Acoustical blankets shall be fmnly secured to the top ofthe shroud with the sound absorptive side ofthe blankets oriented towards the interior ofthe shroud (i.e.,towards the pile).The number and size ofgaps needed for the safe operation ofthe pile driver shall be kept to a minimum. 5.The acoustical blankets shall provide a minimum sound transmission class (STC)of27 and a minimum noise reduction coefficient of 1.00.The acoustical blankets shall provide the following minimum octave-band sound transmission loss values: 6.The acoustical blankets shall be oil-and UV-resistant,anti-fungal and flame retardant. 7.A view window shall be incorporated into the acoustical blankets in order to facilitate the operation ofthe pile driver.The window shall be constructed ofclear vinyl material that weighs at least 1 pound per square foot.The seams where the window attaches to the acoustical blankets shall be tightly sealed to eliminate gaps.The size of the window shall be kept to the minimum required for safe operation ofthe pile driver.At all times the window shall be orie nted to the east away from the mobile home park. Sound Wall Specifications 1.During pile driving,a sound wall constructed ofacoustical blankets shall enclose the job site. 2.A wooden or metal framework shall be constructed around the perimeter of the job site to support the weight ofthe attached acoustical blankets.A qualified structural engineer shall Page 50f7 409539.7022806 MEM SC 2002-3 review the design ofthe framework to ensure its adequacy for wind load and other necessary considerations. 3.Where feasible and appropriate,the acoustical blankets shall be attached to existing buildings rather than the framework ofItem 2,above.A qualified structural engineer shall examine the existing buildings to ensure that they can support the additional weight,and shall review the design ofthe blanket attachments to ensure its adequacy for wind load and other necessary considerations. 4.Acoustical blankets shall be firmly secured to the outside ofthe framework or building with the sound absorptive side ofthe blankets oriented towards the interior ofthe job site.The blankets shall be overlapped by at least 6"at seams and taped so that no gaps exist in the sound wall.The largest blankets reasonably available shall be used to form the sound wall in order to minimize the number ofseams.The blankets shall be draped on the ground,or buried and back-filled,to eliminate any gaps at the base ofthe sound wall. 5.The acoustical blankets shall provide a minimum sound transmission class (STC)of27 and a minimum noise reduction coefficient of 1.00.The acoustical blankets shall provide the following minimum octave-band sound transmission loss values: 6.Ingress and egress to the job site shall be through doors located on the north or east side of the sound wall enclosure.These doors shall be,in the reasonable judgment ofthe Company, the minimum size necessary for moving equipment into and out ofthe job site,shall be constructed ofthe same acoustical blanket material as the sound wall and shall overlap the sound wall by a minimum of6"around the perimeter to form a continuous barrier to the job site noise when closed.A hook-and-loop material shall be used to keep the overlapping portions ofthe blankets in place when tre doors are closed.The doors shall be kept closed at all times except when used for ingress and egress to the job site. 7.The acoustical blankets shall be oil-and UV-resistant,ant~fungal and flame retardant. Page 6 of7 409539.7022806 MEM SC 2002-3 Attachment 3 Sound Reading Tests The sound reading tests to be conducted by the Company pursuant to paragraph 6 ofthis CAM shall be conducted at three separate sites for at least three days ofconstruction activities.The Company shall compare the fmdings ofthe sound reading tests to standards provided by the City, and shall compile such findings in a technical report for review by the District.Measurements will be attended by a technician for a portion ofthe work-day,and continuous unattended measurements shall be taken for the duration ofeach measurement period. Page 70f7 409539.7022806 MEM Document No.13 CONTRACT ADMINISTRATION MEMORANDUM NO.SC 2002-4 410307.5 022806 CLD SC 2002-4 Execution Copy San Juan Basin Desalter Project Contract Administration Memorandum No.SC 2002-4 Date:January 7,2003 This CONTRACT ADMINISTRATION MEMORANDUM ("CAM")is made pursuant to Section 16.2(B)ofthe Service Contract for the Design,Construction,Financing and Operation of the San Juan Basin Desalter Project between the Capistrano Valley Water District (the "District")and ECO Resources,Inc.(the "Company")dated September 3,2002 (the "Service Contract")for the purpose of confrrming the agree~nt of the parties as to matters of interpretation and application which have arisen under the performance and implementation of the Service Contract.All capitalized terms used,but not defined,herein shall have the meanings defmed in the Service Contract. Subject:Designation ofConstruction Subcontractor under Subsection 16.7(D)ofthe Service Contract Set forth below are the understandings of the District and the Company with respect to the designation of the construction Subcontractor under subsection 16.7(D)of the Service Contract. 1.The District and the Company acknowledge and agree that the Company shall utilize ARB,Inc.as the Subcontractor for the performance of construction services for the Project.Accordingly,subsection 16.7(D)ofthe Service Contract shall read,"The Company shall utilize Boyle Engineering,ARB,Inc.and Osmonics Corporation as Subcontractors supplying,respectively,the primary design,construction and membrane system services and equipment for the Project." 2.Item 3 of Appendix 17 to the Service Contract shall read,"ARB,Inc.for construction services". This CAM contains the entire agreement between the parties with respect to the designation ofthe construction Subcontractor under subsection 16.7(D)of the Service Contract and supersedes all oral negotiations and prior writings with respect thereto. This CAM may be executed in any number of original counterparts.All such counterparts shall constitute one and the same CAM. [Signature Page Follows] Page 1 of2 411851.3·022806 MEM SC 2002-4 IN WITNESS WHEREOF,the parties have caused this CAM to be executed by their duly authorized representatives as ofthe day and year frrst above written. CAPISTRANO VALLEY WATER DISTRICT, ORANGE COUNTY,CALIFORNIA Signature:_ Printed Name:--------- Title:_ ECO RESOURCES,INC. Signature:auiJ~ Printed Name:fETEIZ ~CP£RJ~\:..FJc. Title:_(?Rc<;'J>B tv '"I Page 2 of2 Signature:_ Printed Name:--------- Title:----------- Signature:~dVh;) Printed Name:9tf;.vtlJ t-,Rict./ApQJjJ 411851.3 022806 MEM SC 2002-4 IN WITNESS WHEREOF,the parties have caused this CAM to be executed by their duly authorized representatives as ofthe day and year first above written. CAPISTRANO VALLEY WATER DISTRICT, ORANGE COUNTY,CALIFORNIA Signature:C1rn 19-mVJ~ Printed Name:AnJ~\VOJtl) Title:illn ie~WO'f/tS ~{e.drYL ECO RESOURCES,INC. Signature:_ Printed Name:_ Title:_ Page 2 of2 Signa~~~~~_-I----'-'" 0Vfft Title:GmuaR M.a.A.a-.iJ!d!:. Signature:_ Printed Name:--------- Title:------------ 411851.3 022806 MEM Document No.14 CONTRACT ADMINISTRATION MEMORANDUM NO.SC 2002-5 410307.5 022806 CLD SC 2002-5 Execution Copy San Juan Basin Desalter Project Contract Administration Memorandum No.SC 2002-5 Date:January 7,2003 This CONTRACT ADMINISTRATION MEMORANDUM ("CAM")is made pursuant to Section 16.2(B)ofthe Service Contract for the Design,Construction,Financing and Operation of the San Juan Basin Desalter Project between the Capistrano Valley Water District (the "District")and ECO Resources,Inc.(the "Company")dated September 3,2002 (the "Service Contract")for the purpose of confirming the agreement of the parties as to matters of interpretation and application which have arisen under the performance and implementation of the Service Contract.All capitalized terms used,but not defined,herein shall have the meanings defmed in the Service Contract. Subject:Closing the Development Period Set forth below are the understandings of the District and the Company with respect to the closing ofthe Development Period and the establishment ofthe Construction Date. 1.The District and the Company acknowledge and agree that all Construction Date Conditions precedent to the establishment ofthe Construction Date contained in Article IV of the Service Contract have been satisfied or waived,as the case may be,pursuant to and in accordance with the terms and conditions of the Service Contract and that certain Joint Acknowledgement of Acceptance of Certain Construction Date Conditions and Other Related Matters dated January 7,2002 by and between the District and the Company (attached hereto as Exhibit A,the "Joint Acknowledgement"). 2.The District and the Company acknowledge and agree that,as ofJanuary 8,2003, the Development Period is terminated,the Construction Date has occurred and the Construction Period has commenced. 3.The Company agrees to waive its right of termination set forth in subsection 4.10(A)of the Service Contract.Such waiver shall be deemed an election not to terminate pursuant to subsection 4.10(B)of the Service Contract,and the Company shall pay the District $1,530,000 from its own funds as the second installment ofthe Transaction Cost Reimbursement Payment in accordance with subsectbn 4.10(C)ofthe Service Contract 4.The District acknowledges that it has achieved (a)modification of the Metropolitan Agreemett to the effect described in item (3)of Section 4.3 of the Service Contract,and (b)agreement with the San Juan Basin Authority to the effect described in item (4) of Section 4.3 of the Service Contract.Accordingly,the District agrees that it shall have no further right of termination under Section 4.11 of the Service Contract.The District further acknowledges and agrees that,as the Construction Date has been established and the Bond Page 1of4 410111.2022806 MEM SC 2002-5 Issuance Date has occurred,its rights of tennination under Sections 13.5,13.6 and 13.7 of the Service Contract have expired. This CAM,along with the Service Contract and the attached Joint Acknowledgement, contains the entire agreement between the parties with respect to the closing ofthe Development Period and the establishment of the Construction Date and supersedes all prior oral negotiations and writings with respect thereto. This CAM may be executed in any number of original counterparts.All such counterparts shall constitute one and the same CAM. [Signature Page Follows] Page 2 of4 410111.2022806 MEM EXHIBIT A Page 4 of4 SC 2002-5 410111.2 022806 MEM SC 2002-5 IN WITNESS WHEREOF,the parties have caused this CAM to be executed by their duly authorized representatives as ofthe day and year first above written. CAPISTRANO VALLEY WATER DISTRICT, ORANGE COUNTY,CALIFORNIA Signature:04V\,l1l:2m U~ Printed Name:11t11Jj t1lVLL rt1iUJ Title:krt WOYIt:.-s DI/ldrJ12. ECO RESOURCES,INC. Signature:_ Printed Name:--------- Title:_ Page 3 of4 e-5}(lJLyIf~ Title:C&1erallA.ttArJ.9t.1< Signature:_ Printed Name:._-------- Title:------------ 410111.2022806 MEM SC 2002-5 IN WITNESS WHEREOF,the parties have caused this CAM to be executed by their duly authorized representatives as ofthe day and year fIrst above written. CAPISTRANO VALLEY WATER DISTRICT, ORANGE COUNTY,CALIFORNIA Signature:_ Printed Name:_ Title:------------ ECO RESOURCES,INC. Signature:~ Title:~Rl:-<;I ])&JT Page 3 of4 Signature:_ Printed Name:--------- Title:------------ Signature~~ 410111.2022806 MEM Document No.9 JOINT ACKNOWLEDGMENT OF ACCEPTANCE OF CERTAIN CONSTRUCTION DATE CONDITIONS AND OTHER RELATED MATTERS This is a Joint Acknowledgment by the Capistrano Valley Water District,Orange County, California (the "District"),and ECO Resources,Inc.,a Texas corporation(the "Company"), pursuant to Section 4.9 ofthe Service Contract for the Design,Construction,Financing and Operation ofthe San Juan Basin Desalter Project (as hereinafter defmed). RECITALS WHEREAS,the District and the Company have entered into the Service Contract for the Design,Construction,Financing and Operation ofthe San Juan Basin Desalter Project dated as ofSeptember 3,2002 (the "Service Contract";capitalized terms used but not defmed herein are as defined in the Service Contract); and WHEREAS,the establishment ofthe Construction Date and the commencement of the Construction Period are subject to the satisfaction or waiver ofthe Construction Date Conditions set forth in Article IV ofthe Service Contract. NOW,THEREFORE,in consideration ofthe premises contained herein and intending to be legally bound hereby,the District and the Company hereby jointly acknowledge and agree as follows: Joint ConstructionDate Conditions 1.Pursuant to subsection4.5(A)(6)of the Service Contract,the Company has held a preconstruction conference with the District and the District Engineer. 2.Pursuant to subsection 4.5(A)(7)of the Service Contract,the Bond Issuance Date has occurred as ofJanuary 8,2003. 3.Pursuant to subsection 4.5(A)(8)of the Service Contract,all of the documents and instruments identified in Sectioffi 4.2,4.3 and 4.5 ofthe Service Contract are in fonn and substance reasonably satisfactory to both parties,and are valid,in full force and effect and enforceable against each party thereto as of the date hereof.No such document,instrument or agreement is subject to the satisfaction of any outstanding condition precedent except those expressly to be satisfied after the date hereofunder the Service Contract or under this Joint Acknowledgement.No party to any such document,instrument or agreement has repudiated or is in default or imminent default thereunder,and each party has received such certificates or other evidence reasonably satisfactory to it ofsuch facts as such party has reasonably requested. 4.Pursuant to subsection 4.5(A)(9)ofthe Service Contract,there is no Legal Proceeding before or by any Governmental Body,pending or threatened,which:(1)challenges, or might challenge,directly or indirectly,(a)the authorization,execution, delivery, 2 410307.4 022806 CLD validity or enforceability of the Service Contract or the Service Contract Guaranty Agreement from Southwest Water Company to the District dated as of September 3, 2002,or (b)the interest ofthe District in the Sites;(2)seeks to enjoin or restrict the use ofthe Sites for the purposes contemplated by the Service Contract;or (3)seeks damages,fines,remediation or any other remedy in connection with the environmental condition or any other factor pertaining to the Sites,in any such case which can reasonably be expected to materially and adversely affect the District's or the Company's ability to comply with its obligations under the Service Contract. Company Commencement Date Conditions 5.Pursuant to subsection 4.2(A)(I)ofthe Service Contract,the Company represents that it has made all further soil test borings and conducted sufficient analyses of subsurface conditions,inspectnns and applicable site history reviews of the Sites,in each case as necessary under Good Engineering and Construction Practice to prepare for excavation and construction in accorda~e with Applicable Law and to obtain all required Governmental Approvals. 6.Pursuant to subsection 4.2(A)(2)ofthe Service Contract,the Company has submitted the demolition plan and the stormwater,drainage and erosion control plan to all appropriate Governmental Bodies.The District agrees to waive completion of the Company's obligations under subsection 4.2(A)(2)as a Construction Date Condition, provided that all other Sites-related plans shall be submitted by the Company sequentially to all appropriate Governmental Bodies throughout the Construction Period as required to obtain and maintain all Governmental Approvals necessary to complete the Design/Build Work and achieve Acceptance.In no event shall the District's waiver of the Company's obligations under subsection 4.2(A)(2)as a Construction Date Condition release the Company from its obligations with respect to permitting under Section 4.6 of the Service Contract.The Company shall use all commercially reasonable efforts to obtain the Construction Governmental Approvals and the CADHS Approval as expeditiously as possible. 7.Pursuant to subsection 4.2(A)(3)ofthe Service Contract,the Company has submitted completed applications for the demolition permits to all appropriate Governmental Bodies.The District agrees to waive completion ofthe Company's obligations under subsection 4.2(A)(3)as a Construction Date Condition,provided that,during the Construction Period,the Company shall prepare and submit,on its own behalfor on behalf of the District or the City as applicant,all other completed applications and take all other steps which are necessary under Applicable Law to obtain and maintain all Construction Governmental Approvals in accordance with Section 4.6 of the Service Contract and each in fonn and substance satisfactory to the District.In no event shall the District's waiver of the Company's obligations under subsection 4.2(A)(2)as a Construction Date Condition release the Company from its obligations with respect to permitting under Section 4.6 of the Service Contract.The Company shall use all commercially reasonable efforts to obtain the Construction Governmental Approvals and the CADHS Approval as expeditiously as possible. 3 410307.4 022806 CLD 8.Pursuant to subsection 4.2(A)(4),the Company has conducted the source water pilot test in accordance with Section 4.7.The District hereby waives its rights of termination under subsections 4.7(B)and Section 13.5 of the Service Contract on the basis ofthe results ofthe source water pilot test. 9.Pursuant to subsection 4.2(A)(5)of tre Service Contract,the Company has commenced the performance ofits environmental investigation and report preparation obligations under the Service Contract,including those obligations set forth in Appendix 20.The District agrees to waive the completbn of the Company's obligations under subsection 4.2(A)(5)as a Construction Date Condition,provided that,during the Construction Period,he Company shall prepare and submit,on its own behalf or on behalf of the City or the District as applicant,any environmental notification forms and impact reports with respect to the Project which are required under Applicable Law to undertake and complete the Project. 10.The District agrees to waive completion of the obligations of the Company under subsection 4.2(A)(6)of the Service Contract as a Construction Date Condition, provided that,within 120 days after the Construction Date,the Company shall determine whether the District or the City will be required to grant Utility easements on the Sites in connection with the Design/Build Work,and the Company shall provide the District with complete descriptions of all utility connections and routes necessary for such purposes. 11.Pursuant to subsection 4.2(A)(7)ofthe Service Contract,the Company has prepared and delivered to the District a property line survey ofthe Sites as of a date subsequent to October 15,2002 (independent'from and in addition to the survey furnished by the District pursuant to item (1)of Section 4.3 of the Service Contract)showing:(a)the exact dimensions and locations thereof;and (b)the exact location of all means of access thereto and all easements relating thereto.The District agrees to waive the completion of the Company's obligations under subsection 4.2(A)(7)as a Construction Date condition,provided that,within 60 days of the date hereof,the Company shall prepare and deliver to the District a completed property line survey showing,in addition to items (a)and (b)above;(1)that the proposed location ofeach component of the Project on the Sites is in compliance with all applicable building and setback lines and does not encroach on or interfere with existing easements in any manner that violates Applicable Law or contractual obligations (whether on,above or below ground);(2)any gaps,zones,projections,protrusions,or encroachments from adjacent property onto the Sites and any encroachments from the Sites onto any adjacent property from sources other than the Project Improvements;and ~)that there will be no encroachments from the Project Improvements extending to adjacent property,nor any other material survey defects arising from the siting ofthe Project Improvements on the Sites.In the event that such completed property line survey shows that the requirements ofsubsectbn 4.2(A)(7)have not been met,the Company agrees to assume all risk associated therewith. 12.With respect to the Company's obligations under subsection 4.2(A)(8)of the Service Contract,the Company represents that no changes in Zoning classification are 4 410307.5022806 CLD from the Utilities providers evidenc ing such availability are attached hereto as Exhibit A. 14.Pursuant to subsection 4.2(A)(10)of the Service Contract,the Company has submitted copies of the demolition plan and the stormwater,drainage and erosion control plan to the District The District agrees to waive completion of the Company's obligations under subsection 4.2(A)(10)of the Service Contract as a Construction Date Condition,provided that all other plans,technical specifications, blueprints,drawings and other design documents relating to the Project prepared by or on behalf of the Company for permitting,regulatory,financing,bonding,credit enhancement and insurance purposes,shall be submitted by the Company sequentially to the District throughout the Construction Period. 15.Pursuant to subsection 4.2(A)(11)ofthe Service Contract,the Company has provided the District with the "critical path method"schedule for the Design/Build Work covering the Major Project Equipment and Project Structures. 16.Pursuant to subsection 4.2(A)(12)of the Service Contract,the Company has negotiated and executed the design,construction and membrane system services and equipment Subcontracts in accordance with the requirements ofsubsection 16.7(D)of the Service Contract. 17.Pursuant to subsection 4.2(A)(13)ofthe Service Contract,the Company has obtained and delivered to tre District the Construction Performance Bond and Payment Bond as required by Section 15.2 ofthe Service Contract. 18.Pursuant to subsection 4.2(A)(14)of the Service Contract,the Company has submitted to the District certificates ofinsurance for all Required Construction Period Insurance specified in Appendix 11 to the Service Contract. 19.Pursuant to subsection 4.2(A)(15)ofthe Service Contract,the Company has obtained and delivered to the District the Service Contract Letter of Credit as required by Section 15.3 ofthe Service Contract. 20.The Company has delivered to the District executed certificates of the Company and the Guarantor certifying as to the matters set forth in subsections 4.2(A)(17),(18), and (21). 21.Pursuant to subsection 4.2(A)(l9)ofthe Service Contract,the Company has provided the District with audited fmancial statements of the Guarantor for the most recently completed fiscal year and quarterly period. 22.Pursuant to subsection 4.2(A)(22)of the Service Contract,the Company represents that it has provided the District copies of all filings and reports conducted,prepared or obtained with respect to or evidencing the Company's activities pursuant to Section 4.2 and 4.6 ofthe Service Contract. 5 410307.4 022806 CLD 23.Pursuant to subsection 4.2(A)(20)of the Service Contr~ct,the Company has commenced initial construction of the Project as provided and subject to the limitations set forth in Section 4.4 ofthe Service Contract. District ConstructionDate Conditions 24.Pursuant to subsection 4.3(1)ofthe Service Contract,the District has delivered to the Company existing metes and bounds property descriptions and existing survey infonnation. 25.Pursuant to subsection 4.5(A)(3)ofthe Service Contract,the Metropolitan Agreement has been amended to the effect described in item (3)of Section 4.3 of the Service Contract. 26.Pursuant to subsection 4.5(A)(4)ofthe Service Contract,agreement has been reached with the San Juan Basin Authority to the effect described in item (4)ofSection 4.3. 27.Pursuant to subsection 4.3(5)ofthe Service Contract and subject to the provisions of Section 4.6 ofthe Service Contract,the District has cooperated with the Company in the submission of all applications for Governmental Approvals,if any,which the Company is obligated to submit pursuant to Section 4.2 ofthe Service Contract. Other Items Related to the Construction Date and commencement ofthe ConstructionPeriod 28.Pursuant to subsection 5.3(D)of the Service Contract,the Company and the Guarantor have entered into the Company Financing Support Agreements as of the date hereof. 29.Pursuant to Section 6.1 of the Service Contract,the District,the Company,the Trustee and the Independent Engineer have each designated in writing an Authorized Representative. 30.Pursuant to Appendix 6 ofthe Service Contract,the Company has submitted a design submittal protocol and schedule to the District. 31.Pursuant to Appendix 14 ofthe Service Contract,the Company has submitted a safety and security plan for the Construction Period to the District. 32.Pursuant to Appendix 15 of the Service Contract,the Company has submitted to the District for approval a proposal for a comprehensive community outreach plan. 6 410307.4 022806 CLD ()II,,,,.~WITNESS WHEREOF,the parties have hereunto set their hand as ofthe 7'P-fday ofrr-'?en}. THE CAPISTRANO VALLEY WATER DISTRICT By:_ George Scarborough District Manager 7 410307.4 022806 CLD L.'"~n~~WITNESS WHEREOF,the parties have hereunto set their hand as ofthe,Htday of-....{M'~~_~.,1t!!!l. ALLEY WATER DISTRICT ECO RESOURCES,INC. By:_ Authorized Officer 7 410307.4022806 CLD ECO Resources,Inc. September 15,2006 Water &:Wastewater Operations Management.., t ,·tf;'It"•,~LV !,~ City ofSan Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano,California 92675 Attention:Meg Monahan ~~::xlrn20~('")J>~rn-:r:.-< VIA FACSIMILE ~V.~~~-0;0 .- J>-(3 Re:Notice ofInsufficiency ofWellfield Supply ofRaw Water Dear Madame Clerk: This letter constitutes formal notice to the City of San Juan Capistrano ("City")of an insufficiency in the Wellfield supply ofRaw Water under the terms ofthat certain Service Contract for the Design,Construction,Financing and Operation of the San Juan Desalter Project ("Service Contract")between ECO Resources,Inc.("ECO") and the City.All capitalized terms utilized in this letter which are not defined herein have the meanings ascribed to them in the Service Agreement. As the City is aware,since approximately August 14,2006,the San Juan Desalter Project Wellfield has failed to produce a sufficient supply ofRaw Water to meet the City's demands for Finished Water.This condition jeopardizes the ability of ECO to meet the Service Contract's Water Delivery Guarantee. The occurrence of the above-referenced condition constitutes grounds under the Service Contract to relieve ECO of its Water Delivery Guarantee obligations under Section 9.3 of the Service Contract.Specifically,Section 9.3(L)of the Service Contract provides,in pertinent part: In the event that at any time during the Term hereof the eight Wells installed by the Company,when designed,constructed and maintained by the Company in accordance with the Contract Standards,do not produce a supply ofRaw Water 101 Parkshore Drive,Ste.100 •Folsom,CA 95630 •(916)932-2902 •Fax (916)932-2903 Water&Wastewater Operations Management ECD Resources,Inc. City Clerk City ofSan Juan Capistrano September 15,2006 Page 2 sufficient to enable the Company to meet the Water Delivery Guarantee,...[t]he Company shall be relieved of its obligation to comply with the Water Delivery Guarantee to the extent of such Raw Water supply insufficiency,pending the completion ofthe additionally required wells. As such,this letter provides formal notice to the City that,pursuant to the terms of Section 9.3(L)of the Service Contract,ECO is relieved of its responsibility to meet the Service Contract's Water Delivery Guarantee. Alternatively,at a minimum,the above-described condition constitutes an Uncontrollable Circumstance under the Service Contract thereby entitling ECO Resources,Inc.to relief from the Service Contract's Water Delivery Guarantee. Specifically,Article 1 of the Service Contract defmes an "Uncontrollable Circumstance" as follows: 'Uncontrollable Circumstance'means any act,event or condition that is beyond the reasonable control of the party relying thereon as justification for not performing an obligation or complying with any condition required of such party under this Service Contract,and that materially interferes with or materially increases the costs ofperforming its obligations hereunder . . . The cause ofECO's inability to meet the City's Daily Water Demand is the insufficiency of the Raw Water that is being produced by the Wellfield.This condition relates to the location of the Wells and the condition of the aquifer and is beyond the reasonable control of ECO Resources,Inc.Consequently,if ECO is not fully relieved of its obligations under the Water Delivery Guarantee as a result ofthe City's failure to provide sufficient Raw Water under the terms of the Service Contract,this condition falls squarely within the definition of an Uncontrollable Circumstance.As such,ECO is also entitled to relief from the Water Delivery Guarantee on the basis of this Uncontrollable Circumstance. Water &WastewaterOperationsManagement ECO Resources,Inc. ECO looks forward to receiving the City's plan for resolving the Raw Water shortfall.In the interim,should you have any questions about any of the matters discussed herein,please do not hesitate to give me a call. Very truly your~ ~O)~P Tom O'Neill ECO Resources,Inc. Cc:Dave Adams (By Facsimile and First Class Mail) Eric Bauman (by Facsimile) City of San Juan Capistrano Contract/Agreements Application 9153530505 ECO RESOURCES SACTO PAGE 02 w......w.........~Mar..ml ECO Resources,Inc. September 15,2006 VIA FACSIMILE AND U.S.MAIL City ofSan Juan Capistrano 32400 Pasco Adelanto San Juan Capistrano,California 92675 Attention:Meg Monahan Re:Notice of Insufficiency ofWellfield Supply ofRaw Water Dear Madame Clerk: This letter constitutes formal notice to the City of San Juan Capistrano ("City")of an insufficiency in the Wellfield supply of Raw Water under the terms of that certain Service Contract for the Design,Construction,Financing and Operation of the San Juan Desalter Project ("Service Contract")between ECO Resources,Inc.("ECO") and the City.All capitalized tenns utilized in this letter which are not defined herein have the meanings ascribed to them in the Service Agreement. As the City is aware,since approximately August 14,2006,the San Juan Desalter Project Wellfield has failed to produce a sufficient supply of Raw Water to meet the City's demands for Finished Water.nus condition jeopardizes the ability of ECO to meet the Service Contract's Water Delivery Guarantee. The occurrence of the above-referenced condition constitutes grounds Wider the Service Contract to relieve ECO of its Water Delivery Guarantee obligations under Section 9.3 of the Service Contract.Specifically,Section 9.3(L)of the Service Contr t provides,in pertinent part: In the event that at any time during the Term hereof the eight Wells installed by the Company,when designed,constructed and maintained by the Company in accordance with the Contract Standards,do not produce a supply ofRaw Water ,YuJDtYL.1 c~~ftUt.A/l'(!~{4~\{!~U--C{("/I 1/r- 101 Parkshore Drive,Ste.100 •Fol8om,CA 95630 •(916)932-2902 •Fax.(916)932-2903 ~9/18t2006 13:28 9163530605 ECO RESOURCES SAcra PAGE 03 ECOResources,Inc. City Clerk City ofSan Juan Capistrano September 15,2006 Page 2 sufficient to enable the Company to meet the Water Delivery Guarantee,. . .[t]he Company shall be relieved of its obligation to comply with the Water Delivery Guarantee to the extent of such Raw Wata supply insufficiency,pending the completion ofthe additionally required wells. As such,this letter provides formal notice to the City tha~pursuant to the terms of Section 9.3(L)of the Service Contract,ECO is relieved of its responsibility to meet the Service Contract's Water Delivery Guarantee. Alternatively,at a minimum,the above-described condition constitutes an Uncontrollable Circumstance Wlder the Service Contract thereby entitling ECO Resources,Inc.to relief from the Service Contract's Water Delivery Guarantee. Specifically,Article 1 of the Service Contract defmes an "Uncontrollable Circumstance" as follows: 'Uncontrollable Circumstance'means any act,event or condition that is beyond the reasonable control of the party relying thereon as justification for not perfonning an obligation or complying with any condition required of such party under this Service Contract,and that materially interferes with or materially increases the costs of performing its obligations hereunder ... The cause of ECQ"s inability to meet the City's Daily Water Demand is the insufficiency of the Raw Water that is being produced by the Wellfield.This condition relates to the location of the Wells and the condition of the aquifer and is beyond the reasonable control of ECO Resources,Inc.Consequently,if ECQ is not fully relieved of its obligations under the Water Delivery Guarantee as a result ofthe City's failure to provide sufficient Raw Water WIder the terms of the Service Contract,this condition falls squarely within the definition of an Uncontrollable Circumstance.As suc~ECO is also entitled to relief from the Water Delivery Guarantee on the basis of this Uncontrollable Circumstance. 09/18/2006 13:28 9163530605 ECO RESOURCES SACTO PAGE 04 ECDResources,Inc. ECO looks forward to receiving the City's plan for resolving the Raw Water shortfall.In the interim,should you have any questions about any of the matters discussed herein.please do not hesitate to give me a call. ~aA2t/ Tom O'Neill ECO Resources,Inc. Cc:Dave Adams (By Facsimile and First Class Mail) Eric Bawnan (by Facsimile) ECO Resources,Inc. September 15,2006 Water &Wastewater Operations Management RECEIVED ZOA SEP '8 P ,:23 CITY CLEHK SAN JUAt~CAPISTRANO VIA FACSIMILE AND U.S.MAIL City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano,California 92675 Attention:Meg Monahan Re:Request for Change of Service Contract Notice Address for ECO Resources,Inc. Dear Madame Clerk Section 16.15(B)of Service Contract for the Design,Construction,and Operation of the San Juan Basin Desalter Project ("Service Contracf')sets forth the addresses to which formal notices under the Service Contract are required to be sent. With respect to notices to ECO Resources,Inc.,the Service Contract provides that notices should be sent to ECO's Facilities Manager with a copy to ECO's Western Regional Vice-President,located in Pleasanton,California.Section 16.15(A)allows the parties to designate further or different addresses to which notices should be sent. As you may know,Steve Richardson,formerly ECO's Western Regional Vice-President has left ECO's employ.Therefore,in order to insure that the copy of any notices sent by the City under Section 16.15 is directed to the appropriate person,ECO Resources,Inc.requests that in lieu of the copy being provided to the Western Regional Vice-President,that said copy be sent to ECO Resources,Inc.as follows: Tom O'Neill Business Development Manager 101 Parkshore Dr. Suite 100 Folsom,CA 95630 101 Parkshore Drive,Ste.100 •Folsom,CA 95630 •(916)932-2902 •Fax (916)932-2903 Water &Wastewater Operations Management ECD Resources,Inc. City Clerk City ofSan Juan Capistrano September 15,2006 Page 2 Should you have any questions about this request,please do not hesitate to give me a call. Vel)'truly yoursj /)'''1 ~V ~:~'.i{~" Tom O'Neill ECO Resources,Inc. cc:Dave Adams (By Facsimile and First Class Mail) Eric Bauman (By Facsimile) 9153530505 ECO RESOURCES SACTO PAGE 02 WMa.~...o,...""M .... ECO Resources,Inc. September 15,2006 VIA FACSIMILE AND U.S.MAIL City ofSan Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano,CalifornIa 92675 Attention:Meg Monahan Re:Request for Change ofService Contract Notice Address for ECQ ResoW"ces,Inc. Dear Madame Clerk Section 16.15(B)of Service Contract for the Design,Construction,and Operation of the San Juan Basin Desalter Project C'Service Contracf')sets forth the addresses to which formal notices under the Service Contract are required to be sent. With respect to notices to ECO Resources,Inc.,the Service Contract provides that notices should be sent to ECQ's Facilities Manager with a copy to ECO's Western Regional Vice-President,located in Pleasanton,California.Section 16.15(A)allows the parties to designate further or different addresses to which notices should be sent. As you may know,Steve Richardson,formerly ECQ's Western Regional Vice-President has left ECO's employ.Therefore,in order to insure that the copy of any notices sent by the City under Section 16.15 is directed to the appropriate person,ECO Resources,Inc_requests that in lieu of the copy being provided to the Western Regional Vice...President,that said copy be sent to ECO Resources,Inc.as follows: Tom O'Neill Business Development Manager 19 101 Parkshore Dr. ~Suite 100 ;Folsom.CA 95630 1 ~ '-~.VuJ DCIZ->~~) 101 Parkahorc Drivc,Sr.e.100 •Fol~m,CA 95630 •(916)932-2902 •Fax (916)932-2903 --------_........•__.•._.09/15/2~05 15:55 9153530505 ECO RESOURCES SACTO PAGE 03 ECO Resources,Inc. City Clerk City ofSan Juan Capistrano September 15,2006 Page 2 Should you have any questions about this request,please do not hesitate to give me a call. Very truly Y02u£S ..' /;;;;(0 ~~,11 Tom O'Neill ECO Resources)Inc. cc:Dave Adams (By Facsimile and First Class Mail) Eric Bauman (By Facsimile) PRODUCER Marsh Risk &Insurance Services 4695 MacArthur Court,Suite700 (949)399-5800 License #0437153 Newport Beach,CA 92660 20346-00-00-06-07 CERTIFICATE NUMBER L()S~343161-11 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER OTHER THAN THOSE PROVIDEDIN THE POUCY.THIS CERTIFICATE DOES NOT AMEND,EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES DESCRIBED HEREIN. COMPANIES AFFORDING COVERAGE COMPANY A Zurich-American Insurance Company INSURED ARB,Inc. 26000 Commercentre Drive Lake Forest,CA 92630 COMPANY B Nafl Union Fire Insurance Co.of Pittsburgh PA COMPANY C NlA COMPANY D THIS IS TO CERTIFY THAT POLICIES OF INSURANCE DESCRIBED HEREIN HAVE BEEN ISSUED TO THE INSURED NAMED HEREIN FOR THE POLICY PERIOD INDICATED, NOlWlTHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THECERTIFICATE MAY BE ISSUED OR MAY PERTAIN,THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,CONDITIONS AND EXCLUSIONS OF SUCH POlICIES.AGGREGATE UMrrsSHOWNMAY HAVE BEEN REDUCED BYPAID CLAIMS. A X ANY·AUTO BAP3676090-04 02128106 02128107 ALL OWNED AUTOS SCHEDULED AUTOS X HIRED AUTOS X NON·OWNEDAUTOS X Physical Damage X 2,500 Compl Collision GARAGE UABIUTY ANY AUTO EXCESS UABIUTY B X UMBRELLA FORM BE7227469 02128106 02128107 OTHER THAN UMBRELLA FORM A WORKERS COMPENSATION AND WC3676092-04 (AOS)02128106 02128107EMPLOYERS'UABIUTY A EWS3676088-04(CA)02128106 02128107 THE PROPRIETOR!X INCL $20,000,000 CA WCLimitPARTNERSlEXECUTIVE$250,000 CA SIROFFICERSARE:EXCL 10,000 10,000 1,000,000 1,000,000 4,000,000 2,000,000 1,000,000 2,000,000 1,000,000 10,000,000 10,000,000 $1,000,000 $1,000,000 UIIrrs GENERAL AGGREGATE $ PRODUCTS·COMPIOP AGG $ PERSONAL &ADV INJURY $ EACH OCCURRENCE $ FIRE DAMAGE ($ MEDEXP $ COMBINED SINGLELIMIT $ BODILY INJURY $(Per person) BODILY INJURY $(Per accident) PROPERTY DAMAGE $ AUTO ONLY·EAACCIDENT $ OTHER THAN AUTO ONLY: EACH ACCIDENT $ AGGREGATE $ EACH OCCURRENCE $ AGGREGATE $ $ 02128107 POUCY E!=FECTIYE POlJCY EXPIRATION DATE (MMJDDIYY)DATE (MMJDDIYY) 02128106 POLICY NUMBERTYPEOFINSURANCE GENERALUABIUTY A COMMERCIAL GENERALLlABlLrrY GLC>3676089-04 CLAIMSMADE 0 OCCUR $250,000 SIR OWNER'S &CONTRACTOR'SPROT CO L'rR DESCRIPTION OF OPERATIONS/LOCATIONSIVEHICLESJSPECIAL rrEMS Re:Job #1436-340 (San Juan Authority DesaherProject)-City of San Juan Capistrano is named asadditional insured as their interestmay appear.A waiverofsubrogation applies. City of San Juan Capistrano 32400 Paseo Adelanto San Juan capistrano,CA 92675 SHOULD N4Y OF THE POLICIES DESCRIBED HEREIN BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE INSURER AFFORDING COVERAGE WILl ~MAL -..30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED HEREIN.JKK:~tDl~~IfJ1Ql_IOQI_~)(IOI __MiOIC_CDl~ MARSH USA INC. BY:Cheryl SChroeder ~.A.L4.tM.,!<r- VAUD AS OF 2/27/06 POLICY NUMBER:GLO 3676089-04 COMMERCIAL GENERAL LIABILITY CG 20 10 1001 THIS ENDORSEMENT CHANGES THE POLICY.PLEASE READ IT CAREFULLY. ADDITIONAL INSURED -OWNERS,LESSEES OR CONTRACTORS -SCHEDULED PERSON OR ORGANIZATION This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE Name of Person or Organization: City of San Juan Capistrano (If no entry appears above,information required to complete this endorsement will be shown in the Declarations as applicable to this endorsement.) A.Section II -Who Is An Insured is amended to include as an insured the person or organization shown in the Schedule,but only with respect to liability arising out of your ongoing operations performed for that insured. B.With respect to the insurance afforded to these additional insureds,the following exclusion is added: 2.Exclusions This insurance does not apply to IIbodily in- juryl or IIproperty damagel'occurring after: (1)All work,including materials,parts or equipment furnished in connection with such work,on the project (other than service,mainte- nance or repairs)to be performed by or on behalf of the additional in- sured(s)at the site of the covered operations has been completed;or (2)That portion of I'your work'I out of which the injury or damage arises has been put to its intended use by any person or organization other than another contractor or subcon- tractor engaged in performing op- erations for a principal as a part of the same project. CG 20 10 10 01 ©ISO Properties,Inc.,2000 Page 1 of 1 POLICY NUMBER:GLO 3676089-04 COMMERCIAL GENERAL LIABILITY CG 20371001 ARB,Inc. -1=MIS-ENDORSEMENTCHANGES THE P-OLICY.PLEASE READ IT -CAREFULLY. ADDITIONAL INSURED -OWNERS,LESSEES OR CONTRACTORS -COMPLETED OPERATIONS This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE Name of Person or Organization: City of San Juan Capistrano Location And Description of Completed Operations: Re:Job #1436-340 (San Juan Authority Desalter Project)-City of San Juan Capistrano is named as additional insured as their interest may appear.A waiver of subrogation applies. Additional Premium: Included (If no entry appears above,information required to complete this endorsement will be shown in the Declarations as applicable to this endorsement.) Section II -Who Is An Insured is amended to include as an insured the person or organization shown in the Schedule,but only with respect to liability arising out of "your work"at the location designated and described in the schedule of this endorsement performed for that insured and included in the "products-completed operations hazard". CG 20371001 ©ISO Properties,Inc.,2000 Page 1 of 1 POLICY NUMBER:GL03676089-04 ARB,Inc. Commercial General Liability CG 24041093 THIS ENDORSEMENT CHANGES THE POLICY.PLEASE READ IT CAREFULLY WAIVER OF TRANSFER RIGHTS OF RECOVERY AGAINST OTHERS TO US This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART Name of Person or Organization: City of San Juan Capistrano Subject:Re:Job #1436-340 (San Juan Authority Desalter Project)-City of San Juan Capistrano is named as additional insured as their interest may appear.A waiver of subrogation applies. (If no entry appears above,information required to complete this endorsement will be shown in the declarations as applicable to this endorsement.) The TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US Condition (Section IV -COMMERCIAL GENERAL LIABILITY CONDITIONS)is amended by the addition of the following: We waive any right of recovery we may have against the person or organization shown in the Schedule above because of payments we make for injury or damage arising out of your ongoing operations or "your work"done under a contract with that person or organization and included in the "products-completed operations hazard".This waiver applies only to the person or organization shown in the Schedule above. CG 24041093 ADDITIONAL INSURED -DESIGNATED PERSONS OR ORGANIZATIONS Named Insured ARB,INC. Policy Symbol I Policy Number BAP 3676090-04 I Policy Period 2128/06 TO 2128107 Endorsement Number Effective Date of Endorsement 2128106 Issued By (Name of Insurance Company) ZURICH AMERICAN INSURANCE COMPANY Insert the policy number.The remainder ofthe information is to becompleted only when this endorsement is issued subsequentto the preparation ofthe policy. THIS ENDORSEMENT CHANGES THE POLICY.PLEASE READ IT CAREFULLY. This endorsement modifies insurance provided under the following: BUSINESS AUTO POLICY TRUCKERS POLICY GARAGE POLICY Additional Insured{s):City of San Juan Capistrano RE:Re:Job #1436-340 (San Juan Authority Desalter Project)-City ofSan Juan Capistrano is named as additional insured as their interest may appear.A waiver ofsubrogation applies. A.For a covered "auto,"Who Is Insured is changed to include as an "insured,"the persons or organizations named in this endorsement.However,these persons or organizations are an "insured" only for "bodily injury"or "property damage"resulting from acts or omissions of: 1.You. 2.Any of your employees or agents. 3.Any person operating a covered "auto"with permission from You,any of your employees or agents. B.The persons or organization named in this endorsement are not liable for payment of your premium. S:\dients\artl\rm\pam\2()()1\certa1laChrnen\\2OO1·auto-ai.doc Waiver of Transfer of Rights of Recovery Against Others To Us Named Insured ARB,INC. Policy Symbol IPolicy Number BAP 3676090-04 1Policy Period 2128/06 TO 2128107 Endorsement NLmber Effective Date ofEndorsement 2128106 Issued By(Name of Insurance Company) ZURICH AMERICAN INSURANCE COMPANY THIS ENDORSEMENT CHANGES THE POLICY.PLEASE READ IT CAREFULLY. This endorsement modifies insurance provided underthe following: BUSINESS AUTO POLICY TRUCKERS POLICY GARAGE POLICY Additionallnsured(s):City ofSan Juan Capistrano RE:Re:Job #1436-340 (San Juan Authority Desalter Project)-City of San Juan Capistrano is named as additional insured as their interest may appear.A waiver of subrogation applies. We Waive any right of recovery we may have against the designated person or organization shown in the schedule because of payments we make for injury or damage caused by an "accidenf'or "loss"reSUlting from the ownership,maintenance,or use of a covered "auto"for which a Waiver of Subrogation is required in conjunction with work performed by you for the designated person or organization.The waiver applies only to the designated person or organization shown in the schedule. S:\clientll\artl\rm~1\cenaltaChmenl\2OO1·aUlo-ai.doc @) ZURICH Waiver of Subrogation Endorsement Insured:__ARB,Inc. -PolieyNo£WS36'7-6088-04 Endorsement No.1 _ --Effective-Date ofthis Endorsement 2-28-2006-_ This endorsement modifies insurance provided by the following: Excess Insurance Policy for Self..Insurer ofWorkers Compensation and Employers Liability This policy is changed to provide: Part Six -Condition G -Subrogation -Recovery From Others -gives us the right to recover all payments which we have made to you from anyone liable for loss.We agree to waive this right but only to the extent that you perform work under a written contract which requires you to obtain this agreement. Certificate Holder:City ofSan Juan Capistrano Re:Job #1436-340 (San Juan Authority Desalter Project)-City ofSan Juan Capistrano is named as additional insured as their interest may appear.A waiver of subrogation applies. Countersigned:_ Authorized Signature U-EW-117-B CW(6/04) Page I of I &(){, ECD Resources,Inc. Water ItWastewaterOperations Management RECEIVED 200b JAN 11 A q:51 16 January 2006 Mr.Dave Adams,City Manager City ofSan Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano,CA 92675 Dear Dave, CiT'{Clt.I\;\ SAN JUAH CAPISTRf\NO I was disappointed to receive the City's letter of21 December claiming a material breach ofcontract - especially since the letter contained many factual errors,addressed primarily administrative issues,and was written just before the holidays while demanding a response in two weeks.At first blush the letter [a]doesn't seem to reflect the historical cooperation between the people on our respective staffs that are actually doing the work,nor does it [b]foster the kind of relationship we would hope to maintain over our 20-year partnership. 1st paragraph -as noted in my earlier letter,ECO has not failed to comply with the Water Delivery Guarantee. Further,the statement that we have failed to meet the Enhanced Standards on our Water Treatment "on a number ofoccasions"is both vague and incorrect: •The fact is that most water complaints by customers in the last year have been due to City operation of its reservoir/distribution system. •Only a very few instances are even circumstantially linked to ECO -state-certified tests show compliance in our delivered water almost without exception. •ECO changed its procedures earlier this year to avoid even the circumstantial instances,and now even those questions have ceased. We have not been as prompt as we should have in the formal monthly reports to the City,but water quality and production data have been given to the City in a timely manner,and City staff receives copies of all required tests directly from the State-certified laboratory. 2nd paragraph -conditions in the system have precluded what we all planned,but your staffs letter ignores two critical points: •The Raw Water Quality has exceeded the contract limits continually since inception,and the resulting Uncontrollable Circumstance forced us to change cleaning and production schedules. •Only recently has the City begun following its own requirements for scheduling as set forth in Article IX.3,and it routinely violates the minimum notice rule to this day -these are clearly contract breaches. •Because the need for more frequent shutdowns has been due to an Uncontrollable Circumstance,there is no breach of contract (material or otherwise)nor is there any failure by ECO to deliver any quantity ofwater. 3rd paragraph -the first year's monthly reports were waived by the staff,since there was daily contact as each side worked on a variety of issues jointly.The formal monthly reports of September, 5820 Stoneridge Mall Road •Suite 204 •Pleasanton,CA 94588 •(925)463-3663 •Fax (925)463-0232 October,and November were overdue -but that has been corrected and the reports delivered to the City staff.Until recently the City staff had conveyed a desire to have annual reports based on a calendar year.The request to have it based on the Contract year is not a problem,but we were not aware of that until the letter arrived.We will prepare it forthwith,but by no means does this constitute a material breach. 4th & 5 th paragraphs -the City's statements here are particularly vague.For some reason they ignore the variety of projects of which your staff is well aware -both through regular meetings and virtually daily communication with our Chief Operator on site. •The City is fully aware ofthe projects that ECO has undertaken over the last few months.It is important to note that these have resulted in compliance quality and performance production that exceeds what the City's proposal requested. •Given that the request for "a detailed,written explanation"refers to "immediate remediation of all compliance failures"that did not or no longer occur,we are at a loss as to how to respond: o the monthly reports have been sent; o ECO just received the request to change the Annual report back to the Contract Year; o water quality and quantity are exceeding requirements;and o the City staff reviewed/approved the winter projects we have (we even reviewed updates ofthe original with Ms.Amirani et alone day before the date ofher letter). Since most of the issues cited in the City's letter are not correct,the alleged "Material Breach"boils down to three instances where the City got the data,but not the formal monthly report.We regret that error,but have corrected it and maintain that this certainly does not constitute a "material"breach. It is unfortunate that the City's letter requires us to underscore that the City's water supply has violated the Raw Water Quality requirements since the beginning of the year.The resulting Uncontrollable Circumstances conditions provide ECO with [a]relief from the delivery quantity requirements and [b] several avenues for cost recovery from the City.This not only negates the City's monetary claims but raises the issue of several hundred thousands of dollars in extra charges.Per my earlier letter,Dave, ECO had no taken the steps to force these issues.I am reluctant to authorize these extra invoices until you and I can meet to see ifthere is an alternate solution -and how we can make sure that things don't get to this point again. Sincerely, Stl1-+eA/V [,e~~m..~ Steven E.Richardson Vice President Western Region Cc:City -Ms.Meg Monahan -City Clerk;Ms.Amy Amirani -Public Works Director ECO -P.Dreher/Chief Operator;J.Williams/District Operations Manager,Los Angeles;C. Grace/District Operations Manager,Southern California;C.Roux/Weston Benshoof Water&Wastewater Operations Management ECO Resources,Inc. RECEIVED ZOOb JAN I3 P 2:34 . 10 January 2006 Mr.Dave Adams City Manager City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano,CA 92675 Dear Dave, CIT Y CLEi\i\ SAN JUAN CAPISTRANO Wewere surprised to receive the 1 December demand letter from your staffregarding payments allegedly due the City by ECO.For the record,ECO Resources,Inc.formally denies the claims made by the City,noting that the calculations and claims therein in are [a]grossly incorrect and [b]based on assumptions which are known to be wrong,instead of fact.Further,we believe it is not in the best interests of our long-term partnership to make such significant claims without first discussing it among the principals.Such claims bring to fore related issues that may not have been considered,for example: 1.For several months after ECO began operations,the plant was able to produce water the City needed -but couldn't take because of difficulties operating the reservoir/distribution system. 2.City staff knows that the raw water characteristics have,virtually since the beginning, been beyond the contract specifications -in contract parlance an "Uncontrollable Circumstance"-which changes our requirements to "best efforts"and precludes financial claims like the City made. 3.These and other contract-defined Uncontrollable Circumstances have cost ECO nearly $1/3 million in the past year -and those costs are accelerating.Per the contract we have the right to invoice the City for these costs;so far we have refrained,but the recent action initiated by the City fairly forces us to do so. 4.Since the end of October the plant has been producing water 10-30%in excess of the demand,as noted in the City's letter,and the levels stipulated in the City's proposal. Even now we are working (at our cost)to improve performance further -using the winter,as staff is aware,to develop more efficient long-term operations based on the specific raw water we are encountering at San Juan Capistrano.We had had original discussions with City staff to provide excess water at no cost to the City,which we would now have to take under advisement. Before you arrived the City spent over a million dollars on legal fees related to this project,while ECO spent 1/3 of that.I would hope that this letter by the City doesn't signal an intent to start down that path again.Since,as you know,there are two sides to every story,I would offer that it might be beneficial for you and me,as principals,to meet to discuss the issues in an informal setting. The purpose would be to better appreciate each others concerns,and foster 5820 Stoneridge Mall Road •Suite 204 •Pleasanton,CA 94588 •(925)463-3663 •Fax (925)463-0232 Water&Wastewater Operations Management ECG Resources,Inc. understanding of the long-term strategy for mutual success.While my Western Headquarters are in the Bay Area,I am in Los Angeles virtually every week,and would be able to meet with you at your convenience.If,like me,you prefer person-to-person communications,you can reach me directly at 510-612-1787. Sincerely, Steven E.Richardson Vice President Western Region Cc:City Ms.Meg Monahan -City Clerk Ms.Amy Amirani -Public Works Director ECO P.Dreher -Chief Operator,San Juan Capistrano J.Williams -District Operations Manager,Los Angeles C.Grace -District Operations Manager,Southern California CALIFORNIA PRELIMINARY NOTICE 5350 Your attention is directed to sections 3097,3098,and 3111,California Civil Codewhich requires us to notify you "That if bills are not paid in full for labor,services,equipment ormaterials furnished,or to be furnished the improved property (which is described hereon)may be subjectto Mechanics'Liens."This statementis applicable to private work only. This is not a lien.This is not a reflection on the integrity ofany contractor or subcontractor. The name and address ofperson or firm who contracted for purchase ofsuch labor, service,equipment or material,is: ARB,Inc. You are hereby notified: ARCHITECTURAL DOORS,INC. 11700 Monarch Street 26000 Commercentre Dr.Garden Grove,CA.92841 Lake Forest,CA.92630 Hasfurnished orwill furnish labor,services,equipment or material Toowner,reputed owner,orpublic agency (Address of building,structure,work or impro~D1ent) Hardware (Description oflabor,services,equipment or material) San Juan Basin Authority Desalter Project 32470 Paseo Adelanto San Juan Capistrano,CA.92675 U)- San Juan Capistrano,CA.92675 32400 Paseo Adelanto A component unit ofthe city ofSan Juan Capistrano Capsitrano Valley Water District To Original contractoror reputed contractor ECO Resources,Inc 1ECO Capistrano Valley,Inc "NOTICE TO PROPERTY OWNER": 32234 Paseo Adelanto San Juan Capistrano,CA.92675 To construction lenderor reputed construction lender NIA Estimated total price of labor,services,equipment or materials furnished: $2,064.00 "If bills are not paid in full for the labor,services,equipmliAt, or materials furnished or to be furnished,a meC"hanic's ligeading,:~ to the loss through courtforeclosure proceedin~s,ofall 00 ..-::; part ofyour property being so improved maybe placed againstthe·, l..tJpropertyeventhoughyouhavepaidyourcontractorinfu1r.You may wish to protect yourself against this conse~uence ~1) requiring yourcontractor to furnish a signed release by the person or firm giving you this notice before making payments to your contractoror (2)any other method ordevice that is appropriate under the circumstances.Otherthan residential homeowners of dwellings containing fewer than five units,private project owners must notify the original contractor and any lien claimant who has provided the ownerwith a 20-day lien notice in accordance with Section 30970f the Civil Code that a notice ofcompletion or notice ofcessation has been recorded within 10 days ofits recordation.Notice shall be by registered,certified or first class mail,evidenced by a certificate of mailing.Failure to notify will extend the deadlines to record a lien. Trust funds to which supplemental fringe benefits are Name PROOF OF SERVICE AFFIDAVIT Address (Section 3097.1,California Civil Code)Name Address (Material men not required to furnish above) I A~()v~DECLARE THAT I SERVED COPIES OF THE PRELIMINARY NOTICE BY FIRST CLASS CERTIFIED OR REGISTERED MAIL SERVICE,POSTAGE PREPAID,ADDRESSED TO EACH OF THE PARTIES AT THE ADDRESS SHOWN ABOVE ON 1/7/05 I DECLARE UNDER PENALTYOF PERJURY THAT THE FOREGOING IS TRUE AND COR SIGNED AT STANTON,CALIFORNIA ON 1/7/05 (ATTACH RECEIPTS OF CERTIFIED OR REGISTERED MAIL WHEN RETURNED) revised 1/1/04 ~Am:f ~/ra;jlojor-~ II CALIFORNIA PRELIMINARY NOTICE II IN ACCORDANCE WITH SECTION 3097 AND 3098,CALIFORNIA CIVIL CODE ***THIS IS NOT A LIEN.***THIS IS NOT A REFLECTION ON THE INTEGRITY OF ANY CONTRACTOR OR SUBCONTRACTOR. NOTICE IS HEREBY GIVEN that:OWNER OR REPUTED OWNER OR PUBLIC AGENCY ROBERTSON'S 200 S MAIN ST,SUITE 200 CORONA CA 92878 (909)685-2200 Has or will Furnish labor,services,equipment,or materials,generally described as: CAPISTRANO VALLEY WTR DIS 32400 PASEO ADELANTO SAN JUAN CAPISTCAN92675 LENDER OR REPUTED LENDER READY MIX CONCRETE,ROCK &SAND To be furnished orfurnished for the building,structure or the work ofimprovement described as follows: 31896 PLAZA DRIVE/DEL OBI J.C.N.#1436 Tract No.ARB JOB#1436340 Lot No.PO#1436-340 DESALTER Cert Nurn:21172677 Name of Person or Firm who contracted for purchase of the labor,services, equipment,or materials is: ORIGINAL OR REPUTED ORIGINAL CONTRACTOR ECO RESOURCES 32234 PASEO ADELANTO #D SAN JUAN CAPIS CA 92675 ~,,~ ALSO NOTIFIED TENANT:¥R BONDJ>G AG~ ';j .,. SUBCONTRACTOR with whom claimant has contracted TRUSTFUNDS TOWHICH SUPPLEMENTAL FRINGE BENEFITS ARE PAYABLE CA 92630 5,218.40 ARB INC. P.O.BOX 5166 LAKE FOREST An estimate of the total price of said labor,services,equipment or materials is: ***NOTICE TO PROPERTY OWNER***IF BILLS ARE NOT PAID IN FULL FOR THE LABORSERVICES,EQUIPMENT,OR MATERIALS FURNISHED OR TO BE FURNISHED~A MECHANIC'S LIEN LEADING TO THE LOSS,THROUGH cOURT FORECLOSURE PROCEEDINGS,OF ALL OR PART OF YOUR PROPERTY BEING SO IMPROVED MAY BE PLACED AGAINST THE PROPERTY EVEN THOUGH YOU HAVE PAID YOUR CONTRACTOR INFULL.YOU MAY WISH TO PROTECT YOURSELF AGAINST THIS CONSEQUENCE BY (1)REQUIRING YOUR CONTRACTOR TO FURNISH A SICNED RELEASE BY THEPERSONORFIRMGIVINGYOUTHISNOTICEBEFORE MAKING PAYMENT TO YOUR CONTRACTOR,OR (2)ANY OTHER METHOD OR DEVICE THAT IS APPROpRIATEUNDERTHECIRCUMSTANCES.OTHER THAN RESIDENTIAL HOMEOWNERS OF DWELLINGS CONTAINING FEWER THAN FIVE UNITS,PRIVATE PROJECT OWNERS MUST NOTIFYTHEORGINALCONTRACTORANANYLIENCLAIMANTWHO HAS PROVIDED THE OWNER WITH A PRELIMINARY 20- DAY LIEN NOTICE IN ACCORDANCE WITH SECTION 3097 OF THE CIVIL CODE THAT A NOTICE OF COMPLETION ORNOTICEOFCESSATIONHASBEENRECORDEDWITHIN10 DAYS OF ITS RECORDATION.NOTICE SHALL BE BY REGISTERED MAIL,CERTIFIED MAIL,OR FIRST-CLASSMAIL,EVIDENCE BY CERTIFICATE OF MAILING.FAILURE TO NOTIFY WILL EXTEND THE DEALINES TO RECORD A LIEN. DA~TED:12/20/2004 ByBY XA;C~~7~IS~~it!o;;;;**** VULCAN MATERIALS co CALMAT DIY 3200 SAN FERNANDO RD LOS ANGELES CA 90065 THIS IS NOT A LIEN.THIS NOTICE IS GIVEN PURSUANT TO SECTIONS 3097 AND 3098, CALIFORNIA CIVIL CODE.THIS IS NOT A REFLECTION ON THE INTEGRITY OF ANY CONTRACTOR OR SUBCONTRACTOR. 848770 I Make all checks jointly payable OWNER or Reputed Owner (on private work) or PUBLIC AGENCY (on public work) I III11I11 I 7108 1800 8318 4877 0027 YOU ARE HEREBY NOTIFIED THAT... 02 CALIFORNIA PRELIMINARY NOTICE L48280 5665 949-493-1515 CAPISTRANO VALLEY WATER DISTRICT 32400 PASEO ADELANTO SAN mAN CAPISTRANO CA 92675 CONSTRUCTION LENDER or Reputed Construction Lender,ifany. 213-630-6240 NONEIBOND CO:SAN mAN BASIN AUTHORITY LEASE REVENUE BONDS C/O BNYWESTERN TRUST CO,ATTN:FE TUZON,700 S FLOWER ST #500 LOS ANGELES CA 90017 ORIGINAL CONTRACTOR or Reputed Contractor,ifany. ECO RESOURCES 32234 PASEO ADELANTO #D SAN mAN CAPISTRANO CA 92675 03 has furnished or will furnish labor,services,equipment or materials ofthe following general description: READY MIX CONCRETE,ROCK, SAND,GRAVEL,PAVING MATLS ASPHALT,PRODUCTS &SVCS forthe building,structure or other work of improvement located at: "CONSTRUCTION OF DESALTER PROJECT" 32470 PASEO ADELANTO SAN mAN CAPISTRANO CA SUB TO SUB #1331119T (WELLS,WATER LINE &DESALINATION PLANT) An estimate of the total price ofthe labor,services, equipment or materials furnished orto be furnished is: $5,247.12 Trust Funds to which Supplemental Fringe Benefits are payable: 345168 » SUB CONTRACTOR Iperson or firm who contracted for the purchase ofsuch labor,services,equipment or materials is: 714-840-3099 ATKINSON GRADING &EQUIP RENTAL 4592 ORION ST HUNTINGTON BEACH CA 92649 OTHER INFORMATION,if any. 415-892-1080 BOND #24015060IBOND AGENT: MCGOWAN &ASSOCIATES 1450 GRANT AVE #210 NOVATO CA 94945 • SUB TO SUB: ARB INC 26000 COMMERCENTRE DR LAKE FOREST CA 92630 BY:CWURI LUtY'YO (Signature) 12/13/2004 R (/) Agent (Title) ..~'--~."~ C,:):'~""9~ed:12riO/2004 NOTICE TO PROPERTY OWNER IF BILLS ARE NOT PAID IN FULL FOR THE LABOR,SERVICES,EQUIPMENT,OR MATERIALS FURNISHED OR TO BE FURNISHED,A MECHANIC'S LIEN LEADING TO THE LOSS,THROUGH COURT FORECLOSURE PROCEEDINGS,OF ALL ORPART OF YOUR PROPERTY BEING SO IMPROVED MAY BE PLACED AGAINST THE PROPERTY EVEN THOUGH YOU HAVE PAID YOUR CONTRACTORIN FULL. YOU MAY WISH TO PROTECT YOURSELF AGAINST THIS CONSEOUENCr;RV 11\RFOIJlRIN~vnlJl~r.nNTDAr.TnD Tn CIID~II~LI " I I 7104 0343 3860 0224 2638 Bildrs No:J570207 CAPISTRANO VALLEY WATER DISTRICT 32400 PASEO ADELANTO SAN JUAN CAPISTRANO CA 92675 CALIFORNIA PRELIMINARY NOTICE In accordance with sections 3097 and 3098, California Civil Code.THIS IS NOT ALIEN. This is NOT a reflection on the integrity ofany contractor or subcontractor. NORMAN'S NURSERY 8665 E DUARTE SAN GABRIEL,CA 91775 NO RETURN RECEIPT (/) Bildrs No.1570207 ~ 71040343 3860 0224 ~38 U1 You are hereby notified that NORMAN'S NURSERY ".'... Na BICAREPRESENTATIVE 11/10/2004 has furnished or will furnish labor,services,equipment or materials ofthe following general description: LANDSCAPING MATERIALS located at:WATER TREATMENTPLANT,(Drop offaddress 32510 Del Zura),32470 PASEOADELANTO,X-Str: PASEO TOSCANA,SANJUAN CAPISTRANO CA The name ofthe person or firm who contracted for the purchase ofsuch labor,services,equipment or material is: WILCOXLANDSCAPING,4625 An estimate oftotal price ofthe labor,services,equipment or materials furnished or to be furnished is $4,000 Owner:CAPISTRANO VALLEY WATER DISTRICT,32400 PASEO ADELANTO,SAN JUAN CAPISTRANO CA 92675 Orig Contr:ARB INC,26000 COMMERCENTRE DR,LAKEFOREST CA 92630-8816 Lender:None Customer:WILCOX LANDSCAPING,4625,POBOX 800205,VALENCIA CA 91380 Other:ECO RESOURCE INC/ECO CAPISTRANO VALLEY INC,32234 PASEO ADELANTO,SAN JUAN CAPISTRANO CA 92675,(Owner) JOb;;63341 iIw{~I/trio f NOTICE TO PROPERTY OW~ Ifbills are not paid in full for the labor,services,equipment or materials furnished or to be furnished,a mechanics'lien leading to the loss,through court foreclosure proceedings,of all or part of your property being so improved may be placed against the property even though you have paid your contractor in full.You may wish to protect yourself against this consequence by (1) requiring your contractor to furnish a signed release by the person or firm giving you this notice before making payment to your contractor or (2)any other method or device that is appropriate under the circumstances.Other than residential homeowners of dwellings containing fewer than five units,private project owners must notify the original contractor and any lien claimant who has provided the owner with a preliminary 20-day lien notice in accordance with Section 3097 of the Civil Code that a notice of completion or notice of cessation has been recorded within 10 days of its recordation.Notice shall be by registered mail,certified mail,or first-class mail,evidenced by a certificate of mailing.Failure to notify will extend the deadlines to record a lien.vr CALIFO•.u~IA PRELIMINARY 20-DAY p~OTICE (Public and Private Works) This is not a lien.This is not a reflection on the integrityofany contractoror subcontractor, but the notice prescribed in accordance with Section 3097 and 3098,California Civil Code 1.The following is a general description of the labor,service,equipment or materials furnished or to be furnished by the undersigned: COLDMILLING I PULVERIZING ASPHALT Owner or Reputed Owner (on private work) PUBLIC AGENCY (on public work)2.An estimate ofthe total price of the labor,services,equipment ormaterials furnished or to be furnished is: CAPISTRANO VALLEY WATER DISTRICT 32400 PASEO ADELANTO SAN JUAN CAPISTRANO,CA 92675 7004-2510-0000-5577-4544 ****LENDER 1SURETY **** NONE REPORTED ****GENERAL CONTRACTOR **** ECO RESOURCES 32234 PASEO ADELANTO,SUITE D SAN JUAN CAPISTRANO,CA 92675 ****CUSTOMER **** 5,000.00 Estimated 3.The name of the person orfirm that has furnished or will furnish labor, services,equipment or materials is: PAVEMENT RECYCLING SYSTEMS P.O.Box 1266 Riverside,CA 92502-1266 PRS JOB NO R416244 4.The name ofthe person or firm who contracted for the purchase of such labor,services,equipment or materials: ATKINSON GRADING &EQUIP RENT 4592 ORION STREET HUNTINGTON BEACH,CA 92649 5.The description of the building,structure or otherwork of improvment is: CONSTRUCTION OF DESALTER PROJECT,SAN JUAN CAPISTRANO, CA 92677 ATKINSON GRADING &EQUIP RENT 4592 ORION STREET HUNTINGTON BEACH,CA 92649 The Person or firm giving this notice is required,purs~t to a collective bargaining agreement,to pay supplemental fringe benefits to an:~ress trufi..Wnd (described in Civil Code 3111).Said funds are identified as followS:....":~n',.... ;_.....-.,} Operating Engineers Local #12,Construction:l-aborer's~st,Lc!!5l'ter's Benefit Fund ..~.-. "11 ••~I.c ", NOTICE TO PROPERTY OWNER ._ If bills are not paid in full for the labor,services,equipment or materials furnished or to be furnished,a mechanic's lierlJeading t)n;e 10s~16roUgh court foreclosure proceedings,ofall or part of the property being so improved may be placed against the property ev~n though(5U hav~,~idthe contractor in full.You maywish to protect yourself against this consequence by (1)requiring your contractor to furnish a signed 'r'elease 'bylhe person or firm gMng you this notice before payment to your contractor or(2)any other method or device that is appropriate uncferlthe circumstances. Other than residential homeowners of dwellings containing fewer than five units,private project owners must notify the original contractor and any lien claimant who has provided the owner with a preliminiary 20-day lien notice in accordance with Section 3097 ofthe Civil Code that a notice of completion or notice ofcessation has been recorded within 10 days of its recordation.Notice shall be by registered mail,certified mail,or first class mail,evidenced by a certificate ofmailing.Failure to notify will extend the deadlines to record a lien. PAVEMENT RECYCLING SYSTEMS 12/27/2004 Nicole Toth Accounting Clerk Phone:(951)682-1091 ext.2200 PROOF OF SERVICE MY MAIL AFFIDAVIT I declare that I served a copy of the above document,and any related documents,by (as required by law)first-class,certified or registered mail, postage prepaid,addressed to the above parties,at the addresses listed above.I declare under penalty of perjury that the foregoing is true and correct.Executed at Riverside,CA. x Phone:(951)682-1091 ext. 12/27/2004 CERTIE:IED MAIL NUMBER 73.UO 63u9 2640 3424 0049 CALIFORNI4.P-RELIMINAIt'i...NOTICE In accorc ~with sections 3097 and 3098,Call,_.l1ia Civil Code THIS IS NOT A LIEN.This is NOT a reflection on the integrity of any contractor or subcontractor. r)Ef\f'··1:\.1 ~'-IT",~··"l,~~·ftfr~ine~j'b~'~41 furnish'labor,serJtce,equipment or material of the following general for building structure,or other work of improvement You are hereby notified that desc~iptioh:;"! located at '.'.',,'zoo~DEC -g p 4:35 The name of the rJersbn '6('firhl wila Ic6hl~acted fd'''the'plircha~e 'of sucH labor,'~er\1ices:equipment or material furnished is An estimatelollth~'tbtalipriceI6ffne lab&tserJde~,~QlJipnient,6r material is ,i 1",.. f \\~i 1~-.,.{./t~, NOTICE TO PROPERTY OWNER If bills are not paid in full for the labor,services,equipment,or materials furnished or to be furnished,a mechanic'slien leading to theloss,through court foreclosure proceedings, of all or part of your property being so improved may be placed against the property eventhoughyouhavepaidyourcontractorinfull.You may wish to protect yourself against thisconsequence by (1)reCJuiring yourcontractor to furnish a signed release by the person or firm giving you this notice belore making payment to your contractor,or (2)any other method or device that is appropriate under the circumstances.Other than reSidential homeowners of dwellings containing fewer than five units,private project owners must notify the original contractor and any lien claimant who has provided the owner with apreliminary2o-c:tay lien notice in accordance with Section 3097 of the Civil Code that a notice of completion or notice of cessation has been recorded within 10 days of its recordation.Notice shall be by'registered mail,certified mail,or first-class mail,evidencedbyacertificateofmailing.Failure to notify will extend the deadli~s ~o,recqfda lien. o No5' "'0m--l--l=1® "T1oJJs::(j) I.il l/~.·Tl i i I ,o~,._ Easy Law Construction Nl1tices A Division ofEasy Law,Inc. Moorpark Legal Center 33 East High Street,Moorpark,CA 93021-1118 Tel (805)552-0024 .Fax (805)552-0057 .Toll Free (800)327-9529 E-Mail Address:Staff@easylawinc.com .Web Site Address:www.easylawinc.com CALIFORNIA PRELIMINARY 20-DAY NOTICE (IN ACCORDANCE CALIFORNIA CIVIL CODE,SECTION 3098)-PUBLIC WORKS REPUTED PUBLIC AGENCY: City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano CA 92675 REPUTED ORIGINAL CONTRACTOR: ECO Resources/ECO Capistrano Valley,Inc 32240 Paseo Adelanto #C San Juan Capistrano CA 92675 (949)218-7714 YOU ARE HEREBY NOTIFIELJ THAT Claimant,Western Oil Spreading 8ervlces,'Inc.,whOSt::adaress and pllone-number are 7~6 Mission Rock Rd,Santa Paula CA 93060,(805)647-0693 has furnished or will furnish labor,services,equipment,or materials of the following general description:slurry,paint The estimate of the total price of the labor,services,equipment,or materials furnished or to be furnished is $8,205. The building,structure,or other work of improvement for which the Claimant is providing services is located at:,32400 Paseo Adelanto San Juan Capistrano CA 92675.The name,address and phone number of the person or firm who contracted with the Claimant for the purchase of such labor,services,equipment,or materials is:ECO Resources/ECO Capistrano Valley,Inc,32240 Paseo Adelanto #C, San Juan Capistrano CA 92675,(949)218-7714. (/) •d j I -DBY:~~ Attorney in Fact for Western Oil Spreadin'g'Services,Inc.1) Name of Claimant:Western Oil Spreading Services,~c.Dated:December 6,2004 wenDECLARATIONOFSERVICE I,Patricia Green,declare that I mailed copies of this Notice by certified mail,postage prepaid,addressed to the owner/public agency, lender and contractors at the addresses as shown above,on December 6,2004.I declare under penalty of perjury,that the foregoing is true and correct.Executed on December 6,2004,at Moorpark,California. Prelim #73438 x AJG Los Angeles 8/13/2004 3:25 PAGE 2/5 RightFax ACORD_CERTIFICATE OF LIABILITY INSURANCE OPIDn I MTE~ KCOCJL 1 08113104 I'IIODUc:ER TitS CERTIFICATE IS ISSUED AS A MATTEROF INFORMATION Arthur J.Gallagher ,Company ONLY AND CONFERS NO R1Gtn'S UPON THE CERTIFICATE Licen.e 10726293 HOLDER.THIS CERTIFICATE DOES NOT AMEND,EXTEND OR 505 N.Brand Blvd,Suite 600 ALTERTHE COVERAGE AFFORDED BY THE POUCIES BELOW. alendale CA 91203-3944 Phone:818-539-2300 I'a:818-539-2301 INSURERS AFFORDING COVERAGE NAIC# IBUII!D NlIJRERk Granite State Insurance Co NlURERB:ad.-n.~ID__Il~co. BCO CapiRrano Valley Inc.NURERC;.'t1.Vlll.J..cm rl_&.co at ..South"eR Water Compaay32234Pa.eo ~aDto,St..D NlURERD:San Juan Capi.traDO CA 92675 NURERE: COVERAGES THE FlQJCIEBa INlURANCElilTED BElDl'VHAVEBEENIS8IJEDTOTHE INIIN'D_OAIlDIEFClHHEFaJCYPERIODN:lCATED.NorWITIIlTANllNG /W'fREQUIREMENT.TERMOR CONDIIONa /W'fCON'MaORorHERDOCIMNTWITHRBII'ECTTOWHIDHTHII CERTIFIC.O.TEIIlAYBE IISI£OOR NAYPERTMO,THEIN5LftANCEAFFORDEDBYTHE PCUCElIlBCRlKOHEREINBIIl81ECTTOALI.THETE_.EX~1IHJCONDmONlOFIIUQl POuaElI.AOOREG\TE UNIllIII_NIIlAYHAVEBEENREDUCED BY FWDClAMI. ~I\DII'L 1'Ou:Y~POUCYII'PKTlVI -.K:Y....-ATIlN lMI'ILlIlNlII111TYJIt:O'IaIJlWICE DATE'-";';"'"DATEC/IIIMIDlYYI GEIIEJW.IMIlUl'Y EAQlOCCURRENCE S 1,000,000-DAIlAGET0RENI'EOAXXCOMr.ERCW.GEhERN.UAIllUTY LX6343763-03 09/01/04 09/01/0.5 PREIIBElI((8..........)--'-!,OOO-!_~~____=.J CLMIIIWoDE [!Jocc~'-~ lleIlElCP(Niy__o)S 5,000- _0NAl1AlNINJURY S 1,000,000- GBlERALAGGIlEGATE S 2,000,000- GEl'lLAGGREGATE UMITAPAJElIIlER:PRODUCTS..COIotPtOPAGG S 2,000,000 I POLICY \Xl PRO nux:][JEa Alll'0WIIU!lMlaJIY CXlMIlINEDIIINGlEU!lIT-s 1,000,000B:x /W'fAlIT0 BAP929S9SS-04 (AeS)09/0]/04 09/01/0S (&..cldll1] ,--._-,----~--.~---..------,-- ALl.OWhEOAIITOlI 'I'AP9298956-04 CD)09/01/04 09/01/05 IlOOILYINJUR'I'-I IICHEDlllDAllTOlI (~r.....n)-X HIREOAurCS IlOCILYIIlUUR'I'SXNON-c:lNhEOAIJrCS (F'll....IdII1)-r--PROPERTYIN!AGE (F'llnccIdIII)S _GELMIaJIY AllmONLY.I!AACCIlI'M'SRANYAIITOorHERTIW'l EAN;C S AUTO ONLY:NiB • EllCIIIIIU~lM8IJI'y !ACH~S 10,000,000 C I!J OCCUR D CU\NlIMAOi m:5683892 09/01/04 09/01/05 AOORiGATi ,10,000,000 IROEOUalll.E S RETENI'ION I S _IIIC~TDIIAIID X IT~~:1 IOT~' B __'lNISY 1IC2nS9S5-06 09/01/04 09/01/05NoNPROPRIETOM'MTNERlEXECUTI\IE E.LEACHACCIDENT ,1,000,000 OFFICEMlEMBEREXCUJDED i.L.D_·iA_LO'/E£S 1r 000,000 11IO......~..ulli.r IIPE<:W.PRCM5KHl1lo1>w ELDI8~E ..POLlCYlIIoIIT S 1,000,000 or.- D Profe••ional Liab BOC 3765163-03 11/08/03 11/08/04 Limit:$2,000,000 Claim.llad.e Ded.:$50,000 DIIIC_DIIOFOI'EMTD"/LOCATDla/Vlltl:IIS/EXCuaa._"'~/II'ECIU.I'IIJY_ *BXCZP'l'10 DAY R)'I'ICZ or CDCZLLA'I'ION roa IlOnu.:ft or PUImlII.ALL POLIC!' 'l'ERMS,OOImITIOIE ,LDlI'l'M'IORI AND IIXCLUSIOE APPLY. ***9..attach.d Notepad for De8crlptlon*** CI'l'!'SAN NDIUINr'tOPTIEA8CJYEDBC_I'OU:DEC-.&E\JIIIfIORETIE_TDIl MTETIIIIlIDP.THEA"".UMIlwaLall!A1IORTO-'~MYlI~1II Ci~y of San Juan CapiRrano IDn:ETOTttECERr.CATEIIOUlBlIlAlllllTOTttElD'T.1MIT.JIILUIlETODOIIOIIN1. Attn:Cindy au••ell 32400 Pa••o ~aDto _110OIII.JMTDIlOR~YOPNr't_UIOI1TIEIBUAER,n_OR San Juan Capi.traDO,CA 92675 __AT.,... ~~ CERTIFICATE HOLDER ACORD 25 (2001108) CANCELLATION @ACORDCORPORAnON 1888 /j AJG Los Angeles 8/13/2004 3:25 PAGE 3/5 RightFax 111l111ltllltltllJh',hlllil lltl'l'll'[II'jl,['II'1 I I ,'j ,I I r 11 'r,r ;Jll,,'11111 [I t t'tllj"ll ,,'1[111 {fl'IP'1[1It,tI1:Jt ,1,I II r "I tI j'j flli{lU[111[1[lllllll1l[lh,I[I,l,J,["I[ltI1111 l'I III I I,I 11,Iii ,'[.11,[111 ',[1,1[1[1,,'1 j ,jl'l[1 1,1[,r'11 111 I I'[1,1 'lbe Dist:ict,the Boa:el of Di~eato~s of the Disuict,th.City,the City Council and..ach of thei~~.~tiv.offices,offiaial.,a~nts, volunteer.anel employ_.mall be lnalucJ.d a.Additional InllU:.~a. ~.8peat.Gene:al Liability a.~equi~ecl by v:itten cont~act o~agreement to the extent in8U~able as thei~int.~eR _1'appea:fo~liability a:i.inq out of th.opeation.of th.Wazaecl InllU~ed.Waive~of Subr09lltion inaluct.el ••~e8p8ct.General Liability ••:equi~ed by conuact. AJG -Los Angeles 8/13/2004 3:25 PAGE 4/5 RightFax NAMED INSURED:.BCO Capistano Valley,Inc.;Southwest WaterCompany POLICY NUMBER:LX6343763 -03 COMMERCIAL GENERAL LIABILIlY lHIS ENDORSEMENT aIANGES nIEPOLICY.PLFASERFAD IT CAREFULLY. ADDITIONAL INSURED-DESIGNATED PERSON OR ORGANIZATION This endorsement modifies insuranceprovided under thefollowing: COMMERCIAL GENERAL LIABILIlY COVERAGE PART. SCHEDULE Name ofPerson or Organization: City ofSanJuan Capistrano The District,TheBoard ofDirecton ofthe District The Oty,The city Counciland each oftheir respective officers,Officials Agents,volunteers,and Employees As required by written contract or agreement. (Ifno entry appears above,information required to c<mplete this endorsement will be shown inthe Declarations as applicable to this endorsement.) CG20 261185 Copyright,Insurance Services Office,Inc.,1984 AJG -Los Angeles 8/13/2004 3:25 PAGE 5/5 RightFax NAMFJ>INSURFJ>:.BCO Capistano Valley,Inc.;Southwest Water Company POLICY NUMBER:LX6343763 -03 COMMERCIAL GENERAL LIABILIlY TIllS ENDORSEMENT mANGES TIlE POLICY.PLFASEREAD IT CARFFULLY. ADDITIONAL INSURED-DESIGNATED PFRSON OR ORGANIZATION This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILIlY COVERAGE PART. SCHEDULE Name ofPerson or Organization: City ofSanJoanCapistrano The District,The Board ofDirecton ofthe District The aty,The city Council andeach oftheirrespective officers,Ofticials Agents,volunteers,and Employees As required by written contractor agreement. (!fno entry appears above,information requiredto c(JIlplete this endorsement willbe shown in the Declarations as applicable to this endorsement.) CG20 26 1185 Copyright,Insurance Services Office,Inc.,1984 AJG -Los Angeles 8/13/2004 3:25 PAGE 1/5 RightFax Arthur J.Gallagher &Co. Insurance Brokers ofCalifornia,Inc. 505 North Brand Blvd.,Suite 600,Glendale.CA 91203-3944 Phone:(818)539-2300 CorpomeLicense:0726293 Fax:(818)539-2301 F A X COVERSHEET DATE:Friday,August 13,20043:25:16 PM PAGES:05 TO:Maria Guevara COMPANY:City of San Juan Capistrano F~:949-493-1053 PHONE: FROM:Kathleen Twedell DIRECT FAX:818.539.1716 PHONE:818.539.1416 Best regards, Kathy Twedell 818-539-1416 CONFIDENTIALIIT NOTICE:The docwnents accompanying this telecopy transmission contains confidential information belonging to the sender which is privileged.This information is intended only for the use ofthe individual or entity named above.If you are not the intended.recipient.you are hereby notified that any disclosure,copying, distribution or taking ofany action in reliance on this telecopy is prohibited.Ifyou have received this telecopy in error, please phone us at (818)539-2300. AJG -Los Angeles 8/13/2004 3:09 PAGE 1/4 RightFax ACORD.CERTIFICATE OF LIABILITY INSURANCE OPIDn I IIII'oTf~ RCOCA 1 08}13}04 PRlDUCIER TitSCERTIRCATE IS ISSUED AS A MATTER OF INFORMATION Arthur J.Gallagher ,Company ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE Licen••'0726293 HOLDER THS CERTIRCATE DOES NOT AMEND,EXTEND OR 505 N.Brand Blvd,Suite 600 ALTER THECOVERAGE AFFORDED BY THE POUCIES BELOW. Q1endale CA 91203-3944 Phone:818-539-2300 Fax:818-539-2301 INSURERS AFFORDING COVERAGE NAIC# ..URfD NlURER'"Granite State In.urance Co NlURERB:ad.~5Il.IIl__a.aa ao. ECO Capi.trano Vall~Inc.NlURERC:aU.um.Jm ri.111._Co of ..South"e.t Water Company 32234 Pa.eo ~aDto,Ste.D NlURERD:San Juan Capi.traDO CA 92675 NlURERE: COVERAGES THEI'a.JaBa'INIlIRANCE LISTEDElELCMIHAVEElEENISSUEDTOTHEINlUlEDNMlEDAIlOIEFORTHEPaJC'(I'ERI«lNJCATED.N<lI'WITHSTANlING IWYRmUIREMENT.TERMORCC»lDl"IC»j a'IWYOON"RAa OROfHERDOCUolENTWJrHRESPECTTOWHIOlTHISCERTIF1CATE!lAYElE lISlEDOR MAYPERfAlN.THE INlUlANCEAFFORDEDBYTHEPQJC&lBCMlEDHEREI'j15SUlJECTTOAU.THETE_,EXa..uIIIONll'KJCC»lDmONl OFSUQl I'OUQElI.AGGREGATEUNIISSHONNMAYHAVEElEENREDUCEDBYFNDClAM. ~1Il ~'L 1IOu:Y_POLICYIPI'KTlVI POLICT_TION ....LlR NIIIlD TYl'f:OP_f llIITE~IllITEl/IIIIIIIlITYI GEJlIERM.IMMJrY EAQlOCCURRENCE $1,000,000r----DAIllAGETORENI'EDAXXcc.lhERCW.GENERALUAIlIUTY LX6343763-03 09/01/0C 09/01/05 F'RENI5El1(Eo..........)$1,000,000~CI.AIM&IIADE [iJ OCClJ'l -~ MED EXP(Nly...~...")s 5,000r---- P1iRSONAL•AININ.J.IRY S 1,000,000r---- GENERAlAGGREG....'l':I 2,000,000f-- GE""LAGGREGATElA!rrAPRJIBFER:PRODUCTS-CClMFQ'AGG I 2,000,000 nPOLICY !xl F'RO nux:x JECT M1T0II0BU:lM-.JTY COMIlINED&tGlE lA!Irf--$1,000,000BX1WY1Wf0BAP929S955-04 CAeS)09/01/04 09/01/05 (EIloc.llIIl'I) I-- AU.OWNED1Wf0&'lAP9298956-04 (9)09/01/04 09/01/05 BDCILY_I---$ SCHEDU£D1Wf06 (1'lI,....nj--X HIREDAUI'os BOIlILYINJURY $..!...NON-ONNEDAUI'os (1'lI'....IlIII'I) -F'ROFERTYDWAGE (1'lI1'ICI:1lII1'I)$ _UI\IUIY AlJTOOM.Y-£AACClle.IT I =1 1WY1Wf0 OfHERTIWII EA~$ 1Wf00NLY:/lOB • !lC.....,~IMIIU'Y MCHOOCU-.z I 10,000,000 C [!J OCCUR D CI.AlMSMAOIi Bl:5683892 09/01/04 09/01/05 AllCJRIiCi'<TIi $10,000,000 sRDEOUCT8£S RETENI'IC»j $S __C_TD.AIlD X IT~-:;:1 IOT~' B _YBII'..-JY 1IC2795955-06 09/01/04 09/01/05fIN(PAOffIETOM'MTNERlEXECUTIl/E E.L EAQlACCIDENT S 1,000,000 OFFICEMolEWElEREXCU!tE[l/E.L.DlSIiAlIE-1iA_L~•1,000,000.",••~.ocdD u..., SF'ECWoF'RCMSlaISbow E.L.DI8I!A11E-POlICYL"'IT I 1,000,000 ontlER D Profe••ional Liab BOC 3765163-03 11/0S/03 11/08/04 Limit:$2,000,000 Claim.Made Ded:$50,000 DIIIC....D.OFOIlEMTD..1LOCAT~IVEltl:I.IlIIElCCL"~_rlfEllllOMlllEllrIIfICIIoLfIIIlY.~ .xaPT 10 DAY R)'lICZ or CA1!l'CZLLA'lION J'OR R)NP~ft or PUIIIUII.ALL POLIC!' '!'BRItS,(DImITIO.,LIMI'lATIO.DD RXCLUSIO.APPLY. ***S..attached Notepad for De.cription*** CERTIFICATE HOLDER CANCELLATION C>ACORD CORPORAnON 1.8 / V ACORD 25 (2001108) CI'1'!'SAN .IOIUJNt'(OFT"EABDYEIIBC_I'OU:DIII:CAIICILIDlIlll'OllETIE_TDII IIII'oTfTJllllll)f.TIlf....._--'-__TOIIM.~1III'o"~B1 City of San Juan Capilltrano IDTl:fTOTItf:C~CATftDUlERlIAIIBlTOTMfIS'T.IMITFM..UIlETO D080.111W.Attn:Cind,y Ru••ell 32400 Pa.eo ~aDto _f110OIIlJU.TDIIOR LAMJrYOfNt'(I(IIIlIll'OllTIE..UlER,...ACBmIOR San Juan Capi.traDO,CA 92675 ___All'... ~~ AJG -Los Angeles 8/13/2004 3:09 PAGE 2/4 RightFax \lh11\li1~1!1III,11(1t\\11 I ht\\1I 1II\1 1i '\1 il\1I \11Ii \;1I I 1 I11 I I I II I I,~I ,I I j 11 1 1 \I I \j 1I;''11 11111\\\11\11\1I \1\h\1hil\1t 1\111 II \1\!\1 \1\1 \1 1,"I II I il'I'1 1111(1[1[,1111[1:111 1[lllI1 ijl,111[li III '".Ji[II I ,:I 11,,[I III Ij 1,'11 II'[II',i,l,,I II'I ',T 'lbe Dist~ict,the Board of Directors of the Disuict,the Ci.ty,the Ci.ty Council and each of their reapective officers,officials,a~nts, volunteers and employ_.ahall be Included a.Additional Inau~eds a. ~eapect.Gene~al Liability as ~equi~ttcl by ,,~itten cont~act o~agreement to the extent inllU~able a.thei~intereat may appea~fo~liability a:iainq out of the operation.of the RIUMd.InllU~••aive~of Subrogation inclu~d ••~ellpects Gen~al Liability ••~equi~ed by conuact. AJG -Los Angeles 8/13/2004 3:09 PAGE 3/4 RightFax NAMFJ>INSURFD:.ECO Capistano Valley,Inc.;Southwest Water Company POLICY NUMBER:LX6343763 -03 COMMERCIAL GENERAL LIABILIlY TIllS ENDORSEMENT mANGES lHEPOLICY.PLFASEREAD IT CAREFULLY. ADDITIONAL INSURED-DESIGNATED PERSON OR ORGANIZATION This endorsement modifies insurance provided under the following: COMMERCIALGENERALLIABILIlY COVERAGE PART. SCHEDULE Name ofPersonor Organization: City ofSanJuanCapistrano TheDistrict,The BoardofDirectors ofthe District The Oty,The city Council andeach oftheirrespective officers,Officials Agents,volunteers,and Employees As required by written contractor agreement. (!fno entIy appears above,infonnation required to canpletethis endorsement willbe shown inthe Declarations as applicable to this endorsement.) CG 20261185 Copyright,Insurance Savices Office,Inc.,1984 AJG -Los Angeles 8/13/2004 3:09 PAGE 4/4 RightFax NAMID INSURFJ>:.ECO Capistano Valley,Inc.;Southwest Water Company POLICY NUMBER:LX6343763 -03 COMMERCIALGENERAL LIABILIlY TIllSENDORSEMENT mANGES TIlEPOLICY.PLFASEREAD IT CARFFULLY. ADDITIONAL INSURED-DESIGNATED PERSON OR ORGANlZATION This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILIlY COVERAGE PART. SCHEDULE Name ofPersonor Organization: City ofSanJuanCapistrano The District,TheBoard ofDirecton ofthe District The Oty,The city Counciland each oftheir respective officers,Officials Agents,volunteen,and Employees Asrequired bywritten contractor agreement. (Ifno entry appears above,infmmation required to cmlplete this endorsement will be shown inthe Declarations as applicable tothis endorsement.) CG 20 26 1185 Copyright,Insurance S«Vices Office,Inc.,1984 Ciry of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano,CA.92675 (949)493-1171 Fax:(949)493-1053 FAX TRANSMISSION COVER SHEET YOU SHOULD RECEIVE3PAGE(S),INCLUDING THIS COVER SHEET.IF YOU DO NOT RECEIVE ALL THE PAGES,PLEASE CALL (949) ~(dA Itt/If{C)~t4J ~~(~wi~e~ P/fUI Ykd 070 uS _~N ~;:;dd.~FO{~ Ytfiu;-.e d-h~,0.f5 {Seo f2E50uUq i.eCD/tYfraUR:J W(e~~A~ U·?0 CWWU~~ POLICY NUMBER:LXD6343763-01 COMMERCIAL GENERAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY.PLEASE READ IT CAREFULLY. ADDITIONAL INSURED--DESIGNATED PERSON OR ORGANIZATION This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART. SCHEDULE Name ofPerson or Organization: The District,the Board of Directors of the District,the City,the City Council and each oftheir respective officers,officials,agents, volunteers and employees (If no entry appears above,information required to complete this endorsement will be shown in the Declarations as applicable to this endorsement.) WHO IS AN INSURED (Section II)is amended to include as an insured the person or organization shown in the Schedule as an insured but only with respect to liability arising out of your operations or premises owned by or rented to you. CG 20 261185 Copyright,Insurance Services Office,Inc.,1984 POLICY NUMBER:LX6343763-01 COMMERCIAL GENERAL LIABILITY CG 24 04 10 93 THIS ENDORSEMENT CHANGES THE POLICY.PLEASE READ IT CAREFULLY. WAIVER OF TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE Name ofPerson or Organization: The District,the Board of Directors ofthe District,the City,the City Council and each of their respective officers,officials,agents, volunteers and employees (If no entry appears above,information required to complete this endorsement will be shown in the Declarations as applicable to this endorsement.) The TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US Condition (Section IV -COMMERCIAL GENERAL LIABILITY CONDITIONS)is amended by the addition of the following: We waive any right of recovery we may have against the person or organization shown in the Schedule above because of payments we make for injury or damage arising out of your ongoing operations or "your work" done under a contract with that person or organization and included in the "products-completed operations hazard".This waiver applies only to the person or organization shown in the Schedule above. CG 24 04 10 93 Copyright,Insurance Services Office,Inc.,1992 'ACORD...CERTIFICAl L..OF LIABILITY INSURAN",f OP 10 D~DATE(MMlDDIYYYY) ECOCA-'"7/29/04 PRODUCER THIS CERTIFICATE I tJrf~~TION Arthur J.Gallagher &:Company ONLY AND CONFER 'E License #0726293 HOLDER.THIS CERl .OR 505 N.Brand Blvd,Suite 600 ALTER THE COVERt :LOW. Glendale CA 91203-3944 Phone:818-539-2300 Fax:818-539-2301 INSURERS AFFORDINt "IC# INSURED INSURER A:Granit INSURER B:Zurich be:ECO Capistrano Valley Inc.INSURER C:Natl.UniolSouthwestWatercompanS32234PaseoAdelanto,teo D INSURER 0:ISanJuanCapistranoCA92675 INSURER E:I COVERAGES THE POLICIES OF INSURANCE LISTED BELOW HAVEBEEN ISSUEDTOTHEINSURED NAMEDABOVE FOR THE POLICY PERIOD INDICATED.NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OFANYCONTRACT OROTHER DOCUMENT WITH RESPECT TOWHICH THIS CERTIFICATEMAY BE ISSUED OR MAYPERTAIN,THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN ISSUBJECTTO ALL THE TERMS,EXCLUSIONS AND CONDITIONS OFSUCH POLICIES.AGGREGATE LIMITS SHOWN MAYHAVE BEEN REDUCED BY PAID CLAIMS. II~TR ~SR[TYPE OFINSURANCE POLICY NUMBER ~';!~1ri~J8JW)E IPgk~1Y(~~bRD'Wt~N LIMITS GENERAL LIABILITY EACH OCCURRENCE $1,000,000f-U1\M1\l:l~IU t1~NI ~uAX X COMMERCIALGENERAL LIABILITY LX6343763-03 09/01/04 09/01/05 PREMISES (Ea occurence)$1,000,000f--[J CLAIMS MADE [!]OCCUR MED EXP (Anyoneperson)$5,000r-- PERSONAL&ADV INJURY $1,000,000 f- GENERALAGGREGATE $2,000,000f-- GEN'L AGGREGATE LIMIT APPLIES PER:PRODUCTS-COMP/OP AGG $2,000,000n[Xl PRO-nLOCPOLICYXJECT AUTOMOBILE LIABILITY COMBINED SINGLE LIMITf--$1,000,000B X ANY AUTO BAP9298955-04 (AOS)09/01/04 09/01/05 (Eaaccident) f- ALL OWNED AUTOS TAP9298956-04 (TX)09/01/04 09/01/05 BODILY INJURYf--(Perperson)$ SCHEDULED AUTOS f- X HIRED AUTOS BODILYINJURYf--$X NON-OWNED AUTOS (Peraccident) f- f--PROPERTY DAMAGE $(Peraccident) GARAGE LIABILITY AUTO ONLY -EA ACCIDENT $RANYAlITO OTHER THAN EAACC $ AUTO ONLY:AGG $ EXCESs/UMBRELLA LIABILITY EACH OCCURRENCE $10,000,000 C [J OCCUR D CLAIMS MADE BE5683892 09/01/04 09/01/05 AGGREGATE $10,000,000 $=1 DEDUCTIBLE $ RETENTION $$ WORKERS COMPENSATIONAND X IT3~/~I~:¥S I \uJ~- B EMPLOYERS'LIABILITY WC2795955-06 09/01/04 09/01/05 $1,000,000ANYPROPRIETOR/PARTNER/EXECUTIVE E.L.EACH ACCIDENT OFFICER/MEMBER EXCLUDED?E.L.DISEASE -EA EMPLOYEE $1,000,000~~~21~tS~~~J:~?c3~sbelow E.L.DISEASE·POLICYLIMIT $1,000,000 OTHER D Professional Liab EOC 3765163-03 11/08/03 11/08/04 Limit:$2,000,000 Claims Made Ded:$50,000 DESCRIPTION OFOPERATIONSI LOCATIONSI VEHICLESI EXCLUSIONS ADDED BY ENDORSEMENTI SPECIALPROVISIONS *EXCEPT 10 DAY NOTICE OF CANCELLATION FOR NONPAYMENT OF PREMIUM.ALL POLICY TERMS,CONDITIONS,LIMITATIONS AND EXCLUSIONS APPLY. ***See attached Notepad for Description*** CERTIFICATE HOLDER CANCELLATION CITYSAN SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLEDBEFORE THE EXPIRATION DATETHEREOF,THE ISSUING INSURERWILL ENDEAVOR TOMAIL 30*DAYS WRITTEN City of San Juan Capistrano NOTICE TO THE CERTIFICATE HOLDER NAMEDTOTHE LEFT,BUT FAILURE TODO SOSHALLAttn:Cindy Russell IMPOSENO OBLIGATIONOR LIABILITYOF ANY KIND UPON THEINSURER,ITS AGENTS OR32400PaseoAdelanto San Juan Capistrano,CA 92675 REPRESENTATIVES. ~~E ACORD 25 (2001108)©ACORD CORPORATION 1988 The District,the Board of Directors of the District,the City,the City Council and each of their respective officers,officials,agents, volunteers and employees shall be Included as Additional Insureds as respects General Liability as required by written contract or agreement to the extent insurable as their interest may appear for liability arising out of the operations of the Named Insured.Waiver of Subrogation included as respects General Liability as required by contract. ..eady Mixed Concrete III~ventura Blvd.#475 I ~_,dcino,CA 91436-4778 I IIIII I ( <~~6\3 7100 6309 2640 2386 1958 RETURN BECEIPT REQUESTED CAPISTRANO VALLEY WATER DISTRICT 32400 PASEO ADELANTO SAN JUAN CAPISTR,CA 92675- U>r-o-.Jl>~-~;0--.t=" L :J>mCc-)c=:::~=~en (") I rnC-),--..D -0 < U)~rn--;.~ r:Y 0:::J _...~U1 0 ex:> .-.....::..~Ii.I,II.1.1.11.,111i 1.1,1U .11•.111'11"u.1l,1l'1.II.ul.I ••1 CALIFORNIA.PRELIMINARY 20 -DAY NOTICE (For use on Private and Public 'Norks)(Civil Code Section 3097,3098,3111,3241 3252 et Seq.) ****GENERAL CONTRACTOR **** ECO RESOURCES 32234 PASEO ADELANTO,STE.D SAN JUAN CAPISTR,CA 92675- **OWNER/REPUTED OWNERJPUBLIC AGENCY ** CAPISTRANO VALLEY WATER DISTRICT 32400 PASEO ADELANTO SAN JUAN CAPISTR,CA 92675- ****CONSTRUCTION LENDER **** ****CUSTOMER **** ARB,INC. 26000 COMMERCENTRE DRIVE LAKE FOREST,CA 92630-1404 You are hereby notified that National Ready \fixed Concrete Co.has furnished or will furnish labor,service,equipment or material ofthe following general description:Concrete and related materials for building structure or other work ofimprovement Located at:VAR.LOC.IN SAN JUAN CAPISTR.,SAN JUAN CAPISTR,CA J#1436340 The name ofthe person or firm who contracted for the purchase ofsuch labor,services,or material is ARB,INC..An estimate ofthe total price ofthe labor,services,equipment or material is 1,100.00. NOTICE TO PROPERTY OWNER Ifbills are not paid in full for the labor,services,equipment or materials furnished or to be furnished,a mechanics lien leading to the loss,through court foreclosure proceedings,ofall or part ofyour property being so improved may be placed against the property even though you have paid your contractor in full.You may wish to protect yourself against this consequence by 1)requiring your contractor to furnish a signed release by the person or firm giving you this notice before making payment to your contractor,or (2) any method or device that is appropriate under the circumstances. ARB,INC. 26000 COMMERCENTRE DRIVE LAKE FOREST,CA 92630-1404 Dated:August 5,2004 Valarie Weaver Credit Department 818-728-5200 CALIFL~...1~IA PRELIMINARY 20-DAY i~OTICE (Public and Private Works) This is not a lien.This is not a reflection on the integrity ofany contractor or subcontractor, but the notice prescribed in accordance with Section 3097 and 3098,California Civil Code 1.The following is a general description of the labor,service,equipment or materials furnished orto be furnished by the undersigned: COLDMILLING I PULVERIZING ASPHALT Owner or Reputed Owner (on private work) PUBLIC AGENCY (on public work)2.An estimate of the total price of the labor,services,equipment or materials furnished or to be furnished is: ATKINSON GRADING &EQUIP R~NT;... 4592 ORION STREET .-. HUNTINGTON BEACH,CA 92649::~--~ CAPISTRANO VALLEY WATER DISTRICT 32400 PASEO ADELANTO SAN JUAN CAPISTRANO,CA 92675 7004-1350-0001-4464-8629 ****LENDER /SURETY **** NONE REPORTED ****GENERAL CONTRACTOR **** ECO RESOURCES,INC.lECO CAPISTRANO VALLEY 32234 PASEO ADELANTO SAN JUAN CAPISTRANO,CA 92675 ****CUSTOMER **** ATKINSON GRADING &EQUIP RENT 4592 ORION STREET HUNTINGTON BEACH,CA 92649 5,000.00 Estimated 3.The name ofthe person or firm that has furnished or will furnish labor, services,equipment or materials is: PAVEMENT RECYCLING SYSTEMS P.O.Box 1266 Riverside.CA 92502-1266 PRS JOB NO R413724 4.The name ofthe person or firm who contracted for the purchase of such labor,services,equipment or materials: g Jown-.,,.....,,, 5.The description of the building,structure oroth§Dwork 01"'provment is: SAN JUAN BASIN AUTHORITY DESALTER PR6~CT32-410 PASEO ADELANTO SAN JUAN CAPISTRANO,C A 926~-'.... The Person or firm giving this notice is require9.pursuant'!!;p colleo~bargaining agreement,to pay supplemental fringe benefiti)to an expre~strust flind'(described in Civil Code 3111).Said funds are identified as follows:-!=o Operating Engineers Local #12,Construction Laborer's Trust,Laborer's Benefit Fund NOTICE TO PROPERTY OWNER If bills are not paid in full for the labor,services,equipment or materials furnished or to be furnished,a mechanic's lien leading to the loss,through court foreclosure proceedings,of all or part of the property being so improved may be placed against the property even though you have paid the contractor in full.You may wish to protect yourself against this consequence by (1)requiring your contractor to furnish a signed release by the person or firm giving you this notice before payment to your contractor or (2)any other method or device that is appropriate under the circumstances.Other than residential homeowners of dwellings containing fewer than five units,private project owners must notify the original contractor and any lien claimant who has provided the owner with a preliminiary 2Q-day lien notice in accordance with Section 3097 ofthe Civil Code that a notice of completion or notice of cessation has been recorded within 10 days of its recordation.Notice shall be by registered mail,certified mail,or first class mail,evidenced by a certificate of mailing.Failure to notify will extend the deadlines to record a lien. PAVEMENT RECYCLING SYSTEMS Lori Gorajewski (951)682-1091 ext.2200 Preliminary Notice Clerk PROOF OF SERVICE MY MAIL AFFIDAVIT 10/26/2004 I declare that I served a copy of the above document,and any related documents,by (as required by law)first-class,certified or registered mail, postage prepaid,addressed to the above parties,at the addresses listed above.I declare under penalty of perjury that the foregoing is true and correct.Executed at Riverside,CA. Lori Gorajewski (951)682-1091 ext.2200);/fh~f C/__!lJ111 f at1 /_1.C}/,.:~liminaryNotice Clerk r lo/~9;°II/f/r 10/26/2004 IN ACCORDANCE WITH SECTIONS 3097 AND 3098, CALIFORNIA CIVIL CODE THIS IS NOT A L1EN.THIS IS NOT A REFLECTION ON THE INTEGRITY OF ANY CONTRACTOR OR SUBCONTRACTOR. YOU ARE HEREBY NOTIFIED THAT...I II II II NAME AND ADDRESS OF PERSON OR FIRM FURNISHING]LABOR,SERVICES,EQUIP.OR MATERIALS it· ,i .., ,(1,'-,:I!,,'i..,'J' 7004 1160 0005 1608 4573 CALIFORNIA t'KI:LIMINAKT NU 11\"t: LENDER (REPUTED)ORIGINAL CONTRACTOR (REPUTED) t·,:l~i-··t r'l I··~~~;l'-~i·i.j.,I~.(J.l fr··..q :'ill II "";,I,!i"!'" 'hr'.~,,_.,'f'd:I ~~i I:-il't •.~r f'l OWNER (REPUTED)OR PUBLIC AGENCY SUBCONTRACTOR WITH WHOM CLAIMANT CONTRACTED f i,';d;";'~;1 I' f';I '1 ~; "; r f·..:,:11,',1-' I !I {.:'lt '.~~,··r, 1-'-:-,\/-J Name of person or firm who contracted for purchase of such labor,services,equipment or materials is: (\\,; for building,structure or other work of improvement located at: I-j !' I j ~!f t,'.:,!f ,"H ;~I ;f-':~1'~I f i'\f An estimate of the total price of the labor,services,equipmentormaterialis$ has furnished or will furnish labor,services,equipment or materials ofthefollowing description: t\-,-j ':I",J I f',q':" ( '" i-I .,i Uf-d~ f.d l .;,:.f '\I ~.f ECO Resources,InCeECt(EIVED 29 April 2003 -w ...1er ok WastewaterOperationsManagement ZOO]MAY - I P 2:1I9 CilY CLERJ, SAN JUAN CAPISTRANO Ms.Amy Amirani, Director ofPublic Works Capistrano Valley Water District P.O.Box 967 San Juan Capistrano,CA 92693 CC:~Clerk;City Manager Capistrano Valley Water District 32400 Paseo Adelanto San Juan Capistrano,CA 92675 Dear Amy, Weare in receipt ofyour letter of 11 April 2003.The points you raise therein do not overcome the basic fact of the contract,including the substantial amount of references therein,that ECO/Boyle has the right to make the design improvements we noted.By rcfen~nce I'm incorporating,and refer you to,my 2 April 2003 letter to Barry Redeker (Makolnl Pimie). Nothing ECG has done deviates from the Contract Standards or Design Requirements,which were specifically negotiated and constructed to allow ECO/Boyle to make changes it deenlS proper to ensure meeting our responsibility to produce quality water.This is quite apparent in the language throughout the agreement between ECO and the City,which was -and remains ._.a contract for "design/build/operate".As discussed at length during the negotiations,the purpose of the Design Requirements was specifically not intended to require ECO to build equipnlent exactly as described in preliminary designs presented to the City,even through contract signing. By the very !l3t1.!!.'e oft1:l~s desigpJbui!d/aper?te f0rill?t we ~greed npO:'1 J the fin.~l de~lgn '.vas not ~ part of the signed contract.This concept is clearly evident throughout the contract (per my letter to Malcolm Pimie)-see additionally Article I.2(F).No review by,or approval of,the City is necessary,for ECO is not requesting a Change Order;indeed,no price or scope change will be involved at all.As is clearly evident,ECO has not changed from its basic design principles, which still include filtration preceding reverse osmosis.All product water will meet or exceed the Design Requirements,as well as all other Contract obligations.Given that stipulation -and our 20-year contract commitment to quality and costs at no risk to the City -there is clearly no basis for your position. The arguments you raise -that the facilities cannot change at all from conceptual drawing submittals -have no merit in the design/build/operate bid format that City staff chose and the Council approved.Boyle has completed the engineering deSIgn based on the most recent information we provided to the City's representatives at Malcolm Pimie.Materials procurement 5820 Stoneridge Mall Road •Suite 204 •Pleasanton,CA 94588 •(925)463-3663 •Fax (925)463-0232 ARB,INC. 26000 COMMERCENTRE DR.,LAKE FOREST,CA 92630 TEL:949.454.7110 •FAX:949.595.5544 January 8,2003 Via Overnight Mail Ms.Denise Hering Stradling,Yocca,Carlson &Rauth 660 Newport Center Dr. Suite 1600 Newport Beach,CA 92660 Re:ARB,Inc./ECO Resources Contract Dated December 8,2002 Payment and Performance Bonds Dear Ms.Hering: JOHN M.PERISICH,ESQ. GENERAL COUNSEL Enclosed are the original executed bonds and bond riders for the above-referenced contract.I have inserted the ECO/ARB contract date ofDecember 8,2002 in the bond form,as it has been blank until now. Ifyou have any questions,please do not hesitate to contact me. JMP;ja Enclosures Bond No.24015060 Premium:$85,800.00 FORM OF CONSTRUCTION PERFORMANCE BOND ;)-/" I (~.I :"\/ KNOW ALL MEN BY THESE PRESENTS,that ARB,Inc.,as Principal, and Liberty Mutual Insurance Company with underwriting office at 505 South Main Street,Suite 830,Orange,CA 92868,to which all communications in regard to this bond should be addressed,a corporation organized and existing under the laws of Massachusetts and duly authorized to do business in the State of California,as Surety,are held and firmly bound unto ECO Resources,Inc.,as Obligee,in the penal sum of Sixteen Million Five Hundred Thousand and 00/100 Dollars (the "Bonded Sum"),for the payment which well and truly made,we hereby jointly and severally bind ourselves,our heirs,executors, administrators,successors and assigns,firmly by these presents. WHEREAS,the Principal has by the Agreement for the Construction ofthe San Juan Basin Desalter Project,dated 12 /08/02 ,entered into a contract with the Obligee for the construction,of the San Juan Basin Desalter Project (the "Project")all in accordance with the terms of such contract,which contract is by reference made a part hereof,and is hereinafter referred to as the Construction Agreement; NOW,THEREFORE,the condition of this obligation is such that,if the Principal shall promptly and faithfully do and perform all of the Principal's obligations under the Construction Agreement through completion of construction then this obligation shall be null and void,otherwise it shall remain in full force and effect,it being expressly understood that the liability of the Surety for any and all claims hereunder shall in no event exceed the Bonded Sum. 1.Whenever the Principal shall be,and shall be declared by the Obligee to be,in default under the Construction Agreement,the Obligee having performed the Obligee's material obligations thereunder,the Surety shall promptly remedy the default whatever it may be or shall promptly: (a)Perform the Construction Agreement in accordance with all of its terms and conditions;or (b)Obtain bids for submission to the Obligee for performing the Construction Agreement in accordance with its terms and conditions,and upon mutual determination by the Obligee and the Surety of the lowest responsible bidder,arrange for a contract between such bidder and the Obligee and make available as work progresses (even though there will be a default or a succession of defaults under the contract or contracts for performance arranged under this paragraph)sufficient funds to pay the costs of performance of the Construction Agreement,less the unpaid balance of the contract price;but not exceeding, including other costs and damages for which the Surety may be liable to Obligee hereunder,the amount set forth in the first paragraph hereof. 414619.1 Notwithstanding the Principal's obligations under any prOVISIons of the Construction Agreement,it is understood that any payment made by the Surety in good faith under this bond shall reduce the penal sum by a like amount.The term "balance of the contract price"as used in this paragraph,shall mean the total amount due and payable by the Obligee to the Principal under the Construction Agreement and any amendments thereto,less the amount paid by the Obligee to the Principal in accordance with the terms ofthe Construction Agreement. 2.No alteration,modification or supplement to the terms of the Construction Agreement or any subcontracts or the nature of the work to be perf'- thereunder,including any extension of time for performance,~' obligations of the Surety under this bond.The Surety waive modification,supplement or extension oftime. Signed and sealed this 3rd day ofJanuary,2003 IN PRESENCE OF:ARB,Inc. [Affix Corporate Sea ORIGINAL IN PRESENCE OF: John M.Perisich Vice President Liberty Mutual Insurance Company [Affix Corporate Seal ofPrincipal] BY:/atILL47ifll Name:~nna J.Frowd Title:Attorney-in-fact Note:This bond must be acknowledged before notary publics and a legally sufficient power of attorney must be attached to the bond to verify the authority of any party signing on behalfofthe surety. 4146191 personally appeared ~~~~J~o_h_n~~_._P_e_r_is_i~~~~~~~~~~~~~~~ Name(s)ofSigner(s) ., ,.~personally known to meoprovedtomeonthebasis of satisfactory evidence to be the .person(s)whose name(s)is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies),and that by his/her/their signature(s)on the instrument the person(s),or the entity upon behalf of which the person(s) acted,executed the instrument. .J .J ,I Though the information below is not required bylaw,it may prove valuable to persons relying on the document andcould prevent fraudulent removalandreattachment ofthis form to anotherdocument. ,. Place Notary Seal Above SS my hand and offici I s.ya!. ,{./'(~.)-,',I '1./(....-. aryPublic ./ .: Description of Attached Document Title or Type of Document:_ Document Date:Number of Pages:_ ·1 Top of thumb here Capacity(ies)Claimed by Signer Signer's Name:_ o Individual o Corporate Officer -Title(s): o Partner -0 Limited 0 General o Attorney in Fact ~ o Trustee ~~0 Guardian or Conservator ~~0 Other:~~~~..~~1 Signer Is Representing:10) ~~~~~~~__c<,;'G<;.~~~~~'6v'C(;"C<j'6v~~~~~~'¢Z;'<%'<:x>G<><xxx><;::Z"C<>9Z><XI«~__c<,;~~~-<x;~~w~ I· ©1999NationalNotary Associalion •9350 DeSolo Ave..P.O.Box 2402 •Chatsworth,CA91313-2402'www.nalionalnotary.org Prod.No.5907 Reorder:Call TolI·Free 1·800·876·6827 ·( CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT ~~;>:~~;-<;_~;'~'~~'/::;{:~:~L'S~::~~'?!::~'~~?:<;;~(}~"J.~:,{~-(>?&Y:;';'~:'{>(~>'(':jQ~,?~·\:~...(~~·{(~.<·>.,~~~:~t/~~'15/;{:~:'::'\!!-:~;~~{-~;<'?~~~~5>L~·~~v'tYY~{>;~_;{·'~.t~<I:./~~;f,~~~'·~~:_~~'<~i~)(':~<~;<A-~~~~:r<; ~~~~ ;0;:State of califOrnia}(~0.ss.~~County of Mar1 n ~! ~~~i I.>~Melissa Hickson,Notary Public R~I/~.'.,'•."On January 3,2003 before me,P:"~I'y Date Name andTitle of Officer(e,g.,"Jane Doe.Notary PUblic")8 ~!;personally appeared Don~~(S)~si:ner(~rOWd ~ k ~~~Q{personally known to me b.·~ .f,D proved to me on the basis of satisfactory :.)~.evidence ~~e MEU·~nH.tC1K3=5 to be the person(s)whose name(s)is/are ~ <S1'f;'CommulS'o Z I,~ll' Vi P brc california ~subscribed to the within instrument and ~~i'NotaryM:rin'~nty _t acknowledged to me that he/she/they executed ~~~••~;;a:'..~~7J;,~~~~aci~;(~:),i:nd hi~:~r/th:~r h~~~~~;;~:~~ :~~signature(s)on the instrument the person(s),or k)o bi0theentityuponbehalfofwhichtheperson(s)lQ.~acted,executed the instrument.~ ®~~WITNEfS my ha~nL0clff!cial seal.~~OOL~~JV -~~@ Signature ofNotary Public r)~~~g~~OO~L ~t~Though the information below is not required bylaw,it mayprove valuable to persons relying on the document andcouldprevent ~j fraudulent removal and reanachment of this lorm to another document.~ ~Description of Attached Document fQ' ~Title or Type of Document:~~~~Document Date:Number of Pages:~~~~Signer(s)Other Than Named Above:~~~~Capacity(ies)Claimed by Signer ~~~~Q~Signer's Name:•~ ~D Individual Top of thumb here ~ 1(>'D Corporate Officer -Title(s):fQ~~~~E::Y_in~;~mited 0 General ~ ~D Guardian or Conservator ~~ ~0 Other:.i I~,I~Signer Is Representing:~~~.1~'S,"Y<;..rx.r'Q<2,'{2<}<x:}g;:;;"4,(:ig>tX:-,~~~~~'§j{x,;{:::<:}{;~~'§</Q:X:;i:~~:.X~7;,.~~'Q<2,~;<:J<j{'~'{5(.,'<'-,<,'<x:/<XX':,<-,&':'-'<X,.~'{Yx ©1999National Notary Association·9350 De Soto Ave.,P.O.Box2402·Chatsworth,CA91313·2402·www,nationalnotary.org Prod.No.5907 Reorder:CallToll-Free 1·800·876-6827 PAYMENT BOND r/ Bond No.24015060 Premium:Included on Performance Bond I KNOW ALL MEN BY THESE PRESENTS,that ARB,Inc.,as Principal, and Liberty Mutual Insurance Company with underwriting office at 505 South Main Street,Suite 830,Orange,CA 92868,to which all communications in regard to this bond should be addressed,a corporation organized and existing under the laws of the Massachusetts and duly authorized to do business in the State ofCalifornia,as Surety,are held and firmly bound unto ECO Resources,Inc.,as Obligee,for the use and benefit of claimants (as hereinafter defined),in the penal sum of Sixteen Million Five Hundred Thousand and 00/100 Dollars (the "Bonded Sum"),for the payment which well and truly made,we hereby jointly and severally bind ourselves,our heirs,executors, administrators,successors and assigns,firmly by these presents. WHEREAS,the Principal has by the Agreement for the Construction ofthe San Juan Basin Desalter Project,dated 12 /08/02 ,entered into a contract with the Obligee for the construction of the San Juan Basin Desalter Project (the "Project"),all in accordance with the terms of such contract,which contract is by reference made a part hereof,and is hereinafter referred to as the Construction Agreement; NOW,THEREFORE,if Principal or any of its subcontractors,fails to pay for any materials, equipment,or other supplies,or for rental of same used in connection with the performance of work contracted to be performed under the Construction Agreement or for work or labor thereon of any kind or fails to pay any claimant amounts due under the Unemployment Insurance Code with respect to work or labor performed by any such claimant or for any amounts required to be deducted,withheld and paid to the Employment Development Department from the wages of employees of the Principal and its subcontractors pursuant to Section 13020 of the Unemployment Insurance Code with respect to such work and labor and all other applicable laws ofthe state of California and rules and regulations of its agencies,then said Surety will pay for the same in an amount not exceeding the sum specified above.However,this obligation shall be subject to the following conditions: 1.A claimant is defined for purposes hereof as one having a direct contract with the Principal,or with a Subcontractor of the Principal for labor,materials, or both,used or reasonably required for use in the performance of the Construction Agreement andlor those persons defined in Section 3181 of the California Civil Code; labor and materials being construed also to include that part of water,gas,power,light, heat,oil,gasoline,telephone service or rental of equipment directly applicable to the Construction Agreement. 2.The Principal and Surety hereby jointly and severally agree with the Obligee that every claimant as defined herein,who has not been paid in full before the expiration of a period of 90 days after the date on which the last of such claimant's work or labor was done or performed,or materials were furnished by such claimant,may sue on this bond for the use of such claimant,prosecute the suit to final judgment for such 4146191 ,,' sum or sums as may be justly due claimant,and have execution thereon.The Obligee shall not be liable for the payment ofany costs or expense of any such suit. 3.No suit or action shall be commenced hereunder by a claimant other than in a court of competent jurisdiction in the State ofCalifornia or in the United States District Court for the Central District of California (Southern Division),and not elsewhere. 4.No alteration,modification or supplement to the terms of the Construction Agreement or any subcontracts or the nature of the work to be performed thereunder,including any extension of time for performance,shall in any way affect the obligations of the Surety under this bond.The Surety waives notice of any alteration, modification,supplement or extension of time. 5.Upon request by any person or entity appearing to be a potential beneficiary ofthis bond,the Principal shall promptly furnish a copy of this bond or shall permit a copy to be made. 6.The amount ofthis bond shall be reduced by and to the extent of any payment or payments made in good faith hereunder,inclusive of the payment by Surety of mechanics'liens which may be filed of record against the Project,whether or not claim for the amount of such lien be presented under and against this bond. Signed and sealed this 3rd day ofJanuary,2003. IN PRESENCE OF: IN PRESENCE OF:Liberty Mutual Insurance Company [Affix Corporate Seal ofPrincipal] By:~JU \_;~tZ( Name:D na J.Frowd Title:Attorney-in-fact Note:This bond must be acknowledged before notary publics,and a legally sufficient power of attorney must be attached to the bond to verify the authority of each party signing on behalfofthe surety. 414619.1 Note:This bond must be acknowledged before notary publics,and a legally sufficient power of attorney must be attached to the bond to verify the authority of each party signing on behalfofthe surety. 414619.1 personally appeared ~~~~J~o~h_n~~_._P_e_r_is_i~~~~~~~~~~~~~~~ Name(s)of Signer(s) i Jacquelyn G.Anderson,Notary P4bl Name and Title of Officer (e.g.."JaneDoe.Notary Public") Orange Date County of On __J_A_N_O_8_2_00_3_,before me, CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT f.-<X.-<X«'<;<>«~~,g>(x-<x~~~-5X:«-{x«..¢<':.-c---- -----~- - -- ~State of California ~~~I ~personally known to me o proved to me on the basis of satisfactory evidence 'I ·1 e JACQUELYN G.ANDERSON commission #:1220592 i·Notary Public -Califa'nla I ;I;O'ange Counly 1t••••My;-:m..;,~~l~ to be the .person(s)whose name(s)is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies),and that by his/her/their signature(s)on the instrument the person(s),or the entity upon behalf of which the person(s) acted,executed the instrument. Place Notary SealAbove NESS my hand and official seal. "~ f Notary Public OPTIONAL Though the information below is not required by law,it mayprove valuable to persons relying on the document and could prevent fraudulent removal andreattachment of this form to another document. Description of Attached Document Title or Type of Document:_ Document Date:~Number of Pages:_ Top of thumb here Capacity(ies)Claimed by Signer Signer's Name:_ o Individual.~I'I,I.......0 Corporate Officer -Title(s):o Partner -0 Limited 0 General o Attorney in Fact ~ o Trustee I:-~0 Guardian or Conservator ~~0 Other:~I S'.~~1 Igner Is Representing:g ~g~V"7V'.,--V'/'7'~~.J"'~-''0v''';~~-./'-;~~-./',-cr-.,---./'-;,V',-7'-;-c-~...r-~~~~~~~~~~.~---:-d~~'--"v"""''--'v'--'v .'--'v'--'v'--"v ''--'v''--'v ''--'v'--'v'--'v'--'v'--'v~'''''''--'v~''''''v~'<Yv~X;Z;·(;'<,,'G<.._'G<.._~X:,<..><X~'6<.,~'C<..,.~__C:<:;~~_J' ©1999 NationalNotary Association'9350 De SoloAve..P.O.Box 2402'Chatsworth.CA91313-2402'www.nalionalnotaryorg Prod.No.5907 Reorder:CallToll-Free 1·800-876-6827 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT ~R~~,~,;t,\i~State of califOrnia}tQ:~County of Mari 11.ss.~ 9 i~~~~~<),On January 3,2003 before me,Melissa Hickson,Notary Public i(>~Date Name andTitle of Officer(e.g.."Jane Doe.Notary PUblic")kJ.:~Donna J.Frowd ~~,personally appeared Name(s)ofSigner(s)~ ~~~~:dal~~k~~W~~Ot:e basis of satistactory ~ ~~~,'.:...~@O...·M~L::S;H~K~:•t to be the person(s)whose name(s)is/are ~,~.'~, <8;r subscribed to the within instrument and r~I(:S;Commission'1353805 Z ~~~N6 Notary Public -california ~acknowledged to me that he/she/they executed ~.> ~;Zi Marin County i the same in his/her/their authorized t'\~=== =~~=~rer:-.~7:T:.~~apacitY(ies),and that by his/her/their ~~•"'='"='=""="'=""='"="="'=""=_-signature(s)on the instrument the person(s),or ~ iO the entity upon behalf of which the person(s)~:I acted,executed the instrument.~ ~~iWJITNESS~y hand9f;,nff!C~eal.~ g f .~~~~~~Signature ofNotaryPublic ~~~~~(~OPTIONA L ~.~~~!0;Though the information belowis not required bylaw,it mayprove valuable to persons relying on the document andcouldprevent hifraudulentremovalandreattachmentofthisfo'm to anotherdocument.~I Description of Attached Document ~ ~Title or Type of Document:~ I,~,:.',Document Date:Number of Pages:~ ~Signer(s)Other Than Named Above:~ ~~~Capacity(ies)Claimed by Signer ~ ~Signer's Name:B. ~,0 Individual Top 01 thumb here ~~0 Corporate Officer -Title(s):K'~I"~"';~."0 Partner - 0 Limited 0 General ~."ci 0 Attorney-in-Fact ir>~0 Trustee ~:~~g~h~~ian or Conservator ~ ~~~Signer Is Representing:~ 1'K,<,,-~~~'g{j<;7;,~~~V;;,(:X:;s~;<:}rX:r'~~~gz.;{::;;.XX,,'<::;;}i;%:;",~'r::;::X;'x0;<X.}Q<f<;;::/Q~'<X.;~v;::;:::",'{:~;<>(.'{:A}{Y,X:J',~«'<Xr'(Y:}(Y:'x ©1999National NotaryAssociation·9350 De SotoAve.,P.O.Box 2402·Chatsworth.CA91313-2402·www.nationalnotary,org Prod.No.5907 Reorder:CallToll-Free 1-800-876-6827 THIS POWER OF ATTORNEY IS NOT VALID UNLESS IT IS PRINTED ON RED BACKGROUND, •I ...800988 This Power of Attorney limits the act of those named herein,and they have no authority to bind the Company except in the manner and to the extent herein stated. LIBERTY MUTUAL INSURANCE COMPANY BOSTON,MASSACHUSETTS POWER OF ATTORNEY KNOW ALL PERSONS BY THESE PRESENTS:That Liberty Mutual Insurance Company {the "Company"),a Massachusetts mutual insurance company,pursuant toa:ndby authorityottheBy~lawandAuthorization hereinafter set forth,does hereby name, constitute and appoint,MICHAEL B..MCGOWAN,SUSAN·J.MCGOWAN,DONNAL.WELSH,.DONNA J.FROWD,ALL OF THE CITY OF NOVATO~STATEOF<CALIFORNIA . •••••••••••••••••••••••••••••••••••••••••••••-••-.,._11 -.a-a a.-a-a -.. ............................................•.w-lli__..~__.ailt ~-••_li•••-.a.•-•.-.-..lIl llIIw_-••••••••••••••••••••••••••••••••.lIl ...-.._-.--..............•....................................................................... ................••*•••-•.,-w,_,w.-w•••••·Ii w-.••••••w_wa-aw_.-w a . ,each individually if there be more than onenamed,its trueandlawfulattotney-in-fact to make,execute,sealjacknowledge and deliver,for and on its behalf as sure!y and as its act and deed;anv and all undertakings,bonds,recognizancesand othersuretyobtigations in the penal sum not exceeding SEVENTY-FIVE MILLION AND 00/100**'*******************DOLLARS ($75,000,000.00*****)each,and the execution of such bonds or undertakings,in pursuance of these presents,shall be as binding upon the Company as if they had been duly signed by the president and attested by the secretary of the Company in their own proper persons. That this power is made and executed pursuant to and by authority of the following By-law and Authorization: ARTICLE XVI -Execution of Contracts:Section 5.Surety Bonds and Undertakings. Any officer or other official of the company authorized for that purpose in writing by the chairman or the president,and subject to such limitations as the chairman or the president may prescribe,shall appoint such attorneys-in-fact,as may be necessary to act in behalf of the company to make,execute,seal,acknowledge and deliver as surety any and all undertakings,bonds,recognizances and other surety obligations.Such attorneys-in-fact,subject to the limitations set forth in their respective powers of attorney,shall have full power to bind the company by their signature and execution of any such instruments and to attach thereto the seal of the company.When so executed such instruments shall be as binding as if signed by the president and attested by the secretary. By the following instrument the chairman or the president has authorized the officer or other official named therein to appoint attorneys-in-fact: Pursuant to Article XVI,Section 5 of the By-laws,Assistant Secretary Garnet W.Elliott is hereby authorized to appoint such attorneys-in-fact as may be necessary to act in behalf of the company to make,execute,seal,acknowledge and deliver as surety any and all undertakings, bonds,recognizances and other surety obligations. That the By-law and the Authorization above set forth are true copies thereof and are now in full force and effect. IN WITNESS WHEREOF,this instrument has been subscribed by its authorized officer and the corporate seal of the said Liberty Mutual Insurance Company has been affixed ~heretQ in Plymouth Meeting,Pennsylvania this 2nd day of May ,~1_. LIBERTY MUTUAL INSURANCE COMPANY By ~dr ~,.~ Garnet W.Elliott,Assistant Secretary COMMONWEALTH OF PENNSYLVANIA ss COUNTY OF MONTGOMERY On this 2nd day of May ...,A.Q.2001 ,beforeme,a Notary Public,personally came the individual,known to me to be the therein desc .'i .idual and officer of LibertYfv1utuaJJnsura~ce Company who executedthepreceding instrument,and he acknowled- ged that he executed ..rfJea the seal affixed tothesaicLprecectinginstrumentjsthe corporatesetd of satd company;and that said corporate seal and his signatu 'wasdulyaffixedandsubscribed tothesaid instrument by authority and direction of the said company. IN TESTIMO 8Emt~te,l\tE I,the undersigne,~,",v .retaTy of Liberty Mutuaflns4ranceGompany,do hereby certifythattheoriginal power of attorney of which the foregoing is a full,true and i50rrE!ct copy,jsin full force and effect onthe date of this certificate;and Ido furthercertify that the officer who executed the said power of attorney was one of the officers specially authorized by the chairman or the president to appoint any attorney-in-fact as provided in Article XVI,Section 5 of the By-laws of Liberty Mutual Insurance Company. This certificate may be signed by facsimile under and by authority of the following vote of the board of directors of Liberty Mutual Insurance Company at a meeting dUly called and held on the 12th day of March,1980. VOTED that the facsimile or mechanically reproduced signature of any assistant secretary of the company wherever appearing upon a certified copy of any power of attorney issued by the company,shall be valid and binding upon the company with the same force and effect as though manually affixed. IN TESTIMONY WHEREOF,I have hereunto s,klQscribed my name and affixed the corporate seal of the said company,this 3_r_d day of January ,20U3._~;:4?>?PL -:-~~s....ta'-'-n-t-=-Se..:..c=-re-:t-ary---=:-------------- THIS POWER OF ATTORNEY MAY NOT BE USED TO EXECUTE ANY BOND WITH AN INCEPTION DATE AFTER =M=a~Y,--,2=--,20~__. :>.m"0 enen(1)c'iii :::::s.c >-cm_c-0 Bt- >-00(1)WEe00.=0et('l)-,.o~ ..."0(1)C:=m°eD.m,~oJ:O_.. _0) Oc >-(1),:t::(1)"0:=._--(1)~.c (1)0J:~_N e'?...N'-('I)-COC.00CJ,.. OCDt-,.!. RIDER APDING ADDmONAL OIlLIClII! Ttll.t1cfer Js to be .ch8d to and form a part of surety bond numt-r 24015060 ,dated Ihe 3rd dlY of January ,2003 executed b~LibertY M~I In.Ulance Company.a M....ch-u.-...-m-utu-.I InstU'&notI comPtnY.lIs ~,.~(the ·sureW").an behalf of In favor Of ARB,Inc.•81 prtnolp-'(th."Principii'? ECO Resources,Inc. WHE~1 "e Principal h••bY writlan agreement dated .,.8 t h day ofem.raca Into.cannet (the "Contraer)wtth IhII Oblgee fer. San Juan Basin Desalter Project ••obIg.8(the "Obllgee'~. December ,2002 ARB,Inc. WHBReAS,upon the I'8qLleIt oftf1e Prfnclpll 8nd Obflge.,the 8UIIch8d band il"'''by .mended fo add Capistrano Valley Water District and Ambac Assurance Corporatiqlla an ilddl1lonlf obllge8 (the "Addl~onal Oblige&")to the bOnd,end th-ObIiQte end Addl~n.1 Obligee snau befolnt .nd......be~lIrl88of the benet tnd shell b8 JC$tIYreferred to ..the "Bond 0bIQt..". PROVIPID,HOW~EFt I t-re shIn be no ".~.~of thlt Surety under the ,*ched I30nd to 1he 8Dnd OtlliQMI,lither Jolm!y or I_verIlY.llmnl Ind until the Bond ObWgees.Ih.n mike payment to .,.Pnncipel or to tho swety (.h~bt surety 8m1nQl fOr or undertak8 the oompletlDn of ttl..Cc:Jntntct upon 118 defBult of the PrinapllO, ltr1etIY In "OODrtfan~WIth the term.of the Contract;and ou.rwllal ••Itty I"~8 and conditions and p*rform an of 1M 0#(.,Q~~"8fD •pet1'clrmed unde,the ContIICt II tht ame .nd In the mlnner therein .et fo1'lh;all of III _PIS Of ana ObRa"~I"g JJinding Up()n hi ok. In no event shall the _garegate "abillt1 Of I'll Surlty to _BQnd Obllg....tither Jointly or 'eYenIlly.axcee<t 1t\e penallum 01 tile att8cn-d bond.ncr ahall the SU,.ty tHJ li.~_.xcept fbr ..alngla payment for .ach .mate br-Kh or deta~lt,Af th-SUrety'a election.any payment dut to lither ObngM m.~a-mad'bV Its Cl'eck l.sUld JoINIy to both. Thll chlnattl&effItetlVl the 3rd dlY of Janua'Y .20.....°....3__ The dlCh.d bond shall be lubject to all of Ita twrna,condJ~.and Ilmibltionl except 8B h.rtln mOdified. IN WITNESS WHEREOF,said Prrnclp81,SUrety.Ob{/a-and AdclitkWc(OlJfIg8e h~t:aU$tJd ....pruerM to~cI~y I19nel1 and ••.,.Uhls 7th clay of January r 20 03 . ~:-J- By~~L---,".;;;(s••t}._~j~t T ce ~dent Da~::.:=-~~..-..w-e--T+tl++o~--- ~r'(SMI) ntle:..Jm~~~~~lL.l-'L.W....l:.ilJ.lClU;l-Oltl:_~~................~_ Bv:"'--__--__-(Seal) Title:0.:----------- ~_:__----4(8MlO CII8:_ personally appeared J=.....;o=...:.h~n..:._..:.._M.:....:.•.:....:.P_e_r_is_ich_:_:___:_:____:_::::_:____:__:__--------"-- Name(s)of Signer(s) ~personally known to me D proved to me on the basis of satisfactory evidence ,I ,I ·1 ,I 'I OPTIONAL Though the information below is not required by law,it mayprove valuable to persons relying on the document and could prevent fraudulent removal and reattachment ofthis form to anotherdocument. I· /. I· I· l' JACQUELYN G.ANDERSON~e Commission #1220592 z~.Notary Public -Califania ~J OrangeCounty f ••••Mv.ec::m.;.~~/~1~~ Place Notary SealAbove to be the'person(s)whose name(s)is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies),and that by his/her/their' signature(s)on the instrument the person(s),or the entity upon behalf of which the person(s) acted,executed the instrument. ESS my hand and offici~seal.,1tZ~ of Notary Public ., ·1 '1 I .: ·1 ,I ,I "., .: Description of Attached Document Title or Type of Document:_ Document Date:Number ofPages:_,I '1 Top of thumb here Capacity(ies)Claimed by Signer Signer's Name:_ o Individual o Corporate Officer -Title(s): o Partner -0 Limited 0 General o Attorney in Fact ~ o Trustee ~ 0 0 Guardian or Conservator R,i, Other:::<>~~.•.!~.Signer Is Representing:g~~~~~~~~«~~'C<;,~~~~~'GZ-'C.Z:-e.z,'<X~..G.'<:>(x:-c.z,'<X.'<;<)<x'Gz><:X:><xxx«'CZ''9G'Gz><.X;~'6<:.,~-<':;:<:''<X~~~;C;Z:~"0'-B ©1999 National Notary Association·9350 DeSotoAve..P.O.Box 2402·Chatsworth,CA 91313-2402·www.nalionalnolary.org Prod.No.5907 Reorder:Call TolI·Free 1·800·876·6827 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT ></:,·":·~~:;~~~:"0<.'Xj(j~~;<~~~~,?~~)~~--::~(~~~:V:'~~~=-:x.:~:(xX~/,;·~X:{':~~>:~"\·?5J,(~:y.:'~:~::'g/;'S?l;0'1&-<-~;f:~~;.(~;{~~0~I'.~.L":~(,)(>5,...;{>Z;-<,·:.~'\<?:;,:,<>~.~,~.~'·;c>(,:.<~,x ~J:~>:~>,:~,~~;{':~.:?,Y<~..~ <',:;~~ If)State of califOrnia}r~~.ss.~lif~County of MarJ.n l'~Melissa Hickson,Notary Public §~;On January 7,2003 before me,~v'~.:,«:Date Name and Title of Officer(e.g.,"Jane Doe,Notary PUblic"):">~Donna J.Frowd ~~personally appeared N,""I"519°"('1 ~ 16:lXpersonally known to me ~ ~~Vi~~~~~d to me on the basis of satisfactory ~.: ~.MEUSSAHiCKSON ~, tit;•Commiuion'1353805 z to be the person(s)whose name(s)is/are ~)~-.Notary Public·California ~subscribed to the within instrument and ~~i Marin eounty ~L acknowledged to me that he/she/they executed ~~J::::::::,;;m:n::t-,~X1~~--l the same in his/her/their authorized ~~J..- -capacity(ies),and that by his/her/their K ~~,',.~.':.',..signature(s)on the instrument the person(s),or ~,: the entity upon behalf of which the person(s)p;.jI~~acted,executed the instrument.g ~~@ WiTNESS,my ha=~o1fi~ai sea'.~~tl1QL2F&0:TI~£f\..,@%j Signature of Notary Public ~~K~~~OPTIONAL ~ .(:;'Though the information belowis not required bylaw,it mayprove valuable to persons relying on the document andcouldprevent t~I~fraudulent removal and reattachment ofthis form to another document.~~~~Description of Attached Document ~: ~~~Title or Type of Document:~ ~Document Date:Number of Pages:~I Signer(s)Other Than Named Above:~~~~Capacity(ies)Claimed by Signer ~~~~Signer's Name:~,.~,~.~~,0 Individual Top of thumb here r!:I~D Corporate Officer -Title(s):~~,%D Partner -D Limited D General ~~D Attorney-in-Fact ~I~0 Trustee ~l~D Guardian or Conservator r:s~0 Other:~ I~Signer Is Representing:~I~~%0~~,,(,'Q,.(,::j,Ci.~'6(,~'¢;(,~~~~~~'¢;(,~~~~~~~~~'6'';''~~'<''-,<:~'~'§X;~:x,,<,,,-<.j<:-:;,(.'<",-<-~%'6>:~~~-<X-'<YX ©1999 National NotaryAssociation·9350 De Soto Ave"P,O.Box2402·Chatsworth,CA91313-2402·www.nalionalnotary.org Prod.No,5907 Reorder:Call Toll-Free 1-800-876-6827 .--.. THIS POWER OF ATTORNEY IS NOT VALID UNLESS IT IS PRINTED ON RED BACKGROUND.800989 This Power of Attorney limits the act of those named herein,and they have no authority to bind the Company except in the manner and to the extent herein stated. LIBERTY MUTUAL INSURANCE COMPANY BOSTON,MASSACHUSETTS POWER OF ATTORNEY KNOW ALL PERSONS BY THESE PRESENTS:That Llberty Mutual Insurance Company (the."Company"),a Massachusetts mutual insurance company,pursuant to and by authorityottheBy-law andA~thorizationhereinafterset forth,does hereby name, constitute and appoint,MICHAEL B.MCGOWAN,~USANJ.>MCGOWAN,DONNAL.WELSH,OONNA J.FROWD,ALL OF THE CITY OF NOVATO,STATEQFCALIFORNIA . •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••~••-••••••••••••••-a.a••••••alli-•••-••,••••••••'•••.-III••••••••••••••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••••-.III~iI••••••••••••••'--•••••••••1111.•,_•••••••••.-.'•.•.•-.11••••••••••••••••••••••••••••••••• ••••••••••••••••••••••••••••••••••II _•••••.••••••••••••••••••••••••'li••',,••••••••••••••••••••••••••••••••••• ••••••••••••••••••••••••••••••••••II '.-•••••••••••••••,II•••••II•••II•••••• LIBERTY MUTUAL INSURANCE COMPANY COMMONWEALTH OF PENNSYLVANIA ss COUNTY OF MONTGOMERY :>.C'Cl'0 (/) (/)(1)c·iii ::::J.c >cC'Cl_c -051- >00(1)WEeOc.=0«M_.. O"l::l' ...'0(1)C 3=C'Cl°ea.C'Cl .~o.co-.._(7) Oc >(1)=:(1):2.!-(1)~.c (1)0.c"l::l'_NeC19...N·-M-coC.00U,..OCDI-~ May ..,AO.2001 ,beforeme,a NotaryPublic,personally came the individual,known to idual and officerof LibertYf\I1utualJnsurance Company who executedthe preceding instrument,and he acknowled- the seal affixed tothesaidprecedinginstrumentisthe corporate seal of sakl company;and that said corporate asdulyaffixedandsubscribed to the said instrument by authority and direction of the said company. set1'l'lY .~~ng~~~~ffi.x.rrly<:)ff~~ic:lt~~~lat Plyrt:lOlJ Meettng,P On this 2nd day of me to be the therein desc'd,t; ged that he executed rt:Isa seal and his signatu IN TESTIMO .·····CEffFtf+CAtE I,the undersigne ".....retary of Liberty Mutua.flnstmmceCompany,do hereby certHythattheorlginal power of attorney of which the foregoing is a full,true ando'c'5"i'I'§'Cfcopy,jsin full force and effect on the date of this certificate;andldQfurthercertify that the officer who executed the said power of attorney was one of the officers specially authorized by the chairman or the president to appoint any attorney-in-fact as provided in Article XVI,Section 5 of the By-laws of Liberty Mutual Insurance Company. This certificate may be signed by facsimile under and by authority of the following vote of the board of directors of Liberty Mutual Insurance Company at a meeting dUly called and held on the 12th day of March,1980. VOTED that the facsimile or mechanically reproduced signature of any assistant secretary of the company wherever appearing upon a certified copy of any power of attorney issued by the company,shall be valid and binding upon the company with the same force and effect as though manually affixed. By ~e::1r tJ,·~ Garnet W.Elliott,Assistant Secretary ,each individually if there be more thallQnenamed,its true and lawful attorney-in-fact to make,execute,seal,acknowledge and deliver,for and on its behalf as sureJy.and as its act and deed,clny and all undertakings,bond$,recognizancesand otheisurety obligations in the penal sum not exceeding SEVENTY-FIVE MILLION AND 00/100*********************DOLLARS ($75,000,000.00*****)each,and the execution of such bonds or undertakings,in pursuance of these presents,shall be as binding upon the Company as if they had been duly signed by the president and attested by the secretary of the Company in their own proper persons. That this power is made and executed pursuant to and by authority of the following By-law and Authorization: ARTICLE XVI -Execution of Contracts:Section 5.Surety Bonds and Undertakings. Any officer or other official of the company authorized for that purpose in writing by the chairman or the president,and subject to such limitations as the chairman or the president may prescribe,shall appoint such attorneys-in-fact,as may be necessary to act in behalf of the company to make,execute,seal,acknowledge and deliver as surety any and all undertakings,bonds,recognizances and other surety obligations.Such attorneys-in-fact,subject to the limitations set forth in their respective powers of attorney,shall have full power to bind the company by their signature and execution of any such instruments and to attach thereto the seal of the company.When so executed such instruments shall be as binding as if signed by the president and attested by the secretary. By the follOWing instrument the chairman or the president has authorized the officer or other official named therein to appoint attorneys-in-fact: Pursuant to Article XVI,Section 5 of the By-laws,Assistant Secretary Garnet W.Elliott is hereby authorized to appoint such attorneys-in-fact as may be necessary to act in behalf of the company to make,execute,seal,acknowledge and deliver as surety any and all undertakings, bonds,recognizances and other surety obligations. That the By-law and the Authorization above set forth are true copies thereof and are now in full force and effect. IN WITNESS WHEREOF,this instrument has been subscribed by its authorized officer and the corporate seal of the said Liberty Mutual Insurance Company has been affixed theretQ in Plymouth Meeting,Pennsylvania this 2nd day of May ,~1__. ..,;'·iiioc.(1)'0.~(/)c(1) C'Cl.!!.cC..,;'~.-C'Cl'O~~O) U(1) -::::J0-...C'Cl (1»---C'Cl.!!::::J~'Oc·-C'Cl(/)o~-...aro-(1)0_ CC'Cl~... (1)-O)CI) ta(1) 0)'" t:.!!0.5e~(1)...-0C'Cl_... '0>:UC'ClC>(1)_... 0'"z~ corporate seal of the said company,this 7_t_h___day ofINTESTIMONYWHEREOF,I have hereunto.~u.bscribed my name and affixedJanuary,ZUUJ. ~tantsecretary THIS POWER OF ATTORNEY MAY NOT BE USED TO EXECUTE ANY BOND WITH AN INCEPTION DATE AFTER __---!M......",a~y--'2"'--------,2~__. 32400 PASEO ADELANTO SAN JUAN CAPISTRANO,CA 92675 (949)493-1171 (949)493-1053 FAX www.sanjuancapistrano.org October 21 ,2004 MEMBERSOF THE CITYCOUNCIL SAM ALLEVATO DIANE L.BATHGATE WYATIHART JOESOTO DAVID M.SWERDLIN / Eco Resources 225 N Barranca Avenue Ste 200 West Covina,CA 91791 RE:Compliance with Insurance Requirements -Ground Water Recovery Plant The following insurance document is due to expire: vi Professional Liability Certificate 11/8/2004 ~ Please submit updated documentation to the City of San Juan Capistrano,attention City Clerk's office,324 0 Paseo Adelanto,San Juan Capistrano,CA 92675 by the above ex·ion date.If ou have any questions,please contact me at (949)443-6309. / cc:Michelle Perea,Administrative Assistant I San Juan Capistrano:Preserving the Past to Enhance the Future ACORDno CERTIFICATE OF LIABILITY INSURANCE OP IDTL I DATEIMMIDDIYYYY) ECOCA-1 03/04/05 PRODUCER THIS CERTIFICATE IS ISSUEDAS A MATTER OF INFORMATION Arthur J.Gallagher &Company ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE License #0726293 HOLDER.THIS CERTIFICATE DOES NOT AMEND,EXTEND OR 505 N.Brand Blvd,Suite 600 ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. Glendale CA 91203-3944 Phone:818-539-2300 Fax:818-539-2301 INSURERS AFFORDING COVERAGE NAIC# INSURED INSURERA Granite State Insurance CO INSURERB Zurich ~rlc&n Iluuranc.CO. ECO Capistrano Valley Inc.INSURERc:Natl.Union Pir.In.Co of PASouthwestWaterCompany 32234 Paseo Adelanto,Ste.D INSURER 0 Illinois Union Ins CoSanJuanCapistranoCA92675 INSURERE' COVERAGES THEPOLICIESOF INSURANCELISTEDBELOWHAVEBEENISSUEDTO THE INSUREDNAMEDABOVEFORTHEPOLICYPERIODINDICATED.NOTWITHSTANDING ANYREQUIREMENT,TERMOR CONDITiONOFANYCONTRACTOROTHERDOCUMENTWITHRESPECTTO WHICH THISCERTIFICATEMAYBE ISSUEDOR MAYPERTAIN.THE INSURANCEAFFORDED BY THEPOLICIESDESCRIBEDHEREIN ISSUBJECTTOALLTHETERMS,EXCLUSIONSANDCONDITIONSOFSUCH POLICIES.AGGREGATELIMITSSHOWNMAYHAVEBEEN REDUCEDBYPAIDCLAIMS. INSR JADD'L POLICYEFFECTIVE POLICYEXPIRATION LTR NSRD TYPEOFINSURANCE POLICYNUMBER DATE(MMIDDIYY)DATE(MMlDDIYV)LIMITS GENERALLIABILITY EACHOCCURRENCE S 1,000,000r--DAMAGETORENTEDA X X COMMERCIALGENERALLIABILITY LX6343763-03 09/01/04 09/01/05 PREMISES(Eaoccurence)S 1,000,000r--o CLAIMSMADE [!]OCCUR MEDEXP(Anyoneperson)S 5,000r-- X Limited Pollution PERSONAL&ADVINJURY S 1,000,000r---r-!-$1,000,000 $250,000 DEDUCTIBLE GENERALAGGREGATE S 2,000,000 GEN'LAGGREGATELIMITAPPLIES PER:PRODUCTS-COMPIOPAGG S 2,000,000nPOLICY[Xl PRO-nLOCXJECT AUTOMOBILE LIABILITY COMBINEDSINGLELIMITr---s 1,000,000B X ANYAUTO BAP9298955-04 (AOS)09/01/04 09/01/05 (Eaaccident) r--- ALLOWNEDAUTOS TAP9298956-04 (TX)09/01/04 09/01/05 BODILYINJURYr--S SCHEOULEDAUTOS (Perperson) r--- X HIREDAUTOS BODILYINJURYr--SXNON-OWNEDAUTOS (Peracctdent) r--- r--PROPERTYDAMAGE (Peraccident)S GARAGE LIABILITY AUTOONLY -EAACCIDENT SRANYAUTOOTHERTHANEAACCS AUTOONLY'AGG S EXCESS/UMBRELLALIABILITY EACHOCCURRENCE S 10,000,000 C t!=J OCCUR D CLAIMSMADE BE5683892 09/01/04 09/01/05 AGGREGATE s 10,000,000 sRDEDUCTIBLES RETENTiON S S WORKERS COMPENSATIONAND X 1T;Cy~~~T~1 10TH-ER EMPLOYERS'LIABILITY WC2795955-06 09/01/04 09/01/05BANYPROPRIETORIPARTNERJEXECUTIVE E.L.EACHACCIDENT S 1,000,000 OFFICERIMEMBEREXCLUDED?E.L.DISEASE -EAEMPLOYEE S 1,000,000 Ifyes,describeunder SPECIALPROVISIONSbelow E.L.DiSEASE-POLICYLIMIT S 1,000,000 OTHER D Excess Pollution PPLG21744293002 09/01/04 09/01/05 Ea Claim Claims Made Aggregate $10,000,000 DESCRIPTION OFOPERATIONSI LOCATIONSI VEHICLESIEXCLUSIONSADDEDBYENDORSEMENT/SPECIALPROVISIONS Architects&Engineers Professional Liability -$2,000,000 Limit/$50,000 Deductible.Carrier:Zurich American Poll EOC376516304 Term:11/8/04-05 *Except 10 days NOC for Nonpayment of premium. ***See attached Notepad for Description*** CERTIFICATE HOLDER CANCELLATION CITYSAN SHOULDANYOFTHEABOVEDESCRIBEDPOLtcESBECANCELLEDBEFORETHEEXPIRAlION DATETHEREOF,THE ISSUING INSURERWILL ENDEAVORTOMAlL 30*DAYSWRmEN City of San Juan Capistrano NOTICETOTHECERTIFICATEHOLDERNAMEDTOTHELEFT,BUTFAILURETODOSOSHALL Attn:Cindy Russell 32400 Paseo Adelanto IMPOSENOOBLIGATIONORLIABILITYOFANYKINDUPON THEINSURER,ITSAGENTSOR San Juan Capistrano,CA 92675 REPRESENTATIVES. ~~ ACORD 25(2001/08)©ACORD CORPORATION 1988 Maria Guevara From: Sent: To: Subject: Maria, Michelle Perea Friday,December 03,2004 10:45 AM Maria Guevara RE:Insurance I may be able to get it faxed to me today;I emailed Chris Costello.The address that I have for ECO is: 5820 STONERIDGE MALL ROAD SUITE 204 PLEASANTON,CA 94588 or the local office is 32234 Paseo Adelanto,Ste D San Juan Capistrano,CA 92675 Thanks, 1vf~Pe¥ect/ -----Original Message----- From:Maria Guevara Sent:Friday,December 03,20049:57 AM To:Michelle Perea Subject:Insurance Hi, The professional liability for ECO Recourses expired back on the 8th of November,I sent a letter to them but it came back.Can you give me the correct address &let them know that we need that certificate. Thanks, PS.I'll wait 'till next Friday to add them to the non-pay. Maria Guevara,Administrative Secretary City of San Juan Capistrano City Clerk Division (949)443-6309 1 Maria Guevara From: Sent: To: Subject: Hi, Maria Guevara Friday,December 03,2004 9:57 AM Michelle Perea Insurance The professional liability for ECO Recourses expired back on the 8th of November,I sent a letter to them but it came back.Can you give me the correct address &let them know that we need that certificate. Thanks, PS.I'll wait 'till next Friday to add them to the non-pay. Maria Guevara,Administrative Secretary City of San Juan Capistrano City Clerk Division (949)443-6309 1 32400 PASEO ADELANTO SAN JUAN CAPISTRANO,CA 92675 (949)493·1171 (949)493-1053 FAX WH'H'.SanjuancapistranO.Olg October 21 ,2004 MEMBERS OF THE CITY COUNCIL SAMALLEVATO DIANE L.BATHGATE WYATTHART JOESOTO DAVID M.SWERDLIN Eco Resou rces 225 N Barranca Avenue Ste 200 West Covina,CA 91791 RE:Compliance with Insurance Requirements -Ground Water Recovery Plant The following insurance document is due to expire: .j Professional Liability Certificate 11/8/2004 Please submit updated documentation to the City of San Juan Capistrano,attention City Clerk's office,324 0 Paseo Adelanto,San Juan Capistrano,CA 92675 by the above eX~~,on date.If ou have any questions,please contact me at (949)443-6309. Sin ! /I cc:Michelle Perea,Administrative Assistant I San Juan Capistrano:Preserving the Past to Enhance the Future ACORD",CERTIFICATE OF LIABILITY INSURANCE OPIO B~DATE (MM/DDIYYYY) ECOCA-1 11/18/04 PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTEROFINFORMATION Arthur J.Gallagher &Company ONLYAND CONFERS NO RIGHTS UPON THE CERTIFICATE License #0726293 HOLDER.THIS CERTIFICATE DOES NOTAMEND,EXTEND OR 505 N.Brand Blvd,Suite 600 ALTER THE COVERAGE AFFORDED BYTHE POLICIES BELOW. Glendale CA 91203-3944 Phone:818-539-/.300 Fax:81S-539-2301 INSURERSAFFORDING COVERAGE NAIC# INSURED INSURER A:Granite State Insurance CO INSURER B:Zurich American Insurance CO.ECO Capistrano Valley Inc.INSURER c:Natl.Union Fire Ins Co of PASouthwestWatercompanS32234PaseoAdelanto,teo D INSURER D:Illinois Union Ins CoSanJuanCapistranoCA92675 INSURER E: COVERAGES THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED.NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN,THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. IIN~/(~~~~POLICY NUMBER PJ'.N~~:~~68;Wr Pg~!fJ(~':'~~N LIMITSLTRTYPEOFINSURANCE GENERALLIABILITY EACH OCCURRENCE $1,000,000r--UAMA\;:it:I U ~t:NI t:uAX...!.-COMMERCIAL GENERALLIABILITY LX6343763-03 09/01/04 09/01/05 PREMISES (Eaoccurence)$1,000,000oCLAIMSMADE~OCCUR MEDEXP(Anyone person)$5,000- ...!.-Limited Pollution PERSONAL &ADV INJURY $1,000,000 ...!.-$1,000,000 $250,000 DEDUCTIBLE GENERAL AGGREGATE $2,000,000 CEt~':'"AGGREG.l\TEUMITAPPLIESPE~;PRODUCTS·COMP/OP AGG $2,000,000n\Xl PRO·nLOCPOLICYXJECT AUTOMOBILELIABILITY COMBINEDSINGLE LIMITr--$1,000,000B X ANY AUTO BAP9298955-04 (AOS)09/01/04 09/01/05 (Ea accident) r-- ALLOWNED AUTOS TAP9298956-04 (TX)09/01/04 09/01/05 BODILYINJURYr--(Perperson)$ SCHEDULEDAUTOSr-- ~HIRED AUTOS BODILYINJURY $X NON-OWNED AUTOS (Per accident) r-- I--PROPERTY DAMAGE $(Per accident) GARAGE LIABILITY AUTO ONLY -EA ACCIDENT $RANY AUTO OTHER THAN EAACC $ AUTO ONLY:AGG $ EXCESS/UMBRELLALIABILITY EACH OCCURRENCE $10,000,000 C ~OCCUR D CLAIMSMADE BE5683892 09/01/04 09/01/05 AGGREGATE $10,000,000 $=1 DEDUCTIBLE $ RETENTION $$ WORKERS COMPENSATION AND . X h~~/~I~;TS I IUIM-EREMI'LOYEitS'L1ABILI"OY WC2795955-06 09/01/04 09/01/05BANYPROPRIETOR/PARTNER/EXECUTIVE E.L. EACH ACCIDENT $1,000,000 OFFICER/MEMBER EXCLUDED?E.L.DISEASE -EAEMPLOYEE $1,000,000Ifyes.describe under $1,000,000SPECIALPROVISIONSbelowE.L.DISEASE -POLICYLIMIT--OTHER D Excess Pollution PPLG21744293002 09/01/04 09/01/05 Ea Claim Claims Made Aggregate $10,000,000 DESCRIPTION OF OPERATIONS /LOCATIONS /VEHICLES/EXCLUSIONS ADDED BY ENDORSEMENT/SPECIALPROVISIONS *EXCEPT 10 DAY NOTICE OF CANCELLATION FOR NONPAYMENT OF PREMIUM.ALL POLICY TERMS,CONDITIONS,LIMITATIONS AND EXCLUSIONS APPLY. ***See attached Notepad for Description*** CERTIFICATE HOLDER CANCELLATION CITYSAN SHOULDANY OF THE ABOVE DESCRIBED POLICIES BECANCELLED BEFORE THEEXPIRATION DATETHEREOF,THE ISSUING INSURER WILL ENDEAVOR TO MAIL 30*DAYS WRITTEN City of San Juan Capistrano NOTICETOTHE CERTIFICATE HOLDER NAMED TO THELEFT,BUT FAILURE TO DO SO SHALLAttn:Cindy Russell 32400 Paseo Adelanto IMPOSE NO OBLIGATION OR LIABILITYOF ANY KIND UPON THEINSURER,ITSAGENTS OR San Juan Capistrano,CA 92675 REPRESENTATIVES. ~~E ACORD 25 (2001/08)©ACORD CORPORATION 19 The District,the Board of Directors of the District,the City,the City Council and each of their respective officers,officials,agents, volunteers and employees shall be Included as Additional Insureds as respects General Liability as required by written contract or agreement to the extent insurable as their interest may appear for liability arising out of the operations of the Named Insured.Waiver of Subrogation included as respects General Liability as required by contract. ACORD.CERTIFICATE OF LIABILITY INSURANCE OPIDB'1'I .TI!IMIIIWYTfl ltCOCA-l 08/18/04 ~IR TitSCERTIFICATE IS ISSUED AS AMATTER OF INFORMATION Arthur J.Gallagher ,Caqpany ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE UCtUUle '0726293 HOLDER.TitSCERTIFICATE DOES NOT AMEND.EXTEND OR 505 1l'.BnDd Blvd,Suit;.600 ALTERTHECOVERAGE AFFORDED BY THE POUCIES BELOW. GLendale CA 91203-39." l'hone:818-539-2300 J'1IlI:818-539-2301 INSURERS AFFORDING COVERAGE NAiC.--NUlIEJIA:.......-.a...n ___c•. NUlIEJIa 800 Capilltrano Valley IDe.N1Ul1EJ1C: 3223.Pa-.o Adelauto,Sta.D NUlIEJID:SaD JuaD Capi8traDO-CA 92675 N1U1lERE: COVERAGES T"JlUJCBa IIIIlJIIANCEI.-rEOIIELClWHo\YEaENIISUEOTOT.-INILREDNoUEDAlDlEF(lllT.-PUJeYFEIlIalNJCofJEONDrWITIIITAI\IlI\IG AN'fIllllKMENENr.nMl(lllC4lNIJI'IOla AN'fCONRAa (llloneDllClMNl'\'ImIRIBFfC\'TOWllOfT..CEII'IlFICATEIMYIE II&IEDOR IMYPERrMl,T.-NIIWICEAW(lllIlEOI'I'T..PUJClIIlIlIIIC-.:l.-RYlBIL8IECITOAU.T"TENe.EltQJIIDBAN:Ic:aanoNIOFIUCH POUCIIII.AGllIIEG'TEL-.aIHClWNIMYW<YE IEENRBllICBII'I'Fl\IlCLAIMl....,a'L IIDIJ:Y_ -.:1'_PCILII:r_T_..-.L1R ~T~OfMVlWll:E IIAR....-wJ ....TII..-n\ -......,EACltllClCUllllENCf •-lWIo\GETOREN'EDCCMIEIlCW.GEfiERALLM.m'FRE...I&__)•-=:]ClANIlIoWlE - - -D 0CCUli-------1--------------...--~-------_.---UEOBI'I1IIt_)IIIIIIl\)•- P1illllONN..a_1NoIlIIft'•f-- llI!NEIW.NiIGIlEGo\T£•I-- GENLAClGIlEGotoTELMrAflllUlllPER:I'RODUCT&.c:c-._•IlPO.LY n FRG nwcJECI' AIIT~UIlan'COIIlIoBlIIGlEIIIITI--I AN'fAlJfO 1&......11) f-- AU.OWN:ClAlll'OI IlCIlI.YtwRI'I--•lalEDLIEDAlll'0I .,.'..-) I-- IWlEDAurm IlCIlI.YINIUIII'-I _lMINEllAUrDa .,.,....11011) '-- -FRCHRTY_I.,.,...11011) _Ul.-n IWIOOM.y.£AACCIIINr •~AN'fAlJfO Dr.-RTIWI EAACC • AlJfOCN.Y:AIIlI • 1!lIl~.....-v I!ACHlXlCIJIIRENClE •tJ~D~-_TE • IR~B£I RETENIOl ••__~TII.'"X IT:~~I lor: -_.~WC279.5J.5.5-D&OJ/Ol/0.OJ/Ol/0.5 11,000,000A£L.EACJIACca:NTNItI'IlOI'NETOM'MTNI!llIEllEWTNE aTJCEMEMERElICLIJIElJI 1i.L.D18EAS1i·EAilIl'llJl'E£•1,000,0001,...__"'_ .1,000,000IPECW.FROIIIICIOoI.....I!.LIlIIII!AR.POlJCYLaIll"or_ DIIG..,D.OfOl'EMTD.lLOCAJa-IVlllCIalacuaa-_I'I'1IlIlOIa_IlPE1l1U.MW.a- .XCZP'l'10 DAY lID'1'ICZ 01'CAWCZLLA'l'IOB mR lIOWPu.ft OJ'PRDlIUII.ALL POLler m_,COJmI'l'IOlllS _LDlI'1'ATIORI AJO)EXCWSIORI APPLY. Evidence or In.urllDea Coverage Ouly -Lieen..no.821129 CERTIFICATE HOLDER CANCELLATION COJr.llllC MDIUIIIIIYOfTJlE~__~••C:All:fUEDIIIII'OIIETIII!_TI* .TlJIIIIlBIf.TJlE___UllEllWaL__TO-.30*III\'laWMTIII ContractorI.State LieenB.IDT"!lOTIII:C:_CAnlDUlllll_lOTII!~.IIVI'''''TODOIO'1lU1. Board P.O.80.26000 _1Ill__TIIIIOR~YOfNl'f'-_TIE_~R..'_OII SaCJ:lUlBDto CA '5826 .....AT_. ~~ ACORD 25(2001108)@ACORDCORPORAnON1988 AJU -LOS Angeles 2/7/2005 3:24 PAGE 001/003 Fax Server Arthur J.Gallagher &Co. Insurance Brokers ofCalifornia,Inc. 505 North Brand Blvd.,Suite 600.Glendale,CA 91203-3944 Phone:(818)539-2300 Corporate License:0726293 Fax:(818)539-2301 F A X COVERSHEET DATE:Monday,February 07,20053:24:04 PM PAGES:03 TO:Teresa COMPANY:City ofSan Juan Capistrano FAX:1-949-493-3955 PHONE: FROM:Kathleen Twedell,Senior Account Manager DIRECT FAX:818.539.1716 PHONE:818.539.1416 Teresa: Per your our conversation today,to follow is a copy of the certificate for the City ofSan Juan Capistrano.We previously sent this certificate on 11/18/04.Please let me know if there has been a change of address for the City ofSJC or ifany other changes are required. Thanks &regards, Kathy Twedell AJG CQ.NF.lD~.1'l.IlAL.lIT_J~J:QTlC.E~The documents accompanying this telecopy transmission contains confidential information belonging to the sender which is privileged.This information is intended only for the use ofthe individual or enrity named above.If you are not the intended recipient,you are hereby notified that any disclosure,copying, distribution or taking ofany action in reliance on this telecopy is prohibited.Ifyou have received this relecopy in error, please phone us at (818)539-2300. AJG -Los Angeles 2/7/2005 3:24 PAGE 002/003 Fax Server $1,000,000 $1,000,000 $5,000 $2,000,000 $1,000,000 $2.000,000 LIMITS EACH OCCURRENCE G:NERAl.AGGREGATE PERSONAL &AOVINJURY PRODUCTS·COMPIOPAGG 09/01/05 PREMISES(E~~~l MEDEXP (Anyoneper.son) 'ABOVE FOR THE POLICY PERIOD INDICATED.NOTWITHSTANDING RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR CT TO ALL THE TERMS,EXCLUSIONSAND CONDrTlONS OF SUCH ;URANCE OPID B~DATE(MMJDDIYYYY) ECOCA-l 11./1.8/04 CERTIFICATE IS ISSUED AS A MATIEROF INFORMATION r AND CONFERS NO RIGKTSUPON TIECERTIFlCAll: IER.THIS CERTlACATE OOES NOT AMENDlJcEXlEND ORRTHECOVERAGEAFFORDEDBYTHEPOIESBB.OW. RS AFFORDING COVERAGE NAlCtI :Granite State Insurance Co Zu&'1ch "-'1c~:rDaIl"aDC.co. ;Nat!.onilZl FiR :rD.CO or PA :Illinois Union Ins Co 09/01/04 $250,000 DEDUCTIBLB INSURED PRODUCER Arthur J.( License #O~ 505 N.Branc Glendale CJI Phone:918-l U(){i~~~ ,J~~\-i J'~>,~!)XO J\ \)<.,'" ECO ~~~~¥~~"...9\.\San .\~\j-)0'" '""::C~OI~ERA~~GES=-=--~\ THE POLICESOF",Q.~~ANY REQUIREME"v MAY PERTAIN,THI t ~. POLICIES.AGGREI 'LTR r:;s~~TV lJ-'" GENERALLI \}- A X ~COMME ,.....-V~ :~CLAIMSMADE li.J OCCUR ~Limited Pollution r..!..$1,000,000 GENtAGGREGATE LIMIT APPliES PER:"I POLICY Iil frs:n LOC EXCESSIllMBRELLA LIABILITY C !J OCCUR D CLAIMSMADE 'I DEDUCTIBLE:-lRETENTION $ COMBINED SINGLE UMIT $1,000,000(AOS)09/01/04 09/01/05 (EumdenI) (TX)09/01/04 09/01/05 BODILY INJURY $(PerpleOll) BODILY INJURY $(Per8OCidenl) PROPERTY DAMAGE $(Peraocldenl) AUTO ONLY-EAACClDENT $ EACH OCCURRENCE $10, 0aa•aaa 09/01/05 I-A_G_GR_E_GA_TE -+_$-=l~O...!.,....:O:....O:....O:.....:....O=_=_O.:::.O~ $ AGO EAACC $OTHER THAN AUTOONLY: 09/01/04 BAP9298955-04 TAP9298956-04 BE5683892 SCHEDULED AUTOS AUTOMOBILEUABl.rrv-..!..ANY AUTO AlL OWNEDAUTOS- f----------- -~HIREDAUTOS ~NON-OWNED AUTOS GARAGE LIABILITYRANYAUTO B WORKERS COMPENSATION ANDEMPLOYERS'LIABILITY B ANY PROPRIETORJPARTNERlEXECUTIVEOFFICERIMEMBEREXCWDED7 ~E'a~~~~r:~NSbekM WC2795955-06 09/01/04 09/01/05 I-E_.L_._EA_CH_A_C_Cl_D_EN_T__-+-$~l..:..,~O....:O....:O:.....:....O_O-,-O_-I EL.DISEASE·EA EIlAPLOYEE $1.000•00 0 E.LDISEASE·POUCY LIMIT S1 , 00a,000 OTHER D Excess Pollution Claims Made PPLG2l744293002 09/01/04 09/01/05 Ea Claim Aggregate $10,000,000 DESCRIPTION OF OPERATIONSI LOCATIONS/VEHICLES/EXCLUSlQfSADDEDBY ENOCRSEMENTI SPECIAL PROVISIONS *EXCEPT 10 DAY NOTICE OF CANCBLLATION FOR NONPAYMENT OF PREMIUM. TERMS,CONDITIONS,LIMITATIONS AND BXCLUSIONS APPLY. ALL POLICY ***See attached Notepad for Description••• CERllACATE HOLDER CANCEUATION CITYSAN ~D MloYOiTtl.E ~VE.DUCRIM.O'QlICE'6Ec~mM.F~I!.T\ol,£UP~T\OM DATE THEREOF,THE IUlJINGINSURERWILL ENDEAVORTO MAIL 30*DAYSWRmEN City of San Juan Capistrano NOTICETOTHECERTIFICATE HOLDERNAMED TO THE LEFT.BUTFAILURE TODO80SHALLAttn:Cindy Russell IMPOSl!NOOBLIGATION OR LIABILITY(J'ANY KIND UPONTHE INSURER,ITSAGaNTSOR32400PaseoAdelanto San Juan Capistrano,CA 92675 REPRESENTATIVE!. ~~E ACORD 25(2001J08)©ACORDCOfWORATION 19 A~U -LOS Ange~es "L/'1/ZUU'O ;J:2'l IJAUI=;003/003 Fax Server The District,the Board of Directors of the District,the City,the City Council and each of their respective officers,officials,agents, volunteers and employees shall be Included as Additional Insureds as respects General Liability as required by written contract or agreement to the extent insurable as their interest may appear for liability arising out of the operations of the Named Insured.Waiver of Subrogation included as respect&General Liability a&required by contract. Page 1 of 1 Maria Guevara From:Michelle Perea Sent:Thursday,February 03,20054:41 PM To:Cindy Russell;Maria Guevara Subject:FW:ECO Resources FYI MU;he:Ue;Perea; -----Original Message-----' From:Michelle Perea sent:Thursday,February 03,2005 4:33 PM To:Kathleen Springer Subject:ECO Resources Kathleen, Eric has not received the professional liability insurance from Eeo yet.He has contacted them and I have contacted them regarding this.He wants to leave them on the NON-PAY. thanks, MU;he:Ue;Perea; Administrative Assistant Public Works Department Ext.4315 2/3/2005 ·AJG Los Angeles 2/7/2005 3:24 PAGE 002/003 Fax Server ACORD.CERTIFICATE OF LIABILITY INSURANCE OPID B~DATE (IUtlDOlYYYY) ECOCA-1 11/18/04 PRODUC~R THIS CERTIFICATE IS ISSUED AS A MATTER QF INFORMATION Arthur J.Gallagher &Company ONt.Y AND CONFERSNO RlGMTS UPON TI4E CERTlACATE License #0726293 HOLDER.THIS CER11ACATE DOES NOT AMEND EXlENDOR 505 N.Brand Blvd,Suite 600 ALTER THE COVERAGE AFFORDED BY THE POUCIES eaow. Glendale CA 91203-3944 Phone:818-539-2300 Fax:818-539-2301 INSURERS AFFORDING COVERAGE NAIC# INSlJR~D INSURER A;Granite State Insurance CO INSURERB:Zurich ,,-"icac JIlaaraco.CO.ECO Capistrano Valley Inc.INSURER C;Iratl.0l:l1al Fire In.CO ~PAso~thweBt Water co~anS3234PaBeoAdelanto,teo D INSURER D:Illinois Union Ins CoSanJuanCapi~trano CA 92675 INSURER E: COVERAGES THE POlICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD t-IDICATED.NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THISCERTIFICATE MAYBE ISSUED OR MAY PERTAIN,THE INSURANCE AFFORDED BYTHE POLICIES DESCRIBED HEREIN IS SUBJECT TOALL THE TERMS,EXCLUSIONSAND CONDITIONS OF SUCH POLICIES.AGGREGATE LIMITS SHOWN MAYHAVE BEEN REDUCED BY PAlO CLAIMS. LTR NSRC TYPEOF INSURANCE POLICYNUMBER !P~~'uf'18;;,w,1:IPg~fl(r':~N LIMITS GENERAL LIABILITY E"'CH OCCURRENCE $1,000,000I--PREMISES(E~~~)A X ~COMMERCIALGENERAL UABILlrY LX6343763-03 09/01/04 09/01/05 sl,OOO,OOOt=J CLAIMS MADE [!J OCCUR MED EXP(Ant onePeDal)$5,000~,.!...Limited pollution PERSONAL &ADVINJURY sl,OOO,OOO ~$1,000,000 $250,000 DEDUCTIBLE GENERAl.AGGREGATE $2,000,000 GENt AGGREGATE LIMITAPPlIESPI:R:PRODUCTS·COMPfOP AGG s2,000,000IPOLICY!Xl ~~~n LOC ~TOM08lLE LIABILITY COMBINED SINGlE UMIT $1,000,000B..!..ANYAUTO BAP9298955-04 (AOS)09/01/04 09/01/05 (Eaamden) ALL OWNED AUTOS TAP9298956-04 (TX)09/01/04 09/01/05 BODILY INJURYI--(Perpersal)$ SCHEDULED AUTOSI--- ~HIREDAUTOS BODILY INJURY S~NON·OWNED AUTOS (p.,.acadenl) -PROPERTY DAMAGE $(Per aocidenl) GARAGE LlABlL1TY AUTO ONLY·E......CClDENT S1-ANY AUTO ,OTHER TH"'N EA"'CC S AUTOONLY;AGG $ !XCESMIMBRELLALIABILITY E"'CH OCCURRENCE $10,000,000 C tJ OCCUR D CLAIMS MADE BE5683892 09/01/04 09/01/05 AGGREGATE $10,000,000 sqDEDUCTIBLE$ RETENTION S S WORKERSCOMPENSATIONAND Xlr~~yl;~I~:-rS I lV~tEMPLOYERS·LIABR.1TY WC2795955-06 09/01/04 09/01/05 $1,000,000B~Y PROPRIETORIPARTNERJEXECUTIVE E.L.EACH ACCIDENT OfFICERIMEMBEREXCWDED7 E.L.DISEASE·EA EMPLOYEE sl,OOO,OOOur~~~;:~NSbeiON E.LDISEASE·POUCY LIMIT sl,OOO,OOO aTHER D Excess Pollution PPLG21744293002 09/01/04 09/01/05 Ea Claim Claims Made Aggregate $10,000,000 DEaCRIPTION OFOPERATIONS I LOCATIONS/VEHICLES/EXCLUSlCNSADDED BYENDCRUMENTIIPECIALPROVISIONS *EXCEPT 10 DAY NOTICE OF CANCELLATION FOR NONPAYMENT OF PREMIUM.ALL POLICY TERMS,CONDITIONS,LIMITATIONS AND EXCLUSIONS APPLY. ***See attached Notepad for Description*** CERTlFICATE HOlDER CANCEllATION CITYSAN M40ULD ~y Of"1".1:MlaVI.OUCRlUn'Ql.IClU ~c~\.~~Fott.l.'t~UP~"\OM D...n THEREOF,THI!laalJlNGINSURER WILL ENDEAVOR TO MAIL 30*DAyaWAlnE... City of San Juan Capi~trano NaTlCETOTHECERTIFICATE 1i00DERNAIlllEDTOTHELEFT.BUT FAILURETO DO10stiALLAttn:Cindy Russell "POll!NO OBLIGATION OR LIABILITY a:...NY KIND UPONTHE INSlJRER,ITSA<ZNTaOR32400PaeeoAdelanto San Juan Capistrano,CA 92675 REPREUNTATIVES. QRlZED~Eu..,. ,ACORD25 (2DD1J08)@ACORDCORPORATION 19 .'..AJG Los Angeles 2/7/2005 3:24 PAGE 003/003 Fax Server The District,the Board of Directors of the District,the City,the City Council and each of their respective officers,officials,agents, volunteers and employees shall be Included ~s Addition~l Insureds as respects General Liability as required by written contract or agreement to the extent insurable as their interest may appear for liability arising out of the operations of the Named Insured.Waiver of Subrogation included as respect.General Liability as required by contract. ,MARSH CERTIEICATEiO.INSURANCE CERTIFICATE NUMBER .........i ·....i..LOS-000371113-09 PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS Marsh Risk &Insurance Services NO RIGHTS UPON THE CERTIFICATE HOLDER OTHER THAN THOSE PROVIDED IN THE 4695 MacArthur Court,Suite 700 POLICY.THIS CERTIFICATE DOES NOT AMEND,EXTEND OR ALTER THE COVERAGE (949)399-5800 AFFORDED BY THE POLICIES DESCRIBED HEREIN. License #0437153 COMPANIES AFFORDING COVERAGENewportBeach,CA 92660 I COMPANY 420346-00-00-A Zurich-American Insurance Company INSURED I COMPANY ARB,Inc.I B N/A 26000 Commercentre Drive ILakeForest,CA 92630 COMPANY I C ._- I COMPANY I 0-.iii·············ii ·.·..···.....·.·.·...·····.···..····.....·.·...·....i.........·.·............................··/......·.i.............i THIS IS TO CERTIFY THAT POLICIES OF INSURANCE DESCRIBED HEREIN HAVE BEEN ISSUED TO THE INSURED NAMED HEREIN FOR THE POLICY PERIOD INDICATED NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THE CERTIFICATE MAY BE ISSUED OR MAY PERTAIN,THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,CONDITIONS AND EXCLUSIONS OF SUCH POLICIES.AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. CO TYPE OF INSURANCE POLICY NUMBER IPOLJCY EFFECTIVE POLICY EXPIRATION I LIMITSLTRDATE(MM/DDNY)DATE (MM/DDNY) GENERALLIABILITY i GENERALAGGREGATE 1$4,000,000 A X COMMERCIAL GENERALLIABILITY GL03676089-03 02/28/05 02/28/06 I PRODUCTS-COMP/OP AGG 1$2,000,000 CLAIMS MADE [8J OCCUR I PERSONAL&ADV INJURY 1$1.000,000 I 1$1,000,000OWNER'S &CONTRACTOR'S PROT I EACH OCCURRENCEf--- I FIRE DAMAGE (Anyonefire)X ~er ~roject Aggregate I $N/A t--- I MED EXP (Anyone person)$N/A AUTOMOBILE LIABILITY I COMBINED SINGLE LIMIT 1$2,000,000f--- A X ANY AUTO BAP3676090-03 02128/05-02/28/06 I BODILY INJURY 1$ f---i\~\:.\,f---ALL OWNED AUTOS r.--s-t ~-\~-~\:.i ..::J ,.I (Per person)SCHEDULED AUTOS "\\\\:t---I X'HIRED AUTOS .. I '.}\I BODILY INJURYr--,..-. •·...1 \ ISXNON-OWNED AUTOS \rrp~I (Per accident) t---[,oJ :..1 I .~.-/ X Physical Damage \·1,:i PROPERTY DAMAGE 1$)($2,500 Comp/Collision ..I ...l.I GARAGE LIABILITY \~-_..: .._~I I AUTO ONLY-EA ACCIDENT $t---?\lSut v.lOR~ANY AUTO I OTHER THAN AUTO ONLY:i'i ......r-- I ,,-----EACH ACCIDENT $ t--- :AGGREGATE $ EXCESS LIABILITY I I EACH OCCURRENCE $10,000,000 A ~UMBRELLAFORM BE2681293 102/28/05 02/28/06 I AGGREGATE $10,000,000 OTHER THAN UMBRELLA FORM I $ A WORKERS COMPENSATION AND WC3676092-03 '02/28/05 02/28/06 I X I we STATU-I IOJ~E·•.i.······..·.iii(.·,.·..··.....ii EMPLOYERS'LIABILITY l'TORY LIMITS ····.i,· IEL EACH ACCIDENT $1.000,000 A THE PROPRIETORI INCL EWS3676088-03 ;02/28/05 02/25/06 iEL DISEASE-POLICY LIMIT $1.000,000 PARTNERS/EXECUTIVE I EXCL $20,000,000 CA WC Limit IEL DISEASE-EACH EMPLOYEEI $OFFICERS ARE:1.000,000 OTHER I I I I I DESCRIPTION OF OPERATIONS/LOCATIONSNEHICLES/SPECIAL ITEMS City of San Juan Capistrano is named as additional insured as their interest may appear.A waiver of subrogation applies. CERTIFICATE HOl.:OER ................................'."i"·'.i.iii. ..,.•.'..............................,......'..'•..'.' •.•••·..,,..11...11"1:111\'•.i··....·.....·.·.·.......·....i..i........ii ";:fi 0Y0'Fj}}·•• SHOULD ANY OF THE POLICIES DESCRIBED HEREIN BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF. THE INSURER AFFORDING COVERAGE WILL ENDEAVOR TO MAIL ---3.0 DAYS WRITIEN NOTICE TO THE City of San Juan Capistrano CERTIFICATE HOLDER NAMED HEREIN,BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR32400PaseoAdelanto San Juan Capistrano,CA 92675 LIABILITY OF ANY KIND UPONTHE INSURER AFFORDING COVERAGE.ITS AGENTS OR REPRESENTATIVES.OR THE ISSUER OF THIS CERTIFICATE MARSH USAINC.liI-+BY:Stephen Flynn MM1(3/02)VALID AS OF:02/25/05 i H ..... POLICY NUMBER:GLO 3676089-03 COMMERCIAL GENERAL LIABILITY CG 20371001 ARB,Inc. THIS ENDORSEMENT CHANGES THE POLICY.PLEASE READ IT CAREFULLY. ADDITIONAL INSURED -OWNERS,LESSEES OR CONTRACTORS -COMPLETED OPERATIONS This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE Name of Person or Organization: City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano,CA 92675 Location And Description of Completed Operations: City of San Juan Capistrano is named as additional insured as their interest may appear.A waiver of subrogation applies. Additional Premium: Included (If no entry appears above,information required to complete this endorsement will be shown in the Declarations as applicable to this endorsement.) Section II -Who Is An Insured is amended to include as an insured the person or organization shown in the Schedule,but only with respect to liability arising out of "your work"at the location designated and described in the schedule of this endorsement performed for that insured and included in the "products-completed operations hazard". CG 20 3710 01 ©ISO Properties,Inc.,2000 Page 1 of 1 POLICY NUMBER:COMMERCIAL GENERAL LIABILITY CG 20 10 10 01 THIS ENDORSEMENT CHANGES THE POLICY.PLEASE READ IT CAREFULLY. ADDITIONAL INSURED -OWNERS,LESSEES OR CONTRACTORS -SCHEDULED PERSON OR ORGANIZATION This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE Name of Person or Organization: City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano,CA 92675 (If no entry appears above,information required to complete this endorsement will be shown in the Declarations as applicable to this endorsement.) A.Section II -Who Is An Insured is amended to include as an insured the person or organization shown in the Schedule,but only with respect to liability arising out of your ongoing operations performed for that insured. B.With respect to the insurance afforded to these additional insureds,the following exclusion is added: 2.Exclusions This insurance does not apply to "bodily in- jury"or "property damage"occurring after: (1)All work,including materials,parts or equipment furnished in connection with such work,on the project (other than service,mainte- nance or repairs)to be performed by or on behalf of the additional in- sured(s)at the site of the covered operations has been completed;or (2)That portion of "your workll out of which the injury or damage arises has been put to its intended use by any person or organization other than another contractor or subcon- tractor engaged in performing op- erations for a principal as a part of the same project. CG 20101001 ©ISO Properties,Inc.,2000 Page 1 of 1 @ ZURICH-AMERICAN INSURANCE GROUP Insurance for this coverage part provided by:Zurich American Insurance Company Insured Name:ARB,Inc. This endorsement changes the policy.Please read it carefully. AMENDMENT OF OTHER INSURANCE This endorsement modifies insurance provided by the following: Commercial General Liability Coverage Part LIABILITY INSURANCE COVERAGE CHANGE ENDORSEMENT GL03673089-03 Endorsement #I Part 4.a.of Section IV -Commercial General Liability Conditions is deleted and replaced by the following: a.Primary Insurance With respect to any person or organization,other than the Named Insured,included as an Additional Insured by reason of contractual agreement,which requires the Named Insured to procure insurance for such person or organization on a primary basis,the insurance afforded by this policy shall apply as primary insurance.Ifthat Additional Insured has other insurance which is also primary,then we will share all that other insurance by the method described in 4.c.below. With respect to any other person or organization qualifying as an additional insured other than such additional insured as indicated above,the insurance afforded by this policy shall apply as excess and not contribute with such other available insurance,whether such other insurance is primary,excess or otherwise. With respect to the Named Insured,the insurance afforded by this policy shall be in excess of and shall not contribute with any other available insurance,whether such insurance is primary,excess or otherwise. With respect to the Named Insured,the insurance afforded by this policy shall be primary,when no other insurance is available. U-GL-II3-B CW (04/89) POLICY NUMBER:GL03676089-03 ARB,Inc. Commercial General Liability CG 2404 1093 THIS ENDORSEMENT CHANGES THE POLICY.PLEASE READ IT CAREFULLY WAIVER OF TRANSFER RIGHTS OF RECOVERY AGAINST OTHERS TO US This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART Name of Person or Organization: City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano,CA 92675 City of San Juan Capistrano is named as additional insured as their interest may appear.A waiver of subrogation applies. (If no entry appears above,information required to complete this endorsement will be shown in the declarations as applicable to this endorsement.) The TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US Condition (Section IV -COMMERCIAL GENERAL LIABILITY CONDITIONS)is amended by the addition of the following: We waive any right of recovery we may have against the person or organization shown in the Schedule above because of payments we make for injury or damage arising out of your ongoing operations or "your work"done under a contract with that person or organization and included in the "products-completed operations hazard".This waiver applies only to the person or organization shown in the Schedule above. CG 24 0410 93 WORKERS'COMPENSATION AND EMPLOYERS'LIABILITY INSURANCE POLICY WC 04 03 06 (Ed.4-84) WAIVER OF OUR RIGHT TO RECOVER FROM OTHERS ENDORSEMENT- CALIFORNIA This endorsement changes the policy to which it is attached effective on the inception date of the policy unless a different date is indicated below. (The following "attaching clause"need be completed only when this endorsement is issued subsequent to preparation of the policy.) This endorsement,effective on 2/28/05 Policy No.EWS 3676088-03 of the issued to:ARB,Inc. Premium (if any)$Included (DATE) at 12:01 A.M.standard time,forms a part of Endorsement No. Zurich American Insurance Company (NAME OF INSURANCE COMPANY) We have the right to recover our payments from anyone liable for an injury covered by this policy.We will not enforce our right against the person or organization named in the Schedule.(This agreement applies only to the extent that you perform work under a written contract that requires you to obtain this agreement from us.) You must maintain payroll records accurately segregating the remuneration of your employees while engaged in the work described in the Schedule. The additional premium for this endorsement shall be NIL %of the California workers'compensation pre- mium otherwise due on such remuneration. Schedule Person or Organization City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano,CA 92675 Job Description City of San Juan Capistrano is named as additional insured as their interest may appear.A waiver of subrogation applies. ANY PERSON OR ORGANIZATION WHERE BY WRITTEN CONTRACT AND PRIOR TO LOSS HAS REQUIRED A WAIVER OF TRANSFER OF RIGHTS. WC 252 (4-84) WC 04 03 06 (Ed.4-84)Page 1 of 1 ADDITIONAL INSURED -DESIGNATED PERSONS OR ORGANIZATIONS Named Insured ARB,INC. Policy Symbol I Policy Number SAP 3676090-03 I Policy Period 2/28/05 TO 2(28/06 Endorsement Number Effective Date of Endorsement 2/28/05 Issued By (Name of Insurance Company) ZURICH AMERICAN INSURANCE COMPANY Insert the policy number.The remainder of the information Is to be completed only when this endorsement is issued subsequent to the preparation of the policy. THIS ENDORSEMENT CHANGES THE POLICY.PLEASE READ IT CAREFULLY. This endorsement modifies insurance provided under the following: BUSINESS AUTO POLICY TRUCKERS POLICY GARAGE POLICY Additional Insured(s): City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano,CA 92675 RE:City ofSan Juan Capistrano is named as additional insured as their interest may appear.A waiver of subrogation applies. A.For a covered "auto,"Who Is Insured is changed to include as an "insured,"the persons or organizations named in this endorsement.However,these persons or organizations are an "insured" only for "bodily injury"or "property damage"resulting from acts or omissions of: 1.You. 2.Any of your employees or agents. 3.Any person operating a covered "auto"with permission from You,any of your employees or agents. B.The persons or organization named in this endorsement are not liable for payment of your premium. S:\Clients\arb\nn\pam\2001\certattachment\2001-auto-ai.doc .-----------------------------------------------..., Waiver of Transfer of Rights of Recovery Against Others To Us Named Insured ARB,INC. Policy Symbol I Policy Number BAP 3676090-03 I Policy Period 2/28/05 TO 2/28/06 Endorsement Number Effective Date of Endorsement 2/28/05 Issued By (Name of Insurance Company) ZURICH AMERICAN INSURANCE COMPANY Insert the policy number.The remainder of the information is to be completed only when this endorsement is issued subsequent to the preparation of the policy. THIS ENDORSEMENT CHANGES THE POLICY.PLEASE READ IT CAREFULLY. This endorsement modifies insurance provided under the following: BUSINESS AUTO POLICY TRUCKERS POLICY GARAGE POLICY Additional Insured(s):City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano,CA 92675 RE:City of San Juan Capistrano is named as additional insured as their interest may appear.A waiver of subrogation applies. We Waive any right of recovery we may have against the designated person or organization shown in the schedule because of payments we make for injury or damage caused by an "accident"or "loss"resulting from the ownership,maintenance,or use of a covered "auto"for which a Waiver of Subrogation is required in conjunction with work performed by you for the designated person or organization.The waiver applies only to the designated person or organization shown in the schedule. S:\clients\arb\rmlpam\2001\certattachment\2001-auto-ai.doc Jan-30-03 04:30pm From-SYC&R 1 949 725 4100 T-303 POOl F-072 [ STRAIlLING YOCCA CARLSON &RAUTH A PROFESSIONAL CORPORATION AnORNEYS AT LAw FACSIMILE COVER SHEET 660 Newport Center Driver Suite 1600 Newport Beach,CA 92660-6422 Tetephone:(949)725-4000 Fax:(949)725-4100 Date:January 30J 2003 TOTAL NUMBER OF PAGES INCLUDING THIS PAGE:,It, PLEASE DELIVER As SOON As POSSIBLE To: ReCIPIENt COMPANY FAX No.PHONE No. CINDY RUSSELL City of San Juan 949-493-1053 949-443-6301 Capistrano From-· Re: Message: ClientlMatterNo-: DENISE E.HERING AT DIRECTDIAL NUMBER (949)725-4165 City of San Juan Capistrano Please see attached documents,and thanks. 22658~0017 IfallY ofIhese pages is not legible or you do not receive all ofthe pages.please call (949)725-4014- CONADENTlALITY NOTICE This m~5sage is intended only for the use of the individual or entity tn which it is addressed,and may contain information that is priVileged,confidential and exempt from disclosure under applicable law-If the reader of this message is not tlle intended recipient,you are hereby notified that any diSSemination,distribution or copying of this commUl'licatlon is strictly prohibited.Ifyou have received this communication In error,please notify us immediately by telephone,and return the original message tu uS at the above address via the U-S- Postal Service.Thank yOu. Jan-30-03 04:30pm From-SYC&R 1 AAB.INC. 26000 COMMERGENTRE DR_.LAI<E FOREST,CA 92830 TEL949_454.7110 •FAX;94Q_595_5544 Via Qvenright Mail Ms.Denise Hering Stradling,Yocc~Carlson &Rauth 660 Newport Center Dr. Suite 1600 Newport Beach,CA 92660 January 8.2003 949 725 4100 T-303 P002/016 F-072 JOHN M.PERISICH,ESQ. GENERALCOUNSEL. Re:ARB.Inc./ECO Resources Contract Dated December 8,2002 Payment and Performance Bonds Dear Ms.Hering: Enclosed are the original executed bonds and bond riders for the above-referenced contract.I have inserted the ECO/ARB contract date ofDecember 8.2002 in the bond fonn,as it has been blank until now. Ifyou have ~U1y questions,please do not hesitate to contact me. JMPja Enclosures ...949 725 4100From-SYC&R 1 T-303 P 003/016 F-072 Hona NO.~~ViJVVv Premium;$85,800.00 FORM OF CONSTRUCTION PERFORMANCE BOND 04:31pmJan-30-03 KNOW ALL MEN BY THESE PRESENTS,that ARB,Inc.,as Principal, and Liberty Mutual Insurance Company with underwriting office at 505 South Main Street,Suite 830:1 Orange,CA 92868,to which all communications in regard to this bond should be addressed,a corporation organized and existing under the laws of Massachusetts and duly authorized to do business in the State of California,as Surety,are held and finnly bound unto ECO Resources,Inc.,as Obligee,in the penal sum of Sixteen Million Five Hundred Thousand and 00/100 Dollars (the LLBonded Sum"),for the payment which well and truly made,we hereby jointly and severally bind ourselves,our heirs,executors,administrators,successors and assigns,fmnly by these presents. WHEREAS,the Principal has by the Agreement for the Construction ofthe San Juan Basin Desalter Project,dated 12/08/02 ,entered into a contract with the Obligee for the construction,ofthe San Juan Basin Desalter Project (the "Project")all in accordance with the terms of such contract,which contract is by reference made a part hereof,and is hereinafter referred to as the Construction Agreement; NOW~THEREFORE,the condition of this obligation is such that,if the Principal shall promptly and faithfully do and perfonn all of the Principal's obligations under the Construction Agreement through completion of construction then this obligation shall be null and void,otherwise it shall remain in full force and effect,it being expressly understood that the liability of the Surety for any and all claims hereunder shall in no event exceed the Bonded Sum. 1.Whenever the Principal shall be~and shall be declared by the Obligee to be,in default under the Construction Agreement,the Obligee having perfouned the Obligee's material obligations thereunder,the Surety shall promptly remedy the default whatever it may be or shall promptly: (a)Perform the Construction Agreement in accordance with all of its terms and conditions;or (b){)btain bids for submission to the Obligee for performing the Construction Agreement in accordance with its terms and conditions,and upon mutual detemlination by the Obligee and the Surety of the lowest responsible bidder,arrange for a contract between such bidder and the Obligee and make available as work progresses (even though there will be a default or a succession of defaults under the contract or contracts for perfonnance arranged under this paragraph)sufficient funds to pay the costs of performance of the Construction Agreement~l~ss the unpaid balance of the contract price;but not exceeding, including other costs and damages for which the Surety may be liable to Obligee hereunder,the amount set forth in the first paragraph hereof. 'l1~f;19.1 Jan-30-03 04:31pm From-SYC&R I 949 725 4100 T-303 P004/016 F-072 Notwithstanding the Principal's obligations under any provIsIons of the Construction Agreement,it is understood that any payment made by the Surety in good faith under this bond shall reduce the penal sum by a like amount.The term ~'balance of the contract price"as used in this paragraph,shall mean the total amount due and payable by the Obligee to the Principal under the Construction Agreement and any amendments thereto~less the amount paid by the Obligee to the Principal in accordance with the terms ofthe Construction Agreement. 2.No alteration~modification or supplement to the tenns of the Construction Agreement or any subcontracts or the nature of the work to be performed thereunder,including any extension of time for perfonnance,shall in any way affect the obligations of the Surety under this bond.The Surety waives notice of any alteration, modification~supplement or extension oftime. Signed and sealed this 3rd day ofJanuary,2003 . IN PRESENCE OF: IN PRESENCE OF: ARB,Inc. [Affix Corporate Seal ofPrincipal] John M.Perisich Vice PrC$ideut Liberty Mutual Insurance Company [Affix Corporate Seal ofPrincipal] By:~.~~~_4.:=::..rI_/1t..-:.7m_(.;;.;.._ Name:nna 1.Frowd Title:Attorney-in-fact Note:This bond must be acknowledged before notary publics and a legally sufficient power of attorney Dlust be attached to the bond to verify the authority of any party signing on behalfof the surety. 4146\9.1 Jan-30-03 04:31pm From-SYC&R 1 949 725 4100 T-303 P 005/016 F-072 'I On JAN 0 8 Z003 ,before me,Jacquelyn G.Anderson,Notary P~bl ./ Namr"1'011 TiUe ofOnlcer (e,g"JanoDoe,NObry PUblic~1 I' I' I' I- I' I- I- I- I- 1- 1- IE personally known to meoprovedtomeonthebasis of satisfactory evidence to be the .persoo(s)whose name(s)is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capaclty(ies).and that by his/her/their signature(s)on the instrument the person(s),or the entity upon behalf of which the person(s) acted.executed the instrument. 1 ,I "I ·1 -\ 1- 1- 1- 1- I, Though the iJ1formBtinn belowis not req()ired by law.it mayprova vaJvablll toplJrsons relying on the document and co()ld p(~ventfraudulent mmoval andreattachmlJJ1t ofthis form to anolh8,-document. Description of Attached Document Title or Type of Document __-- --~__~---_ Document Date:--~__----~_Number of Pages:_ s~~~~O~€rT~nNam~Ab~e:----------------~--------- ·1 'I ·1 1 -I '1 1- Capacity(ies)Clairned by Signer Signer's Name:__---~~---~-- o Individual o Corporate Officer -Title(s): o Partner -0 Limiled 0 General o Attorney in Fact o Trustee o Guardian or Conservator ~ ~g 0 Other-~__~_ Signer Is Representlng-~------~------~------~--'-----------'i'S~~~~~_<'h'~~~,~'6..-~~-oI.,~~~~'<X.~~'<;X:.«~i'X'..C<>I::'C~~~~~~~-C;(;;'C(;.'C<:~ 1",0<1_,''''.~'JD7 R"o,d",:(;;>11TolI·fl'llo \·OOO·D1Cr(i027 Jan-30-03 04:31pm From-SYC&R 1 949 725 4100 T-303 POOS/OIS F-072 " I ·1., ·1 J .J ) .1 '.' TOp of thumb ncre Prod.1110.5907 __~_~_~_~Number of Page5:~_ Signer's Name:__~_~~__~~__ to be the person(s)whose name(s)Is/are subscribed to the within instrument and acknowledged to me tha.t he/shelthey executed th~same in his/her/their authorized capacity(ies),and that by his/her/their slgnature(s)on the instrument the person(s),or the entity upon behalf of which the person(s) acted,E)(ecuted the Instrument. IZpersonally known to meoprovedtomeonthe basis of satisfactory evidence WITNESS my hand and official seal.Wf1~~cf/-rd~ OPTIONAL -------------- Though the infonnarJon bC/I)W II>nor rBqiJ/~d by lBw,it mBy proVB valUBble ro person,rolylng on the document andCDlJld pnwenr fraudtJ/enf mmovBIandmlJrraChm9nr Df rhls form to 8noth8(dQClJmBt'lI. Signer Is Representing'__~_ Capacity(ies)Claimed by Signer o IndividualoCorporate Officer ~Title(5):_~~~~~~ o Partner -0 Limited 0 GeneraloAttorney-in-FactoIrlJsteeoGua.rdian or Con~ervatoroOther:_~~_ Signer(s)Other Than Named Above:_~~_~_~~__~_ DocumentDate: litle orType of Document:~_~~~~_~_~_~~_~_~ Description of Attached Document personally appeared ~_~D_o_n_n_a_-J-..~F_r_o-w_d ~ N"m8(eJ III SiQnorl~1 On _J~a;.;.:.n_u_a_r,--Y,,--_3--,,-,_2_0~O_3=---__before me,_r_1_e_l_~_'_5_s_a__H_i_c_k_s_o_n~,_N~o~t_a~r_y_p_U_b_l_ic 0111"l'4-..ndTIlIII at on~r (a.g.,•Jane DOII.1\I0~Plllll](,1 Jan-30-03 04:32pm From-SYC&R 1 949 725 4100 PAYMENT BOND T-303 P 007/016 F-072 Premium:Included on Performance Bond KNOW ALL MEN BY THESE PRESENTS,that ARB,Inc.,as Principal, and Liberty Mutual Insurance Company with underwriting office at 505 South Main Street,Suite 830,Orange,CA 92868,to which all communications in regard to this bond should be addressed,a corporation organized and existing under the laws of the Massachusetts and duly authorized to do business in the State of California,as Surety,are held and firmly bound unto ECO Resources,Inc.,as Obligee,for the use and benefit of claimants (as hereinafter defined),in the penal sum of Sixteen Million Five Hundred Thousand and 00/100 })ollars (the '~Bonded Sum"),for the payment which well and truly made,we hereby jointly and severally bind ourselves,our heirs,executors, administrators,successors and assigns,firmly by these presents. WHEREAS,the Principal has by the Agreement for the Construction ofthe San Juan Basin Desalter Project,dated 12/08/02 ,entered into a contract with the Obligee for the construction of the San Juan Basin Desalter Project (the ~LProject"),all in accordance with the tenns of such contract~which contract is by reference made a part hereof~and is hereinafter referred to as the Construction Agreement; NOW,THEREFORE,if Principal or any of its subcontractors,fails to pay for any materials,equipment,or other supplies~or for rental ofsame llsed in connection with the performance of work contracted to be perfonned under the Construction Agreement or for work or labor thereon of any kind or fails to pay any claimant amounts due Wlder the Unemployment Insurance Code with respect to work or labor performed by any such claimant or for any amounts required to be deducted~withheld and paid to the Employment Development Department from the wages ofemployees ofthe Principal and its subcontractors pursuant to Section 13020 of the Unemployment Insurance Code with respect to such work and labor and all other applicable laws ofthe state of California and rules and regulations of its agencies,then said Surety will pay for the same in an amowlt not exceeding the sum specified above.However,this obligation shall be subject to the following conditions= 1.A claimant is defmed for purposes hereof as one having a direct contract with the Principal,or with a Subcontractor of the Principal for labor,materials, or both,used or reasonably required for use in the perfonnance of the Construction Agreement and/or those persons defined in Section 3181 of the California Civil Code; labor and materials being construed also to include that part of water,gas,power,light, heat,oil,gasoline,telephone service or rental of equipment directly applicable to the Construction AgreC1l1ent. 2.The Principal and Surety hereby jointly and severally agree with the Obligee that every claimant as defined herein~who has not been paid in full before the expiration of a period of90 days after the date on which the last of such claimant's work or labor was done or perfonned~or materials were furnished by such claimant,may sue on this bond for thc·use of such claimant,prosecute the suit to final judgment for such '114t>l9 I Jan-30-03 04:32pm From-SYC&R 1 949 725 4100 T-303 P 008/016 F-072 sum or sums as may be justly due claimant,and have execution thereon.The Obligee shall not be liable for the payment of any costs or expense of any such suit. 3.No suit or action shall be commenced hereunder by a claimant other than in a court of competent jurisdiction in the State of California or in the United States District Court for the Central District of California (Southern Division),and not elsewhere. 4.No alteration,modification or supplement to the terms of the Construction Agreement or any subcontracts or the nature of the work to be perfonned thereunder,including any extension oftime for perfonnance,shall in any way affect the obligations of the Surety under this bond.The Surety waives notice of any alteration, modification,supplement or extension oftime. 5.Upon request by any person or entity appearing to be a potential beneficiary ofthis bond,the Principal shall promptly furnish a copy ofthis bond or shall permit a copy to be made. 6.The amount ofthis bond shall be reduced by and to the extent of any payment or payments made in good faith hereunder,inclusive of the payment by Surety of mechanics"liens which may be filed of record against the Project,whether or not claim for the amount ofsuch lien be presented under and against this bond. Signed and sealed this 3rd day ofJanuary,2003. IN PRESENCE OF: IN PRESENCE OF:Liberty Mutual Insurance Company [Affix Corporate Seal ofPrincipal] By:~11~.~6'l( Name:D na J.Frowd Title:Attorney-in-fact Note:This bond must be acknowledged before notary publics,and a legally sufficient power of attorney rnust be attached to the bond to verify the authority of each party signing on behalf ofthe surety. 414019.\ Jan-30-03 04:32pm From-SYC&R 1 949 725 4100 T-303 P009/016 F-072 Note:This bond must he acknowledged before notary publics~and a legally sufficient power of attorney must be attached to the bond to verifY the authority of each party signing on behalfofthe surety. 41116l'U Jan-30-03 04:33pm From-SYC&R 1 949 725 4100 T-303 P 010/016 F-072 ,I ·1 ,before me,_J_a_c_q~u_e_l_y_n~G~.=-:-A_n-:-",d_e:-:-r_s-=-o_n_I N=-o_t~a-=r::....y................;;.... .....~tn.~nd TIll"ofOI1~r (8_9..-Jsne ~.NOlilry P\Jtlli~' JAN 082003On CALIFORNIA ALL·PURPOSE ACKNOWLEDGMENT I· I ~personally known to meoprovedtomeonthebasis of satisfactory evidence ·1 to be the'person(s)whose name(s)is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity{ies),and that by his/her/their signature(s)on the instrument the person(s).or the entity upon behalf of which the person(s) acted,executed the instrument 'I ·1 -I '/ NESS my hand and official seal_ /~ NotoJryPublic I' I' I· OPTIONAL --~--------- Though the in(ormfJtion bs/ow is not required by law,it mayprove valuable to pef$ofls raly/ng on the document and could prevent fraudvllmt removal and raartac;hment ofrhis form to another document. ·1 Description of Attached Document Title or Type of Oocurnent:~~~~_~~_ ·1 I·Document Date:~_~~~Number ofPages:~~__ Signer(s)Other Than Named Above:_~_~~~~ Top 01 thumb here Capacity(ies)Claimed by Signer Signer's Name:~_~~~~ o Individual o Corporate Officer -Title(s): o Partner -0 limited 0 General o Attorney in FactoTrustee o Guardian or Conservator o Other:__~~~~Signer Is RepresenMg:~_~_~~__'----__~_~-'~ 1~~~~-o.:--c...~~~;c<..~~"'C<...~"'C<...~~~C:.G.~~~~~~~~"Q.~~XX;~~~~~ "1'0"''''.C,,10 Toll-f'_'·800-(\71'--8827 Jan-30-03 04:33pm From-SYC&R 1 949 725 4100 T-303 P 011/016 F-D72 -I '1 1 'J .\ _OJ Rrorllgf:Call TolI.FTIO '.6DtHl7~6Z7p~_No_L1IlD7 to be the person(s)whose narne(s)is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies),and that by his/her/their signature(s)on the instrument the person{s).or the entity upon behalf of which the person(s) acted,executed the instrument. Signl1lulll Of NOllll)'P"bll" LXpersonally known to meopro"ed to me on the basis of satisfactory evidence _________________~_Numberof Pages:~ N8mo(~lol5Ign"r(w! Signer's Name:__~_~~_~_~_~_~~ Capacity(ies)Claimed by Signer Signer(s)Other Than Named Abo\le:~~~~~__ Document Date: Title or Type of Document:_~~~~~_~_~_~_~_~~_~~~ Description of Attached Document -------------OPTIONAL ------------~ Though me if"annat/on bE-lowisnar requir9cJ by law,it may prova valvabJa 10 p9rscmlirelyIng on rhB document.1nd could prevent frBudUlenr removaland rfJBtiacnmtmr ofthis farm tv allothe(document_ personally appeared ~_~_~__D_o~n_n_a__J_._F_r_o_w_d__~_~~_~__ Jan-30-03 04:33pm From-SYC&R 1 .._.9497254100 T-303 THIS POWEROF AITORNEY IS-NOT VALID UNLESS IT ISPRINTED ON RI::.U-UA~",u",uul""'..P 012/01S F-072 uvv/vv .- ·Thi~pow~r of Attor'ney limits the set of those nam~d.herein,and they have no authoritY to bind the Company except In the ·manner and-tothe·e1teot herein stated.- -....-.. llBERlYMUTUAL INSURANCE COMPANY -BOSTON,MASSACHUSETTS POWER OFATTORNEY t "t c CI I I I• ·KNOW.ALL PERSONSBY;:-1HE~EPRE~~TS:-That.L,Jb,';~~:lVIutu81InSl..r~nc~C~FIt.p.8:nY.J~h~"CompanY"),aMassa.chusetts -mutual insurance company;·p~r.suantto ~n-d:..~y.authC)r.i~--.oJ~:~trg:~y~law andAUU)onzabon·:ry~.re.!raft~L:._~et forth.does hereby name, ·constitute and appoint.·MI(:.H~EL-B.:MC:~OW"N~-:~SUSA~j~:MCGOW~~}:DONHA].~.WE[SH~:-:::DONNA J.FROWD,ALL OF_THE-CITY OF·NOVAT9X:~TATE·~Qf.::'CALiFOflNI~.~....•..:~_'~.~i~>~-~;:.~;.--~~::~~~-~~~_-~~;:~~~;~:;;_~•. •.'---••--.--••••••-.'_'.'••-:-::-•• -.•••',_• "0"_,__.".".__•..",,:",."••-··0-.a.-.•.•.•••----IlI"--.-~~.~".~._li!••••':~_~..~.~_~~~.,.~-~--~••••-":.--~.~.~~~OIl-.--.'!'''=-•.•_~~••~~~~.•-~••••- -•••~.~••••_.~-r."':~~••••-._•••••--•••••••---•••••• ..~~~~.~~-::~~~••,;~.~..~~."~.:~.d~..~...•~j~~::~~••~_~.•~~••~._.•••~~~••~~•.~.•~~;~~~:~~~•••.~.~~".~~:~;~.~'.••__••••..~~a.~~;..••_.•..•~••••..••••••.••••••.•... ..~..-~••~-_.~••••._••~•.~.•..••-_.m-:'~:':~·t,;~~~~.~••~~.-••••.••••·~;~~~tc~_··~·~··"·u.~.:~~-~t:?···__·~-~:~~;(..~:~~~~.~_..~··~·~···;f~~:f···~_~_._ --. -•.•.~.·::~~~;~~;~:~:~l~~·~;·;~~·;~·~~·:~~:·;~~~IJ;l~;~~:~·~~-ii~~·;~'::~~~:~~~;;~;~;¥:i:~~~;~~;·7d·~~~~~·:;~:~~~~~~·~;~,~·;d~~~~:~;~·;~~·~;,:~~~~·;~~·:~·~·~~rts ...beh~lf as surety and a~itS acfand dedd.,~;i~and alL undertaking~~:!?rin.d~~~ecogni:z.e.nces9nd:othRr.s'J.l'aty<O~.HQi\tiOns in the penal sum not exceeding ·SEVENTY-FIVE:MllLiONAND00I100 ·_**"·....·•..·**HDOLLARS ($75~OOQ,OOO.OD·..Ill·)Elach,-andthe execution of suCh bonds or~ondertal<1ng$.in pursuaOce ofthese-presents,shall be-as binding upon thaCor1'\panyaS 1fthBy had been dUly sigi"ledby the prasideOl and anesteCl by _·the-secretarycif the Company In lhflirown prOper p~l'SonG.-....... n[._l'halthispowerISl'l"ladeandeJCecut"ed pl.Jt~uanttoar'\dby·autboritY-ofthe following By.law and AuthorizatIon: ~'._ARTI-C~EXVI ~E)(e~ution_-ofC~ntract~:SeC1ion~LSUtsty Bondsandundert~l<lngs..-:.... ~-..~.-•Arlyofticer .Or otherufficlal of·the.company_iluthqriied for that PUrpOGB -in:wTiting by the chalr!flan or the presld~nt,and subject to such C C'C1J Jimltations.as the Chairrnan·octhe·plesidanr roayprescribe,:shall appolnt sU¢hunorneys-ln-fact.RSlllaybe necessary to act in behalf of the~-'E COrTlP.Bny to make;execate.seal,-Ltckr'-DwledgeE\nd ·d~ljVBr.:~G_·su.reiyany and 'allundertakirlgs,bOnd::>,-recognlzanccsand other surety'C!:t~:.-_obligations.Such anorney~-in-fa~~sUbj~etto.the Iimltatiot),s setforth in theinespectivePowersofattorney.shall have full power to bind the ...;;-corjJpany by their .sIgnature an-dexecution:of al'!Y ·oucti:instruments arid loanac.hthereto the seal of the company.WMn so executed such ::-m "':-If)strumerils-shal1-be as--blriciog as-itsigned by·theprasidenr.andaties\edbY~~EsecrEtary.···~I ~::~._-8yt~:efonowjnt}Instrumentttla chEil~~at)orthe .~r:~slde-~t hag-authOriz~d-therifficar orotheroffiClal named therein:toappoint.anorneys~in-fact:~:G~c Qj>:Purs:uaotto Ar1icleXVI.SectionS 0I.the-By-Iaw~,ASsistantSecretafyGarriet W.EUiot!··ish~reby -authoriZed to·appointsuch·attorneys-In-faCt (; :::..~.._...:.-·as :r-ryay.benecBssary to act In_behalfOf thecorilpa;'y-to-make.s'Xecute~·seal.·acknowledge and deli\lef ~surety any·and all undertakings.~.!!:::s~-bonds.mcogolzancss andoth9rSUrlJty obligations;..«":c:s!-.-.......--....•....-......---...-..·0 ..(0 =.-That the By-law andtheAuthonza,tlonabllve setfo~hare trua copJest~ereofand are nowIn full force and effect.~ O·L..--.__ -....--.-.._............._.......QJ "":":"'.;;-IN WJTNESS WHEftE0E.tl:'lis instrumenthas been subscri,bedbyjts autt'lorized officer and 1he corporatA seal of the said Uberty Mutual Insurance ~-E-;---~~~mpanYh:aSbeanaffiicedi~~J~,nPlymouth -Meetlng.Pem15~IVar.l.ia -tris .-·2nd:·-dayof.May ......2QOL_.Q. ~':~.._..~~.c'·">Z?1 ......Ll6~RTYM(JTUAL INSURANCECOMPi\NY ~i$By ·.··.~.·iTy~.~ .~~_.....Garnel W._EllIorr.A~slsta!'1t Sscretary'~ ~··~t-_COMMONWEALTHOFPENNSYLVI\N1Ass ~.e-~·COtlNTYOPMONTGOMERY·CI :t)">.-__£~-:g ·On-thlS·2nd ~a>,C?j,.May.'~..O.,..~.before _me,a 'Notary .~u~II~,~pet'Son.aI1Ycame the indiVidual,kn(Jwn to ;>~-",!eto-b~the therein descoued~vldu,l1and officer of Lib~rty tl4ut\J.~lnsuraC)ce Compa:ny who ex.e~J1~ettt~e'preeeding Instrument,and he acknuwled-f.o·t:-ge~:that-hQe~ecutQdJ~f~~a~~~);a~the SEla':~ff.~xed·to_\~~~1tfPtGc:e.~!ngJ~strun:lent·_ls:the-cor~3;t~:~aw-Qt~~'fompany:a~dthat said cOrporate 1~:;:_i3 ~seal andhIS Slg{1~t~~e~~.~~~~~rt\~:J.~J~afflxed:~~~.~u~scrlbed,t9/~~}ard In~?T.~nt:bY:~~t~~nIY and dlry~~~o~of the ~mldcompany.: ...:--.--IN TESTIMO~&".BEAEotS;'-J~"¥~lp.:S~tmy.hand·an:d-affixmy-officicifseal~atPIY~9u -Me~ing,f~,.the day~p,yea(first above wtlnen..~~~1 or·,'.:~\i::~·r-·~'.c')~r<~}·~~~·'~~;~~r;~s~t,.~\~,"U<;l:~~·--·~J :'_...:'.'_U - .:.,,~.'*-J.-.:,......1"),,.,f.\17";·'···Q'·\~1'..n',·.~.",'~,I'_No~ry.Publlc·,""...~""'Jl::.........-,~~'!--.~\,\~\_.Qrlll,l~-:Jr.l r~r·I'-'"y:~.:~}-"I ""., \..~~~~~~:r'~..'-~.~~,~-~.~ffl'1f1CA1'E'.~-.', _•I..the.\.Inder6igri~~t4"£.-g;~~iy·of Liberty Mutuju"~~r9nc~f .Co.m~any.d9'_.D'~~bY.certlfi~hat..•th~·.orlg!~L power of anornay of which the ..foregOing 1$a full,true and_~ctcoPY;Js'mful1force and.etfe~tt')n-tb~:_d9teofthlsce~lfJcate;and t·_do lul'ther CGrtlf)tthat ttle off,carwhO gxecuted the ..5aifj·powerQf.c1ttomey W~s.Ofle_of tne I)fficets specIally authorized "by tne-chainnan-or thQ'presldent toappoklt ariy a.ttorney-in·fact as provided in Article ·XVI,Section 5_oftheBy-laws of LibElrty~tJtu-allnsuranceComp~ny.-. Thiscertiflca.temay ne '5igned .by 'facsimileunder.a.M:by authority of the following vote of the.b~atd of directors·of Uberty Mutual ln~.utance Cc:impanyat a meeting dLlly called and he_ldon the 12th.day -of Maich~1980.-.-.".....-:..-.'- VOTED _tnat the tacsirTlileor m~Cha:nically reproduced 'signature of_any assistant sacretiilryof thO company wherElvsr appearing upon a certIfied copy of any power ofattorneyiiGsuedby thecompany.-shall be valid and binding upon the company with the same force and effect as tnough manui111y ~dfixert :.... Jan-30-03 04:34pm From-SYC&R 1 949 725 4100 T-303 P 013/016 F-07Z fQPER APDING ADDmONAL.OBLIClee TIt'-rfcfer IS ttl be -.cn 8d to lind form _p.rtofSL&M1 bond number 24015060 •di*dIhft_3_~~d__ day or January •-.2003 IIUClJt8d by UbertY MU1I.Iql In.utance company.•~."8chu.._mutul. If'S1jf'8nC*com,.ny,~mueb'(1M -s",,1f),on betra,tJ( 111 favarOf ARB,Inc. ECO Resources,Inc. WHEftP'S."IIPrincipal hi.bY wrtDn liNemen!~,.8 t h....dlYof.,.red iN1D •canhr;t(tne lI00ntract'")WIIh ...ObJgee fDr. San Juan Basin Desalter Project • •ObIJgBIl(lhe 1I~'. DecembeL 1-2QO~ ARB,Inc. WHeReAS.upon thq ..qualtoffhe Prfn I;I~I .~ON.;..8.the ..childbond fa "...by1Ift18mMdto .tId Capistrano Valley Water District and Ambac Assurance CorporatiQJIa QIIIIddllonef abllQ..(hi ItAdqilio1Wl Obnoel'1 to1tl8 I)ond,81'd111-Obl~anti Adelkn*'OOllgae shill~'alnt.ndlMMInIf bendd1lrk18 of~tac:ana .mI SM"a.JotmIY nrfemId to ..the "Band OblIge..... PAQVlDEn,HOWBVEA••re .haR be no U__cf ..sur..,unct.tile ....cMd ~und 10 1he Bond ObtfQNl. eJth.rJaJnl1yor aeYllflllt.~and unll the Bor1d OblGeea.shtll make paymtU\~10a.PMdpel orto the &u8ly r,hcuJd ttlII saotv .Min~far (1t undBf1llb ,.oompl8lfan of"p Carcmet upOn Iln d"'ult of ttte Prtl1d~D.BtrtdIY In .~~wJItI ",.tentaa of ttle CftnIra~i and othefwIN ."J.~.,tHIn-Ind conditions and perform .n d ...CIth.,.o~pns ID t»pti1Drmed untM,'"ecnrn.cr .1 It"Ime ,.~In Ih.mlnn.,.thelwin atl forth;all of the ..*Of one OblQ..~InglJIndillll Upon hiOiher. In no event ahJtll1h-,garea-ftallllllY at '"$ur8l)'to .,.Band OtIIJu....lither jointly Of IwmtUy.IUC.CMtj "8 penQl1IIfTl til the au.ctl8d bond.nar anaO "'1 8W8ty baliatale ~tbr II&q\a pa~for .ach'1nGfa b..-K" or dera~tI,Atthe sumtra 81edfon.any P¥lenl d~tg alth.rObftgM ",IW"mac(e by Ilia cnnok ilsuad101"-tD boUt. ThJI Mlnallts "athe 3rd day of _Januarx ..20,_0...3 _ Thn lIttechld band shlill ..II.Ibfecttd Idl of I~~condl'ons lind IIrnfbltJgpl -~_hw8tnmodified. IN WITNESS WHER£OF..,d Pr1~'1 SUtety,0bI1g.lind M~~{lgee ,.,.C*mtd IJeN ,......iti"~~y al9"est and ••~this.7th d8Y 01_January .20 03 oJ ~r;;la-or.~~~~~ (D~l ay:~__'(SnIlI)Tide - O~:~_ ~-:~{-O DaIr.~_ Jan-30-03 04:34pm From-SYC&R 1 949 725 4100 T-303 P 014/016 F-072 On JAN 0 8 2003 .before me,Jacquelyn G.Anderson,Notary P4b1 -----o-a-I..---~--Name andTille 01OHI<;8r ("-0-."Jaou 000.No~rypubliln State of California -~'~ \ Orangecountyof I- CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENTr--~~.¢f'~~~--.~;('&<?~~~~«*--- I- ,-, JACQUElYN G.ANOERSONfJCommission#1220592~.Notary Publ1c --collfania ~J ~~tM'/Comm.~Jun18.~..........,.... rE personally known to meoprovedtomeonthebasis of satisfactory evidence to be the -person(s)whose name(s)is/are subscribed to the within instrument and acknowledged to me that he(she/they executed the same in his/her/their authorized capacity(ies).and that by his/her/their signature(s)on the instrument the person(s),or the entity upon behalf of which the person(s) acted,executed the instrument. -\ ·1 ,I 01'l'IIotpryPubl!<; -\ -I -\ESS my hand and o~ \ I 1 1 OPTIONAL ----------- ThoI.Jgh the infotmution be/ow is notrequired by I~w,it mhY prove valuable 10 persons relying on the documlmr (Jnd couldprevent fraudulant removal and reattachment ofthis (orm to anotherdocumtlnr. Description of Attached Document Title or Type of Oocument~__~~__~~~_~_~~~ 1- Document Date:__~_~~~__Number of Pages:__~_ \- I' I' Top 01 thumb here I- Capacity(ies)Claimed by Signer Signer's Name:~~__~~__ o IndividualoCorporate Officer ~Title(s): o Partner -0 Limited 0 General ~ o Attorney in Fad IoTrustee.-. O Guardi(J()or Con:servator -~~0 Other-~_~ ~Signer Is RepreS(mtl()g~~~="~-==-=<""""'-~='<x."'--=""-U;«<:"'<;'d'C.;.,,,,,_==~<=<z~=a:~~ I- Prod_No_5~Oj'A"ordor:CIII'1DO-F••"1-6DO,O?lH'lIl1 Jan-30-03 04:34pm From-SYC&R 1 949 725 4100 T-303 P015/016 F-072 personally appeared ~~_~~__D~o_n_n~a_J_.._F_r_o_w_d_~~_~_~_~_ N;unI(5)DlSlgMrtl' rX-personally known to meoprovedtomeonthebasis of satisfactory evidence to be the person(s)whose name(s)is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies),and that by his/her/their signature(s}on the instrument the person(s}.or the entity upon behalf of Which the par~on(s} acted,executed the instrument. --------------OPTIONAL ------------ Though the 'nfOfmBlion b,Aowis no1 fflqIJ/mt:J .oy l:tw.it maypm'levaluable to persons rBlyJng on thtJ aocuroonr and could provenr ffiludu/ant mmCJval and rnatfacllmBl1f ofthIs form to anotherdocumenr_ Description of Attached Document Title orType of Document:_~~~_~_~_~__~~~_~_~__~__~~__ Document Date:__~_~__~~__~__~__~_~Number of Pages:__~__ Signer(s}OtherThan Named Above:__~~~~__~__~_ '1 "J ,J ·1 '1 .J .J 'J .j 'I I Capacity(ies)Claimed by Signer Signer's Name: o IndividualoCorporate Officer~Title(s):~_~~~_ o Partner -0 Limited 0 GeneraloAttorney-in-Fact o TrusteeoGuardian or Conservator o Other: Top ofthLlmbhero .j 'j ·1 ~t ·1 ·1 Jan-30-03 04:35pm From-SYC&R 1 949 725 4100 ~S POWER OF ATTORNEY IS NOT VALID UNLESS IT IS PRINTED ON REO BACKGROUNU.T-303 P016/D16 F-D7Z u~'-'./_~ This Power of Attorney limits th~act of those named herein,and they have no authority to bind the Company except in the manner and'to the extent herein stated..... UBERTY MUTUAl.INSURANCE COMPANY BOSTON,·MAsSACHUSETTS POWER OF'ATTORNEY .KNOW ALL PERSONS B¥.:iHESE,PRES.ENTS:ThatlJ.b~rty_·,.Mutualln~ur;:JnceC.omptlny,..(~e "Company"),a Massachusetts mutual jnsur~nce company,·:pi.Jf~uant\0 a.nif~bY autho~iW':Qhth:~~::ay~ll:lwand:f\~~oriz~ti9n)~I.EJt¢i:ii~~(::.~etforth.does hereby name, .constitute'find appoint,MiCHAEL.-B.MCG·OWAN'::SUSA~fj.~~;M¢GOWA.N~;1l0NNA~:L~.'W,ELSH·::::DONNAJ.FROWD ALL....'.""".'",..""'....,-.,...'.......,.....'.',....,OF THE,CITY OF NOVATO~":.STATE;Oft:ALlFORNIA .•~-.~•.••~.;.;.;d:;,~~..~__~._.~~~~~~_~......:;.~~~;.••..•._....~_~;,~:~..~~..•~..._.;..•..•_..•..••..•...•..•~~~:~~~~~ID behalf·as surely and as its act arid de6tl,{~nya.nd all undartakjng~;.l:Jond.~~'~iecOgn.ilance$~a.nd oth9r:~i.!rfftx·oE;l.I~fionsin thQ penal sum not exceeOlngSEVENTY-FIVEMllLlON·AND OO'1uv···..*.._·__.........···DO~LARS($7~~OOO,OOO.OO--.leach;a(ldthe executIon of such bond(i or ·~odert~klngs,in pursuance Of these presonts.:shall 'be asbinaing'upon tlJeCQmpany a's if they had been dUly signadby the president and attested by the'seGfataryof lhe Company In thelrown proper ~rsons..... Th~~thiS po~ar is made and executed pursuant tl?andby authority Qfthe f?flowingBy-lawand.-Authorizatlon: i, .., ,2~ ss -.en0.·g., cu-.'.ARTICLE XVl •Execution ofC0r;JtraL1s:Section 5,Surety.BondsandUnoertakings.'~:~'.Any'officer:or other official of.the (Xlnlpany'aJ,./thorized ,for tbafpurpose in writing by the:chairman or !he president.and'subject to such -~GI lirTlltatlorisas the chairmanorthe:pi'esldent mayprescnbe,3hallaPPQint such attorneys·in-faet.as may be necessary to act in behalf of the~.E .company tomal(e.executa•.sf'ial..acknowledgs and deliver as suretY any and,'"all·undertakings,bonds,rQcognizances~and other surety.~as =obIl9atiOns,.Such att~may~~jn~faet,Subleetto the-limita..tlons set forth in their respectlYe powers of attorney,shall ,have full power to bind the!2:~:":cor:!lpany by-their slgnaturo.and9xocutlot\of·any ..such instruments'and foanach thereto'the $eal of thecompany.'When so Gxeculed such .;::'.Q)..'instn.am-efits shalltie as binding as if sigo~d by thepresidertfand attestedbythe,secrutary....t.2:eythef~Uowing instrument thechairman orthe'~re5ident:hasauthPri~~dthaofficGT~Orotherofticiaf named therein to appoint attomeys-in-fact .:u.:~-pursuaot to·Anicle··XVI,$ectfonS af.the.8y-laws,AssistanfSecretary'Garnet W.·Elliott is hereby authorized toappointSlJch attorneys-in-fact :::::"ii .as may benecaSsary to act'in.behalf of thecompanyto(nake,exacute,seal,acknowledge and deliver assurQty any.and all undertakin9~.:!:.s:.. .'~ondsi reCD.!Jnizances and ~ther sl1~ety obligations.. .~~.~~5haJthe'8y-biwand the Authorization Rbove setfmth are tr~e copi~thereoiand are now infull force and effect. 0 ..·,."...'.,'..'.'. ..........~I-INWITNESSWHEREOF.tl'\lsinstrument has beensubscrIbad:by itsautho"rlz;ed officer and the corporate-seal of the said Liberty Mutual Insurance '-E'SCQmpiIDy has been affIXed}~~~~nP~mouthMeeting.Penf:lsylvania:this 2nd day of May .,20Qj_·_, ..':f .,:-/..';~'rl.LIBERTY.MUTUAL INSURANCECOMPANY.&~..'..:.\:c.~i!.;;J .:~~-By .~~,tJ.:~~-'-cu...,•~'~cGam8t w.Elfjott~AssistarttSocretary ,0._.. :E al COMMONWEALTH OF PENNSYLVANIA.0 1U COUNTY OFMONTGOM~RY··~.~,:-g.>o.~-g'-.'Onthi~,2nd .~ay~~_,,~.May.,...;.,.~,p,"~,before lTl~,a,NotafY.~l,JPlit:•.perSonalty ca.me thAindivldual.Known to:~~..~e to bA,thQth~re!n de~~~,dual'a"d(),ffl~r·ofLlbertyM!J~I;I~lo.s~(at:!ce.Compa;r:ly..wryoexec~~,!h£fpr~C~(jjngInstrument,and he.a(knowled. .0'::J ·ged that hgeJ(ecuted.~·EartU!~mt~a.phe,s~a.I'~ffi)(~d,tO~,~t):,~a~d.-preoeQl~g;lnstrument.4~'rtbecorpO!ate>~~t'Of-'Sak1:,~mpany;and that said corporatf %Q .sealand his SI~nat~~,~~_~g~~re~~aS:~\:7I~~e.ffl)(ed.~~?~/i>~bscrlbedtQ:~~~::~ajdins1~~~ntbY~,u.t~!'Jntyan(j dire~i?r:l.of the said company ·IN TESllMOfT~O::f0ttj~inY"h)::~~~~<;:ffiD:~:.1IaIPI~"M~~~,ihedaY~Y.aarljrsfabovs written ':.'-~......ff;'r.~--'•.•~.(.,:'1,'·''''''''fYl,""C/(11 II'!':[""'.j .1·Note;ry.Publlc-"~';,1.J'"-.....~.'"..,1 -;......nrftl'~...·J~(~.....-r·\n.:Jt:·...·~~~2f'lrl:..i .,,.......~...',,;S\r-.;:.:.~,0 ,,',,.----,~CEm ~·lE .. I'I,th9 u_""g~~~~'of Ubet1\'M~i~~:~,j,pany,dO'h~'by ced,ily:\hat)l1e'tli)girrei 'powsr of attorney 01 whIch It ·oregolng IS.8 toll,trut'}and Cmnft..~copY.JS-fo full force and e~Elct'Oll"thed.me of thiS cert~ft;ate.anct.rt'lo f~rtnBr certlty that the officer Who e),ecuted U~avld PS·ow9r ¢f attorney was o(\e o!the officers specially auftlorlzed by tho chaIrman or the president to appOlt'lt any attorney-m-fact as provided m Artie.,"I.ectlon 5 of tM ey~lew5of Liberty Mutual Insurance Company, C··:-'!liis CGrtiilcate 'm~y·b'e St9n'edby'facsimile u~der ~nd ,bY~U;hO~ity of thefoJlowingvota of ~heboard of diroctorsof Uberty MutU81 Insuran ompanyElt-ameetmg d.Li1y called and he'(1'on the 12thday.of March,.1980.·.. VOTED .that..the'faesimile'o;mee:hanically reproduced signature of any assi:stant se~re~ary'of the company wherever appearing upon a certif' .COh·PY of a~y power ?f·anorney Issued by the company,shall be vahCl and binding upon the company with the same force and effecttoughmanuallyafflxad~....'.. IN TESTIMONY WHEREOF"I h G h~G t Uh5c b d 7 bJanuaxy,3V r un ~du:r:n e my name and afflx~~the corporate seal of the saId company,thIs __~_t__~_da' ---,.(~~'~<~c-J:/'~'~~;~~:;'.~:~/.?/L THIS pow '.'"-~->,~cretary ER OF ATTORNEY MAY NOTBEUSED TO EXECUTe ANY'BOND WITH AN INCEPTION DATE Af'TER CITY OF SAN JUAN CAPISTRANO INTER-DEPARTMENT MEMORANDUM TO:John R.Shaw FROM:Down DEPT:City Attorney DEPT:~C! SUBJECT:Document Review DATE:\ PHONE EXT.tabID NOTE:IF THIS IS A "RUSH"ITEM,PLEASE COMPLETE IN RED INK For your approval and signature For your review and comments For your information As requested (1 ) (2) (3) (4) (5) ATTACHED ARE THE FOLLOWING (please describe document,i.e.,agreement, contract,consultant agreement):wccl-ey EeD Pesou.rccS(gYOluXltecovert.t pbotJ \ria£.(l (l.on+roe-± \Nlth CVWD.,he I:rlSllrance Cerh£)ctti-e \lS-k +be CG~(}~v--.-- [ ] [X [] [] [ ] PLEASE -------- (A) (8) (C) Keep for your files When Completed Return To: DOL0f\ DatefTime Needed Ext.b~lO [] [~ [ ] [] CITY ATTORNEY'S COMMENTS: -±be wa-+er alS+rlC+4tS Qf r±\ccrl:e h{)\d~r BLLT names ±he CJ+'(Clod wo±er-b ts+r Le-+Q..&o..d c\l~()ncO \(\bur'eds.r s -ttl \5 0 k:,&J r bhDlAld ±=he waier-c\t<s-t-r/C1 Q\SO De actd ed os ce~±l cole b6id~e::....:-'_'_ ]=t:}A!itb:....--!_ l)QJiill f CERTIFICATE OF LIABILITY INSURANCt;ou~~I~T~DATE (MM/DDIYY)'ACORD...01/07/03 PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION Arthur J:Gallagher &:Company ONLYAND CONFERS NO RIGHTS UPON THE CERTIFICATE License #0726293 HOLDER.THIS CERTIFICATE DOES NOT AMEND,EXTEND OR 505 N.Brand Blvd,Suite 600 ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. Glendale CA 91203-3944 INSURERS AFFORDING COVERAGEPhone:818-539-2300 Fax:818-539-2301 INSURED INSURER A:Granite State Insurance CO INSURER B:Zurich Insurance Company ECO Resources Inc.j INSURER C:Natl.Union Fire Ins Co of PA 225 N.Barranca Ave.,Ste.200 INSURER D:Zurich American Insurance Co.west Covina CA 91791 I INSURER E: COVERAGES THE POLICIESOF INSURANCE LISTED BELOW HAVE BEEN ISSUED TOTHE INSUREDNAMED ABOVE FOR THE POLICYPERIOD INDICATED.NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANYCONTRACT OR OTHER DOCUMENTWITH RESPECT TO WHICHTHIS CERTIFICATEMAY BE ISSUED OR MAY PERTAIN,THEINSURANCEAFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECTTO ALL THE TERMS,EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. I~~TYPE OFINSURANCE POLICY NUMBER b~f~;('~5W~rE P~k+~~~~'9WYt~·",LIMITS GENERAL LIABILITY EACH OCCURRENCE $1,000,000f--A X COMMERCIAL GENERAL LIABILITY LX6343763-01 09/01/02 09/01/03 FIRE DAMAGE (Anyone tire)$1,000,000 CLAIMS MADE ~OCCUR >MED EXP (Anyoneperson)$5,000 ·1~ X Pollution Liah.$1,000,000 LiMIT PERSONAL &ADV INJURY $1,000,000,---- X PL-CLAIMS MADE $250,000 DEDUCTIBLE GENERALAGGREGATE $2,000,000-GEN'L AGGREGATE LIMITAPPLIES PER:PRODUCTS·COMP/OP AGG $2,000,000IrxlPRO-nLOCPOLICYXJECT AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT-$1,000,000B X ANYAUTO BAP9298955-02 (AOS)09/01/02 09/01/03 (Eaaccident) - ALL OWNED AUTOS TAP9298956-02 (TX)09/01/02 09/01/03 BODILY INJURY-(Perperson)$ SCHEDULEDAUTOS-X HIRED AUTOS BODILY INJURYI---$X NON-OWNED AUTOS (Peraccident) I--- I---PROPERTY DAMAGE $(Peraccident) GARAGE LIABILITY AUTO ONLY-EA ACCIDENT $RANYAUTO OTHER THAN EAACC $ AUTO ONLY:AGG $ EXCESS LIABILITY EACHOCCURRENCE $10,000,000 C [J OCCUR D CLAIMS MADE BE1399640 09/01/02 09/01/03 AGGREGATE $10,000,000 $RDEDUCTIBLE $ RETENTION $$ WORKERS COMPENSATION AND X It'5R~\~~~YTSI IUJ~' D EMPLOYERS'LIABILITY WC2795955-04 09/01/02 09/01/03 G.l.EACH ACCIDENT $1,000,.0_~ E.L.Dis~SE -EAEMPLOYEE $1,000,000 E.L.DISEA~-POLICY LIMIT $1,000,000 OTHER \ D Professional EOC 3765163 02 11/08/02 11/08/03 Limit $2,000,000 Liability I DESCRIPTION OFOPERATIONSILOCATIONSIVEHICLESlEXCLUSIONSADDED BY ENDORSEMENT/SPECIAL PROVISIONS ; *10 DAY NOTICE OF CANCELLATION FOR NONPAYMENT OF PREMIUM.ALL POLICY TERMS, CONDITIONS,LIMITATIONS AND EXCLUSIONS APPLY. ***Description per attached NOTEPAD Addendum*** --82 nl)jwe... CERTIFICATE HOLDER IY ,ADDITIONAL INSURED;INSURERLETTER:A CANCELLATION .... "-·'-'0. CITYOFS SHOULD ANY OFTHE ABOVE DESCRIBED POLICIES BE CANCELLEDBEFORE THEEXPIRATION DATE THEREOF,THEISSUING INSURERWILL ENDEAVOR TO MAIL ~DAYS WRITTEN City of San Juan Capistrano NOTICETOTHE CERTIFICATE HOLDER NAMED TO THE LEFT,BUTFAILURE TO DO SO SHALL Attn:Cindy Russell IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THEINSURER,ITS AGENTS OR32400PaseoAdelanto San Juan Capistrano CA 92675 REPRESENTATIVES. -~ZED~ENTATIVE7;v-"> I 'lttU~. ACORD 25·S (7/97)©ACORD CORPORATION 1988 fsJl"::iS:IIE1:>~~1~~~~O~A~E >i~aY~::~\1rCeSII1c..;~~T:~l .-,-..,_.. The District,the B()a.:rd()f«D:i.:rE!c:t~:r;s«ofthEa><D:i.~trict;the City,the City Council and each of their respective officers,officials,agents, volunteers and employees shall be identified as Additional Insureds as their interests may appear as respects General Liability per endorsement CG2026 (ll/8S)attached.The same applies to Waiver of Subrogation as respects General Liability per endorsement CG2404 (lO/93)attached. *The Deductibles under all policies do not apply to the Additional insureds ..../*The Medical Expense Limit under General Liability is without regard to legal liability.Any claim in excess of $5,000 automatically transfers to the "Bodily Injury"limit of $1,000,000-/*The Certificate Holder named as an Additional insured has been endorsed to ECO Resources,Inc.I s "Southwest Water Company"General Liability 1/ policy*Disregard standard form disclaimer language indicating "for informational purposes only" •PAGE··2 DATE 01/07103 POLICY NUMBER:LXD6343763-01 COMMERCIAL GENERAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY.PLEASE READ IT CAREFULLY. ADDITIONAL INSURED--DESIGNATED PERSON OR ORGANIZATION This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART. SCHEDULE Name ofPerson or Organization: The District,the Board of Directors of the District,the City,the City Council and each of their respective officers,officials,agents, volunteers and employees (Ifno entry appears above,information required to complete this endorsement will be shown in the Declarations as applicable to this endorsement.) WHO IS AN INSURED (Section II)is amended to include as an insured the person or organization shown in the Schedule as an insured but only with respect to liability arising out ofyour operations or premises owned by or rented to you. CG 20 261185 Copyright,Insurance Services Office,Inc.,1984 POLICY NUMBER:LX6343763-01 COMMERCIAL GENERAL LIABILITY CG 24 04 10 93 THIS ENDORSEMENT CHANGES THE POLICY.PLEASE READ IT CAREFULLY. WAIVER OF TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE Name ofPerson or Organization: The District,the Board of Directors ofthe District,the City,the City Council and each of their respective officers,officials,agents, volunteers and employees (If no entry appears above,information required to complete this endorsement will be shown in the Declarations as applicable to this endorsement.) The TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US Condition (Section IV -COMMERCIAL GENERAL LIABILITY CONDITIONS)is amended by the addition of the following: We waive any right of recovery we may have against the person or organization shown in the Schedule above because of payments we make for injury or damage arising out of your ongoing operations or "your work" done under a contract with that person or organization and included in the "products-completed operations hazard".This waiver applies only to the person or organization shown in the Schedule above. CG 24 04 10 93 Copyright,Insurance Services Office,Inc.,1992 4CORD..CERTIFICATE OF LIABILITY INSURANCE OPID D~DATE(MMlDDIYYYY) ECOCA-1 07/29/04 PRODUCER THIS CERTIFICATE IS ISSUED AS AMATTER OF INFORMATION Arthur J.Gallagher &Company ONLY AND CONFERS NO-RIGHTS-UPON THE CERTIFICATE License #0726293 HOLDER.THIS CERTIFICATE DOES NOT AMEND,EXTEND OR 505 N.Brand Blvd,Suite 600 ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. Glendale CA 91203-3944 Phone:818-539-2300 Fax:818-539-2301 INSURERS AFFORDING COVERAGE NAIC# INSURED INSURER A:.Granite State Insurance CO INSURER B:Zurich American Xnsurance CO.ECO Capistrano Valley Inc.INSURER C:Natl.Union Fire Xns Co of PASouthwestWaterCompanS32234PaseoAdelanto,te.D INSURER 0:San Juan Capistrano CA 92675 INSURER E: COVERAGES THE POLICIES OFINSURANCELISTED BELOW HAVE BEEN ISSUED TO THE INSUREDNAMED ABOVE FORTHEPOLICYPERIOD INDICATED.NOTWITHSTANDING ANY REQUIREMENT,TERMOR CONDITION OFANY CONTRACTOR OTHER DOCUMENTWITH RESPECT TO WHICHTHIS CERTIFICATEMAY BEISSUED OR MAY PERTAIN,THE INSURANCEAFFORDED BYTHE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THETERMS,EXCLUSIONSAND CONDITIONS OF SUCH POLICIES.AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. LTR ~SR[TYPEOFINSURANCE POLICYNUMBER 'D~¥~~MMJDD,rir IPgk~~Y(ij"Wb"D;.W)n LIMITS GENERAL LIABILITY EACH OCCURRENCE $1,000,000t---LJI\I\IIAI.j~~u_HI=NII=UAXXCOMMERCIALGENERALLIABILITYLX6343763-03 09/01/04 09/01/05 PREMISES (Ea occurence)$1,000,000 ICLAIMS MADE [!]OCCUR MED EXP (Anyoneperson)$5,000 PERSONAL &ADV INJURY $1,000,000t--- GENERALAGGREGATE $2,000,000- GEN'LAGGREGATE LIMIT APPLIES PER:PRODUCTS·COMP/OP AGG $2,000,000I[Xl PRO·nLOCPOLICYXJECT AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT-$1,000,000BXANYAUTOBAP9298955-04 (AOS)09/01/04 09/01/05 (Ea accident) - ALL OWNED AUTOS TAP9298956-04 (TX)09/01/04 09/01/05 BODILY INJURY-(Perperson)$ SCHEDULED AUTOS-X HIRED AUTOS BODILY INJURY-$X NON·OWNED AUTOS (Per accident) - -PROPERTY DAMAGE $(Peraccident)~ GARAGE LIABILITY AUTO ONLY·EA ACCIDENT $==i ANYAUTO OTHER THAN EAACC $ AUTO ONLY:AGG $ EXCESSIUMBRELLA LIABILITY EACH OCCURRENCE $10,000,000 C [!J OCCUR D CLAIMS MADE BE5683892 09/01/04 09/01/05 AGGREGATE $10,000,000 $RDEDUCTiBlE $ RETENTION $$ WORKERS COMPENSATIONAND X IT~~l~I~:fls I IUJ~' B EMPLOYERS'LIABILITY WC2795955-06 09/01/04 09/01/05 $1,000,000ANYPROPRIETOR/PARTNER/EXECUTIVE EL.EACH ACCIDENT OFFICER/MEMBER EXCLUDED?EL.DISEASE·EA EMPLOYEE $1,000,000~P~~I~tS~~~v~~?6~sbelow EL.DISEASE -POLICYLIMIT $1,000,000 OTHER D Professional Liab EOC 3765163-03 11/08/03 11/08/04 Limit:$2,000,000 Claims Made Ded:$50,000 DESCRIPTION OFOPERATIONSI LOCATIONSI VEHICLES I EXCLUSIONSADDED BY ENDORSEMENTI SPECIAL PROVISIONS *EXCEPT 10 DAY NOTICE OF CANCELLATION FOR NONPAYMENT OF PREMIUM.ALL fPOJ:;IdY' TERMS,CONDITIONS,LIMITATIONS AND EXCLUSIONS APPLY.i ---I ,r ***See attached Notepad for Description***I! ~~'I CERTIFICATE HOLDER CANCELLATION i CITYSAN SHOULDANYOF THE ABOVE DESCRIBEI POLICIES BE CA~PEI,.LEDBEFOBETHE EXPIRATION DATE THEREOF,THEISSUING INSURER\1111 1 ~Nn~4110RTQ-M~i':'30*DAYS WRITTEN City of San Juan Capistrano NOTICETO THE CERTIFICATEHOLDERNAMED TOTHE LEFT,BUT FAILURE TO DO SO SHALLAttn:Cindy Russell IMPOSE NO OBLIGATIONOR LIABILITYOF ANY KIND UPON THE INSURER,ITS AGENTS OR32400PaseoAdelanto San Juan Capistrano,CA 92675 REPRESENTATIVES. ~~~VE ACORD 25 (2001108)©ACORD CORPORATION 1988 The District,the Boa~d of Director~the District,the City,the City Council and each of their respective officers,officials,agents, volunteers and employees shall be Included as Additional Insureds as respects General Liability as required by written contract or agreement to the extent insurable as their interest may appear for liability arising out of the operations of the Named Insured.Waiver of Subrogation included as respects General Liability as required by contract. MALCOLM PIRNIE,INC. INDEPENDENT ENVIRONMENTAL ENGINEERS,SCIENTISTS&CONSULTANTSDecember13,2002 {Jaunt S. ____'F---=-Yr__~ Mr.Chris Costello Construction Manager ECO Capistrano Valley,Inc. 3224 Paseo Adelanto -Suite D San Juan Capistrano,CA 92675 Re:Capistrano Valley Water District San Juan Basin Desalter Project Dear Mr.Costello: Presently the closing of the Project's Development Period and the beginning of the Project's Construction Period is scheduled for January 8,2003.The Service Agreement identifies the obligations that must be accomplished prior to that date.At this time there are several obligations or issues that require resolution prior to January 8,2003.These include the following: 1.CONSTRUCTION PERIOD INSURANCE:{Section 4.2.(A).(14)}The current insurance certificate that has been submitted to the City of San Juan Capistrano (City) does not meet the requirements of the Service Agreement.The following corrections/changes are required to be submitted prior to January 8,2003.{Append Il-Part2}: A.ECO Resources,Inc.as signatory to the Service Agreement shall be identified as the Insured. B.The District,the Board of Directors of the District,the City,the City Council and each of their respective officers,officials,agents,volunteers and employees shall be identified as Additional Insureds as required by Appendix II-Part 2 of the Service Agreement. C.The Additional Insureds shall not be subject to the $250,000.00 DEDUCTIBLE currently shown in the insurance certificate.The revised certificate shall clearly state that any deductibles identified in the certificate shall not apply to the Additional Insureds./ D.The Medical Expenses shall be increased from $5,000.00 to $10,000.00 as required by the Service Agreement.·\ / E.The Profession Liability shall be increased from $1,000,000.00 to $2,000,000.00 V as required by the Service Agreement. F.The ENDORSEMENT shall identify the Additional Insureds with wording from {l / the Service Contract in lieu of "the person or organization"as presently written V into the endorsement. G.The WAIVER shall identify the Additional Insureds with wording from the), Service Contract in lieu of "person or organization"as presently written. III i i:10f2 DEC 1 84~B3ZVAN,BUREN STREET SUITE 400 PHOENIX,AZ 85008-6945 602-241-1770 fax 602-231-0131 http://www.pirnie.com RECYCLEDPAPER 2.PERFORMANCE BOND and PAYMENT BOND:{Section 4.2.(A).(13)}These bonds are required to be provided prior to January 8,2003.{Section 4.S.(A)(1)}.If the bonds have been submitted to the City of San Juan Capistrano,please provide Malcolm Pimie a copy of the bonds and a copy of their transmittal document to the City.If the bonds have not been submitted,please provide the delivery date of the bonds to the City. 3.DEMOLITION DRAWING/PLAN:{Construction Governmental Approvals Generally Section 4.2.(A)(2)}&Append 6.2}This plan requires approval from the City's Development Services Manager.The following documentation is required to be submitted before the City will issue their approval of the demolition plan: A.Drawing showing with description of items and/or material to be removed from site B.Documentation of Utility Service Disconnects C.Asbestos Abatement Plan:As we discussed today the Orange Co.Headstart Program will be making the appropriate notifications,please formally submit an asbestos abatement plan and cost for the removal and proper disposal of the asbestos discovered in the existing Headstart trailers,as soon as possible.Our Haz Mat staff person will be in contact with Orange Co.Headstart. D.City approval of the Demolition Drawing/Plan is required prior to January 8, 2003.{Section 4.5.(A)(1)} 4.EROSION CONTROL PLAN:{Construction Governmental Approvals Generally Section 4.2.(A)(2)}This plan requires approval from the City's Development Services Manager prior to January 8,2003.{Section 4.5.(A)(1)} The plan has been submitted to and approved by the City of San Juan Capistrano, please provide Malcolm Pimie a copy of the approval. If you have any questions,please contact us. Very truly yours, MALCOLM PIRNIE,INC.-----. Barry C.Redeker Sr.Project Engineer C.Amy Amirani,CSJC Cynthia Russell,CSJC Dan McFarland,CSJC Dick Pascucci,MPI Kyle Rhorer,MPI 2of2 RECYCLED PAPER ACORD",CERTIFICATE OF LIABILITY INSURANCl;ou~:l~T, DATE (MMlDDNY) 12/03/02 PRODUCER THIS CERTIFICATE IS ISSUED AS AMATTER OF INFORMATION Arthur J.Gallagher &:Company ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE License #0726293 HOLDER.THIS CERTIFICATE DOES NOT AMEND,EXTEND OR 505 N.Brand Blvd,Suite 600 ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. Glendale CA 91203-3944 Phone:818-539-2300 Fax:818-539-2301 INSURERS AFFORDING COVERAGE INSURED INSURER A:Granite State Insurance CO INSURER B:Zurich Insurance Company Southwest Water compan~INSURER C:Natl.Union Fire Ins Co of PA 225 N.Barranca Ave.,tee 200 INSURER 0:Zurich American Insurance Co.West Covina CA 91791 I INSURER E: COVERAGES THE POLICIES OF INSURANCELISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED.NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANY CONTRACTOR OTHER DOCUMENTWITH RESPECT TO WHICH THIS CERTIFICATE MAYBE ISSUED OR MAY PERTAIN,THE INSURANCE AFFORDED BY THE POLICIES DESCRIBEDHEREIN IS SUBJECTTO ALL THETERMS,EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.AGGREGATE LIMITS SHOWN MAYHAVEBEEN REDUCED BYPAID CLAIMS. II~~TYPE OF INSURANCE POLICY NUMBER b~'r~1MMJoD7vY)-Prl'.k+~~~~~W~?N LIMITS GENERAL LIABILITY EACH OCCURRENCE $1,000,000I--A X COMMERCIAL GENERALLIABILITY LX6343763-01 09/01/02 09/01/03 FIRE DAMAGE (Anyonefire)$1,000,000 ICLAIMS MADE ~OCCUR MED EXP(Anyoneperson)$5,000 X Pollution Liab.$1,000,000 LIMIT PERSONAL &ADV INJURY $1,000,000I-- X PL-CLAIMS MADE $250,000 DEDUCTIBLE GENERALAGGREGATE $2,000,000I-- GEN'LAGGREGATE LIMIT APPLIES PER:PRODUCTS -COMP/OPAGG $2,000,000nrxlPRO-nLOCPOLICYXJECT AUTOMOBILE LIABILITY COMBINED SINGLELIMITI--$1,000,000B X ANY AUTO BAP9298955-02 (AOS)09/01/02 09/01/03 (Ea accident) I-- ALL OWNED AUTOS TAP9298956-02 (TX)09/01/02 09/01/03 BODILY INJURYI--(Perperson)$ SCHEDULEDAUTOS I--X HIRED AUTOS BODILY INJURYI--$X NON-OWNED AUTOS (Peraccident) I-- f---PROPERTYDAMAGE $(Peraccident) GARAGE LIABILITY AUTO ONLY-EA ACCIDENT $RIWYAUTO OTHERTHAN EAACC $ AUTO ONLY:AGG $ EXCESS LIABILITY EACH OCCURRENCE $10,000,000 C ~OCCUR D CLAIMS MADE BE1399640 09/01/02 09/01/03 AGGREGATE $10,000,000 $==i DEDUCTIBLE $ RETENTION $$ WORKERS COMPENSATION AND X Ir5R~'6~YTsI \O~~- D EMPLOYERS'LIABILITY WC2795955-04 09/01/02 09/01/03 $1,000,000E.L.EACH ACCIDENT E.L.DISEASE -EA EMPLOYEE $1,000,000 E.L.DISEASE -POLICY LIMIT $1,000,000 OTHER D Professional EOC 3765163 02 11/08/02 11/08/03 Limit $1,000,000 Liability DESCRIPTION OFOPERATIONSlLOCATIONSlVEHICLESlEXCLUSIONSADDED BYENDORSEMENT/SPECIAL PROVISIONS The City of San Juan Capistrano,etal,its directors,officers,officials, agents,volunteers and employees are named as additional insureds as respects General Liability per blanket endorsement CG2026 (11/85)attached. waiver of Subrogation as respects General Liability per blanket endorsement CG2404 (10/93)attached. CERTIFICATE HOLDER IN IADDITIONAL INSURED;INSURERLETTER:CANCELLATION CITYOFS SHOULDANYOFTHE ABOVE DESCRIBEDPOLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF,THE ISSUING INSURER WILLENDEAVOR TO MAIL ....3..Q..!.DAYSWRITTEN City of San Juan Capistrano NOTICE TO THECERTIFICATE HOLDERNAMED TO THE LEFT,BUTFAILURE TO DO SO SHALLAttn:Cindy Russell IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER,ITS AGENTS OR32400PaseoAdelanto San Juan Capistrano CA 92675 REPRESENTATIVES._ ~ZED,~ENTA~ULA~. I "AItt J"''''Or ACORD 25-S (7/97)©ACORD CORPORATION 1988 HOLDERCODE CITYOFS INSURED'SNAME Southwest;Water>Compa.ny Subject to policy terms,conditions,limitations and exclusions. notice for non-payment of premium. SOUTH11 OPID TH *10 Day PAGE··.·2 DATE 12/03/02 POLICY NUtvIBER:t/LX6343763-01 COMMERCIAL GENERAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY.PLEASE READ IT CAREFULLY. ADDITIONAL INSURED -DESIGNATED PERSON OR ORGANIZATION This endorsement modifies insurance provided under the following: COMtvIERCIAL GENERAL LIABILITY COVERAGE PART. SCHEDULE Narne of Person or Organization:Blanket (If no entry appears above,information required to complete this endorsement will be shown in the Declarations as appli- cable to this endorsement.) WHO IS AN INSURED (Section II)is amended to include as an insured the person or organization shown in the Schedule as an insured but only with respect to liability arising out ofyour operations or premises owned by or rented to you. CG 20261185 Copyright,Insurance Services Office,Inc.,1984 Page 1 of 1 o POLICY NUMBER:tlLX6343763-01 COMMERCIAL GENERAL LIABILITY CG 24041093 THIS ENDORSEMENT CHANGES THE POLICY.PLEASE READ IT CAREFULLY. WAIVER OF TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US This endorsement modifies insurance provided under the following: COIvlMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE Name of Person or Organization:Blanket (Ifno entry appears above,information required to complete this endorsement will be shown in the Declarations as appli- cable to this endorsement.) The TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US Condition (Section IV -COM:MERCIAL GENERAL LIABILITY CONDITIONS)is amended by the addition ofthe following: We waive any right ofrecovery we may have against the person or organization shown in the Schedule above because of payments we make for injury or damage arising out ofyour ongoing operations or "your work"done under a contract with that person or organization and included in the "products-completed operations hazard".This waiver applies only to the person or organization shown in the Schedule above. CG 2404 1093 Copyright,Insurance Services Office,Inc.,1992 Page 1 of 1 o MEMORANDUM TO: FROM: DATE: SUBJECT: Cindy Russell,Administrative Services Director Amy Amirani,Public Works Director Dawn Schanderl,Deputy City Clerk December 5,2002 Status Eco Insurance Requirements I receved a certifcate and endorsements from Southwest Water Company late yesterday afternnoon. CERTIFICATE (attached) 1.This certifcate no longer has Eco listed as a named insured.ADD 2.Medical Exp limit still at 5,000 INCREASE OF $10,000 3.CVWD is still not added as certificate holder.ADD ENDORSEMENTS (attached) 1.For CG 20 26 11 85 is a pretty general cover all endorsement BUT I have a problem with the entire additional insured verbage not showing up as required by Contract. 2.The second endorsement "waiver of transfer of rights of recovery against others to us"-Is this a requirement?If yes,I feel the additional insured verbage per contract should be added. DEC-04-2002 11:29 RRTHUR J.GRLLRGHER &CO.818 3409286 P.02/05 A CORD_CERTIFICATE OF LIABILITY INSURANCt;ou~{~T~~'\Il'lI..MlUUl...., 12/03/02 PRODUCER THIS CERTIFICATE IS ISSUED AS A MAlTEROF INfORMAllON Arthur J.G«~lagher Ii;Cgmp.my ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE Lic.n••10726293 HOLDER.THIS CERTIFICATE DOES NOTAMEND,EXTEND OR 505 N.Bran~Blvd,Suit:..,.00 ALTER THE COVERAGE AFFORDED BYTHE POLICIES BELOW.-~ ~l.ndale CA 91203-3944 INSURERS AFFORDING COVERAGEPhones818-539-2300 r~s818-539-2301 -_.._-- INSURED INSURER A:Granite State in8urane.CO A1)t)SeD INSURER 9:Zurich XnBurance Company ----- Southweat water camp~INSURERC:Ratl.union ~ire ~fta co of PA 225 N.B\U'ranca Ave.~te.200 INSURER D:zur~ch American ~n.uranc.co.W••t Cov:Lua CA 917'1 I INSURER E;: COVERAGES Tl1E POliCIESOF INSURANCE LISTED BELOWHAVE 8EEN ISSUED TO THE INSURED NAMEDABOVE FOR THE POLICY PERIOD INDICATED.N01WITHSTANDING ANY REQUIREMENT,TERM OR CONOITIONOF A.NY CON1AACTOR OTHE.A OOCUMEN'T WITH RE3PECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN.THE INSURANCEAF~OROm8YnlE POLICIESDESCRIBED HEREINIS SUBJECTTO ALL THE TEAMS,EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BV'PAIDCLAIMS_ I~i'::TYP~OF INSURANCI!POLlCVNUMBER ~~~bt;lMMmDivy)-~}~~MMlDDIYY)LIMITS GENERAL LIABILITY EACHOCCURRENCE $1.000,000-A X COMME~CIAl GENE'RAl-ll~I1..IlY LX6343763-01 09/01/02 09/01/03 FIRE DAMAGE (Anyon.firu)S 1,0001 000-o CLAIMS MADE ~OCCuR -C 5.00~~v-n~,...nO ~,'~'Yone pel1lon)S- X Pollution Liab..$1,000,000 t.XHXT ~PEASONAl&ADV INJURY $1,000,0ifiJ-x PL...CLA:IICS MADE $250.000 DBDUCT:IBLE GENERALAGGREGATE S2,00O~OOO-GEN'L AGGREGATE LIMITAPPLIESPER:PRODUCTS·COMPIOPAGG $2,000.0001_[](l PRO-nlOCPOLlCYXJECT AIJTOMOfillE UAHIUTY COMBINEDSINGLE LIMIT $1,000,000-B X ANVAUTO BAP92989S5-02 (AOS)09/01/0.2 09/01/03 (Ea IIccldenl)-AL.l OWNED AUTOS TAP929S9S6-02 (TX)09/01/02 09/01/03 aOOllY INJURY-$SCHE:OUlED AUTOS (p.tl)orson) - ~HIRED AUTOS aODllv INJU~Y SXNON·OWNED AUTOS (Pe,accldtnl) t--- t--PROPERTY DAMAGE $(Po,accldunl) (iAJlAGE UA91L1TY AUTOONLY·EAA.CCIDENT SRA.YAUTO OT~ERTHAN EAACC $ AUTOONLY;AGG $ EXCESS LIABILITY EACH OCCuRRENCE $10,000,000 C [!J OCCUR D CLAIMSMADE BII:1399640 09/01/02 09/01/03 AGGRE.GAtE $10,ODO,000 $RDEDuCTIBLE $ RETENTION S $ WORtc:EflSCOMPI!NSATIONAND X Iffi'A~\~~~~TSI IOETH- EMPlOYERS'lI.AfllUTY ER D WC279S9S5-04 09/01/02 09/01/03 E.L.EACH ACCIO~NT S 1,OOO~000 EL I)ISEASE •EAEMPLOYEE S 1.000,000 E.L.OISEASE -POI-ICY LIMIT $11 000.000 OTHER D Professional HOC 3765163 02 11/08/0.2 11/08/03 Limit $1,D001 000 Liability DE.SCRIPTlO~OFOPERATIONSlLOCATlONSNEt4ICLESlI:XCLU610N9ADDED BY ENDORSI;MENTIGPECIAL PROVISIONS The City of San .Tuan C-.pistrano.etal,it:..d:lrectors,offlc:.r.,officials, agent:.a~volunteera and ~loyees aru uam-4 as additional inaur.cS.as reapects General Liability per blank.t eDdorsement CG2026 (11/85)attached. Waiver of Subrogation &s respeot:..General Liability per blanket endorM.ment CG2404 (10/93)attached. CERTIRCATE HOLDER IN IADDmONAL IN6URI!D;INSURERLETlER:CANCELLATION ADl)CVw 0 CIftOFS BHOLJLD ANY OF THE Aflove DE6CRIBEO POLICIESHECoANCELLeD BEFORE lltE EXPIRATION DATE THEREOF,THE ISSUINGINSURER WILLENDEAVOItTOMAIL ~DAYSWRITTENCityofBan.JUan Capistrano NOTlCE TOTH~CI!!RTlFlCATE HOLDERNAMEDTOTH!LeFT,BUT FAILURE rnDO 505HALlAttn:Cindy RUM••11 32400 Paaeo .Ac!.lanto IMPOSE~o OBLIGATION OR UABIUTYOF ANYKIND UPON THE INSURER,ITS AGENT6 OR San Lruan c:api.t:r:ano CA 92675 REPRESENTA......va;S. ~~~;-'1jNTATlVE ~~ I ~'.J"~AIrJ~"."..--_......... ACORD 26-8 (7197)CACORD CORPORATION 1988 DEC-04-2002 11:30 POLICY NUMBER: RRTHUR J.GRLLRGHER &CO. IfLX6 343763-01 818 3409286 P.04/~5 COMMERCIAL GENERAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY.PLEASE READ IT CAREFULLY. ADDITIONAL INSURED -DESIGNATED PERSON OR ORGANIZATION This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART. SCHEDULE Name ofPenon or Organization=Blanket (If no entry appears above.information required to complete this endorsement will be shown in the Declarations as appli- cable to this endorsement.) WHO IS AN INSURED (Section 11)is amended to include as an insured the person or organization shown in the Schedule as an insured but only with respect to liability arising out ofyour operations or premises owned by or rented to you. CG 20261185 Copyright.Insurance Services Office.Inc.,1984 Pa~e 1 of 1 o DEC-04-2002 11:30 POLICY NUMBER: RRTHUR J.GRLLRGHER &CO. I!LX6343763-01 818 3409286 P.05/05 COMMERCIAL GENERAL LIABILITY CG 24 041093 TillS ENDORSEMENT CHANGES THE POLICY.PLEASE READ IT CAREFULLY. WAIVER OF TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US This endorsement modifies insurance providcd under the following: COl\nv1ERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE Name ofPer.lion or Organization: Blanket (Ifno entry appears abovct information required to complete this endorsement will be shown in the Declarations as appli- cable to this endorsement.) The TRANSFEROF RIGHTS OF RECOVERY AGAINST OTIIERS TO US Condition (Section IV-COMMERCIAL GENERAL LIABILITY CONDITIONS)is amended by the addition ofthe following: We waive any right ofrecovcty we may have againstthe:person or organization shown in the Schedule above because of payments we make for injury or damage arising out ofyour ongoing operatiolUi or "your work"done under a oontract with that person Or organization and included in the "products-c01l1pleted operations hazardtl•This waiver applies only to the person or organization shownin the Schedule above. TOTRL P.05 APPENDIX 11 INSURANCE REQUIREMENTS PART 1:REQUIRED OPERATION PERIOD INSURANCE 1.Company Insurance Coverage.The Company shall obtain,pay for and maintain the insurance coverages listed below with respect to the management, operation and maintenance of the Project: (a)workers'compensation insurance required by Applicable Law v covering all of the employees of the Company; (b)employer's liability insurance with limits of $1,000,000 per accident J or employee disease; (c)comprehensive general liability and property damage insurance, including contractual liability and products completed operations coverage,with a combined single limit of liability of $1,000,000 per occurrence for bodily injury and for property damage,a general aggregate limit of $2,000,000 (excluding products completed operations),an aggregate limit of $2,000,000 for products completed operations,a limit of $1 ,000,000 I in·u and advertising injury, $100,000 for fire damage and a 10,000 medical expense for anyone perso ~ (d)excess liability insurance above the required commercial general pollution (on a claims made basis),commercial automobile and employer's liability insurance to result in an overall liability coverage in the amount of V' $10,000,000 per occurrence and an aggregate annual limit of $10,000,000; (e)pollution legal liability insurance with limits of $1 ,000,000 per loss v and an annual aggregate limit of $2,000,000;and . (f)commercial automobile liability insurance,including owned, non-owned and leased or hired vehicles,with a $1,000,000 combined single limit v' for bodily injury and property damage,including non-owned and hired coverage. 2.Additional Insureds.The Company and Subcontractors shall include the District,the Board of Directors of the District,the City,the City Council and each of their 70... respective officers,officials,agents,volunteers and employees as additional insureds (the "Additional Insureds")on all insurance policies required pursuant to this Part 1. The District and the Company shall waive the subrogation rights of their various insurance carriers in favor of the other party. 3.Insurance Certificates.Insurance,and any renewals thereof,shall be evidenced by certificates of insurance issued or countersigned by a duly authorized representative of the issuer and delivered to the District for its review 30 days prior to N····'''T·Ep···A:D····.....:"HOLD~RC::OI)~.C'XTtoFS".•."•.••.'.•••M .'.:,INSUREDl~NAME·SoUth1fe~t •••Watel:•CaIaPaD~ Subject to policy term.,conditions,1~tation8 and exclusions. notice for non-payment of pr~um. DEC-04-2002 11:29 RRTHUR J.GRLLRGHER &CO.818 3409286 BooSl! .OPJD TIl '*10 Day P.03/~l5 PAGE 4 'PA.TE 1.2/03/02 MEMORANDUM TO: FROM: DATE: SUBJECT: Cindy Russell,Administrative Services Director Amy Amirani,Public Works Director Dawn Schanderl,Deputy City Clerk December 4,2002 Insurance/Bonding ECO Status I am sending each of you a copy of Meg's letter to ECO with all contract terms related to Article XIV (Insurance)and Article XV (Security for Performance). For any documents due before construction period please forward these to me. APPENDIX 11 -REQUIRED OPERATION PERIOD INSURANCE: 1.Certificate of Insurance received:Under general liability section medical expo limit needs to be increased from $5,000 to $10,000. 2.Certificate received is in the name of the City and must be reissued in the name of the Capistrano Valley Water District 3.The additional insurance endorsement form states "the Company and Subcontractors shall include the District,the Board of Directors of the District,the City,The City Council and each of See appendix 11 Endorsement not received. PART 2:REQUIRED CONSTRUCTION PERIOD INSURANCE/BOND Section1g:Builders risk insurance Section 2:*Performance and payment bonds required under Section 15.2 (actually noted as Section 15.3)of Service Contract. *professional engineers and architects liability $2M (have $1 M on file) *Company's equipment floater insurance,covering all the Company's equipment while stored on-site during Construction Period. cc:Eric Bauman,Senior Engineer ACORD...CERTIFICATE OF LIABILITY INSURANCl;o~~{~D~OATE {)RNODlYY} 11/30/02 PRODUCER THIS CERTIFICATE IS ISSUED AS A MAnEROf INfORMATION Arthur J.Gallagher &:Company ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE License #0726293 HOLDER.THIS CERTIFICATE DOES NOTAMEND,EXTEND OR 505 N.Brand Blvd,Suite 600 ALTER THE COVERAGE AFFORDED BYTHE POUCIES BELOW. Glendale CA 91203-3944 INSURERS AFFORDING COVERAGEPhone;818-539-2300 Fax:818-539-2301 .11 •I INSUR£n INSU~RA:Granite State Insurance CO HIT XV Zurich Insurance Company , ItJSUR£RB BCO ResourCeSt Inc.INSUR£RC:Natl.union Fire Ins Co of PA f\tt )<.\Southwest Water compan~225 H.Barranca Ave.,~e.200 lNSl,)A~R0:zurich American ~nBurance Co.~\-I-X \West Covina CA 91791 I INSURER E; COVERAGES TH£POLICIES OF INSURANCE.LISTEDBELOW HAVEBEEN ISSU~DTO TH£INSUR£D NAMEDABOVE FOR THEPOLICY PERIOD INDICATED.NOlWlTHSTANDING ANY REQuIREMI;NT.TI;RUOR CONDITION OFANY CONTRACT OROTHER DOCU,..ENT WIlH I{E::Sf-IEcrro WHICH THISCE~TIF"ICATt:;MA,Y ~E lSSuE.D OR MAYP£RTAIN.THE INSURANCE AFFORDEDBYTHE POLICIESDESCR.18EO HE~EIN ISSueJEcr TOALL THE TEf;:MS,EXCLUSIONS ANOCONOITIONSor SUCH POLICIES.AGGREGATE LIMITS SHOWN MAY I>iAVE BEEN REDUCED BYPAIDCLAIMS. .~.f:1 TYPEm:INSURANCE POLICY NUMBER ~~~frMM{OOIyvi ~~~i~7,~~?N LIMITS GENERAL LIA$luTY EACHOCCURRENCE $1,00O~OOO- A X COMMEA.C1AL GEf'lERALLIASll,.lTV LX6343763-0~09/0~/O2 09/0~/03 FIREOAUA.GE (Any 0'\8 fIre)S1,OOO,OOO ./-=:J CLAIMS MADE ~OCCUR MED EXP(Anyone person)$(5,000)<If--.,r--S1,000,000XPollutionLiab.$~,OOO,OOO LIMIT PERSONAl&ADV INJURY -IJXPL-CI,AXMS lltADE $250,000 DEDUCTIBLE GE"lERAl AGGREGATE S2,00O,OOO-s2,000,OOOGEN'L AGGREGATELIUITAPPLIES P£R:PROOUCTS·COUP/OPAGGIrxlPRO-nl-OCPOLICYXJECT AllTOM081LE LIABILITY COMBINEDStNGl.l;LIMIT-S 1,000,000 B X ANYAUTO BAP92989S5-02 (AOS)09/0~/02 09/01/03 (E.aCCIdent)-ALL OWNED AUTOS TAP929S956-02 (TX)09/01/02 09/01/03 50011.Y INJURYf------$ SCHEDuLEO!-uTOS (Perpe(~Ot\) 10- X HIRED AUTOS BODILYINJURYr---SXNON-<:lWNtDAuTOS (Per3cx:i~t) f-- f----PROF'EA.l"YDAMAGE $(PeraCCident) GARAGE L1ABIUTY AlITO ONLY.(;A ACCIOI;NT $RANYAUro OTHERTHAN EAACC S AUTOONLY~AGG $ £XC£SSI..-IAAILITY EACHOCCU~NCE S10,000,00 C ~OCClJR D CLAIMS MADE 51)1399640 09/01/02 09/01/03 AGGREGATE $10,000,00 sRDEDuCTI""S RETENTION $~ WORJ<rn.s COMPENSATIONANn XIf~R~ld~~-rsI IOE1Ho ER D EMPLOYERS"LlA81L1TY WC2795955-04 09/0~/O2 09/01/03 $1~00O,000 ./c.l.EACHACCIDENT E.LDISEASE -£AEMPLOYEE S 1,000,000 E.L DISEAS~-POLICYLIMIT s1~OOO,OOO OTHER D Professiona.l EOe 3765163 02 11/08/02 11/08/03 LiJhit $1,000,00 Liability OESCklf"l'ION OF OPERATIONStl.OCATION5lVEHICLESIEXCLUSIONS ADDED BYENOORSEMENT/sPECIAl PROVISIONS Subject:to policy termB,condition3.limita.tions and exclusions. *10 nay notice of cancellation for non-payment of premium Evidence of Insurance CERTIFICATE HOLDER IN IAOOtTlONALINSURfO;INSURI:RLETTER;CANCELLATION C:ITYOFS SHOULDANYOF THEABOVEOESCRlBE:D POLICIESBECANCELLEDe(;J=O~ETHEEXPIRA DATETHEREO~,THEISSUINGINSURER WILL ENDEAVOR TOMAIL ~DAYSWRrTT City of San Juan C~pistrano NOTICE TO 'l'H£CERTIFICATEHOLDERNAMEDTO TWIO U:::'''T.Dt,lT ~""'-U~ETO 00 90 8HAttn;Cindy Russell.IMPOSE NOOBLIGATIONORLIABtLITYOF ANY KINO UPON THE tNSUR.ER.rrs AGENTS OR32400PaseoAdelanto San Juan capistr~no CA 92675 REPRESENTATIVES.-~~EtJ~JNTATIV~~~~I ACORD 2S-S (7/97)@AGORD CORPORATION 1~8 P.028185392301Rt-·t hi I,'T G.=t 11 aghF't~C:II.~-_.:..0::..---._. LIAtslLITY IN5URANCt;otrF:l~D1 UAI ~{MMllJUfVVlAC;UHU...\;I=K I .1-1l,;A I t:UI-11/30/02 PRODUCER THIS CERTIFICATE IS ISSUED AS A MATIER OF INFORMATION Arthur J.Gallagher &Company ONLYAND CONFERS NORIGHTS UPON THE CERTIFICATE License #0726293 HOLDER.THIS CERTIFICATE DOES NOT AMEND,EXTEND OR 505 N.Brand Blvd,suite 600 ALTER THE COVERAGEAFFORDED BY THE POLICIES BELOW. Glendale CA 91203-3944 INSURERSAFFORDING COVERAGEPhone:818-539-2300 Fax:818-539-2301 INSURED INSURERA:Granite State Insurance CO INSURER B:Zurich Insurance CompanyECOResources,Inc.INSURERC:Nat.l.Union Fire Ins Co of PASouthwestWatercompan~225 N.Barranca Ave.,tee 200 INSURERD:Zurich American Insurance Co.West Covina CA 91791 I INSURER E: COVERAGES THE POLICIES OF INSURANCE LISTED BELOW HAVEBEEN ISSUED TOTHE INSURED NAMEDABOVE FOR THE POLICYPERIOD INDICATED.NOTWITHSTANDING ANY REQUIREMENT.TERM OR CONDITION OFANYCONTRACTOROTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN,THE INSURANCEAFFORDEDBYTHE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,EXCLUSIONSAND CONDITIONS OFSUCH POLICIES.AGGREGATE LIMITSSHOWN MAYHAVEBEEN REDUCED BYPAlOCLAIMS. IN~R TYPEOF INSURANCE POLICYNUMBER b2~lfrM~~B~E P~k~i~~rt~~N LIMITSL R GENERAL LIABILITY EACH OCCURRENCE $1,000,000 I----A X COMMERCIAL GENERAL LIABILITY LX6343763-01 09/01/02 09/01/03 FIREDAMAGE(Anyonefire)$1,000,000I----o CLAIMSMADE [!]OCCUR MED EXP (Anyone person)$5,000I----X Pollution Liab.$1,000,000 LIMIT PERSONAL &ADV INJURY $1,000,000I---- ~PL-CLAIKS MADE $250,000 DEDUCTIBLE GENERAL AGGREGATE $2,000,000 GEN'lAGGREGATELIMITAPPLIES PER:PRODUCTS·COMP/OPAGG $2,000,000nrxlPRO·nLOCPOLICYxJECT AUTOMOBILE LIABILITY COMBINEDSINGLE LIMITI----$1,000,000B X ANY AUTO BAP9298955-02 (AOS)09/0J./02 09/01/03 (Eaaccident)---ALLOWNEDAUTOS TAP9298956-02 (TX)09/01/02 09/01/03 aODILY INJURYI----$SCHEDULEDAUTOS (Per person) e-X HIRED AUTOS aODllY INJURY-$X NON-OWNEDAUTOS (Peraccident)- f--PROPERTYDAMAGE $(Peraccident) GARAGELIABILITY AUTO ONLY -EAACCIDENT $==1 ANYAUTO OTHERTHAN EAACC $ AUTO ONLY:AGG $ EXCESS LIABILITY EACHOCCURRENCE $10,000,00 C ~OCCUR D CLAIMSMADE BE1399640 09/0J./02 09/0J./03 AGGREGATE $10,000,00 $RDEDUCTIBLE $ RETENTION $$ WORKERS COMPENSATIONAND X I~O\jR,?la~YTSI IU~~- D EMPLOYERS'LIABILITY WC2795955-04 09/01/02 09/01/03 E.l.EACHACCIDENT $1,000,000 E.L.DISEASE·EAEMPLOYEE $1,000,000 E.L.DISEASE -POLICYLIMIT $1,000,000 OTHER D Professional EOC 3765163 02 11/08/02 11/08/03 Limit $1,000,00 Liability DESCRIPTION OF OPERATIONSlLOCATIONSlVEHICLES/EXCLUSIONSADDEO BY ENDORSEMENT/SPECIAL PROVISIONS SUbject to pOlicy terms,conditions,limitations and exclusions. *10 Day notice of cancellation for non-payment of premium Evidence of Insurance CERTIFICATE HOLDER IN t ADDITIONALINSURED;INSURER LETTER:CANCELLATION C:ITYOFS SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORETHEEXPIRA DATETHEREOF,THEISSUING INSURERWILL ENDEAVOR TOMAlL ..J...Q.!..DAYS WRlTT City of San Juan Capistrano NOTICE TO THE CERTIFICATEHOLDERNAMED TO THE LEFT,BUTFAILURE TO DO SOSHAttn:Cindy Russell 32400 Paseo Adelanto IMPOSE NO OBLIGATION OR LIABILITYOF ANYKINDUPONTHE INSURER,ITS AGENTSOR San Juan Capistrano CA 92675 REPRESENTATIVES._?-'IIEu,~JjNTATrV~1IJ.tt ",AAI .I .,,--- ACORD 25-5 (7/97)©ACORD CORPORATION 198 TOTRL P.02 Dec 1 '02 22:38 P.Ol ARTHUR J.GALLAGHER &CO. INSURANCE BROKERS 505 North Brand Blvd- Suite 600 Glendale,CA 91203 Corporate License #0726293 PHONE (818)539.2300 FAX (818)539.2301 DATE: FAX#: ATTENTION: COMPANY: FROM: #OF PAGES: RE: Monday,December 02,2002 Cindy Russell City of San Juan Capistrano Susan Day x-1270 2 (including cover page) Southwest Water Company,ETAL To follow in this transmission is a certificate of insurance regarding the above insured. Hard copies will follow by regular mail with the original going to the certificate holder. Should you have any questions.please calL Thank you very much. Cc:Beatriz Reviere -Doug Hansen Southwest Water 626_915~1558 CONFIDENTIALITY NOTlGE.-The documents accompanying this lelecopy transmission contains confidential information belonging to th sender which is privileged_This information is intended only for the use of the individual or entity named above.If yOu are not th intended recipien(you are hereby notified that any disclosure,copying,distribution or taking ofany action in reliance on this telecopy prohibited Ifyou have fGceived this telecopy in error,please phone us at (818)340-3642 P.018185392301ArthurJ.Gallagher Co. ARTHUR·J ....GALl.AGHER&CO. IN$U·RANC<E BROKERS. 505 North Brand Blvd. Suite 600 Glendale,·CA91203 Corporate.Ucense#0726293 PHONE.....(818)539.2300 FAX•.(818)539.2301 DEC-02-2002 10:46 DATE: FAX#: ATTENTION: COMPANY: Monda~December02,2002 949.493.1053 Cindy Russell City of San Juan Capistrano FROM: #OF PAGES: Susan Day x-1270 2 (including cover page) RE:Southwest Water Company,ETAL To follow in this transmission is a certificate of insurance regarding the above insured. Hard copies will follow by regular mail with the original going to the certificate holder. Should you have any questions,please call. Thank you very much. Cc:Beatriz Reviere -Doug Hansen Southwest Water 626.915.1558 CONFIDENTIALITYNOTICE:The documents accompanying this telecopy transmission contains confidential information belonging to th sender which is privileged.This information is intended only for the use of the individual or entity named above.If you are not th intended recipient,you are hereby notified that any disclosure,copying,distribution or faking ofany action in reliance on this te/ecopy prohibited.Ifyou have received this telecopy in erro~please phone us at (818)340-3642 32400 PASEO ADELANTO SAN JUAN CAPISTRANO,CA 92675 (949)493-1171 (949)493-1053 (FAX) www.sanjuancapistrano.org September 12,2002 MEMBERS OF THE CITY COUNCIL DIANE L.BATHGATE COLLENE CAMPBELL JOHN S.GELFF WYATI HART DAVID M.SWERDLIN CITY MANAGER GEORGE SCARBOROUGH ECO Resources,Inc. 5820 Stoneridge Mall Road,Suite 204 Pleasanton,CA 94588 Western Regional Vice President Dear Sir or Madam: A Service Contract for the Design,Construction,Financing and Operation of the San Juan Basin Desalter Project,between the Capistrano Valley Water District and Eco Resources,Inc.was approved by the Board of Directors of the Capistrano Valley Water District at their meeting on September 3,2002. All contract terms related to Article XIV (Insurance)and Article XV (Security for Performance)must be met prior to beginning work.Original,signed Certificates of Insurance and required security for performance should be forwarded to the City Clerk. I have attached the pertinent sections of the contract for your reference. All evidence of insurance must be maintained with our office during the entire term of the agreement.To assist you in meeting this requirement,our office will forward reminder notices to you 30 days prior to expiration of certificates of insurance. If you have questions specific to the contact,please contact the project manager,Eric Bauman,Senior Engineer (949)487-4312.If you have questions regarding forms of insurance or security,please contact Dawn Schanderl,Deputy City Clerk (949)443- 6310. attached:Articles XIV and XV;Appendix 11 cc:~Bauman,Senior Engineer;Amy Amirani,Public Works Director;Dawn Vchanderl,Deputy City Clerk I:~U::JIS San Juan Capistrano:Preserving the Past to Enhance the Future ARTICLE XIV INSURANCE,UNCONTROLLABLE CIRCUMSTANCES AND INDEMNIFICATION (A)SECTION.INSURANCE.Company Insurance.At all times during the Term of this Service Contract,the Company shall obtain and maintain the Required Insurance in accordance with Appendix 11 and shall pay all premiums with respect thereto as the same become due and payable. (B)Insurers,Deductibles and District Rights.All insurance required by this Section shall be obtained and maintained from financially sound and generally recognized responsible insurance companies meeting the qualifications set forth in Appendix 11.The insurers shall be selected by the Company and authorized to write such insurance in the State.The insurance coverage may be written with deductible amounts within the limits allowed in Appendix 11,and the Company shall be responsible for any deductible amounts.The Company shall also be responsible for all self-insured retentions contained in its insurance coverages,as well as any excluded losses if such losses are within the liability of the Company hereunder.All policies evidencing such insurance shall provide for:(1)payment of the losses to the District,and to the Company as their respective interests may appear;and (2)at least 30 days prior written notice of the cancellation thereof to the Company and the District.All policies of insurance required by this Section shall be primary insurance without any right of contribution from other insurance carried by the District. (C)Certificates,Policies and Notice.The delivery by the Company to the District of certificates of insurance is required by this Service Contract as a condition to the occurrence of the Construction Date (Required Construction Period Insurance)and as a condition to the occurrence of the Acceptance Date (Required Operation Period Insurance).The Company shall also supply the District,upon request,with certified copies of such policies promptly following the filing of any claim against the District under any of the policies.Not later ~....,than 60 days prior to the beginning of each Contract Year throughout the Term,the Company shall furnish certificates of insurance to the District to confirm the continued effectiveness of the Required Insurance.Whenever a Subcontractor is utilized,the Company shall either obtain and maintain or require the Subcontractor to obtain and maintain insurance in accordance with the applicable requirements ofAppendix 11,appropriate to the Subcontractor's participation in the Service Contract or the Project. (D)Maintenance of Insurance Coverage.If the Company fails to pay any premium for Required Insurance,or if any insurer cancels any Required Insurance policy and the Company fails to obtain replacement coverage so that the Required Insurance is maintained on a continuous basis,then,at the District's election (but without any obligation to do so),the District,following 7 days notice to the Company,may pay such premium or procure similar insurance coverage from another company or companies and upon such payment by the District the amount thereof shall be immediately reimbursable to the District by the Company.The Company shall not perform Design/Build Work during any period when any policy of Required Construction Period Insurance is not in effect.The Company shall comply with all applicable Required Insurance and take all steps necessary to assure the Project remains continuously insured in accordance with the requirements of this Service Contract during the Term hereof.The failure of the Company to obtain and maintain any Required Insurance shall not relieve the Company of its liability for any losses intended to be insured thereby.Should any failure to provide continuous insurance coverage occur,the Company shall indemnify and hold harmless the District in the manner provided in Section 14.3,from and against any Loss-and-Expense arising out of such failure.The purchase of insurance to satisfy the Company's obligations under this Section shall not be a satisfaction of any Company liability under this Service Contract or in any way limit,modify or satisfy the Company's indemnity obligations hereunder. (E)SECTION.UNCONTROLLABLE CIRCUMSTANCES.Relief from Obligations.Except as expressly provided under this Section,neither party to this Service Contract shall be liable to the other for any loss,damage,delay, default or failure to perform any obligation to the extent it results from an Uncontrollable Circumstance.The parties agree that the relief for an Uncontrollable Circumstance described in this Section shall apply to all obligations in this Service Contract,except to the extent specifically provided otherwise,notwithstanding that such relief is specifically mentioned with respect to certain obligations in this Service Contract but not other obligations. The occurrence of an Uncontrollable Circumstance shall not excuse or delay the performance of a party's obligation to pay monies previously accrued and owing under this Service Contract,or to perform any obligation hereunder not affected by the occurrence of the Uncontrollable Circumstances.The District shall pay the Service Fee during the continuance of any Uncontrollable Circumstance,adjusted to account for any cost reductions achieved through Company mitigation measures required by subsection (B)of this Section,as well as for any cost increases to which the Company is entitled under subsection (C)of this Section.A Contract Administration Memorandum shall be prepared to confirm and evidence the terms and conditions of the relief given to the Company on account of any Uncontrollable Circumstances. (F)Notice and Mitigation.The party that asserts the occurrence of an Uncontrollable Circumstance shall notify the other party by telephone or facsimile,on or promptly after the date the party experiencing such Uncontrollable Circumstance first knew of the occurrence thereof,followed within 15 days by a written description of:(1)the Uncontrollable Circumstance and the cause thereof (to the extent known);and (2)the date the Uncontrollable Circumstance began,its estimated duration,the estimated time during which the performance of such party's obligations hereunder shall be delayed,or otherwise affected.As soon as practicable after the occurrence of an Uncontrollable Circumstance,the affected party shall also provide the other party with a description of:(1)the amount,if any,by which the Design/Build Price or the Service Fee is proposed to be adjusted as a result of such Uncontrollable Circumstance;(2)any areas where costs might be reduced and the approximate amount of such cost reductions;and (3)its estimated impact on the other obligations of such party under this Service Contract.The affected party shall also provide prompt written notice of the cessation of such Uncontrollable Circumstance.Whenever such act,event or condition shall occur,the party claiming to be adversely affected thereby shall,as promptly as practicable,use all reasonable efforts to eliminate the cause therefor,reduce costs and resume performance under this Service Contract.While the Uncontrollable Circumstance continues,the affected party shall give notice to the other party,before the first day of each succeeding month,updating the information previously submitted.The party claiming to be adversely affected by an Uncontrollable Circumstance shall bear the burden of proof,and shall furnish promptly any additional documents or other information relating to the Uncontrollable Circumstance reasonably requested by the other party. (G)Conditions to Performance,Design/Build Price,Service Fee and Schedule Relief.If and to the extent that Uncontrollable Circumstances interfere with,delay or increase the cost of the Company's performance of the Contract Services in accordance herewith,the Company shall be entitled to an increase in the Design/Build Price and the Service Fee,and an extension of the Scheduled Acceptance Date,all as applicable,which properly reflects the interference with performance,the amount of the increased cost,or the time lost as a result thereof,and the Company shall perform all other Contract Services.The Scheduled Acceptance Date shall be extended only to the extent that the Uncontrollable Circumstance affects the critical path of the Design/Build Work.The proceeds of any Required Insurance available to meet any such increased cost shall be applied to such purpose prior to any determination of cost increase payable by the District under this Section.In particular,the Company shall apply the proceeds of Required Insurance maintained by the Company for builder's risk to the reconstruction of the Project should an insured event under such builder's risk insurance cause property damage prior to Acceptance.To the extent there is any cost reduction achieved through the mitigating measures undertaken by the Company pursuant to subsection (B)of this Section upon the occurrence of an Uncontrollable Circumstance,the parties shall agree to the amount of the cost reduction and such cost reduction shall be reflected in a reduction of the amount by which the Design/Build Price or the Service Fee would have otherwise been increased or shall serve to reduce the Design/Build Price or the Service Fee to reflect such mitigation measures,as applicable.In the event that the Company believes it is entitled to any Design/Build Price,Service Fee or schedule relief on account of any Uncontrollable Circumstance,it shall furnish the District written notice of the specific relief requested and detailing the event giving rise to the claim within 30 days after the giving of notice delivered pursuant to subsection (B)of this Section,or if the specific relief cannot reasonably be ascertained and such event detailed,with such 30-day period,then within such longer period with which it is reasonably possible to detail the event and ascertain such relief.Within 30 days after receipt of such a timely submission from the Company the District shall issue a written determination as to the extent,if any,it concurs with the Company claim for performance,price or schedule relief,and the reasons therefor.The Company acknowledges that its failure to give timely notice pertaining to an Uncontrollable Circumstance as required under this Section may adversely affect the District. (H)Capital Modifications.Before proposing any adjustment to the Service Fee in its notice of requested relief under this Section,the Company may at its discretion,determine whether any increased costs of operation and maintenance of the Project resulting from an Uncontrollable Circumstance can reasonably and prudently be reduced by the undertaking of a Capital Modification.In the event that the Company makes such a determination,the Company shall so advise the District in accordance with Sections 11.3 and 11.5.The District and the Company shall thereupon mutually determine whether such a Capital Modification shall be undertaken.In no event shall the Company undertake such Capital Modification except at the express written direction of the District. (I)Share of Costs of Uncontrollable Circumstances.The Company shall bear the costs which result from the occurrence of an uninsured Uncontrollable Circumstance (except any Change in Law made by the District) to the extent of the first 5%of the costs necessitated by Uncontrollable Circumstances up to an aggregate of $12,500 per Contract Year,as adjusted annually by the Adjustment Factor,and an aggregate of $250,000 over the Initial Term of this Service Contract,as adjusted annually by the Adjustment Factor.Any costs occurring over future Contract Years as the result of an Uncontrollable Circumstance occurring in a prior Contract Year shall be treated as Uncontrollable Circumstance costs occurring in such future Contract Year.The Company's share of such net costs shall be paid as a lump sum within 60 days of the end of each Contract Year,unless otherwise agreed by the parties.The Company's obligation under subsection 14.1(B)to bear the expense of any deductibles applicable on claims made with respect to any Required Insurance provided by the Company hereunder is an independent obligation,but the amount of any such expense shall be credited against the Company's obligations under this subsection if the event to which the Required Insurance responded was an Uncontrollable Circumstance. (J)Acceptance of Relief Constitutes Release.Either party's acceptance of any performance,price or schedule relief under this Section shall be construed as a release of the other party for that portion of the Loss-and- Expense resulting from,or otherwise attributable to,the event giving rise to the relief claimed. 1.2 SECTION.INDEMNIFICATION BY THE COMPANY.The Company shall indemnify,defend and hold harmless the District,and its elected officials,appointed officers,employees,representatives,agents and contractors (each,a "District Indemnitee")and the Trustee and its officers, employees,representatives,agents and contractors ("Trustee Indemnitee"), from and against (and pay the full amount of)any and all Loss-and-Expense incurred by a District Indemnitee or a Trustee Indemnitee to third parties arising from or in connection with (or alleged to arise from on in connection with):(1)any failure by the Company to perform its obligations under this Service Contract;or (2)the negligence or willful misconduct of the Company or any of its officers,directors,employees,agents,representatives or Subcontractors in connection this Service Contract.The Company shall also indemnify the District as and to the extent provided elsewhere in this Service Contract.The Company's indemnity obligations hereunder shall not be limited by any coverage exclusions or other provisions in any insurance policy maintained by the Company which is intended to respond to such events.The Company shall not,however,be required to reimburse or indemnify any District Indemnitee or Trustee Indemnitee for any Loss-and-Expense to the extent caused by the negligence or willful misconduct of any District Indemnitee or Trustee Indemnitee to the extent attributable to any Uncontrollable Circumstance.A District Indemnitee or Trustee Indemnitee shall promptly notify the Company of the assertion of any claim against it for which it is entitled to be indemnified hereunder,and the Company shall have the right to assume the defense of the claim in any Legal Proceeding and to approve any settlement of the claim.These indemnification provisions are for the protection of the District Indemnitee and the Trustee Indemnitee only and shall not establish,of themselves,any liability to third parties.The provisions of this Section shall survive termination of this Service Contract. 1.3 SECTION.INDEMNIFICATION BY THE DISTRICT.The District shall indemnify,defend and hold harmless the Company,and its elected officials,appointed officers,employees,representatives,agents and contractors (each,a "Company Indemnitee"),from and against (and pay the full amount of)any and all Loss-and-Expense incurred by a Company Indemnitee to third parties arising from or in connection with (or alleged to arise from on in connection with):(1)any failure by the District to perform its obligations under this Service Contract;or (2)the negligence or willful misconduct of the District or any of its officers,directors,employees,agents, representatives or subcontractors in connection this Service Contract.The District shall also indemnify the Company as and to the extent provided elsewhere in this Service Contract.The District's indemnity obligations hereunder shall not be limited by any coverage exclusions or other provisions in any insurance policy maintained by the District which is intended to respond to such events.The District shall not,however,be required to reimburse or indemnify any Company Indemnitee for any Loss-and-Expense to the extent caused by the negligence or willful misconduct of any Company Indemnitee or to the extent attributable to any Uncontrollable Circumstance.A Company Indemnitee shall promptly notify the District of the assertion of any claim against it for which it is entitled to be indemnified hereunder,and the District shall have the right to assume the defense of the claim in any Legal Proceeding and to approve any settlement of the claim.These indemnification provisions are for the protection of the Company Indemnitee only and shall not establish,of themselves,any liability to third parties.The provisions of this Section shall survive termination of this Service Contract. ARTICLE XV SECURITY FOR PERFORMANCE 1.SECTION.GUARANTOR Service Contract Guaranty Agreement.The Company shall cause the Service Contract Guaranty Agreement to be provided and maintained by the Guarantor during the Term hereof in the form attached hereto as a Transaction Form. 2.Annual Reports.The Company shall furnish the District, within 120 days after the end of the Guarantor's fiscal year,the financial statements for the Guarantor filed with the Securities and Exchange Commission,including the audit opinion of the Guarantor's independent public accountant.The Company shall also furnish the District with copies of the quarterly financial statements of the Guarantor filed with the Securities and Exchange Commission within 60 days after the end of each quarter. 3.SECTION.BONDS.Construction Performance and Payment Bonds.On or before the Construction Date,and on or before the date of any Capital Modification (in excess of $100,000)undertaken by the ~ Company,the Company shall provide the Construction Performance Bond and the Payment Bond,each in an amount equal to the portion of the Fixed Design/Build Price relating to the construction work (plus a reasonable amount to be determined by the parties for any estimated Fixed Design/Build Price Adjustments),as financial security for the faithful performance and payment of its Construction Period obligations and Capital Modification obligations hereunder.The Construction Performance Bond and the Payment Bond shall be substantially in the form set forth in the Transaction Forms and shall be issued by a surety company:(1)approved by the District having a rating of "A"in the latest revision of the A.M.Best Company's Insurance Report;(2)be listed in the United States Treasury Department's Circular 570, "Companies Holding Certificates of Authority as Acceptable Sureties on Federal Bonds and as Acceptable Reinsurance Companies";and (3)holding a certificate of authority to transact surety business in the State issued by the Director of the Department of Insurance.The Construction Performance Bond and the Payment Bond shall remain open until Acceptance of the Project. 4.Monitoring of Sureties.The Company shall be responsible throughout the Term of this Service Contract for monitoring the financial condition of any surety company issuing bonds under this Service Contract and for making inquiries no less often than annually to confirm that each such surety company maintains at least the minimum rating level specified in this Section.In the event the rating of any issuing surety company falls below such minimum level,the Company shall promptly notify the District of such event and shall promptly furnish or arrange for the furnishing of a substitute or an additional bond of a surety company whose rating and other qualifications satisfy all above requirements,unless the District agrees to accept the surety company or agrees to an alternative method of assurance.Upon such notice by the Company of such an event,the District shall not unreasonably withhold its approval of such assurance. 5.SECTION.SERVICE CONTRACT LEITER OF CREDIT. Terms and Purpose.On or before the Bond Issuance Date,the Company shall provide further security to the District for the performance of its obligations hereunder to achieve Acceptance through an irrevocable direct pay letter of credit issued by a United States bank whose long-term debt is rated "A"or better by either Rating Service and which maintains a banking office in the State (the "Service Contract Letter of Credit").The Service Contract Letter of Credit shall be in a stated amount equal to daily accrued debt service on the Bonds for a period of 547 days,shall be for a term of one year,shall be continuously renewed,extended or replaced so that it remains in effect until 30 days after the date that the District states in writing that the District and the Independent Engineer concur with the Company's certification that Acceptance has occurred as set forth in Section 7.11,and shall be issued substantially in the form set forth in the Transaction Forms.The stated amount of the Service Contract Letter of Credit shall in no way limit the amount of damages to which the District may be entitled for any Company failure to achieve Acceptance. The Company shall have the right to reduce and replace the stated amount of the Service Contract Letter of Credit on the 6-month and 12-month anniversary dates of the Scheduled Acceptance Date by an amount equal to the sum of all daily delay liquidated damage payments,if any,which the Company has previously paid to the District pursuant to Section 7.9.The Service Contract Letter of Credit shall be surrendered by the City for cancellation by the Company on the date that the District states in writing that the District and the Independent Engineer concur with the Company's certification that Acceptance has occurred as set forth in Section 7.11. 6.Drawings for Non-Renewal or Bankruptcy.The Service Contract Letter of Credit shall authorize the District to draw the full stated amount thereof:(1)in the event that any required renewal,extension or replacement thereof is not made earlier than the date which is 30 days prior to its expiration date,or (2)upon certain events of bankruptcy or insolvency of the Company or the Guarantor described in the drawing certificate attached thereto.The proceeds of any such drawings shall be held by the District as cash collateral to secure the performance of the Contract Services and,in the event of a material breach of this Service Contract following any such drawing, may be retained by the District as payment of damages resulting therefrom. 7.Drawings to Pay Delay Liquidated Damages.The Service Contract Letter of Credit shall also authorize the District to draw an amount representing delay liquidated damages due the District under Section 7.9. 8.Effect of Final Determination of Damages.In the event that subsequent to any drawing on the Service Contract Letter of Credit it is determined by any court of competent jurisdiction in a final non-appealable decision that such drawing to any extent was not permitted hereunder,the District shall pay the amount wrongfully drawn to the Company together with interest thereon of the Overdue Rate calculated from the date of drawing to the date of payment to the Company. SECTION.COSTS OF PROVIDING SECURITY FOR PERFORMANCE.The cost and expense of obtaining and maintaining the Security Instruments required under this Article as security for the performance of the Company's obligations hereunder shall be borne by the Company without reimbursement from the District. APPENDIX 11 INSURANCE REQUIREMENTS PART 1:REQUIRED OPERATION PERIOD INSURANCE 1.Company Insurance Coverage.The Company shall obtain,pay for and maintain the insurance coverages listed below with respect to the management, operation and maintenance of the Project: (a)workers'compensation insurance required by Applicable Law v covering all of the employees of the Company; (b)employer's liability insurance with limits of $1,000,000 per accident J or employee disease; (c)comprehensive general liability and property damage insurance, including contractual liability and products completed operations coverage,with a combined single limit of liability of $1 ,000,000 per occurrence for bodily injury and for property damage,a general aggregate limit of $2,000,000 (excluding products completed operations),an aggregate limit of $2,000,000 for products completed operations,a limit of $1 ,000,000 I~njury and advertising injury, $100,000 for fire damage and a 10,000 medical expense for anyone perso ~ (d)excess liability insurance above the required commercial general pollution (on a claims made basis),commercial automobile and employer's liability insurance to result in an overall liability coverage in the amount of v' $10,000,000 per occurrence and an aggregate annual limit of $10,000,000; (e)pollution legal liability insurance with limits of $1 ,000,000 per loss v and an annual aggregate limit of $2,000,000;and (f)commercial automobile liability insurance,including owned, non-owned and leased or hired vehicles,with a $1,000,000 combined single limit v' for bodily injury and property damage,including non-owned and hired coverage. 2.Additional Insureds.The Company and Subcontractors shall include the District,the Board of Directors of the District,the City,the City Council and each of their 70. respective officers,officials,agents,volunteers and employees as additional insureds (the "Additional Insureds")on all insurance policies required pursuant to this Part 1. The District and the Company shall waive the subrogation rights of their various insurance carriers in favor of the other party. 3.Insurance Certificates.Insurance,and any renewals thereof,shall be evidenced by certificates of insurance issued or countersigned by a duly authorized representative of the issuer and delivered to the District for its review 30 days prior to the Acceptance Date or,in the case of a renewal,as reasonably provided by the insurer.The certificates of insurance shall require 30 days written notice to the District of cancellation (except with respect to cancellation for non-payment of premiums to which a 1O-day written notice shall be required),intent not to renew,or,to the extent that it would affect the District or its rights or obligations under such policy or the Service Contract,any reduction or change in its coverage by the insurance company. 4.Non-Recourse Provision.All insurance policies shall provide that the insurers shall have no recourse against the Additional Insureds for payment of any premium or assessment and shall contain a severability of interest provision in regard to mutual coverage liability policies.The coverages provided by mutual coverage liability insurance policies required pursuant to the Service Contract shall be the primary source of any restitution or other recovery for any injuries to or death of persons or loss or damage to property incurred as a result of an action or inaction of the Company or its Subcontractors,or their respective suppliers,employees,agents,representatives,or invitees,that fall within these coverages and also within the coverages of any liability insurance or self-insurance program maintained by the District. 5.Subcontractors.The Company shall be responsible for ensuring that all Subcontractors which are working on the Sites,secure and maintain all insurance coverages and other financial sureties required by Applicable Law in connection with their presence and the performance of their duties at or concerning the Project. 6.Specific Provisions for Commercial General Liability Insurance. Commercial General Liability insurance,as required under this Part 1,shall include premises-operations,blanket contractual,products and completed operations,personal and advertising injury,host liquor liability,explosion,collapse,underground hazards, broad form property damage including completed operations,and independent Companys coverages. 7.Specific Provisions for Workers'Compensation Coverage.Workers' compensation insurance shall be in accordance with the requirements of Applicable Law,as amended from time to time.The required workers'compensation insurance shall include other states'coverage. 8.Specific Provisions for Pollution Legal Liability Insurance.Pollution legal liability insurance,as required under paragraph 1(e)above,shall include coverage for off-site third party bodily injury and property damage resulting from pollution conditions emanating from covered locations,off-site clean-up costs,on-site bodily injury,property damage and pollution clean-up costs,and owner's spill liability for third party claims. 9.Qualifications of Insurers.The Company is required to obtain the insurance set forth herein with insurance companies that carry an A.M.Best Company's "A"or equivalent rating.In addition,insurance must be obtained and maintained with insurers authorized to do business in the State. 10.Cost of Insurance.If the District chooses to arrange for any of the insurance coverages outlined in this Part 1,the District may elect to obtain such insurance,provided that: (a)written notice is received by the Company at least 90 days prior to the Contract Year during which the District will assume this responsibility or 90 days prior to the expiration date of the insurance placed by the Company; (b)the District names the Company as an Additional Insured and waives its subrogation rights upon assumption of such responsibility;and (c)the District pays any cancellation penalty (or short-rate)arising out of canceling the Company provided coverage required by this Part 1,prior to its expiration date. PART 2:REQUIRED CONSTRUCTION PERIOD INSURANCE 1.Company Insurance Coverage.To the extent the Company has not obtained or does not continue to maintain such insurance coverage pursuant to paragraph 1 of Part 1 of this Appendix, the Company shall obtain,pay for and maintain the insurance coverage listed below with respect to the Design/Build Work and any Capital Modifications,without any reimbursement obligation on the part of the District: (a)workers' compensation insurance required by Applicable Law covering all of the employees of the Company; (b)employer's liability insurance with limits of $1,000,000 per accident or employee disease; (c)commercial general liability and property damage insurance,with contractual liability and products completed operations coverage,with a combined single limit of liability of $1 ,000,000 per occurrence for bodily injury and for property damage,a general aggregate limit of $2,000,000 (excluding products completed operations),an aggregate limit of $2,000,000 for products and completed operations,a limit of $1 ,000,000 for personal injury and advertising injury,$100,000 for fire damage,and a $10,000 medical expense for anyone person; (d)excess liability insurance above the required commercial general, pollution (on a claims made basis),commercial automobile and employer's liability insurance to result in an overall liability coverage in the amount of $10,000,000 per occurrence and an annual aggregate limit of $10,000,000; (e)commercial automobile liability insurance,including owned, non-owned and leased or hired vehicles,with a $1,000,000 combined single limit for bodily injury and property damage,including non-owned and hired coverage; (f)pollution legal liability insurance with limits of $1,000,000 per loss and an annual aggregate limit of $2,000,000;and ----~~(g)"builder's risk"insurance,covering loss,damage or destruction to the Project and any Capital Modifications (including boilers and machinery coverage)caused by physical damage in an amount equal to the full replacement value of the Project,with no co-insurance provision written on a completed value form. ~2.Bonds.The Company shall obtain,pay for and maintain (a)the Construction Performance Bond and the Payment Bond required under Section 15.2 of the Service Contract,(b)professional engineers and architects liability insurance in the amount of $2,000,000,and (c)Company's equipment floater insurance,covering all the Company's equipment while stored on-site during the Construction Period. 3.Additional Insureds.The Company and Subcontractors shall include the District,the Board of Directors of the District,the City,the City Council and each of their respective officers,officials,agents,volunteers and employees as additional insureds during the Construction Period (the "Additional Insureds")on all insurance policies, except the workers'compensation and employer's liability policies in this Part 2.The District and the Company shall waive the subrogation rights of their various insurance carriers in favor of the other party. 4.Insurance Certificates.Insurance,and any renewals thereof,shall be evidenced by certificates of insurance issued or countersigned by a duly authorized representative of the issuer and delivered to the District for its review prior to the Construction Date or,in the case of a renewal,as reasonably provided by the insurer. The certificates of insurance shall provide for 30 days written notice to the District of cancellation (except with respect to cancellation for non-payment of premiums to which a 1O-day written notice shall be required),intent not to renew,or,to the extent that it would affect the District or its rights or obligations under such policy or the Service Contract,any reduction or change in its coverage by the insurance company. 5.Non-Recourse Provision.All insurance policies,except the workers' compensation,employer's liability,and professional liability policies,shall provide that the insurers shall have no recourse against the Additional Insureds for payment of any premium or assessment and shall contain a severability of interest provision in regard to mutual coverage liability policies.The coverages provided by mutual coverage liability insurance policies required pursuant to the Service Contract shall be the primary source of any restitution or other recovery for any injuries to or death of persons or loss or damage to property incurred as a result of an action or inaction of the Company or its Subcontractors,of their respective suppliers,employees,agents,representatives,or invitees,that fall within these coverages and also within the coverages of any liability insurance or self-insurance program maintained by the District. 6.Subcontractors.The Company shall be responsible for ensuring that all Subcontractors of the Company working on the Sites secure and maintain all insurance coverages and other financial sureties required by Applicable Law in connection with their presence and the performance of their duties pursuant to the Service Contract. 7.Specific Provisions for Commercial General Liability Insurance. Commercial general liability insurance,as required above,shall include premises-operations,blanket contractual,products and completed operations,personal injury and advertising injury,host liquor liability,explosion,collapse,underground hazards,broad form property damage including completed operations,and independent Companys coverages. 8.Specific Provisions for Workers'Compensation Coverage.Workers' compensation insurance shall be in accordance with the requirements of Applicable Law,as amended from time to time.The required workers'compensation insurance shall include other states'statutory coverage. 9.Specific Provisions for Pollution Legal Liability Insurance.Pollution legal liability insurance,as required under paragraph 1(f)above,shall include coverage for off-site third party bodily injury and property damage resulting from pollution conditions emanating from covered locations,off-site clean-up costs,on-site bodily injury,property damage and pollution clean-up costs,and owner's spill liability for third party claims. 10.Qualifications of Insurers.The Company shall obtain the insurance set forth herein with insurance companies that carry an A.M.Best Company's "A"or better rating.In addition,insurance must be obtained or maintained with insurers authorized to do business in the State. Dawn Schanderl From: Sent: To:' Subject: copy of this FYI 9deg 9donalian,C9dC City ceef{ (949)443-6308 (949)493-1053 Fax Meg Monahan Wednesday,September 11,2002 10:57 AM Dawn Schanderl FW:Grd water recover contract City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano,CA 92675 -----Original Message----- From:Meg Monahan Sent:Wednesday,September 11,2002 10:56 AM To:Eric Bauman Cc:Cindy Russell Subject:Grd water recover contract I have the executed contracts in my office. We have not received the required insurance evidence or bonding.We normally receive those prior to issuing the executed agreement. Also,if there a notice to proceed on this project?The document is so large,that reviewing the requirements with you would save me a great deal of time,rather than try to find sections in the agreement. I assume we will be keeping one of the agreements,but I don't know who should be receiving the other three copies. Thanks 9deg 9donalian,C9dC City ceef{ (949)443-6308 (949)493-1053 Fax City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano,CA 92675 1 ~Monahan From: Sent: To: Cc: Subject: Meg Monahan Wednesday,September 11,2002 10:56 AM Eric Bauman Cindy Russell Grd water recover contract I have the executed contracts in my office. We have not received the required insurance evidence or bonding.We normally receive those prior to issuing the executed agreement. Also,if there a notice to proceed on this project?The document is so large,that reviewing the requirements with you would save me a great deal of time,rather than try to find sections in the agreement. I assume we will be keeping one of the agreements,but I don't know who should be receiving the other three copies. Thanks 9deg 9donalian,C9dC City Cfer{ (949)443-6308 (949)493-1053 Fax City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano,CA 92675 APPENDIX 11 INSURANCE REQUIREMENTS PART 1:REQUIRED OPERATION PERIOD INSURANCE 1.Company Insurance Coverage.The Company shall obtain,pay for and maintain the insurance coverages listed below with respect to the management,operation and maintenance ofthe Project: (a)workers'compensationinsurance required byApplicable Lawcovering all ofthe employees of the Company; (b)employer's liability insurance with limits of $1,000,000 per accident or employee disease; (c)comprehensivegeneralliabilityandproperty damage insurance,including contractualliabilityandproducts completedoperations coverage,with a combined single limit ofliability of$1,000,000 per occurrence for bodily injury and for property damage, a general aggregate limit of $2,000,000 (excluding products completed operations),an aggregate limit of$2,000,000 for products completed operations,a limit of$l,OOO,OOO for personal injury and advertising injury,$100,000 for fire damage and a $10,000 medical expense for anyone person; (d)excess liability insurance above the requiredcommercial generalpollution (on a claims made basis),commercial automobile and employer's liability insurance to result in an overall liability coverage in the amount of$10,000,000 per occurrence and an aggregate annual limit of$10,000,000; (e)pollutionlegalliability insurancewithlimits of$l,OOO,OOO perloss and an annual aggregate limit of $2,000,000;and (f)commercial automobile liability insurance,including owned,non-owned and leased or hired vehicles,witha $1,000,000combined singlelimit for bodily injuryand property damage,including non-owned and hired coverage. 2.AdditionalInsureds.The Company and Subcontractorsshall include the District, the Board of Directors of the District,the City,the City Council and each of their respective officers,officials,agents,volunteers and employees as additional insureds (the "Additional Insureds")on all insurance policies required pursuant to this Part 1.The District and the Company shall waive the subrogation rights oftheir various insurance carriers in favor of the other party. 3.Insurance Certificates.Insurance,and any renewals thereof,shall be evidenced by certificates ofinsurance issued or countersigned by a duly authorized representative of the issuer and delivered to the District for its review 30 days prior to the Acceptance Date or,in the case of a renewal,as reasonably provided by the insurer.The certificates of insurance shall require 30 days written notice to the District ofcancellation (except withrespect to cancellation for non-payment of premiums to which a 10-day written notice shall be required),intent not to renew,or,to the extent that it would affect the District or its rights or obligations under such policy orthe Service Contract,anyreductionorchangeinits coverage bythe insurance company. All-l 388444.10 022806 DOC <4.'Non-Recourse Provision.All insurance policies shall provide that the insurers shall have no recourse against the Additional Insureds for payment of any premium or assessment and shall contain a severability ofinterest provision in regard to mutual coverage liability policies.The coveragesprovided by mutualcoverage liabilityinsurance policiesrequired pursuant to the Service Contract shall be the primary source ofany restitution or otherrecovexy for any injuries to or death ofpersons or loss or damage to property incurred as a result ofan actionorinaction ofthe Companyorits Subcontractors,ortheir respective suppliers,employees, agents,representatives,orinvitees,thatfallwithinthese coverages and also within the coverages ofany liability insurance or self-insurance program maintained by the District. 5.Subcontractors.The Company shall be responsible for ensuring that all Subcontractorswhichare workingon the Sites,secure andmaintain allinsurance coveragesand other financial sureties required by Applicable Law in connection with their presence and the performance oftheir duties at or concerning the Project. 6.Specific Provisions for Commercial General Liability·Insurance.Commercial General Liability insurance,as required under this Part 1,shall include premises-operations, blanket contractual,products and completed operations,personal and advertising injury,host liquorliability,explosion,collapse,undergroundhazards,broad form propertydamage including completed operations,and independent Companys coverages. 7.Specific Provisions for Workers'Compensation Coverage.Workers'compensation insurance shall be in accordancewith the requirementsofApplicable Law,asamendedfrom time to time.The required workers'compensation insurance shall include other states'coverage. 8.Specific Provisions for Pollution Legal Liability Insurance.Pollution legal liability insurance,as required under paragraph l(e)above,shall include coverage for off-site third party bodily injury and property damage resulting from pollution conditions emanating from covered locations,off-site clean-up costs,on-site bodily injury,property damage and pollution clean-up costs,and owner's spill liability for third party claims. 9.Qualifications ofInsurers.The Company is required to obtain the insurance set forth herein with insurance companies that carry an A.M.Best Company's "A"or equivalent rating.In addition,insurance must be obtained and maintained with insurers authorized to do business in the State. 10.Cost of Insurance.If the District chooses to arrange for any of the insurance coverages outlined in this Part 1,the District may elect to obtain such insurance,provided that: (a)written notice is received by the Company at least 90 days prior to the Contract Year during which the District will assume this responsibility or 90 days prior to the expiration date of the insurance placed by the Company; (b)the District names the Company as an Additional Insured and waives its subrogation rights upon assumption of such responsibility;and (c)the District pays any cancellation penalty (or short-rate)arising out of canceling the Company provided coverage required by this Part 1,prior to its expiration date. AIl-2 388444.10 022806 DOC PART 2:REQUIRED CONSTRUCTION PERIOD INSURANCE 1.Company Insurance Coverage.To the extent the Company has not obtained or does not continue to maintain suchinsurance coverage pursuantto paragraph 1 ofPart 1 ofthis Appendix,the Company shall obtain,pay for and maintain the insurance coverage listed below with respect to the Design/Build Work and any Capital Modifications,without any reimbursement obligation on the part ofthe District: (a)workers'compensation insurance required byApplicable Law covering all ofthe employees ofthe Company; (b)employer's liability insurance with limits of $1,000,000 per accident or employee disease; (c)commercial general liability and property damage insurance,with contractualliability andproducts completed operations coverage,with a combined single limit of liability of $1,000,000 per occurrence for bodily injury and for property damage, a general aggregate limit of $2,000,000 (excluding products completed operations),an aggregate limitof$2,000,000 for productsand completedoperations,a limitof$l,000,000 for personal injury and advertising injury,$100,000 for fire damage,and a $10,000 medical expense for anyone person;, (d)excess liabilityinsurance above therequiredcommercialgeneral,pollution (on a claims made basis),commercial automobile and employer's liability insurance to result in an overall liability coverage in the amount of$10,000,000 per occurrence and an annual aggregate limit of$10,000,000; (e)commercial automobile liability insurance,including owned,non-owned andleased orhiredvehicles,with a$l,OOO,OOO combined single limitforbodilyinjuryand property damage,including non-owned and hired coverage; (f)pollution legal liability insurance with limits of$l ,000,000 perloss and an annual aggregate limit of$2,000,000;and (g)"builder's risk"insurance,covering loss,damage or destruction to the Project and any Capital Modifications (including boilers and machinery coverage)caused by physical damage in an amount equal to the full replacement value ofthe Project,with no co-insurance provision written on a completed value form. 2.Bonds.The Company shall obtain,pay for and maintain (a)the Construction Performance Bond and the Payment Bond required under Section 15.2 ofthe Service Contract, (b)professionalengineers and architects liability insurance in the amount of$2,000,000,and (c) Company's equipment floater insurance,covering all the Company's equipment while stored on-site during the Construction Period. 3.Additional Insureds.The Companyand Subcontractors shall include the District, the Board of Directors of the District,the City,the City Council and each of their respective officers,officials,agents,volunteers and employees as additional insureds during the Construction Period (the "Additional Insureds")on all insurance policies,except the workers' compensation and employer's liability policiesin this Part2.The Districtand the Company shall waive the subrogation rights of their various insurance carriers in favor of the other party. All-3 388444.10 022806 DOC ~4....Insurance Certificates.Insurance,and any renewals thereof,shall be evidenced by certificates ofinsurance issued or countersigned by a duly authorized representative ofthe issuer and delivered to the District for its review prior to the Construction Date or,in the case ofa renewal,as reasonably provided by the insurer.The certificates ofinsurance shall provide for 30 days written notice to the District ofcancellation (except with respect to cancellation for non-payment of premiums to which a 10-day written notice shall be required),intent not to renew,or,to the extent that it would affect the District or its rights or obligations under such policy orthe ServiceContract,anyreduction orchangeinitscoverage by the insurance company. 5.Non-Recourse Provision.Allinsurancepolicies,excepttheworkers'compensation, employer's liability,and professional liability policies,shall provide that the insurers shall have no recourse against theAdditional Insuredsfor payment ofanypremiumorassessmentand shall contain a severability of interest provision in regard to mutual coverage liability policies.The coverages provided by mutual coverage liability insurance policies required pursuant to the Service Contract shall be the primaty source ofany restitution or other recovery for any injuries to or death ofpersons or loss or damage to property incurred as a result of an action or inaction of the Company or its Subcontractors,of their respective suppliers,employees,agents, representatives,orinvitees,that fall within these coverages and also within the coverages ofany liability insurance or self-insurance program maintained by the District. 6.Subcontractors.The Company shall be responsible for ensuring that all Subcontractors of the Company working on the Sites secure and maintain all insurance coverages and other financial sureties required by Applicable Law in connection with their presence and the performance oftheir duties pursuant to the Service Contract. 7.Specific Provisions for Commercial General Liability Insurance.Commercial general liability insurance,as required above,shall include premises-operations,blanket contractual,products and completed operations,personal injury and advertising injury,host liquorliability,explosion,collapse,underground hazards,broad form property damage including completed operations,and independent Companys coverages. 8.Specific Provisions for Workers'Compensation Coverage.Workers'compensation insurance shallbe inaccordancewith the requirements ofApplicable Law,as amended from time to time.The required workers'compensation insurance shall include other states'statutory coverage. 9.Specific Provisions for Pollution Legal Liability Insurance.Pollution legal liability insurance,as required under paragraph l(f)above,shall include coverage for off-site third party bodily injury and property damage resulting from pollution conditions emanating from covered locations,off-site clean-up costs,on-site bodily injury,property damage and pollution clean-up costs,and owner's spill liability for third party claims. 10.Qualifications of Insurers.The Company shall obtain the insurance set forth herein with insurance companies that cany an A.M.Best Company's "A"or better rating.In addition,insurance must be obtained or maintained with insurers authorized to do business in the State. A11-4 388444.10 022806 DK>C AMERICAN MOTORISTS INSURANCE COMPANY NOTICE OF CANCELLATION Dated:10/25/02 Sent Via:F To :Capistrano Valley Water District 32400 Paseo Adelanto San Juan Capistrano,CA 92675 RE :BCD Resources Inc. c/o Southwest Water Company 225 N.Barranca Ave.,Ste.200 West Covina,CA 91791-1605 Bond # :3SM 989 863 00 Desc.:Bid Bond Service Bond Amount:$500,000.00 Org.Eff.Date:7/20/2001 REASON FOR CANCELLATION:Released (lfthis bond was canceledfor Non-Payment it may be Reinstated upon receipt of$3,500.00 premium +$15.00 reinstatement fee.) You are hereby notified that American Motorists Insurance Company elects to cancel the bond captioned above in its entirety,in accordance with the terms of said bond. This cancellation will take effect 0 days after the receipt of this notice. cc :ECD Resources Inc. Capistrano Valley Water District ::xlrn ("') rn-<fT1o 7470 N.FIGUEROA,P.O.Box 41375,Los ANGELES,CA 90041 •lie.#0426198.(323)257-8291 •FAX (323)256-7218 CERTIFICATE NUMBER LOS-000371113-06 PRODUCER Marsh Risk &Insurance Services 4695 MacArthur Court,Suite 700 (949)399-5800 License #0437153 Newport Beach,CA 92660 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER OTHER THAN THOSE PROVIDED IN THE POLICY.THIS CERTIFICATE DOES NOT AMEND,EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES DESCRIBED HEREIN. COMPANIES AFFORDING COVERAGE 20346-00-00- COMPANY A Zurich-American Insurance Company INSURED ARB,lnc. 26000 Commercentre Drive Lake Forest,CA 92630 COMPANY B National Union Fire Insurance Company of PA COMPANY C N/A COMPANY D THIS IS TO CERTIFY THAT POLICIES OF INSURANCE DESCRIBED HEREIN HAVE BEEN ISSUED TO THE INSURED NAMED HEREIN FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDINGANY REQUIREMENT,TERM OR CONDITION OFANY CONTRACTOR OTHER DOCUMENT WITH RESPECT TO WHICH THECERTIFICATE MAY BE ISSUED OR MAY PERTAIN,THE INSURANCE AFFORDED BYTHE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,CONDITIONS AND EXCLUSIONS OF SUCH POLICIES.AGGREGATE LIMITSSHOWN MAY HAVE BEEN REDUCED BY PAIDCLAIMS. CO TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE POLICYEXPIRATION LIMITSLTRDATE(MM/DDIYY)DATE(MM/DDIYY) GENERALLIABILITY GENERALAGGREGATE $4,000,000 A COMMERCIAL GENERAL LIABILITY GL03676089-02 02/28/04 02/28/05 PRODUCTS-COMP/OP AGG $2,000,000 CLAIMSMADE [8]OCCUR PERSONAL &ADV INJURY $1,000,000 OWNER'S&CONTRACTOR'SPROT EACHOCCURRENCE $1,000,000 FIRE DAMAGE (Anyonefire)$N/A ate $N/A COMBINEDSINGLE LIMIT $2,000,000 A X ANY AUTO BAP3676090-02 02/28/04 02/28/05 ALL OWNED AUTOS BODILY INJURY $ SCHEDULEDAUTOS (Perperson) X HIREDAUTOS BODILY INJURY $X NON-oWNED AUTOS (Peraccident) X hysical Damage PROPERTY DAMAGE $ X 1,000 Comp/Collision GARAGE LIABILITY AUTOONLY-EAACCIDENT ANY AUTO OTHER THAN AUTO ONLY: EACHACCIDENT $ AGGREGATE $ EXCESS LIABILITY EACH OCCURRENCE $$10,000,000 B X UMBRELLA FORM BE5683740 02/28/04 02/28/05 AGGREGATE $$10,000,000 OTHERTHAN UMBRELLA FORM $ WORKERS COMPENSATION AND XEMPLOYERS'LIABILITY A EWS3676088-02 (CA)02/28/04 02/28/05 A THE PROPRIETOR!INCL WC3676092-02 (AOS)02/28/04 02/28/05 EL DISEASE-POLICY LIMITPARTNERSlEXECUTIVE$20,000,000 Limit ELDISEASE-EACHEMPLOYEE $OFFICERSARE:EXCL TH DESCRIPTION OF OPERATIONS/LOCATIONSNEHICLES/SPECIALITEMS City of San Juan Capistrano is named as additional insured as theirinterest may appear.A waiver ofsubrogation applies. City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano,CA 92675 SHOULD ANY OF THE POLICIES DESCRIBED HEREIN BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE INSURER AFFORDING COVERAGE WILL ENDEAVOR TO MAIL -3.0 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED HEREIN,BUTFAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THEINSURERAFFORDING COVERAGE.ITS AGENTS OR REPRESENTATIVES,ORTHE ISSUER OF THIS CERTIFICATE. MARSH USA INC. BY:Stephen Flynn ACORD".CERTIFICATE OF LIABILITY INSURANCE OP IDTH I DATE(MMIODIYYYY) SOUTH11 12/11/03 PRODUCER THIS CERTIFICATE IS ISSUED ASA MAnER OF INFORMATION Arthur J.Gallagher &Company ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE License #0726293 HOLDER.THIS CERTIFICATE DOES NOT AMEND,EXTEND OR 505 N.Brand Blvd,Suite 600 ALTER THE COVERAGE AFFORDED BYTHE POLICIES BELOW. Glendale CA 91203-3944 Phone:818-539-2300 Fax:818-539-2301 INSURERS AFFORDING COVERAGE NAIC# INSlRED INSI~IRERA Granite State Insurance CO INSURER B Zurich Insurance Company ECO Capistrano Valley,Inc. Sputhwest Water Company INSI.tRER C MatI.Union Fire IJU CO of PI'. 32234 Paseo Adelanto,Ste.D INSLIRER 0 Zurich ~ric~Insuromce Co.San JUan Capistrano CA 92675 INSLIRER E COVERAGES THE F'OLICIES OF INSURANCELISTEDBELOWHAVEBEENISSL'EDTO THEINSUREDNAMEDABOVEFORTHEPOLICYPERIODINDCATED NOTWTHSTANDING ANY REQlllREMENT TERM OR CONDITIONOF ANY CONTRACTOROTHER DOCUMENTWlTH RESPECTTOWHICHTHIS CERTIFICATEMAYBE ISSUEDOR MAYPERT~N,THEINSURANCEAFFORDEDBY THEPOLICIESDESCRIBEDHEREINISSUBJECT TO ~L THE TERMS,EXCLUSIONS AND CONDITIONSOFSiXH F'OLICIES AGGREGATELIMITS SHOWN MAYHAVEBEENREDUCED BY PAIDQAIMS INSR ADD1. LTR NSRD TYPE 0 FINSLRANCE POLICYNlMBER POLICYEFFECTIVE DATE,MMIODIYYl POLICYEXPIRATION DATE/MMlDDIYYl LIMITS GENERALUABILITY- A X X COMMERCIALGENER~L1ABLITY=~CLAIMSMADE ~OCC'_'R X Pollution Liab.------------- X PL-CLAIMS MADE- -9:::~CEYGATE~P::;:PER n LOC LX6343763-03 $1,000,000 LIMIT $250,000 DEDUCTIBLE 09/01/03 09/01/04 EACH OCCLIRRENCE DAMAGETORENTED F'REM!:3ES(Eac,ccurence} PERSON~&AOVINJl'RY GENERAL AGGREGATE PRODUCTS-COMP/OF'AGG $1,000,000 $1,000,000 5,000 $1,000,000 $2,000,000 $2,000,000 B C D D AUTOMOBILELIABILITY ------; X ANY ALITO- ALL OWNEDALITOS- SCHEDLILED AUTOS- X HIREDAUTOS- X NON-OWNEDAUTOSf------- I---------------- GARAGEUABILITYRANYAl'TO EXCESSJUMBRELLAUABILITYEioccmD CLAIMSMADE I DEDIXTIBLEIRETENTION WORKERSCOMPENSATIONAND EMPLOYERS"UABILITY ANY FROFRIETORIFARTNERIEXECUTIVE GFFICERIMEM8EREXCLUDED? Ifyes,descnt,eunder SPECIALPR0V1S10NSt,elc,w OTHER Professional Liability BAP9298955-03 (AOS) TAP9298956-03 (TX) BE298035 WC2795955-05 EOC 3765163-03 09/01/03 09/01/03 09/01/03 09/01/03 11/08/03 09/01/04 09/01/04 09/01/04 09/01/04 11/08/04 COMBINED SINGLELIMIT (Eaa:o,j.nt)Cf)-~ eCDILY INJURY -- IF",er,,:,n)~_ ~:::...~ BODILY 'NJL'RY ?_- (Peraccl.jent)::2_...... AUT0 JNLY -EA A~~~ OTHERTHAN ALITO ONLY _ EACHCCCURRENC~ AGGRE'GATE E L EACHACCIDENT E L DSEASE-EAEMPLOYEE E L DSEASE-F'OLICY LIMIT See For Info $1,000,000 ...-...J --C5 :;0~ c:::J mrr1(')(""") r'r1 --..D -r'I <\,.I rn EAAC~$0 .r::$10,000,000 $10,000,000 1 0TH ER $1,000,000 $1,000,000 $1,000,000 Attachment DESCRIPTION OF OPERATIONSI LOCATIONSIVEHCLESfEXCLUSIONSADDEDBYENDORSEMENTI SPECIALPROVISIONS *10 DAY NOTICE OF CANCELLATION FOR NONPAYMENT OF PREMIUM.ALL POLICY TERMS, CONDITIONS,LIMITATIONS AND EXCLUSIONS APPLY. ***Description per attached NOTEPAD Addendum*** CITYOFS SHQlJ..DANYOFn£ABOVEDESCRIBEDPOLICIESBECANCELLEDBEFORETHE EXPIRATION DATEn£REOF,THEISSlING INSLRERWILLENDEAVORTOMAIL 30*DAYSWRITTEN---City of San Juan Capistrano NOTICETOTHECERTIFICATEHOLDERNAMEDTOn£LEFT,BUTFAILURETODOso SHALL Attn:Cindy Russell 32400 Paseo Adelanto IMPOSENC OBLIGATIONORLIABILITYOFANYKINDUPONTHEINSLRER,ITSAGENTSOR San Juan Capistrano CA 92675 REPRESENTATIVES, 7d?r;~ CERTIFICATE HOLDER ACORD 25 (2001/08) CANCELLATION ©ACORD CORPORATION 1988 NOTEPAD:HOLDER CODE INSURED'S NAME CITYOFS ECO Capistrano Valley,Inc. SOUTH11 OP 10TH PAGE 2 DATE 12/11/03 Professional Liability,Zurich American policy #EOC3765163 03: Architects &Engineers Professional Liability-claims made,l~t each claim $2,000,000;l~t $2,000,000 aggregate-each policy period; deduct~le $50,000 each claim.The District,the Board of Directors of the District,the City,the City Council and each of their respective officers,officials,agents,volunteers and employees shall be identified as Additional Insureds as respects General Liability as required by written contract or agreement to the extent insurable as their interest may appear for liability arising out of the operations of the Named Insured per endorsement CG 2026 (11/85)attached.The same applies to Waiver of Subrogation as respects General Liability per endorsement CG 2404 (10/93)attached.In addition:*The deduct~les under all policies do not apply to the additional insureds;*The medical expense l~t under General Liability provided without regard to legal liability.Any claim in excess of $5,000 autanatically transfer s to the "bodily injury"limit of $1,000,000;*The certificate holder named as additional insured has been endorsed to Eco Capistrano Valley,Inc.,Southwest Water Conpany's General Liability policy with Granite State;*Disregard standard form disclaimer language indicating "form informational purposes only." Michelle Perea From: Sent: To: SUbject: Chris Costello [ccostello@southwestwater.com] Thursday,December 11,2003 11 :15 AM 'Michelle Perea' FW:ECO Capistrano Valley-San Juan project '~'.'.'.'.'."...=:::'.:I!!J:.:.:.:. City San Juan CG 2404 10-93 Capistrano.pdf GL Waiver.doc CG 2026 11-8S.doc pic26816.gif pic24230.gif -----Original Message----- From:DanLTriandos@ajg.com [mailto:DanLTriandos@ajg.com] Sent:Thursday,December 11,2003 10:57 AM To:Chris Costello Cc:Tom Tekulve;Gary Hinkle;Bryan_Lorenz@ajg.com;Susan_Day@ajg.com Subject:ECO Capistrano Valley-San Juan project Dear Chris: As requested by Tom Tekulve,I reviewed the file and we did issue a renewal certificate on 8/18/2003 for the San Juan Capistrano project evidencing the renewal of several of the policies in the Southwest insurance program effective September 1,2003. However,I was unable to print and forward a copy as our system automatically changes the date,etc.In addition,the professional liability (Architects Errors &Omissions)policy with Zurich recently renewed on November 8th so I have amended and updated that information and issued a new certificate evidencing coverage. Attached please find a copy of the certificate of insurance issued to the City of San Juan Capistrano including the additional insured endorsement CG 2026 and the Waiver of Subrogation endorsement CG 2404 as required previously. (See attached file:City San Juan Capistrano.pdf)(See attached file:CG 2404 10-93 GL Waiver.doc)(See attached file:CG 2026 11-85.doc) If you should have any questions or need further assistance,please do 1 not hesitate to contact our office. Sincerely, (Embedded image moved to file:pic26816.gif) Dani Triandos Senior Account Manager Arthur J.Gallagher &Co. 505 N.Brand Blvd.,Suite 600 Glendale,CA 91203 Direct Phone (818)539-1416 Direct Fax:(818)539-1716 Email:DanLtriandos@ajg.com (Embedded image moved to file:pic24230.gif) Main Phone:(818)539-2300 Main Fax:(818)539-2301 License #0726293 ****************************************************************** This email and any files transmitted with it are intended only for the person or entity to which it is addressed and may contain confidential and/or privileged material.Any review,retransmission,dissemination or other use of,or taking of any action in reliance upon,this information by person or entities other than the intended recipient is prohibited.If you receive this in error,please contact the sender and delete the material from any computer. 2 32400 PASEO ADELANTO SAN JUAN CAPISTRANO,CA 92675 (949)493-1 171 (949)493-1053 (FAX) HJlVWsanjuancapistrano.org (2 October 10,2003 MEMBERSOFTHE CITYCOUNCIL DIANEL.BATHGATE JOHNS.GELFF WYATTHART JOESOTO DAVID M.SWERDlIN INTERIMCITYMANAGER PAMELAGIBSON I \ \ \ \ Eco Resources 225 N Barranca Avenue Ste 200 West Covina,CA 91791 RE:Compliance with Insurance Requirements -Ground Water Recovery Plant The following insurance document is due to expire: vi Professional Liability Certificate 11/8/2003 Please submit updated documentation to the City of San Juan Capistrano,attention City Clerk's office,32400 Paseo Adelanto,San Juan Capistrano,CA 92675 by the above expiration date.If you have any questions,please contact me at (949)443-6308. Sincerely, cc:Amy Amirani,Public Works Director Kathleen Springer,Management Analyst I San Juan Capistrano:Preserving the Past to Enhance the Future ·ACBRD",CERTIFICJ E OF LIABILITY INSU ~NCl;ou~~I~D~DATE (MMlDDNY) 08/18/03 PRODUCER THIS CERTIFICATE IS ISSUED AS AMATTER OF INFORMATION Arthur J.Gallagher &Company ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE License #0726293 HOLDER.THIS CERTIFICATE DOES NOT AMEND,EXTEND OR 505 N.Brand Blvd,Suite 600 ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. Glendale CA 91203-3944 INSURERS AFFORDING COVERAGEPhone:818-539-2300 Fax:818-539-2301 INSURED INSURER A:Granite State Insurance CO INSURER B:zurich Insurance Company ECO ca~istrano Valley,Inc.INSURER c:Natl.Union Fire Ins Co of PA 32234 aseo Adelantoc Ste.D INSURER D:Zurich American Insurance Co.San Juan Capistrano A 92675 I INSURER E: COVERAGES THE POLICIES OF INSURANCELISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVEFOR THE POLICYPERIOD INDICATED.NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANY CONTRACTOR OTHER DOCUMENT WITH RESPECT TO WHICHTHIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN,THE INSURANCE AFFORDED BYTHE POLICIES DESCRIBED HEREIN IS SUBJECTTO ALL THETERMS,EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAIDCLAIMS. 1~1~TYPE OFINSURANCE POLICY NUMBER b~'r~rM~~IfiW~~E Pt1k+~~{i~Dro7Yy)N LIMITS GENERAL LIABILITY EACH OCCURRENCE $1,000,000-A X COMMERCIAL GENERALLIABILITY LX6343763-03 09/01/03 09/01/04 FIREDAMAGE (Anyone fire)$1,000,000 ICLAIMS MADE ~OCCUR MED EXP(Anyoneperson)$5,000 X Pollution Liab.$1,000,000 LIMIT PERSONAL&ADV INJURY $1,000,000-X PL-CLAIMS MADE $250,000 DEDUCTIBLE GENERALAGGREGATE $2,000,000- GEN'L AGGREGATE LIMIT APPLIES PER:PRODUCTS-COMP/OP AGG $2,000,000IrxlPRO-nLOCPOLICYXJECT AUTOMOBILELIABILITY COMBINED SINGLE LIMIT-$1,000,000B X ANY AUTO BAP9298955-03 (AOS)09/01/03 09/01/04 (Ea accident) - ALLOWNEDAUTOS TAP9298956-03 (TX)09/01/03 09/01/04 BODILvCt!C1.JURY-(Perper~).-,)$ SCHEDULED AUTOS c::;)~c::;)---X HIRED AUTOS BODILY~~tTlI---=--X NON-OWNED AUTOS (Peracc,~~1"""\I----.J-. I---PROPER~D~AG~rn(Peracci \t"')a-- GARAGE LIABILITY AUTO O~::-:1:2AACOtpiNT ~RANY AUTO \"/;::::..EAACC ITtOTHERl"FI'Af'f"'AUTOO~:~AGG f-J EXCESS LIABILITY EACH O~RRENCE~$10,000,000 C ~OCCUR D CLAIMS MADE BE298035 09/01/03 09/01/04 .......-$10,000,000AGGREGATE $=1 OEDUCTIBLE $ RETENTION $$ WORKERS COMPENSATION AND X If5R~I~~Y':sl IUJ~- D EMPLOYERS'LIABILITY WC2795955-05 09/01/03 09/01/04 EL.EACH ACCIDENT $1,000,000 EL.DISEASE -EA EMPLOYEE $1,000,000 EL.DISEASE-POLICY LIMIT $1,000,000 OTHER D Professional EOC 3765163 02 11/08/02 11/08/03 Limit $2,000,000 Liability DESCRIPTION OFOPERATIONSlLOCATIONSlVEHICLESlEXCLUSIONS ADDED BY ENDORSEMENT/SPECIALPROVISIONS *10 DAY NOTICE OF CANCELLATION FOR NONPAYMENT OF PREMIUM.ALL POLICY TERMS, CONDITIONS,LIMITATIONS AND EXCLUSIONS APPLY. ***Description per attached NOTEPAD Addendum*** CERTIFICATE HOLDER IY IADDITIONALINSURED;INSURER LETTER:A CANCELLATION CITYOFS SHOULD ANY OFTHE ABOVE DESCRIBED POLICIESBE CANCELLED BEFORETHE EXPIRATION DATE THEREOF,THE ISSUING INSURER WILL ENDEAVORTO MAIL -.3..0...!.DAYS WRITTEN City of San Juan Capistrano NOTICE TOTHECERTIFICATE HOLDER NAMEDTOTHE LEFT,BUT FAILURETO DO SOSHALLAttn:Cindy Russell 32400 Paseo Adelanto IMPOSENOOBLIGATION ORLIABILITY OF ANY KIND UPON THE INSURER,ITS AGENTSOR San Juan Capistrano CA 92675 REPRESENTATIVES. A~ft1~~I ............... ACORD 25-S (7/97)©ACORD CORPORATION 1988 NOTEPAD:HOLDERCOD£CITYOFS SOUTHll INSURED'SNAI'v...ECOi¢aplstrario valley,Inc.OPJD<DE The District,the Board of Directors of the District,the City,the City Council and each of their respective officers,officials,agents, volunteers and employees shall be identified as Additional Insureds as their interests may appear as respects General Liability per endorsement CG2026 (11/85)attached.The same applies to waiver of Subrogation as respects General Liability per endorsement CG2404 (10/93)attached. *The Deductib1es under all policies do not apply to the Additional Insureds*The Medical Expense Limdt under General Liability is without regard to legal liability.Any claim in excess of $5,000 automatically transfers to the "Bodily Injuryll limit of $1,000,000*The Certificate Holder named as an Additional Insured has been endorsed to ECO Resources,Inc.ls "Southwest Water Company"General Liability policy*Disregard standard form disclaimer language indicating IIfor informational purposes only" PAGE 2 DATE 08118103 'MARSH CERTIFICATE O..NSURANCE CERTIFICATE NUMBER LOS-000343161-07 PRODUCER Marsh Risk &Insurance Services 4695 MacArthur Court,Suite 700 (949)399-5800 License #0437153 Newport Beach,CA 92660 ~20346-00-00- INSURED ARB,Inc. 26000 Commercentre Drive Lake Forest,CA 92630 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER OTHER THAN THOSE PROVIDED IN THE POLICY.THIS CERTIFICATE DOES NOT AMEND,EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES DESCRIBED HEREIN. COMPANIES AFFORDING COVERAGE COMPANY A Zurich-American Insurance Company COMPANY B National Union Fire Insurance Company of PA COMPANY C N/A COMPANY D \.Iv" THIS IS TO CERTIFY THAT POLICIES OF INSURANCE DESCRIBED HEREIN HAVE BEEN ISSUED TO THE INSURED NAMED HEREIN FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THE CERTIFICATE MAY BE ISSUED OR MAY PERTAIN,THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,CONDITIONS AND EXCLUSIONS OF SUCH POLICIES.AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. CO TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE POLICY EXPIRATION LIMITSLTRDATE(MM/DDIYY)DATE (MM/DDIYY) GENERAL LIABILITY GENERAL AGGREGATE $4,000,000-GL03676089-02 02/28/04 02/28/05AXCOMMERCIALGENERALLIABILITY PRODUCTS -COMP/OP AGG $2,000,000 ICLAIMS MADE [8]OCCUR PERSONAL &ADV INJURY $1,000,000 OWNER'S&CONTRACTOR'S PROT EACH OCCURRENCE $1,000,000- X S;1!'i0 000 <::IR FIRE DAMAGE(Anyone fire)$N/A X Per Proiect Aggregate MEDEXP (Anyone person)$N/A AUTOMOBILE LIABILITY $2,000,000-COMBINED SINGLE LIMIT A X ANY AUTO BAP3676090-02 02/28/04 02/28/05- f--ALL OWNEDAUTOS BODILY INJURY $ SCHEDULEDAUTOS (Perperson) - X HIRED AUTOS BODILY INJURY $-(Peraccident)X NON-OWNEDAUTOS- X Physical Damage PROPERTY DAMAGE $- X 1>1,000 Comp/Collision GARAGE LIABILITY AUTOONLY -EA ACCIDENT $f-- f--ANYAUTO OTHER THAN AUTO ONLY: EACH ACCIDENT $ f--- AGGREGATE $ EXCESS LIABILITY EACH OCCURRENCE $$10,000,000 B ~UMBRELLAFORM BE5683740 02/28/04 02/28/05 AGGREGATE $$10,000,000 OTHERTHAN UMBRELLA FORM $ WORKERS COMPENSATION AND I WCSTATU-I IOTH- EMPLOYERS'LiABILIlY X TORY LIMITS ER A EWS3676088-02 (CA)02/28/04 02/28/05 EL EACH ACCIDENT $1,000,000 THE PROPRIETOR!R'NCL $20,000,000 Limit EL DISEASE-POLICY LIMIT $1,000,000PARTNERS/EXECUTIVEAOFFICERSARE:EXCL WC3676092-02 (AOS)02/28/04 02/28/05 EL DISEASE-EACH EMPLOYEE $1,000,000 OTHER DESCRIPTION OF OPERATIONS/LOCATIONSNEHICLES/SPECIALITEMS Re:Job #1436-340 (San Juan Authority Desalter Project)-City of San Juan Capistrano is named as additional insured as their interest may appear.A waiver of subrogation applies. CERTIFICATE HOLDER City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano,CA 92675 ~...........'.ATION SHOULD ANY OF THE POLICIES DESCRIBED HEREIN BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE INSURER AFFORDING COVERAGE WILL E~MAIL -.3..0 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED HEREIN,fXX~Woot~~~~OO~)S)4)OOIl(OO~l.m§)OO(.~ MARSH USAINC. BY:Stephen Flynn VALID AS OF:04/23/04 POLICY NUMBER:GLO 3676089-02 COMMERCIAL GENERAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY.PLEASE READ IT CAREFULLY. ADDITIONAL INSURED -OWNERS,LESSEES OR CONTRACTORS (FORM B) This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART. SCHEDULE Narne ofPerson or Organization: City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano,CA 92675 Re:Job #1436-340 (San Juan Authority Desalter Project)-City ofSan Juan Capistrano is named as additional insured as their interest may appear. (Ifno entry appears above,information required to complete this endorsement will be shown in the Declarations as applicable to this endorsement.) WHO IS AN INSURED (Section II)is amended to include as an insured the person or organization shown in the Schedule,but only with respect to liability arising out of"your work" for that insured by or for you. CG 20 10 11 85 Copyright,Insurance Service Office,Inc., 1984 ADDITIONAL INSURED -DESIGNATED PERSONS OR ORGANIZATIONS Named Insured ARB,INC. Policy Symbol I Policy Number BAP 3676090-02 I Policy Period 2/28/04 TO 2128/05 Endorsement Number Effective Date of Endorsement 2/28/04 Issued By (Name ofInsurance Company) ZURICH AMERICAN INSURANCE COMPANY Insert the policy number.The remainderofthe information is to be completed only when this endorsement is issued subsequentto the preparation ofthe policy. THIS ENDORSEMENT CHANGES THE POLICY.PLEASE READ IT CAREFULLY. This endorsement modifies insurance provided under the following: BUSINESS AUTO POLICY TRUCKERS POLICY GARAGE POLICY Additionallnsured(s):City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano,CA 92675 RE:Re:Job #1436-340 (San Juan Authority Desalter Project)-City of San Juan Capistrano is named as additional insured as their interest may appear. A.For a covered "auto,"Who Is Insured is changed to include as an "insured,"the persons or organizations named in this endorsement.However,these persons or organizations are an "insured" only for "bodily injury"or "property damage"resulting from acts or omissions of: 1.You. 2.Any of your employees or agents. 3.Any person operating a covered "auto"with permission from You,any of your employees or agents. B.The persons or organization named in this endorsement are not liable for payment of your premium. S:lclientslarblnnlpam\2001Icertattachment\2001-auto-ai.doc WORKERS'COMPENSATION AND EMPLOYERS'LIABILITY INSURANCE POLICY WC 04 03 06 (Ed.4-84) WAIVER OF OUR RIGHT TO RECOVER FROM OTHERS ENDORSEMENT- CALIFORNIA This endorsement changes the policy to which it is attached effective on the inception date of the policy unless a different date is indicated below. (The following "attaching clause"need be completed only when this endorsement is issued subsequent to preparation of the policy.) This endorsement,effective on 2/28/04 Policy No.EWS 3676088-02 of the issued to:ARB,Inc. Premium (if any)$Included (DATE) at 12:01 A.M.standard time,forms a part of Endorsement No. Zurich American Insurance Company (NAME OF INSURANCE COMPANY) We have the right to recover our payments from anyone liable for an injury covered by this policy.We will not enforce our right against the person or organization named in the Schedule.(This agreement applies only to the extent that you perform work under a written contract that requires you to obtain this agreement from us.) You must maintain payroll records accurately segregating the remuneration of your employees while engaged in the work described in the Schedule. The additional premium for this endorsement shall be NIL %of the California workers'compensation pre- mium otherwise due on such remuneration. Schedule Person or Organization Job Description ANY PERSON OR ORGANIZATION WHERE BY WRITTEN CONTRACT AND PRIOR TO LOSS HAS REQUIRED A WAIVER OF TRANSFER OF RIGHTS. Name of Persons or Organization:- City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano,CA 92675 Re:Job #1436-340 (San Juan Authority Desalter Project)-City of San Juan Capistrano is named as additional insured as their interest may appear.A waiver ofsubrogation applies. WC 252 (4-84) WC 04 03 06 (Ed.4-84)Page 1 of 2 MARSH CERTIFICATE Of INSURANCE CERTIFICATE NUMBER LOS-000371113-08 PRODUCER Marsh Risk &Insurance Services 4695 MacArthur Court,Suite 700 (949)399-5800 License #0437153 Newport Beach,CA 92660 ~20346-00-00- INSURED ARB,Inc. 26000 Commercentre Drive Lake Forest,CA 92630 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER OTHER THAN THOSE PROVIDED IN THE POLICY.THIS CERTIFICATE DOES NOT AMEND,EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES DESCRIBED HEREIN. COMPANIES AFFORDING COVERAGE COMPANY A Zurich-American Insurance Company COMPANY B National Union Fire Insurance Company of PA COMPANY C N/A COMPANY o ""i ,""...........- THIS IS TO CERTIFY THAT POLICIES OF INSURANCE DESCRIBED HEREIN HAVE BEEN ISSUED TO THE INSURED NAMED HEREIN FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THE CERTIFICATE MAY BE ISSUEDOR MAY PERTAIN,THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,CONDITIONS AND EXCLUSIONS OF SUCH POLICIES.AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. CO TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE POLICY EXPIRATION LIMITSLTRDATE(MMIDDIYY)DATE (MM/DDIYY) GENERAL LIABILITY GENERAL AGGREGATE $4,000,000 f---GL03676089-02 02/28/04AXCOMMERCIALGENERALLIABILITY 02/28/05 PRODUCTS -COMP/OP AGG $2,000,000 f---n CLAIMS MADE [8]OCCUR PERSONAL &ADV INJURY $1,000,000 OWNER'S &CONTRACTOR'S PROT EACH OCCURRENCE $1,000,000 f--- X 1!l;1s0 000 SIR FIRE DAMAGE (Anyonefire)$N/A X Per Proiect AQQreQate MED EXP(Anyoneperson)$N/A AUTOMOBILE LIABILITY $2,000,000f---COMBINEDSINGLE LIMIT A X ANY AUTO BAP3676090-02 02/28/04 02/28/05f--- '---ALL OWNED AUTOS BODILY INJURY $ SCHEDULEDAUTOS (Per person) f---X HIRED AUTOS BODILY INJURY $f---(Per accident)X NON-OWNED AUTOSf---X Physical Damage PROPERTY DAMAGE $I--- X III1,000 Comp/Collision GARAGE LIABILITY AUTO ONLY -EAACCIDENT $- -ANY AUTO OTHERTHAN AUTO ONLY: EACH ACCIDENT $~ AGGREGATE $ EXCESS LIABILITY EACH OCCURRENCE $$10,000,000 B ~UMBRELLA FORM BE5683740 02/28/04 02/28/05 AGGREGATE $$10,000,000 OTHERTHAN UMBRELLA FORM $ WORKERS COMPENSATION AND I WCSTATU-I 10TH- EMPLOYERS'LIABILITY X TORYLIMITS ER A EWS3676088-02 (CA)02/28/04 02/28/05 EL EACH ACCIDENT $1,000,000 THE PROPRIETOR! R'NCL $20,000,000 Limit EL DISEASE-POLICY LIMIT $1,000,000PARTNERS/EXECUTIVEAOFFICERSARE:EXCL WC3676092-02 (AOS)02/28/04 02/28/05 EL DISEASE-EACH EMPLOYEE $1,000,000 OTHER DESCRIPTION OF OPERATIONS/LOCATIONSNEHICLES/SPECIAL ITEMS City of San Juan Capistrano is named as additional insured as their interest may appear.A waiver of subrogation applies. CERTIFICATE HOLDER City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano,CA 92675 I'AtdI'CII.t\TION SHOULD ANY OF THE POLICIES DESCRIBED HEREIN BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE INSURER AFFORDING COVERAGE WILL ENDEAVOR TO MAIL ---3.0 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED HEREIN,BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANYKIND UPON THE INSURERAFFORDING COVERAGE.ITS AGENTS ORREPRESENTATIVES,OR THE ISSUEROFTHIS CERTIFICATE. MARSH USA INC. BY:Stephen Flynn MM1(3/02)VALID AS OF:04/23/04 POLICY NUMBER:GLO 3676089-02 COMMERCIAL GENERAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY.PLEASE READ IT CAREFULLY. ADDITIONAL INSURED -OWNERS,LESSEES OR CONTRACTORS (FORM B) This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART. SCHEDULE Name ofPerson or Organization: City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano,CA 92675 City of San Juan Capistrano is named as additional insured as their interest may appear. (Ifno entry appears above,information required to complete this endorsement will be shown in the Declarations as applicable to this endorsement.) WHO IS AN INSURED (Section II)is amended to include as an insured the person or organization shown in the Schedule,but only with respect to liability arising out of"your work" for that insured by or for you. CG 20 10 11 85 Copyright,Insurance Service Office,Inc.,1984 ADDITIONAL INSURED -DESIGNATED PERSONS OR ORGANIZATIONS Issued By (Name of Insurance Company) ZURICH AMERICAN INSURANCE COMPANY Named Insured ARB,INC. Policy Symbol I Policy Number BAP 3676090-02 I Policy Period 2/28/04 TO 2/28/05 Endorsement Number Effective Date of Endorsement 2/28/04 Insert the policynumber.The remainder ofthe information is to be completed only when this endorsement is issued subsequent to the preparation of the policy. THIS ENDORSEMENT CHANGES THE POLICY.PLEASE READ IT CAREFULLY. This endorsement modifies insurance provided under the following: BUSINESS AUTO POLICY TRUCKERS POLICY GARAGE POLICY Additionallnsured(s):City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano,CA 92675 RE:City of San Juan Capistrano is named as additional insured as their interest may appear. A.For a covered "auto,"Who Is Insured is changed to include as an "insured,"the persons or organizations named in this endorsement.However,these persons or organizations are an "insured" only for "bodily injury"or "property damage"resulting from acts or omissions of: 1.You. 2.Any ofyour employees or agents. 3.Any person operating a covered "auto"with permission from You,any of your employees or agents. B.The persons or organization named in this endorsement are not liable for payment of your premium. S:lclientslarblnnlpam\2001Icertattachment\2001-auto-ai.doc WORKERS'COMPENSATION AND EMPLOYERS'LIABILITY INSURANCE POLICY WC 04 03 06 (Ed.4-84) WAIVER OF OUR RIGHT TO RECOVER FROM OTHERS ENDORSEMENT- CALIFORNIA This endorsement changes the policy to which it is attached effective on the inception date of the policy unless a different date is indicated below. (The following "attaching clause"need be completed only when this endorsement is issued subsequent to preparation of the policy.) This endorsement,effective on 2/28/04 Policy No.EWS 3676088-02 of the issued to:ARB,Inc. Premium (if any)$Included (DATE) at 12:01 A.M.standard time,forms a part of Endorsement No. Zurich American Insurance Company (NAME OF INSURANCE COMPANY) We have the right to recover our payments from anyone liable for an injury covered by this policy.We will not enforce our right against the person or organization named in the Schedule.(This agreement applies only to the extent that you perform work under a written contract that requires you to obtain this agreement from us.) You must maintain payroll records accurately segregating the remuneration of your employees while engaged in the work described in the Schedule. The additional premium for this endorsement shall be NIL %of the California workers'compensation pre- mium otherwise due on such remuneration. Schedule Person or Organization Job Description ANY PERSON OR ORGANIZATION WHERE BY WRITTEN CONTRACT AND PRIOR TO LOSS HAS REQUIRED A WAIVER OF TRANSFER OF RIGHTS. Name ofPersons or Organization:- City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano,CA 92675 City of San Juan Capistrano is named as additional insured as their interest may appear.A waiver of subrogation applies. WC 252 (4-84) WC 04 03 06 (Ed.4-84)Page 1 of 2 Client#·2..5 cRMAWEI ACORDTM CERTIFICATE OF LIABILITY INSURANCE I DATE (MM/DDlYYYY) 04/21/04 PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION USI.uf Southern California ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE Lic#0351162 ***818 971-5422(Suzan)HOLDER.THIS CERTIFICATE DOES NOT AMEND,EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. PO Box 9004,Van Nuys,CA 91409 *10 days notice non-pay INSURERS AFFORDING COVERAGE NAIC# INSURED INSURER A:American Int'l Spec Lines Herman Weissker,Inc.INSURER B:National Union Fire 2631 S.Riverside Avenue INSURER C:American Home Assurance Bloomington,CA 92316 INSURER D:Zurich/American Ins Group INSURER E:Arch Spec.Ins.Co. COVERAGES THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED.NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANY CONTRACTOR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN,THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. IrTS:IADD'L TYPE OF INSURANCE POLICYNUMBER PJ'A~~~ri~f~g,~~)E Pg~fJ(~~~~~~N LIMITSNSR[ A GENERAL LIABILITY GL9332880 10/11/03 10/11/04 EACH OCCURRENCE $1.000.000I--~~~j~~J9F~ENTED~COMMERCIAL GENERAL LIABILITY $50000 I--=:J CLAIMS MADE Q OCCUR MED EXP (Anyone person)$5.000 r-!-BFPOIXCU PERSONAL &ADV INJURY $1.000.000 r-!-Contractual GENERAL AGGREGATE $2.000,000 GEN'L AGGREGATE LIMIT APPLIES PER:PRODUCTS·COMP/OP AGG $2,000,000n~PRO-nLOCPOLICYxJECT B AUTOMOBILE LIABILITY CA8261523 10/11/03 10/11/04 COMBINED SINGLE LIMITI-$1,000,000XANYAUTO(Ea accident) I-- X ALL OWNED AUTOS BODILY INJURYI-$X SCHEDULED AUTOS (Per person) l- X HIRED AUTOS BODILYINJURYI--$X NON-OWNED AUTOS (Per accident) I-- X Comp $1000 PROPERTY DAMAGEI--$X Coli $1000 (Per accident) GARAGE LIABILITY AUTO ONLY·EA ACCIDENT $RANYAUTO OTHER THAN EAACC $ AUTO ONLY:AGG $ E EXCESs/UMBRELLA LIABILITY 72ULP1270001 10/11/03 10/11/04 EACH OCCURRENCE $10.000000mOCCURDCLAIMSMADEAGGREGATE$10,000,000 $Fx1 OEOUCTIBLE $ X RETENTION $$10,000 $ C WORKERSCOMPENSATION AND WC6435957 10111/03 10/11/04 X IT~gvs;r~~~I IOJ~- EMPLOYERS'LIABILITY $1 000000ANYPROPRIETOR/PARTNER/EXECUTIVE E.L.EACH ACCIDENT OFFICER/MEMBER EXCLUDED?E.L.DISEASE -EA EMPLOYEE $1 000000Ifyes,describe under $1,000,000SPECIALPROVISIONSbelowE.L.DISEASE -POLICY LIMIT 0 OTHER Equipment MCP455064201 10/11/03 10/11/04 $500,000/$10,000 Oed Leased/Rented DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES I EXCLUSIONS ADDED BY ENDORSEMENTI SPECIAL PROVISIONS Re:All Operations Certificate Holder and ECO Capistrano Valley,Inc.are named as additional insureds per primary endorsement CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORETHE EXPIRATION City of San Juan Capistrano DATE THEREOF,THE ISSUING INSURER WILL~JUlX.MAIL ~DAYSWRITTEN 32400 Paseo Adelanto NOTICE TO THECERTIFICATE HOLDER NAMEDTOTHE LEFT,nXX401~_)( San Juan Capistrano,CA 92675 ~ln••XlJI)OJID.IK.JlXIUlItJlXUUxxeu.Mxn.OI'fKD)lJlIJD6)Q8(XX JlItIJfD~XX AUTHORIZED REPRESENTATI~~A57rz~c/ ACORD 25 (2001/08)1 of 2 #M202605 KLN ~ @ AC o CORPORATION 1988 IMPORTANT If the certificate holder is an ADDITIONAL INSURED,the policy(ies)must be endorsed.A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). If SUBROGATION IS WAIVED,subject to the terms and conditions of the policy,certain policies may require an endorsement.A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement{s). DISCLAIMER The Certificate of Insurance on the reverse side of this form does not constitute a contract between the issuing insurer(s),authorized representative or producer,and the certificate holder,nor does it affirmatively or negatively amend,extend or alter the coverage afforded by the policies listed thereon. ACORD 25-5 (2001/08)2 of 2 #M202605 , POLICY NUMBER:GL9332880 COMMERCIAL GENERAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY,PLEASE READ IT CAREFULLY. ADDITIONAL INSURED -OWNERS,LESSEES OR CONTRACTORS (FORM B) This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART. SCHEDULE Name ofPerson or Organization: City ofSan Juan Capistrano and ECO Capistrano Valley,Inc. Re:All Operations (If no entry appears above information required to complete this endorsement will be shown in the Declarations as applicable to this endorsement.) WHO IS AN INSURED (Section II)is amended to include as an insured the person or organization shown in the Schedule,but only with respect to liability arising out of "your work"for that insured by or for you. PRIMARY CLAUSE ENDORSEMENT: It is further agreed that such insurance as is afforded by this policy for the benefit of the Additional Insured shown shall be primary insurance,but only as respects to any claim,loss or liability arising out of the operations of the Named Insured and any other insurance maintained by said Additional Insured shall be non-contributing. CG 20 10 11 85 Copyright Insurance Services Office,Inc.1984 ~ACCORDANCE WITH SECTIONS 3097 AND 30£ .ALlFORNIA CIVIL CODE THIS IS NOT A L1EN.THI::> ~NOT A REFLECTION ON THE INTEGRITY OF ANY 8NTRACTOR OR SUBCONTRACTOR. au ARE HEREBY NOTIFIED THAT... • RECEI\/ED 200~JUN 22 A II:I I NAME AND ADDRESS OF PERSON OR FIRM FURNISHING] LABOR,SERVICES,EQUIP OR MATERIALS .' has furnished or will furnish labor,services,equipment or materials ofthe following description: r("·;~·rth .:';'.}t t c Cone:v'(.:-'1:.('Y'/("C}ql'"E'q/:\tp r;:nck/I.,·:"lhor·/ -\.[quo i p m(~)n t./··L·;\ck····(:o;:d:~~ m p~·~tt··nm~'~~t. ePN PREPARED BY:SH()f;,~nN F~t-(Y 01...../17/2004SIGNATURE:_ TO: LE~~~I~~p~~:;;PRELlMINARYN~~i~bd~i~~~5J~i\li~~8TED) 1\~Oj\!r-:F~FPOh~'1 En Fen F~FSUUF~CFS J NC/I::"CCt C:(.)P ::.::2::?:;;4 Pf~i~:W::O r\PF:'.,.('~NTn STF (/?<,~.'7!5 SAN ;nJAN Cf~PI~';l CA 9:?c·)/~.;.;.i OWNER (REPUTED)OR PUBLIC AGENCY SUBCONTRACTOR WITH WHOM CLAIMANT CONTRACTED CAF-'l STj:;'~ANCI V(.')L,I.FY w{-~1['I:':' .'.:;'.:.~4()O f'(:inFO ADFL.('~Nro E;(.',f\1.\HJAf'\·1 C{-~tP 1~:n'CA (,;;o:?(~.'.?t=:.i for building,structure or other work ofimprovement located at: Name of person or firm who contracted for purchase of such labor,services,equipmentor materials is: ~T I:::Tj'·.WiOI\!Cjl:;:(.~Dj\.!(i ~(FCH.llP t;~ (~~:;92 Of;:J ON ··tJ.JN r ],N(jTOi'·J,BFCf{1'2(,4(,Y' An estimate of the total price ofthe labor,services,equipment or material is $ b?lN \JU(,N,/DF~::;()I..rEf:':pr~O\T ,.::;::.:}L,~70 P(.~lbFCI ADFI..f-'I"!TCI ~:,AN \JU(.-\N Ij)PIST J"C~Nn N 236568T'r·,r."lc t No..CH';':;HO l. rSC ~r -, ~. CALIFORNIA PRELIMINARY NOTICE In accordance with section 3097 and 3098,California Civil Code This is NOT a lieR this is NOT a reflectiononthe integrity ofany contractoror subcontractor San Juan Basin Auth Desalter Project 32470 Paseo Adelanto CONSTRUCTION LENDER or Reputed Com,truction Lender,ifany OWNER ORPUBLIC AGENCY (Reputed Owner on private work or Public Agency on Public Work) Capistrano Valley Water District 32400 Paseo Adelanto San Juan Capistrano,CA 92675 ORIGINAL CONTRACTOR (Reputed Contractor,ifany) ECO Resources Inc. 32234 Paseo Adelanto,Suite D San Juan Capistrano,CA 92675 SUBCONTRACTOR (with whom claimant has contracted) YOU ARE HEREBY NOTIFIED THAT", Atkinson Grading &Equipment Rental,Inc. (name ofperson or fmn furnishing labor,services,equipment or material) 4592 Orion St.Huntington Beach,Ca.92649 (address ofperson or fmn furnishing labor,services,equipment or material) has furnished or will furnish labor,services,equipment or materials ofthe following general description: Asphalt Grading &Paving for the building,structure or other work ofimprovement located at: San Juan Basin Auth Desalter Project The name ofthe person or fIrm who contracted for the purchase of such labor,services,equipment or material is: Eco Resources Inc.~~-?'I Z s::"...., An estimate ofthe total pric~~..ee la~servill,equipment or materials furnished ortobe ~ed~(') _?',m 0c...0 -...J>f....> NOTICE TO PROPERTY OWNER Ifbills are not paid in full for the labor,services,equipment or materials furnished or to be furnished,a mechanic's lien leading to the loss,through court foreclosure proceedings,ofall or part ofyour property being so improved may be placed against the property even though you have paid your contractor in full.You may wish to protect younelfagainst this consequence by (1) requiring your contractor to furnish a signed release by the person or firm giving you this notice before making payment to your contractor or (2)any other method or device that is appropriate underthe circumstances. Dated: 7/6/04 Signed:rm~Off.Manager () (1-/0;oY '0 CALIFORNIA PRELIMINARY 20-DAY NOTICE (Public and Private Works) This is not a lien.This is not a reflection on the integrity ofany contractororsubcontractor, but the noticeprescribed in accordance with Section 3097 and 3098,California Civil Code RECEI\/ED Owner or Reputed Owner (on private work) 1.The following is a general description of the labor,service,equipment or lOO~JUN IImcfIS"ia!3:fu!rifhed or to be furnished by the undersigned: ,~.\i ••lA6,O.R AND MATERIALSCiI;L,L.Ll\,\ PUBLIC AGENCY SAN J LJ Atl CI~?/&ij~Vml@ of the total price ofthe labor,services,equipment or (on public work)materials furnished or to be furnished is: CAPISTRANIO VALLEY WATER DISTRICT 3,000.00 Estimated 32400 PASEO ADELANTO SAN JUAN CAPISTRANO,CA 92675 7004-0550-0001-5556-0232 ****LENDER /SURETY **** NONE REPORTED ****GENERAL CONTRACTOR **** ECO RESOURCES,INC/ECO CAPISTRANO VALLEY 32234 PASEO ADELANTO,SUITE D SAN JUAN CAPISTRANO,CA 92675 ****CUSTOMER **** ATKINSON GRADING &EQUIP RENT 4592 ORION STREET HUNTINGTON BEACH,CA 92649 3.The name ofthe person or firm that has furnished or will furnish labor, services,equipment or materials is: PAVEMENT RECYCLING SYSTEMS P.O.Box 1266 Riverside,CA 92502-1266 PRS JOB NO R406694 4.The name ofthe person or firm who contracted for the purchase of such labor,services,equipment or materials: ATKINSON GRADING &EQUIP RENT 4592 ORION STREET HUNTINGTON BEACH,CA 92649 5.The description of the building,structure or other work ofimprovment is: SAN JUAN BASIN AUTHORITY DESALTER PROJECT 32470 PASEO ADELANTO SAN JUAN CAPISTRANO,CA 92675 The Person orfirm giving this notice is required,pursuant to a collective bargaining agreement,to pay supplemental fringe benefits to an express trust fund (described in Civil Code 3111).Said funds are identified as follows: Operating Engineers Local #12,Construction Laborer's Trust,Laborer's Benefit Fund NOTICE TO PROPERTY OWNER If bills are not paid in full for the labor,services,equipment or materials furnished or to be furnished,a mechanic's lien leading to the loss,through court foreclosure proceedings,of all or part ofthe property being so improved may be placed against the property even though you have paid the contractor in full.You may wish to protect yourself against this consequence by (1)requiring your contractor to furnish a signed release by the person or firm giving you this notice before payment to your contractor or (2)any other method or device that is appropriate underthe circumstances.Other than residential homeowners of dwellings containing fewer than five units,private project owners must notify the original contractor and any lien claimant who has provided the owner with a preliminiary 20-day lien notice in accordance with Section 3097 of the Civil Code that a notice of completion or notice ofcessation has been recorded within 10 days of its recordation.Notice shall be by registered mail,certified mail,or first class mail,evidenced by a certificate of mailing.Failure to notify will extend the deadlines to record a lien. PAVEMENT RECYCLING SYSTEMS 6/8/2004 Lori Davis (909)682-1091 ext.220 Preliminary Notice Clerk PROOF OF SERVICE MY MAIL AFFIDAVIT I declare that I served a copy of the above document,and any related documents,by (as required by law)first-class,certified or registered mail, postage prepaid,addressed to the above parties,at the addresses listed above.I declare under penalty of perjury that the foregoing is true and correct.Executed at Riverside,CA. x Il ,',Lori Davis (909)682-1091 ext.220nMOQ~Ira ~qIJbi{eliminary Notice Clerk 6/8/2004 "RELIMINARY 20-DAY NOTICE (PUBLIC WORIe' Calt._.nia Civil Code Sections 3098, 3111,3241 &325~(Seq. THIS IS NOT A LIEN.THIS IS NOT A REFLECTION ON THE INTEGRITY OF ANY CONTRACTOR OR SUBCONTRACTOR TO:OWNER OR REPUTED OWNER CAPISTRANO VALLEY WATER DIST. 32400 PASEO ADELANTO San Juan Capistrano,CA 92675 1.The following is a general description of the labor,service,equipment or materials furnished or to be fl.!rnished by the undersigned: labor .-~m ::0m (") m TO:ORIGINAL CONTRACTOR OR REPUTED CONTRACTOR ECO RESOURCES 32234 PASEO ADELANTO,STE D San Juan Capistrano,CA 92675 2.Estimated Price:$8,500.00 3.The name of the person who furnished that labor,service, equipment or materials is: Penhall Company 1801 Penhal!Way Anaheirr ~"~A 92801 4.The :Iamfl of the pp.rson who contracted for purchase of that labor,service,equi~ment or material is: ARB CONST",tICTION ~ 26000 COMMERCENTRE DR :z: LAKE FOREST,CA -9263 ~c-::~ ••H •••::t>=r-5.The descr;pt!or.~.~he jobslte IS:-N 32470 P~SE9 AgEI.~NTO _~;.:;~0 &VARIOUS WELL ,.,IPl:LlNE LOCATleH;-, San Juan Capistrano,CA -APN #:1435340~.»~- VERIFICATION ~<:;?0 I declare that I am authorized to file this PRELIMINARY 20-DAY NOTICE (PUBLIC WORK)on behalf of t~claim~I have read the foreg ng document and know the contents thereof;the same is true of my own knowledge.I declare unCler penalty of perjury .nde the laws of the State of California that the foregoing is true and correct.Executed at Anaheim,California on 07/15/0 f r ENHALL COMPANY. TO:LENDER,SURETY OR BONDING COMPANY LIBERTY MUTUAL IINSURANCE CO. 505 S.MAIN ST.,STE 830 ORANGE,CA 92868 AcctlBond#24015060 ~;;5.£------':=-------Phone:(714)772-6450 Fax:(714)778-6787 Desiree Wall,Credit Admin PROOF OF SERVICE BY MAIL AFFIDAVIT I,Desiree Wall d lare that I served copies of the above PRELIMINARY 20-DAY NOTICE (PUBLIC WORK)By F=irst Class Certified Retur Re eipt Requested or Registered Mail service,postage prepaid,addressed to each of the parties at the addresses sh n a ove on 07/15/2004.I declare under penalty of perjury under the laws of the State of California that the foregoing is ue correct By:Desiree Wall Title :_ EXejJted at Anaheim,California on 07/15/2004. NOTICE TO PRIME OR GENERAL CONTRACTOR THIS IS NOT A LIEN.THIS IS NOT A REFLECTION ON THE INTEGRITY OF ANY CONTRACTOR OR SUBCONTRACTOR.the undersigned has entered into a contract to perform labor or furnish materials for the above-described public project,and will look to you and your sureties for payment if the person ordering such materials and labor fails to pay for them. 7100 6309 2640 3183 3176 CAl:.Jl:~LA~RELIMINARYNOTICE In accordance with sections 3097 and 3098,California Civil Code THIS IS NOT A LIEN.This is NOT a reflection on the integrity of any contractor or subcontractor. ,'.......'.~ You are hereby I)otified that RE'C t:rt ,,'>,c I)"'i:'"i.,i '.,,;,'j has furnished or will fur¥SfjicL!r,service,equipment or material of the following general description:',',,',,"",",",l'nm.MAy ',-',',""',',',for building structure,or other work of improvementlocatedat(.,,I i',~,',•.uu..rt R''/1 A'tj:', The n9meof Jh~pef§.9nQr ,finll vyhp cqntracted for the Rl,Jfchase of such lab~Pservices,equipment or material furnished is 'i--,,;I..->'!l·J,>,t,?",!.t ,:\.1 -',I "~j:)'LI I Y(,-SAN JUi~f)~'/-:-U!( An ~,s~i m~t~9fl'!Dr,.;~tal friRerP.~c~~.he,il~?o~,.t,~ryices,equlptn~C~trr1jiS(f~'\i~J0 NOTICE TO PROPERTY OWNER If bills are not paid in full for the labor,services,equipment,or materials furnished or tobefurnished,amechanic's lien leading tothe loss,through court foreclosure proceedings. of all or part of your propertybeing so improved may be placed against the property even though you have paid your contractor in full.You may wish to protect yourself againstthisconsequenceby(1)requiring your contractor tofurnish asigned release by theperson or firm giving you this notice belore making payment to your contractor,or (2)any other method or device that is appr~riate under the circumstances.Other than residentialhomeownersofdwellingscontainingfewerthanfiveunits,private project owners must notify the original contractor and any lien claimant who has provided the owner with a preliminary 2Q-day lien notice in accordance with Section 3097 of the Civil Code that a notice of completion or notice of cessation has been rec.ouIElc1 within ,10 days o.li~ recordation.Notice shall be by'registered mail,certified mail,'Or'fitSf-class mea,evidlWttul by a certificate of mailing.Failure to notify will extend the deadlines to record a lien. :'-.......-..._. CAL 'ORNIA PRELIMINARY N riCE 03227 IN ACCORDANCE WITH SECTION 3097 AND 3098,CALIFORNIA CIVIL CODE THIS IS NOT A LIEN,THIS IS NOT A REFLECTION ON THE INTEGRITY OF ANY CONTRACTOR OR SUBCONTRACTOR YOU ARE HEREBY NOTIFIED THAT ... L E N D E R RECEIVED CONSTRUCTION LENDER or Repute~oo~nHA'ftip~Le~ergtt!b L DAMON CONST.CO.(JOB #950) (name of person or firm furnishing labor,services,equipment or material) 8851 WATSON STREET (address of person or firm furnishing labor,services, CYPRESS,CA 90630-2243 equipment or material) has furnished or will furnish labor,services,equipment or materials of the following general description: CONCRETE AND APPURTENANT ITEMS (general description of the labor,services,equipment or CONTINUOUS SERVICE AGREEMENT material furnished or to be furnished) for the building,structure or other work of improvement CAPISTRANO VALLEY WATER DISTRICT 32400 PASEO ADELANTO SAN JUAN CAPISTRANO,CA 92675 s c o p y OWNER or or Reputed Owner (on private work) PUBLIC AGENCY (on public work) located at:32470 PASEO ADELANTO (address or description of job site SAN JUAN CAPISTRANO,CA 92675 sufficient for identification) CONSTRUCTION OF DESALTER PROJECT The name of the person or firm who contracted for the purchase of such labor,services,equipment or material is: ARB,INC. JOB #1436340 An estimate of the total price of the labor,services equipment or materials furnished or to be furnished is: $UNIT PRICE:APPROX.$50,000.00 Attention:Subcontractors Section 3097 requires that if you give this notice and you have failed to pay all compensation dueto your laborers on the job,this notice shall also contain theidentityandaddressofanylaborerandanyexpresstrustfundtowhomemployerpaymentsaredue. NOTICE TO PROPERTY OWNER If bills are not paid in full for the labor,services,equip- ment,or materials furnished or to be furnished,a mechanic's lien leading to the loss,through court foreclosure proceedings,of all or part of your property being so improved may be placed against the property even though you have paid your contractor in full.You may wish to protect yourself against this consequence by (1)requiring your contractor to furnish asigned release by the person or firm giving you this notice before making payment to your contractor or (2)any other method or devicethat is appropriate under the circumstances.Other than residential homeowners of dwellings containing fewer than five units,private project owners must notify the original contractor and any lien claimant who has provided the owner with apreliminary 20-day lien notice in accordance with Section 3097 of the Civil Code that a notice of completion or notice of cessation has been recorded within 10days of its recordation.Notice shall be by registered mail,certified mail,or first-class mail, evidenced by acertificate of mailing.Failure to notifywill extend the deadlines to record alien. Dated:S-\~-o~ ~,..0<4 ORIGINAL CONTRACTOR or Reputed Contractor,if any ARB,INC. 26000 COMMERCENTRE DRIVE LAKE FOREST,CA 92630 ECO RESOURCES 32234 PASEO ADELANTO,SUITE D SAN JUAN CAPISTRANO,CA 92675 ANN RULLO (title)PRESIDENT 14 995-5490TelephoneNumber( )_ This form (No.594C Revised 1-1-2004)©Copyrighted by and distributed through BUILDING INDUSTRYCREDIT ASSOCIATION (213)251-1100 CA285430 II1III11 Dated:05/04/04 7114 7389 6621 0814 3047 :::0 iTl (") m <mo$5,000.00 2 -Has furnished or will furnish labor, services,equipment,or materi~of the following general descriptiOtr:~:z ~ RENTAL EQUIP,LABOR &c-; TRANSPORTATION ~~:.:r>.------<___~I 3 -An estimate of the total pric~~the ~ labor,services,equipment,or ~fQrials furnished or to be furnished is:(j)::»-!:. CALIFORNIA PRELIMINARY NOTICE In accordance with sections 3097 and 3098,California Civil Code This is not a Lien,This is not a reflection on the integrity of any contractor or subcontractor Reputed Owner 1 -You are hereby notified that 05/04/04 CA285430 TRENCH PLATE RENTAL CAPISTRANO VALLEY WATER 16332 CONSTRUCTION CIRCLE WEST DISTRICT IRVINE CA 92606 32400 PASEO ADELANTO SAN JUAN CAPISTRANO CA 92675 Reputed Construction Lender or Lessee CO#DESALTER PROJECT BOND#24015060/L1BERTY MUTUAL INS CO/505 S MAIN ST #830 ORANGE CA 92868 Reputed Original Contractor ECO RESOURCES 32234 PASEO ADELANTO #D SAN JUAN CAPISTRANO CA 92675 A.D.C.UNKNOWN o w4 -The building,structure or other work of improvement is located at: 1011-420013 DESALTER PLANT/RAMOS ST &PASEO ADELANTO/32470 PASEO ADELANTO/SAN JUAN CAPISTRANO CA 92675 NOTICE TO PROPERTY OWNER IF BILLS ARE NOT PAID IN FULL FOR THE LABOR,SERVICES, EQUIPMENT,OR MATERIALS FURNISHED OR TO BE FURNISHED,A MECHANICS'LIEN LEADING TO THE LOSS, THROUGH COURT FORECLOSURE PROCEEDINGS,OF ALL OR PART OF YOUR PROPERTY BEING SO IMPROVED MAY BE PLACED AGAINST THE PROPERTY EVEN THOUGH YOU HAVE PAID YOUR CONTRACTOR IN FULL.YOU MAY WISH TO PROTECT YOURSELF AGAINST THIS CONSEQUENCE BY (1)REQUIRING YOUR CONTRACTOR TO FURNISH A RELEASE SIGNED BY THE PERSON OR FIRM GIVING YOU THIS NOTICE BEFORE MAKING FINAL PAYMENT TO YOUR CONTRACTOR OR (2)ANY OTHER METHOD OR DEVICE THAT IS APPROPRIATE UNDER THE CIRCUMSTANCES.OTHER THAN RESIDENTIAL HOMEOWNERS OF DWELLINGS CONTAINING FEWER THAN 5 UNITS,PRIVATE PROJECT OWNERS MUST NOTIFY THE ORIGINAL CONTRACTOR AND ANY LIEN CLAIMANT WHO HAS PROVIDED THE OWNER WITH A PRELIMINARY 20-DAY LIEN NOTICE IN ACCORDANCE WITH SECTION 3097 OF THE CIVIL CODE THAT A NOTICE OF COMPLETION OR NOTICE OF CESSATION HAS BEEN RECORDED WITHIN 10 DAYS OF ITS RECORDATION.NOTICE SHALL BE BY REGISTERED MAIL,CERTIFIED MAIL,OR FIRST- CLASS MAIL,EVIDENCED BY A CERTIFICATE OF MAILING. FAILURE TO NOTIFY WILL EXTEND THE DEADLINES TO RECORD LIEN.-- 5 -The name ofthe person or firm who contracted for the purchase of such labor,services, equipment or material is: HERMAN WEISSKER 2631 S RIVERSIDE AVE BLOOMINGTON CA 92316 6 -Name and address of Trust Funds to which Supplemental Fringe Benefits are payable (if applicab!e): 7 -Jobsite is Federal Public Work Title 40 USC Sec.270A-270E. Contract # Bond Co: Signed Authorized Agent 1-800-366-5660 License #807306 (ND20260-01) CALIFORNIA PRELIMINARY 20-DAY NOllCE In accordance with sections 3097 and 3098,California Civil Code THIS IS NOT A LIEN.THIS IS NOTA REFLECTION ON THE INTEGRITY OF ANY CONTRACTOR OR SUBCONTRACTOR. You are hereby notified that . Northern Digital,Inc.4520 California Ave,Suite 200 Bakersfield,CA 93309 has furnished or will furnish labor,service,equipment or material of the following general description and an estimate ofthe total price thereof: ECO Capistrano Valley Desalter Project -Strawberry Hill Pump Station $26,308.00 Plus Extras for building structure,or other work of improvement located at: 32470 Paseo Adelanto San Juan Capistrano,CA 92675 The name of the person or firm who contracted for the purchase of such labor,services, equipment or material furnished or to be furnished is: ARB 26000 Commercentre Dr.Lake Forest,CA 92630 ARB Job No.1436340 GENERAL CONTRACTOR (or reputed) ECO Resources 32234 Paseo Adelanto,Suite D LENDER/SURETY (or reputed) San Juan Basin Authority Lease Revenue Bonds BNY Trust Company 700 South Flower St.m '--::t>c.:~")-0 LEASE HOLD OWNER orTRElST FURD...--.I c,(.-U1 ~-'...".,..----------~-'-....,,;.-'-----1'»'T--<........~,:-.m------------=.:::::~~~----'---0 »~.=L..;;;...os",-A:......:.;..;..ng.;Le;;..;..le;::..:s:;...L!--"C...;;...A..:..-.:;..9=..00"'-1;.....;.7 --"-..=.'---_-Jo'E"""'--_='J ITI (") rn San Juan Capistrano,CA 92675 32400 Paseo Adelanto San Juan Capistrano,CA 92675 OWNER/REPUTED OWNER Capistrano Valley Water District 01 PROOF OF SERVICE AFFIDAVIT:The undersigned served copies ofthislirelimfhary 20-Day Notice by first class registered or certified mail postage prepaid,on the persons and at the address shown on:(Datel ~.o 3 )-'/Lj . I declare under penalty of perjury under the laws of the State of California that the foregoing is true a~~c?rrect./~~~c:)..-? Dated:~_.:3 ) -v'Lj Signature:~c,~~<.~- Telephone numbers,voice and fax:661-322-6044 661-322-1209 -fax NOTICE TO PROPERTY OWNER If bills are not paid in full for the labor,services,equipment or materials furnished or to be furnished,a mechanics lien leading to the loss,through court foreclosure proceedings,of all or part of your property being so improved may be placed against the property even though you have paid your contractor in full.You may wish to protect yourself against this consequence by (1)requiring your contractor to furnish a signed release from the person or firm giving you this notice before making payment to your contractor or (2)any other method or device that is appropriate under the circumstances.THIS STATEMENT IS APPLICABLE TO PRIVATE WORKS ONLY. BEFORE YOU USE TH!S FORM,F!LL !N ALL BLANKS,AND ~ItAKE WHATEVER Cl-'A"lGES .AHE APPROPR!.A,TE ANDNECESSARY TO YOUR PARTICULAR TRANSACTION.CONSULT A LAWYER IF YOU DOUBT THE FORM'S FITNESS FOR YOUR PURPOSE AND USE. WWW.THECONTRACTORSGROUP.COM MAKES NO REPRESENTATION ORWARRANTY,EXPRESSOR IMPLIED,WITH RESPECTTOTHE MERCHANTABILITY OR FITNESS OFTHIS FORM FORAN INTENDED USE ORPURPOSE.PRLM-001 REV.05-02 License #807306 (ND20260-00) CALIFORNIA PRELIMINARY 20-DAY NOTICE In accordance with sections 3097 and 3098,California Civil Code THIS IS NOT A LIEN.THIS IS NOTA REFLECTION ON THE INTEGRITY OF ANY CONTRACTOR OR SUBCONTRACTOR. You are hereby notified that Northern Digital,Inc.4520 California Ave,Suite 200 Bakersfield,CA 93309 has furnished or will furnish labor,service,equipment or material of the following general description and an estimate of the total price thereof: ECO Capistrano Valley Desalter Project -Radiol Telemetry System $39,169.00 Plus Extras for building structure,or other work of improvement located at: 32470 Paseo Adelanto San Juan Capistrano,CA 92675 The name of the person or firm who contracted for the purchase of such labor,services, equipment or material furnished or to be furnished is: ARB 26000 Commercentre Dr.Lake Forest,CA 92630 ARB Job No.1436340 GENERAL CONTRACTOR (or reputed) ECO Resources 32234 Paseo Adelanto,Suite 0 LENDER/SURETY (or reputed) San Juan Basin Authority Lease Revenue Bonds BNY Trust Company San Juan Capistrano,CA 92675 700 South Flower St. Los Angeles,CA 90017 32400 Paseo Adelanto San Juan Capistrano,CA 92675 >:;?; :z ~:::0 LEASE HOLD OWNER or TR~FUND m------------i~==~_==--~---=;g--()z:=I m____________C"J,..",........r_-_"",c0u--_~• ---------------~-~-<(n:,'):>-::""'l _1.#~~i-------------:;.o==:::,..:.0..----0 PROOF OF SERVICE AFFIDAVIT:The undersigned served copies of this f!relimiDary 20-Day Notice by first class registered or certified mail postage prepaid;on th~ persons and at the address shown on:(Date)'3 -3)-c:/L-f • I declare under penalty of perjury under the laws of the State of California that the foreg.oing is true a~c~rrect.?/7'0 d Dated:--=s =:5;).Vi tt Signature:~~~dL~~ Telephone numbers,voice and fax:661-322-6044 661-322-1209 -fax OWNER/REPUTED OWNER Capistrano Valley Water District NOTICE TO PROPERTY OWNER If bills are not paid in full for the labor,services,equipment or materials furnished or to be furnished,a mechanics lien leading to the loss,through court foreclosure proceedings,of all or part of your property being so improved may be placed against the property even though you have paid your contractor in full.You may wish to ,protect yourself against this consequence by (1)requiring your contractor to furnish a signed release from the person or firm giving you this notice before making payment to your contractor or (2)any other method or device that is appropriate underthe circumstances.THIS STATEMENT IS APPLICABLE TO PRIVATE WORKS ONLY. BEFOREYOU USE THIS FOR~v1,FILL I~J ALL SLJ\f'.JKS,l\.t..JD ~wA.A!'"~VVHATE\!ER CHJ\,t\.JGES A,qE A.°PROPRIATEA,f\JD f"JECESSA.qy TOYOUR PARTICULARTRANSACTION.CONSULT A LAWYERIF YOU DOUBT THE FORM'S FITNESS FOR YOUR PURPOSE AND USE. WWW.THECONTRACTORSGROUP.COM MAKES NOREPRESENTATION OR WARRANTY,EXPRESS OR IMPLIED,WITH RESPECT TO THE MERCHANTABILITY OR FITNESS OF THIS FORM FORAN INTENDED USEOR PURPOSE.PRLM-001 REV.05-02 CALIFORNIA PRELIMINARY NOTICE In accordance with section 3097 and 3098,California Civil Code This is NOT a lien,this is NOT a reflection on the integrity ofany contractor or subcontractor Construction ofDesalter Project 32470 Paseo Adelanto -San Juan Capistrano YOU ARE HEREBY NOTIFIED THAT... CONSTRUCTION LENDER or Reputed Construction Lender,ifany Atkinson Grading &Equipment Rental,Inc. (name ofperson or finn furnishing labor,services,equipment or material) 4592 Orion St.Huntington Beach,Ca.92649 (address ofperson or fum furnishing labor,services,equipment or material) OWNER OR PUBLIC AGENCY (Reputed Owner on private work or Public Agency on Public Work) has furnished or win furnish labor,services,equipment or materials ofthe follo\\i.ng general description: Asphalt Grading &Paving Capistrano Valley Water District 32400 Paseo Adelanto San Juan Capistrano,CA 92675 for the building, structure or other work ofimprovement located at: San Juan Capistrano -ARB Job #1331119T ORIGINAL CONTRACTOR (Reputed Contractor,ifany) The name ofthe person or finn who contracted for the purchase of such labor,services,equipment or material is: ARB,Inc. ECO Resources 32234 Paseo Adelanto,Suite D San Juan Capistrano,CA 92675 An estimate ofthe total price ofthe labor,services,equipment or materials funlished or to be furnished is: SUBCONTRACTOR (with whom claimant has contracted) The person or fum giving this notice is required,pursuant to a collective bargaining agreement,to pay supplemental fringe benefits into an express trust fund,said fund is identified as follows: Operating Engineers Trust Construction Laborers Trust Fund NOTICE TO PROPERTY OWNER Ifbills are not paid in full for the labor,senrices,equipment or materials furnished or to be furnished,a mechanic's lien leading to the loss,through court foreclosure proceedings,ofall or part ofyour property being so improved may be placed against the property even though you have paid your contractor in full.You may wish to protect yourselfagainst this consequence by (1) requiring your contractor to furnish a signed release by the person or firm giving you this notice before making payment to your contractor or (2)any other method or device that is appropriate under the circumstances. I et:0-<C 0. o UJ> UJ U UJa::: ARB,Inc. 26000 Commercentre Dr. Lake Forest,CA 92630 o(\"'\z Dated:3/26/04 { Signed:~.ttJ -"Title:Off.ManagerCJ"-~ CA272053 I I II 111111 7114 7389 6621 0785 9253 Dated:03/26/04 CALIFORNIA PRELIMINARY NOTICE In accordance with sections 3097 and 3098,California Civil Code This is not a Lien,This is not a reflection on the integrity of any contractor or subcontractor Reputed Owner 1 -You are hereby notified that 03/26/04 CA272053 BL WILCOX &ASSOCIATES CAPISTRANO VALLEY WATER PO BOX 829 DISTRICT WHITTIER CA 90608 ~~ 32400 PASEO ADELANTO 2 -Has furnished or will furnistmbor,~;0 SAN JUAN CAPISTRANO CA 92675 services,equipment,or matericas<Of ;rn the following general descripti~:=';:0 (') BUILDING MATERIALS G,-~rn Reputed Construction Lender or Lessee CO#DESALTER PROJECT BOND#24015060/L1BERTY MUTUAL INS CO/505 S MAIN ST #830 ORANGE CA 92868 Reputed Original Contractor ECO RESOURCES 32234 PASEO ADELANTO #0 SAN JUAN CAPISTRANO CA 92675 A.D.C.UNKNOWN 3 -An estimate ofthe total price~the w labor,services,equipment,or materials •• furnished or to be furnished is:0 g $1,421.81 4 -The building,structure or other work of improvement is located at: SAN JUAN CAPISTRANO DESALTER PLANT 32470 PASEO ADELANTO SAN JUAN CAPISTRANO CA 92675 NOTICE TO PROPERTY OWNER IF BILLS ARE NOT PAID IN FULL FOR THE LABOR,SERVICES, EQUIPMENT,OR MATERIALS FURNISHED OR TO BE FURNISHED,A MECHANICS'LIEN LEADING TO THE LOSS, THROUGH COURT FORECLOSURE PROCEEDINGS,OF ALL OR PART OF YOUR PROPERTY BEING SO IMPROVED MAY BE PLACED AGAINST THE PROPERTY EVEN THOUGH YOU HAVE PAID YOUR CONTRACTOR IN FULL.YOU MAY WISH TO PROTECT YOURSELF AGAINST THIS CONSEQUENCE BY (1)REQUIRING YOUR CONTRACTOR TO FURNISH A RELEASE SIGNED BY THE PERSON OR FIRM GIVING YOU THIS NOTICE BEFORE MAKING FINAL PAYMENT TO YOUR CONTRACTOR OR (2)ANY OTHER METHOD OR DEVICE THAT IS APPROPRIATE UNDER THE CIRCUMSTANCES.OTHER THAN RESIDENTIAL HOMEOWNERS OF DWELLINGS CONTAINING FEWER THAN 5 UNITS,PRIVATE PROJECT OWNERS MUST NOTIFY THE ORIGINAL CONTRACTOR AND ANY LIEN CLAIMANT WHO HAS PROVIDED THE OWNER WITH A PRELIMINARY 20-DAY LIEN NOTICE IN ACCORDANCE WITH SECTION 3097 OF THE CIVIL CODE THAT A NOTICE OF COMPLETION OR NOTICE OF CESSATION HAS BEEN RECORDED WITHIN 10 DAYS OF ITS RECORDATION.NOTICE SHALL BE BY REGISTERED MAIL,CERTIFIED MAIL,OR FIRST- CLASS MAIL,EVIDENCED BY A CERTIFICATE OF MAILING. FAILURE TO NOTIFY:ILL EXTEND THE DEADLINES TO RECO A LJEN. 5 -The name ofthe person or firm who contracted for the purchase of such labor,services, equipment or material is: A.R.B. PO BOX 5166 LAKE FOREST CA 92630 6 -Name and address of Trust Funds to which Supplemental Fringe Benefits are payable (if applicable): 7 -Jobsite is Federal Public Work Title 40 USC Sec.270A-270E. Contract # Bond Co: 1-800-366-5660 CA278396 'I III "III Dated:04/15/04 7114 7389 6621 0799 3445 ::0rn (")m <mo » 2 -Has furnished or will furnish labor, services,equipment,or materials of the following general description: BUILDING MATERIALS ~ z -,I C5 4 -The building,structure or o~~rwor§f improvement is located at:c - SAN JUAN CAPISTRANO DESALTER PLANT 32470 PASEO ADELANTO SAN JUAN CAPISTRANO CA 92675 $9,812.69 ......,c::::»c::::».s::: '-3 -An estimate of the total pri~OJ the~ labor,services,equipment,ormil.~rial!... furnished or to be furnished isfJ ~.-0-:,-~,:- CALIFORNIA PRELIMINARY NOTICE In accordance with sections 3097 and 3098,California Civil Code This is not a Lien,This is not a reflection on the integrity of any contractor or subcontractor Reputed Owner 1 -You are herebynotified that 04/15/04 CA278396 BL WILCOX &ASSOCIATES CAPISTRANO VALLEY WATER PO BOX 829 DISTRICT WHITTIER CA 90608 32400 PASEO ADELANTO SAN JUAN CAPISTRANO CA 92675 Reputed Original Contractor Reputed Construction Lender or Lessee ECO RESOURCES 32234 PASEO ADELANTO #0 SAN JUAN CAPISTRANO CA 92675 CO#DESALTER PROJECT BOND#24015060/L1BERTY MUTUAL INS CO/505 S MAIN ST #830 ORANGE CA 92868 A.D.C.UNKNOWN NOTICE TO PROPERTY OWNER IF BILLS ARE NOT PAID IN FULL FOR THE LABOR,SERVICES, EQUIPMENT,OR MATERIALS FURNISHED OR TO BE FURNISHED,A MECHANICS'LIEN LEADING TO THE LOSS, THROUGH COURT FORECLOSURE PROCEEDINGS,OF ALL OR PART OF YOUR PROPERTY BEING SO IMPROVED MAY BE PLACED AGAINST THE PROPERTY EVEN THOUGH YOU HAVE PAID YOUR CONTRACTOR IN FULL.YOU MAY WISH TO PROTECT YOURSELF AGAINST THIS CONSEQUENCE BY (1)REQUIRING YOUR CONTRACTOR TO FURNISH A RELEASE SIGNED BY THE PERSON OR FIRM GIVING YOU THIS NOTICE BEFORE MAKING FINAL PAYMENT TO YOUR CONTRACTOR OR (2)ANY OTHER METHOD OR DEVICE THAT IS APPROPRIATE UNDER THE CIRCUMSTANCES.OTHER THAN RESIDENTIAL HOMEOWNERS OF DWELLINGS CONTAINING FEWER THAN 5 UNITS,PRIVATE PROJECT OWNERS MUST NOTIFY THE ORIGINAL CONTRACTOR AND ANY LIEN CLAIMANT WHO HAS PROVIDED THE OWNER WITH A PRELIMINARY 20-DAY LIEN NOTICE IN ACCORDANCE WITH SECTION 3097 OF THE CIVIL CODE THAT A NOTICE OF COMPLETION OR NOTICE OF CESSATION HAS BEEN RECORDED WITHIN 10 DAYS OF ITS RECORDATION.NOTICE SHALL BE BY REGISTERED MAIL,CERTIFIED MAIL,OR FIRST- CLASS MAIL,EVIDENCED BY A CERTIFICATE OF MAILING. FAILURE TO NOTIFY WILL EXTEN THE DEADLIN S TO RECORD A LIEN. 5 -The name of the person or firm who contracted for the purchase of such labor,services, equipment or material is: ARB PO BOX 5166 LAKE FOREST CA 92630 6 -Name and address of Trust Funds to which Supplemental Fringe Benefits are payable (if applicable): 7 -Jobsite is Federal Public Work Title 40 USC Sec.270A-270E. Contract # Bond Co: Signed Authorized Agent 1-800-366-5660 THIS IS NOT A LIEN.THIS NOTICE IS GIVEN PURSUANT TO SECTIONS 3097 AND 3098, CALIFORNIA CIVIL CODE.THIS IS NOT A REFLECTION ON THE INTEGRITY OF ANY CONTRACTOR OR SUBCONTRACTOR. 768345 I I III IIII 7108 1800 8317 6834 5022 CALIFORNIA PRELIMINARY NOTICE 067942 YOU ARE HEREBY NOTIFIED THAT... OWNER or Reputed Owner (on private work) or PUBLIC AGENCY (on public work)02 STANDARD CONCRETE PRODUCTS INC POBOX 15326 SANTA ANA CA 92735-5326 3422 CAPISTRANO VALLEY WATER DISTRICT 32400 PASEOADELANTO SAN JUAN CAPISTRANO CA 92675 CONSTRUCTION LENDER or Reputed Construction Lender,ifany. NONEIBOND #240150601B0ND CO: LIBERTY MUTUAL INS CO 505 S MAIN ST #830 ORANGE CA 92868 ---,,- READY MIX CONCRETE AND/GR-~. BUILDING MATERIALS ~~J 1) for the bUilding,structure or other workj)fjrmprov~nt located at:--•• "CAPISTRANO VALLEY WATEIfDISTRI@P" 32470 PASEO ADELANTO SAN JUAN CAPISTRANO CA (VARIOUSWELLS&PWELINES TIIROUGHOUT CITY)C#143-634-0-018 < ORIGINAL CONTRACTOR or Reputed Contractor,ifany. 03 949-218-7714 ECO RESOURCES 32234 PASEO ADELANTO SAN JUAN CAPISTRANO CA 92675 An estimate of the total price ofthe labor,services, equipment or materials furnished or to be furnished is: $6,804.00 Trust Funds to which Supplemental Fringe Benefits are payable: SUB CONTRACTOR /person or firm who contracted for the purchase ofsuch labor,services,equipment or materials is: 909-468-0525 SMITH MASONRY INC,FRANK S 2830 POMONA LVD POMONA CA 91768 OTHER INFORMATION,if any. Dated:04/19/2004 R NOTICE PROPE Y OWNER IF BILLS ARE NOT P IN FULL FORTHE LABOR,SERVICES,EQUIPMENT,OR MATERIALS FURNISHED ORTO BE FURNISHED,A MECHANIC'S LIEN LEADING TO THE LOSS,THROUGH COURT FORECLOSURE PROCEEDINGS,OF ALL OR PART OF YOUR PROPERTY BEING SO IMPROVED MAYBE PLACEDAGAINST THE PROPERTY EVEN THOUGH YOU HAVE PAID YOUR CONTRACTOR IN FULL. YOU MAY WISH TO PROTECT YOURSELF AGAINST THIS CONSEQUENCE BY (1)REQUIRING YOUR CONTRACTOR TO FURNISH A SIGNED RELEASE BYTHE PERSON ORFIRM GIVING YOU THIS NOTICE BEFORE MAKING PAYMENT TO YOUR CONTRACTOR OR (2) ANY OTHER METHOD OR DEVICE THATIS APPROPRIATE UNDER THE CIRCUMSTANCES. BOND FINANCED: SAN JUAN BASINAUTHORITY LEASE REVENUE BONDS BNYTRUST CO 700 S FLOWER ST LOS AN ELES CA 90017 \',,/ "-./ nTI.n=g TI-IAM DCC!:lnCII.ITIAI un••.:=nu '.:=_---"--••..•.---------"-- ·",,"'fP~'PRELIMINARV·"i·.t31'~;";E· I cordance with sections 309 -,md S,--,d,California Civil Code THIS IS NOr A LIEN.This is NOT a reflection :!'the integrity of any contractor or sutcortriI tor. 7100 6309 2640 3217 9310 RECE\VED·..'1,r·; ..has furnished or will furnish labor,service,equipment or material of the folioWII1g ~l~\eral for building structure,or other work of irnpro/i~'nent r';--';.fi 'f FF;!1 p: "I ~~:~:i~t~n:i 100'\-;M~~i l2 "·,A,,U);2J.t~,' The name of the person or firm who contracted for the purchase of such labor,services,equipment or material furnlshE~d IS :It:I .C\f'{;~h,~i\'TP ~HO An estimate of the total pricES<Ittt-,~U.M~,~e'r~ib~s,1~t~tpment or material is You are hereby notified that ;1(' NOTICE TO PROPERTY OWNER If bills are not paid in full for the labor,services,equipment,or materials furnished or to be furnished,a mechanic's lien leading tothe loss,through court foreclosure proceeoings,of all or part of your P!'operty being so improved may be placed against the propert)ellen though you have paid your contractor in full.You may wish to protect yourself against thisconsequenceby (1)re9uiringyourcontractor to furnish asigned release by the person or firm giving you this notice belore making payment to your contractor.or (2)any other method device that is appropriate under the circumstances.Other than residential homeown of dwellings containing fewer than five units,private projeC1 owners ,nustnotifytheo'inal contractor and any lien claimant who has provided thE!owner With a preliminary ay lien notice in accordance with Section 3097 of the Civil Code that a notice of completion or notice of cessation has been recorded withIn 10 days of itsrecordation.Notice shall be by.registered mail,certified mail,or first-class mail,evidenced by a certificate of mailing.Failure tonotify will extend the deadlines to record a lifr 0;, (",,.'-"1140:(; if r l , ....,{. i) a • 7100 6309 2640 3217 7972 "~~if~:.¥:lr~PRELIMINAfft....~_ 3CCOt Jance with sections 3097 and d8 C llifornia Civil Code THIS IS NOT A LIEN.Tnis is NOT a reflection on the inteqrlty of any contractor or subcontractor. c.tri!'lE n .I l'RE '-n s furnlJFi'ed or will furnish labor,service,equiprn,)(It or material of the following generalr..-:.,.'"'.for building stn cture,or other work of improvement;",1:p You are hereby notified that description: located at (Ui ,"iP )!tOftIi !PlB~~25"p:>3:'31 .;,i The name of the person or firm who contracted for the purchase of such labor,services,eql ipment or material furnished is ft,~{"j -~'r I I I F~:;->'~C"1"P1t Ir~':".'~"r~"~ An estimate of the total price oStAENI~rA~c;~~~mi~tor material is n NOTICE TO PROPERTY OWNER If bills are not paid in full for the labor services,equipment,or materials furnished or to be furnished,amechanic'slien leading 10the loss,throughcourt foreclosure proceedings.of all or partof your property being so improved may be placed against the property even though you have paid your contractor in full.You may wish to protect yourself against thisconsequence by (1)requiring your contractortofurnish a signed release by the personorfirmgivingyouthisnoticebefore"laking payment to your contractor,or (2)any other method or device that is appr~riat,~under the circumstances.Other than reSidential homeowners of dwellings containing fewer than five units,private project owners mustnotifytheoriginalcontractorandanylienclaimantwhohasprovidedtheownerwithapreliminary2G-day lien notice in aceordance with Section 3097 of the Civil Code that a notice of completion or notice of cessation has been recorded within 10 days of its recordation.Notice shall be by'registered mail,certified mail,or first-class mail,evidencedbyacertificateofmailing.Failure te notify will extend the deadlines to record a lien. ',;I CE:RTlf-IED MJ-\IL NUMBER 7100 6309 2640 3203 3988 CAlJFORI~IAPRELIMINAh..~__ In accordance with sections 3097 an:, 3091:"California Civil Code THIS IS NOT A LIEN.This is NOT a reflection on the: inteL'nty of any contractor or subcontractor.~· You are hereby notified that 0 C f'E:I\J I:"n has furnished cf\tl;Ho tltf~la!>or;"S~vice,equ'oment or material of the following general description:for building structure,or other work of improvement located at i i.".:',ZOOIl MAR..23 A q:58 The name of the person or firm who contracted for the purchase of such labor,services,f3q~ipment or material furnished is I I "I ,''.': ;"CIT \'CL t i \ An estimate of the total price of the labor,services,equiS'1\EN't..ro A'f¥Et!iAI\ie!STg;\J 40 NOTICE TO PROPERTY OWNER If bills are not paid in full for the labor,services,equipment,or materials furnished or to be furnished,a mechanic's lienleadingtothe loss,througtl court foreclosure proceedings.of all or part ofyour property being SO improved may be placed againstthe property eventhoughyouhavepaidyourcontractorinfull.You may wish to protect yourself against thisconsequence by(1)requ,iring yourcontractorto furnish asignedrelease bythe person orfirm giving you this notice belore making payment to your contractor,or (2)any othermethodordevicethatisappropriateunderthecircumstances.Other than reSidentialhomeownersofdwellingscontainingfewerthanfiveunits,private project owners must notify the original contractor and any lien claimant who has provided the owner with a preliminary 2o-day lien notice in accordance with Section 3097 of the Civil Code that a notice of completion or notice of cessation has been recorded within 10 days of itsrecordation.Notice shall be by registered mail,certified mail,or first-class mail,evidenced by a certificate of mailing.Failure to notify will extend the ~s to ret~a \,ien.i l """//rl.{''\(it-l/l.'-- " -..4\...__. File No:52 [CA}[PRIVATE][OWNER] Notice Requested by and Return To: SMITHSON ELECTRIC,INC. 1938E.KATElLA AVENUE ORANGE,CA 92867 [Job No:4073] Customer:ARB,INC. Projed:CONSTRUCTION OF DESALTER PROJECT Rae ID:16WORFLHP Cart No.: Return Receipt Requested PRELIMINARY2O-DAY NOTICE (pRIVATE WORK) Califomia Civil Code Sections 3097,3098,3111,3241 &3252 etSeq. THIS IS NOT A LIEN.THIS IS NOT A REFLECTION ON THE INTEGRITYOF ANY CONTRACTOR OR SUBCONTRACTOR mo TO:LENDER,SURETY OR BONDING COMPANY MCGOWAN &ASSOCIATES 1450 GRANT AVE.,SUITE 210 NOVATO,CA 94945 AcctIBond#24015060 TO:ORIGINAL CONTRACTOR OR REPUTED CONTRACTOR ECO RESOURCES 32234 PASEO ADELANTO,SUITE D SAN JUAN CAPISTRANO,CA 92675 TO:OWNER OR REPUTED OWNER CAPISTRANO VALLEY WATER DISTRICT 32400 PASEO ADELANTO SAN JUAN CAPISTRANO,CA 92675 1.The following is a general description of the labor,service,equipment or materials en furnished or to be furnished bythe undersi~:~ TRAFFIC SIGNAL MAINTENANCE -~::0 L 3:......co >-I">=::c "'"2.Estimated Price::.:./"~-N3.The name ofthe person who furnished tWtdabor,9!!Oice,~or materials is:--:~;~~< SMITHSON ELECTRIC,INC.u~:.::-»---l::':'::1938 E.KATELLAAVENUE :::0- ORANGE,CA 92867 :->.r= 4.The name ofthe person who contractedfer purchase"of that labor, service,equipment or material is: ARB,INC. 26000 COMMERCENTRE DRIVE LAKE FOREST,CA 92630 5.The description ofthejobsite is: CONSTRUCTION OF DESALTER PROJECT CAMINO CAPISTRANO @AVENIDA PADRE JOB #1331119T SAN JUAN CAPISTRANO,CA VERIFICATION I declare that I am authorized to file this PREUMINARY 20-DAY NOTICE (pRIVATE WORK)on behalf of the claimant I have read the foregoing document and know the contents thereof;the same is true of my own knowledge.I declare under penally of perjury under the laws of the State of California that the ~oregoin~true and correct Executed at ORANGE,California on 0311612004 for SMITHSON ELECTRIC,INC.. By:'7>')~d'/f Phooe:(714)997-9556 Fax:(714)997-9559 MARIJA FUDGE,CONTRACTS ADMINISTRATOR PROOF OF SERVICE BY MAIL AFFIDAVIT I,MARIJA FUDGE declare that I served copies of the above PREUMINARY 20-DAY NOTICE (pRIVATE WORK)By First Class Certified Return Receipt Requested or Registered Mail service,postage prepaid,addressed to each of the parties at the addresses shown above on 0311612004. declare under penally ofperjury nder the laws of the stateofCalifornia that the foregoing is true and correct... -+-o«---l-=-~r-=----->;:;~~-=.t<-""""",""",,=-__MARIJA FUDGE,CONTRACTS ADMINISTRATOR NOTICE TO PROPERTY OWNER If bills are not paid in full for the labor,services,equipment or materials fumished or to be furnished,a Mechanic's Lien leading to the loss,through court foreclosure proceedings,of all or part of your property being so inproved may be placed again8t the property even though you have paid your contractor in full.You may wish to protect yourself against this consequence by (1)Requiring your contractor to fumish a signed release by the person or finn giving you this notice before making payment to your contractor,or (2)Any other method ordevice that is appropriate under the circumstances.other than residential homeowners of dwellings containing fewer that rNe units,private project owners must notify the original contractor and any lien claimant who has provided the owner with a preliminary 2O-day rten notice in accordance with Section 3097 ofthe Civil Code that a notice of completion or notice of cessation has been recorded within 10 days of its recordation.Notice shall be by registered maD,certified mail,or first class mail,evidenced by a certificate of mailing.Failure to notify will extend the deadlines to record alien. CAPISTRANO VALLEY WATER DISTRICT 32400 PASEO ADELANTO SAN JUAN CAPISTRANO,CA 92675 0311612004 RE:NOTICE TO OWNER OR PUBLIC ENTITY To CAPISTRANO VALLEY WATER DISTRICT: We are required by the laws of this state to notify you that we are furnishing labor,services,equipment or materials of the type described on the enclosed standard form for the work of improvement known as the:CONSTRUCTION OF DESALTER PROJECT CAMINO CAPISTRANO @AVENIDA PADRE project located atJOB #1331119T,SAN JUAN CAPISTRANO,CA Such labor,services,equipment or materials were contracted for by:ARB,INC.,26000 COMMERCENTRE DRIVE,LAKE FOREST,CA 92630 ,who is one of the owners,general contractors or subcontractors of this project We are further required by law to notify you at this time that if bills are not paid in full for labor,services,equipment or materials furnished,or to be furnished,the improved properly may be subject to mechanic's liens or stop notices,or a notice to withhold funds may be filed where applicable.The enclosed notice is not intended to reflect in any way on the integrity or credit standing of the contractors involved in this job,but is given merely to comply with the laws of this state.However,to fully protect yourself you may consider (1)requiring your contractor to furnish asigned release from the person or firm gMng you this notice before making payment to your contractor,or (2)any other method or device which is appropriate under the circumstances to guarantee payment of this debt We appreciate the opportunity of furnishing our services for this job and we hope it is progressing to your satisfaction. Should you have any questions concerning this request please feel tee to call me personally at (714)997·9556. Thank you. Sincerely, By:7r)CL,-:';P-.j :fIJdc;.l..<Phone:(J14)997-9556 Fax:(J14)997-9559~ MARIJA FUDGE,CONTRACTS ADMINISTRATOR Dated 0311612004 for SMITHSON ELECTRIC,INC.,1938 E.KATELLA AVENUE,ORANGE,CA 92867 THIS IS NOT A LIEN.THIS NOTICE IS GIVEN PURSUANT TO SECTIONS 3097 AND 3098, CALIFORNIA CIVIL CODE.THIS IS NOT A REFLECTION ON THE INTEGRITY OF ANY CONTRACTOR OR SUBCONTRACTOR. 756939 I I 11111111111 7108 1800 8317 5693 9028 CALIFORNIA PRELIMINARY NOTICE C57765 Make all checks jointly payable OWNER or Reputed Owner(on private work) or PUBLIC AGENCY (on public work)02 YOU ARE HEREBY NOTIFIED THAT... VULCAN MATERIALS CO CALMAT DIY 3200 SAN FERNANDO RD LOS ANGELES CA 90065 5665 949-493-1515 CAPISTRANO VALLEY WATER DISTRICT 32400 PASEO ADELANTO SAN mANCAPISTRANO CA 92675 has furnished or will furnish labor,services,equipment or materials of the following general description:215507 CONSTRUCTION LENDER or Reputed Construction Lender,ifany. 213-630-6240 NONEIBOND CO:SAN mAN BASIN AUTHORITY LEASE REVENUE BONDS C/O BNY WESTERN TRUST CO,ATTN:FE TUZON,700 S FLOWER ST #500 LOS ANGELES CA 90017 ORIGINAL CONTRACTOR or Reputed Contractor,if any. 03 READY MIX CONCRETE,ROCK, SAND,GRAVEL,PAVING MATLS ASPHALT,PRODUCTS &SVCS for the building,structure or other work of improvement located at: "CONSTRUCTION OF DESALTER PROJECT" 32470 PASEO ADELANTO SAN mANCAPISTRANO CA SUB JOB #1331119T (WELLS,WATER LINE &DESALINIZATION PLANT) ECO RESOURCES 32234 PASEO ADELANTO #D SAN mAN CAPISTRANO CA 92675 An estimate ofthe total price ofthe labor,services, equipment or materials furnished or to be furnished is: $7,555.00 Trust Funds to which Supplemental Fringe Benefits are payable: SUB CONTRACTOR /person or firm who contracted for the purchase of such labor,services,equipment or materials is: 949-598-9242 ARBINC 26000 COMMERCENTER DRIVE LAKE FOREST CA 92630 OTHER INFORMATION,if any.o :0rn ('")rn <rn 01 02/27/2004 R L 6//1\\0iT- {j tJlf I tel Ue/~CJMiIU'_J_R'--I,,(~A1t1ooa!'f{_Q A...lIg,-en_t__D_a_te_d:_0_3/_1O_/2_0_04_ (Signature)(Title) 415-892-1080 BOND #240150601B0ND AGENT: MCGOWAN &ASSOCIATES 1450 GRANT AVE #210 NOVATO CA 94945 '>(Q/fi(' NOTICE TO PROPERTY OWNER IF BILLS ARE NOT PAID IN FULL FORTHE LABOR,SERVICES,EQUIPMENT,OR MATERIALS FURNISHED OR TO BE FURNISHED,A MECHANIC'S LIEN LEADING TO THE LOSS,THROUGH COURT FORECLOSURE PROCEEDINGS,OF ALL OR PART OF YOUR PROPERTY BEING SO IMPROVED MAY BE PLACED AGAINSTTHE PROPERTY EVEN THOUGH YOU HAVE PAID YOUR CONTRACTOR IN FULL. YOU MAY WISH TO PROTECT YOURSELF AGAINST THIS CONSEQUENCE BY (1)REQUIRING YOUR CONTRACTOR TO FURNISH A SIGNED RELEASE BY THE PERSON OR FIRM GIVING YOU THIS NOTICE BEFORE MAKING PAYMENT TO YOUR CONTRACTOROR(2) ANY OTHER METHOD OR DEVICE THAT IS APPROPRIATE UNDERTHE CIRCUMSTANCES. RECEIVED lOO~MAR _I CPN PREPARED BY: SIGNATURE:_ TO: p ~:18 CALIFORNIAW~~~f~OJICE LENDER (REPUTED)~~MINALCONTRACTOR(REPUTED) NOi'H:':F:EPUf{lED FCU F~ESOI...lF.:CE.S ..;:;·2:?::.~;4 P(:\~:)EU ADELliNTO STE ·';'\~?b/~.:;j ~:)(.'lN \n.J(.~lN C:(./PISl Cl~9:?675 OWNER (REPUTED)OR PUBLIC AGENCY SUBCONTRACTOR WITH WHOM CLAIMANT CONTRACTED C(."',F·JSTF\~(:~,N()Vt-\LLFY W(.~T[r~D ::!;:':~400 P(.·iSEO AfWl..ANf'O S(~li"~,JU(.~i\!C'4P 1ST CA (7'2":'")'j'~:S NAME AND ADDRESS OF PERSON OR FIRM FURNISHING JLABOR,SERVICES,EQUIP.OR MATERIALS has furnished or will furnish labor,services,equipment or materials ofthe following description: for building,structure or other work of improvement located at: OFY.Al...TFf~PF,:DJ \l~t ~S:'::;1.:1.1.9'1' ':.!.;:~;'4)·O PA~::;FCI piI)FL(~i\!TO ~:}I'.':)N•.nJ{1N CAP I.~:)l f~ ,J ..C ..N..~2~~;::?(i>:l4rt··<:',c t.No .. ~::·r'h;':"J t 'j.c Con c \"(;:~t P./(.')q q I"{-:~q(;,t ('7! f;~nc k/l ;,;\b(lf"./ Equ:i.pmc~nt/r{·:lck····C~(l{;~t 8( PErt /"om~:'d: Name of person or firm who contracted for purchase of such labor,services,equipment or materials is: Alt:::J "h~l:.ti'1 Cil:·.:(.YCtc-,HJ ~<EJ;n.IJ F·'F.: l~~.:;':Y2 Of~JUN HI.JNT 1NCiH:.t"·!HEC(.Y.;':·264~;· An estimate ofthe total price of the labor,services,equipment ormaterial is $ H .•~:SOO ..00 PI..J:.I:"i~:::;'::·l~:::;~·:H.IF:,JOIN!CHLCt:::~::.; Trust funds to which supplemental fringe benefits are CflPl ~:n F:f."!t,!C1 t.)(~,I...I,FY 1.LJ(yrLP p payable.:!'·:).4f)f)F'{;~:'F'n ':'iliFf .tiNTO><;9-vu.-Nm /~.,hll)t;···{:AI'·T~::I (7 0JllZ O l(~ f\J ACCORDANCE WITH SECTIONS 3097 AND 3098, ~ALlFORNIA CIVIL CODE THIS IS NOT A L1EN.THIS S NOT A REFLECTION ON THE INTEGRITY OF ANY ~ONTRACTOROR SUBCONTRACTOR. '"OU ARE HEREBY NOTIFIED THAT.., "'t) ~iz -;ml>JJ l>,...oz C> '"CfT::II'T1oJJs:»-fo Z »zo JJms:o<fT. (')»::IIo... CALIFORNIA PRELIMINARY NOTICE THIS NOTICE IS GIVEN PURSUANT TO SECTIONS 3097 AND 3098,CALIFORNIA CIVIL CODE u CO DESCRIPTION OF LABOR,SERVICES,EQUIPMENT OR MATERIAL: MASONRY LAKE FOREST,CA 92630 SMITH MASONRY INC.,FRANK S. 2830 Pomona Ave Pomona,CA 91768 LAKE FOREST,CA 92630 ARB,INC. 26000 COMMERCENTER DR Ifbills are not paid in full forthe labor,services,equipment,or materials furnished orto be furnished,a mechanics'lien leading to the loss,through court foreclosure proceedings,ofall or part ofyour property being so improved may be placed against the property even though you have paid your contractor in full.You may wish to protect yourself against the consequence by (1)requiring your contractor to furnish a signed release by the person or firm giving you this notice before making a paymentto your contractor,or(2)any other method or device that is appropriate under the circumstances.Otherthan residential homeowners of dwelling containing fewer than five units,private project owners must notifythe original contractor and TO:OWNER,REPUTED CAPISTRANO VALLEY WATER any lien claimant who has prOVided the ownerwith a preliminary 20-day lien notice OWNER OR 32400 PASEO ADELANTO in accordance with Section 3097 ofthe Civikt,)ode tha.t!notice of completion or PUBLIC ENTITY ~notice ofcessation has been recorded withi:10 daY@itsridation.Noticeshali IAW,r/be by registered mail,certified mail,or first-@tssmait,=evideby a certificate of SAN JUAN CAPISTRANO,CA -,mailing.Failure to notify will extend the dedirras to!icord n. J>::.i ::0 (") (THIS STATEMENT IS APPLICABL~~'PR~TE ~K ONLY.) *********************************************~~~~************~****************** <:0;::..1J m TRUST FUNDS TO WHiCH SUPPLEMENTAL FW-G'E B~FITS~EPAYABLE:....... BRICKLAYER &BRICKTENDER 5::- TO:ORIGINAL A_R_B~,I_N_C_._ CONTRACTOR OR 26000 COMMERCENTER DR REPUTED CONTRACTOR TO:LENDER OR SAN JUAN BASIN AUTHORITY REPUTED LENDER REVENUE BONDS BNY TRUST 700 S.FLOWER S1. THIS IS NOT A LIEN.THIS IS NOT A REFLECTION ON THE INTEGRITY OF ANY CONTRACTOR OR SUBCONTRACTOR. YOU ARE HEREBY NOTIFIED:DATE:February 24,2004 THE NAME AND ADDRESS OF THE PERSON OR FIRM WHO HAS FURNISHED OR WILL FURNISH LABOR,SERVICES,EQUIPMENT OR MATERIAL OF THE FOLLOWING DESCRIPTION IS: I N F o 0 I I R R V M,~.~o BY:~JOB NAME AND LOCATION:CAPISTRANO VALLEY WATER DIS1. U ~ITH V P 32470 PASEO ADELANTO~, . .SAN J CAPISTRANO,CA 92675 THE NAME AND ADDRESS OF THE PERSON WHO CONTRACTED ~B 14?lP?t./O _ FOR THE PURCHASE OF (PRIVATE WORKS)OR WHO WILL BE **********************NOTICE t6 PROPERTY OWNER *********************" FURNISHED (PUBLIC WORKS)SUCH LABOR,SERVICES, EQUIPMENT OR MATERIAL IS: LOS ANGELES,CA 90017 TO:SUBCONTRACTOR ------------ (MATERIAL MEN NOT REQUIRED TO FURNISH THE ABOVE) ESTIMATED PRICE OF THE LABOR,SERVICES, EQUIPMENT OR MATERIAL DESCRIBED HEREIN:$66,150.00 PROOF OF SERVICE AFFIDAVIT -(SECTION 3097.1,CALIFORNIA CIVIL CODE) I,M.....E""""L;!.oIF=.IlN~DuA~C~U:=:.oR~RA=::.:.N ,declare that I served copies ofthe above PRELIMINARY NOTICE (check appropriate box). (a)[]By personally delivering copiesto_~_~~~~~~~~__at ~ (name(s)and title(s)of persons served) On ,at .m. (date)(year)(time) (b)[X]By First Class Certified or Registered Mail service,postage prepaid,addressed to each ofthe parties at the address shown above on 2-24-04 I declare under penalty ofperjury that the foregoing is true and correct. Signed at POMONA,CA on 2_-_2.....;4_-,..;,0_4 _ Signature of person making service:~~I~~;:j;t;J au,r'C13 1!/ol.{VYj [ATTACH RECEIPTS OF CERTIFIED OR REGIS~MAIL WHEN RETURNED] CA243743 II II II Dated:12/18/03 7114 7389 6621 0711 0606 2 -Has furnished or will furnish labor, services,equipment,or materials of the following general description: CRANE RENTAL CALIFORNIA PRELIMINARY NOTICE In accordance with sections 3097 and 3098,California Civil Code This is not a Lien,This is not a reflection on the integrity of any contractor or subcontractor Reputed Owner 1 -You are hereby notified that 12/18/03 CA243743 MR CRANE INC CAPISTRANO VALLEY WATER 647 N HARITON ST DISTRICT ORANGE CA 92668 32400 PASEO ADELANTO SAN JUAN CAPISTRANO CA 92675 Reputed Construction Lender or Lessee CO#DESALTER PROJECT BOND#24015060/L1BERTY MUTUAL INS CO/505 S MAIN ST #830 ORANGE CA 92868 3 -An estimate of the total price of the labor,services,equipment,or materials furnished orto be furnished is: $1,579.00 Reputed Original Contractor ECO RESOURCES 32234 PASEO ADELANTO #D SAN JUAN CAPISTRANO CA 92675 A.D.C.UNKNOWN 4 -The building,structure or other work of improvement is located at:~ ARB INC :2:'-32470 PASEO ADELANTO Cn 0 SAN JUAN CAPISTRANO CA ~~;~ 2 c_,--"c-..0 ~;-.== (f);::-'1)" 5 -The name of the person orf~-who~ntrad'fi'tt for the purchase of such labor,:3'ervice$',·0 equipment or material is:a ~ Construction Notice Services,Inc.1-800-366-5660 ARB INC 2600 COMMERCENTRE DR LAKE FOREST CA 92630 6 -Name and address ofTrust Funds to which Supplemental Fringe Benefits are payable (if applicable): Signed 7 -Jobsite is Federal Public Work Title 40 USC Sec.270A-270E. Contract # Bond Co: IF BILLS ARE NOT PAID IN FULL FOR THE LABOR, SERVICES,EQUIPMENT,OR MATERIALS FURNISHED OR TO BE FURNISHED,A MECHANICS'LIEN LEADING TO THE LOSS, THROUGH COURT FCRECLCSURE PROCEEDINGS,OF ALL OR PART OF YOUR PROPERTY BEING SO IMPROVED MAY BE PLACED AGAINST THE PROPERTY EVEN THOUGH YOU HAVE PAID YOUR CONTRACTOR IN FULL.YOU MAY WISH TO PROTECT YOURSELF AGAINST THIS CONSEQUENCE BY (1)REQUIRING YOUR CONTRACTOR TO FURNISH A RELEASE SIGNED BY THE PERSON OR FIRM GIVING YOU THIS NOTICE BEFORE MAKING FINAL PAYMENT TO YOUR CONTRACTOR OR (2)ANY OTHER METHOD OR DEVICE THAT IS APPROPRIATE UNDER THE CIRCUMSTA ES. NOTICE TO PROPERTY OWNER 5009 CALIFORNIA PRELIMINARY NOTICE Yourattention is directed to sections 3097, 3098,and 3111,California Civil Code which requires us to notify you "That if bills are not paid in full for labor,services,equipment or materials furnished,or to be furnished the improved property (which is described hereon)may be subject to Mechanics'Liens."This statement is applicable to private work only_ This is not a lien.This is not a reflection on the integrity of any contractor or subcontractor. The name and address ofperson or firm who contracted for purchase of such labor,service,equipmentor material,is: ARB,Inc. 26000 Commercentre Drive Lake Forest,CA 92630 To owner,reputed owner,or public aqency Capistrano Valley Water District 32400 Paseo Adelanto San Juan Capistrano,CA 92675 To original contractor or reputed contractor ECO Resources 32234 Paseo Adelanto,Suite D San Juan Capistrano,CA 92675 To construction lender or reputed construction lender Estimated total price oflabor,services,equipment or materials furnished: $20,500.00 PROOF OF SERVICE AFFIDAVIT (Section 3097.1,California Civil Code) You are hereby notified: ARCHITECTURAL DOORS,INC. 7572 SANTA RITA CIRCLE STANTON,CA 90680 Has furnished or will furnish labor,services,equipment or material DOORS,FRAMES,AND HARDWARE (Description of labor,services,equipment or material) 1436340 Construction of Desalter Project 32470 Paseo Adelanto San Juan Capistrano,CA 92675 (Address of building,structure,work or improvement) "NOTICE TO PROPERTY OWNER": "Ifbills are not paid in full for the labor,servic~,equipment, or materials furnished or to be furnished,a ~hanic's a!lleading to the loss through court foreclosure procee~s,of all~::tJ part ofyour property being so improved mayEii ptaced pinstttP'l property even though you have paid your co~g~rin f~You (') may wish to protect yourselfagainst this con~~.nce ~1)!:!!~.__. requiring your contractorto furnish a signed r~~.e by t'Uersor< or firm giving you this notice before making p~nts to r rn contractor or(2)any other method or device t~';s apprWate uri]iJthe....-. circumstances.Otherthan residential homeo~ers of d~ingscontaining fewer than five units,private project owners m'@t notify tPlt'original contractor and any lien claimantwho has provided the owner with a 20-day lien notice in accordance with Section 30970f the Civil Code that a notice of completion or notice ofcessation has been recorded within 10 days ofits recordation.Notice shall be by registered,certified or first class mail,evidenced by a certificate of mailing.Failure to notify will extend the deadlines to record a lien. Trust funds to which supplemental fringe benefits are Name Address Name Address (Material men not required to furnish above) revised 1/1/04 I LCLf/III/V~DECLARE THAT I SERVED COPIES OF THE PRELIMINARY NOTICE BY FIRST CLASS CERTIFIED OR REGISTERED MAIL SERVICE,POSTAGE PREPAID,ADDRESSED TO EACH OF THE PARTIES AT THE ADDRESS SHOWN ABOVE ON 1/22/04 I DECLARE UNDER PENALTY OF PERJURY THAT THE FOREGOING IS TRUE AND SIGNED AT STANTON,CALIFORNIA ON 1/22/04 (ATTACH RECEIPTS OF CE'RTIFIED OR REGISTERED MAIL WHEN RETURNED) )(Avu t i4YJ,ra~i~lo~ Customer:L T EXCAVATING INC Project:13580450 Rec ID:13EOXXSYJ Cert No.:7100 6309 2640 2324 2276 Return Receipt Requested TO:LENDER,SURETY OR BONDING COMPANY TO:ORIGINAL CONTP~CTOR OR REPUTED CONTRACTOR ECO RESOURCES 32234 PASEO ADELANTO STE.D San Juan Capistrano,CA 92675 File No:O [CA][PUBLlC][OWNER] Notice Requested by and Return To: ECCO Equipment Corporation AnN:~r::::.\VEO 1417 N Susan Street t\t:.V r:. Santa Ana,CA92703 [Job No:13580450]---------::1:"Z'J«6r-r-J-nO~&R~EL~IN~Y~-JJNOTICE (PUBLIC WORK) California Civil C~w:~ections 3098, 3111,3241 &3252 et Seq. THIS IS NOT A LIEN.THIS IS NOT {,RefL~~~~"ll9EINTEGRITY OF ANY CONTRACTOR OR SUBCONTRACTOR SAN JUAtt ~I TO:OWNER 1.The following is ageneral description of OR REPUTED OWNER the labor,service,equipment or materials CASPISTRANO VALLEY WATER DISTRICT furnished or to be furnished by the undersigned: 32400 PASEO ADELANTO RENTAL EQUIPMENT San Juan Capistrano,CA 92675 2.Estimated Price:$50,000.00 3.The name of the person who furnished that labor,service,equipment or materials is: ECCO Equipment Corporation ATTN:NANETTE 1417 NSusan Street Santa Ana,CA 92703 4.The name of the person who contracted for purchase of that labor, service,equipment or material is: LT EXCAVATING INC 27601 FORNES ROAD SUITE 54 LAGUNA NIGUEL,CA 92677 5.The description of the jobsite is: 13580450 PO#22562 JOB#03-113 ALiPAZ &MAINER SAN JUAN CAPISTRANO,CA VERIFICATION I declare that I am authorized to file this PRELIMINARY 20-DAY NOTICE (PUBLIC WORK)on behalf of the claimant.I have read the foregoing document and know the contents thereof;the same is true of my own knowledge.I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct.Executed at Las Vegas,Nevada on 12/09/2003 for ECCO EQUIPMENT CORPORATION ATTN: NANE~-:;E --.- CMA FOHiv1S FILING SERVICf:. Signed by:Phone:(702)259-2622 Fax:(702)259-9908 Print NamelTitle:_ PROOF OF SERVICE BY MAIL AFFIDAVIT I,declare that I served copies of the above PRELIMINARY 20-DAY NOTICE (PUBLIC WORK)By First Class Certified Return Receipt Registered Mail service,postage prepaid,addressed to each of the parties at the addresses shown above on 12/09/2003.I declare Uf perjury under the laws of the State of California thatthe foregoing is true and correct. CMA FORMS FILING SERVICE.Signed by :Print NamelTitle :_ Executed at Las Vegas,Nevada on 12/09/2003. NOTICE TO PRIME OR GENERAL CONTRACTOR ~ THIS IS NOT A LIEN.THIS IS NOT A REFLECTION ON THE INTEGRITY OF ANY CONTRACTOR OR SUBCONTR.6N undersigned has entered into a contract to perform labor or furnish materials for the above-described public pro,~ look to you and your sureties for payment ifthe person ordering such materials and labor fails to pay for them.CX) X /Ivu'1r /kIf0 (4 ;'0j U /cJ./lo/0~~ 7100 6309 2640 1950 ~,.cALIF(,.~iUil"'.PMELIMINAR¥..tM;fAC&- In accordance with sections 3097 and 4852 3098,California Civil Code THIS IS NOT A LIEN.This is NOT a reflection on the integrity of any contractor or subcontractor. ; I (,.. .RECEI\!En ' has furnished or will furnlsti'labor,service,equipment or material of the following general for building structure,or other work of improvement ,f You are hereby notified that description:laO located at .i ]DEC 3·0:.A 8:2b ,The name of the person or firm who contracted for the,p~~~~~se ~f such labor,services,equipment or material furnished is ;Ii.S Clli ld,c.iC\ ;An estimate of the total price of the labor,serVI~~,d~&.f\8r1&i~~~ ~NOTICE TO PROPERTY OWNER "bills are not paId In full for tbe labor,"rrlces,equipment or materials fumlsbed or to be furnished.a mechanlc's lien Ieedlng to tbe loss.tbrougb court foreclosure proceedlnp,of all or part of your property being so Improred may be placed against the property eren tbougb you bare paid your contractor In full.You may wish to protect yourself against tbls consequence by (1)requiring your contractor to furnish asigned rele.e by tbe penon or firm airIng you tbls notice before making payment to YlMlr contractor or (2)any otber metbod or derlce tbat Is appropriate under the clrcumstancn. :.\ ~.:... This is not a lien.This notice is given pursuant to California civil code section 3097. This form is designed for a private work project.For a public work project,use a "California Preliminary 20-day Notice"(Public Work)form. NOTICE TO PROPERTY OWNER IF BILLS ARE NOT PAID IN FULL FORTHE LABOR,SERVICES,EQUIPMENT,OR MATERIALS FURNISHED OR TO BE FURNISHED,A MECHANIC'S LIEN LEADING TO THE LOSS,THROUGH COURT FORECLOSURE PROCEEDINGS,OF ALL OR PARTOF YOUR PROPERTYBEING SO IMPROVED MAY BE PLACED AGAINST THE PROPERTY EVEN THOUGH YOU HAVE PAID YOUR CONTRACTORIN FULL.YOU MAY WISHTO PROTECT YOURSELF AGAINST THIS CONSEQUENCE BY (1)REQUIRING YOUR CONTRACTORTO FURNISH A SIGNED RELEASE BY THE PERSON OR FIRM GIVING YOU Tms NOTICE BEFOREMAKING PAYMENT TOYOUR CONTRACTOR OR (2)ANY OTHERMETHOD OR DEVICE wmCH IS APPROPRIATE UNDER THE CIRCUMSTANCES. You are herebynotified:Date:December 10,2003 Thatthe undersigned has furnished orwill furnish labor,services,equipment,ormaterial ofthefollowing description: -.-..mc » Desalter Pro-*t :;;:g 32470 Paseo JlUelant6:3 ;0 San Juan Ca.tt;anndrA 9mS~~~Pr ('") ;;~~U1 m~;_..-' Description glass and glazing Jobsite By Title ---~~r-:--==--=-~i!-L-J'1"1-t'------- The name and address ofthe person who contracted for the purchase of such labor,service,equipment,or material is ARB Individual or Firm ,......,.-- To:San Juan Basin Authority Lease NOTICE construction Revenue Bonds TO CONSTRUCTION LENDERONLY lender or BNY Trust Co,700 S.Flower St Estimated total price for the labor,services, reputed equipment,ormaterials described hereon construction Los Angeles,CA lender 90017 $ Capistrano Valley Water Distn Trustfunds to which supplemental To:fringe benefits are payable owner 32400 Paseo Adelantoor reputed NAMEownerSanJuanCapistrano,CA 92675 ADDRESS NAME To:ARB ADDRESS original contractor 26000 Commercentre Dr.NAME or Lake Forest,CA 92630 ADDRESSreputed contractor ~&.&,DECLARATlON OFSERVICE I,(.tll/1 ~tr!A.J2 declare that I served the above Preliminary Notice by first class registered/certified mail poStg.prepaid1J:etlare uDde~~epenalty ofperjuryoftbe laws oftbeState ofCalifornia tbat tbe foregoing is true and correct on U /12 ~ChJtJ "3 Executed on .ike.--/0.dJ52--3 at ,California Signatureofperson making service:4~f:k:~&~ X f)vr£1 !UtI/au; Notice No. IYOU ARE HEREBY NOTIFIED THAT... CALIFORNIA PRELIMINARY NOTICE CUSTOMER I ARB 4404 YOUR ATTENTION IS DIRECTED TO SECTION 3097,3098 AND 3111, CALIFORNIA CIVIL CODE WHICH REQUIRES US TO NOTIFY YOU "THAT IF BILLS ARE NOT PAID IN FULL FOR LABOR,SERVICES,EQUIPMENT OR MATERIALS FURNISHED,OR TO BE FURNISHED,THE IMPROVED PROPERTY (WHICH IS DESCRIBED HEREON)MAY BE SUBJECT TO MECHANICS'LIENS". THIS STATEMENT IS APPLICABLE TO PRIVATE WORK ONLY. THIS IS NOT A LIEN,THIS IS NOT A REFLECTION ON THE INTEGRITY OF ANY CONTRACTOR OR SUBCONTRACTOR. CONSTRUCTION LENDER or Reputed Construction Lender,ifany. Saddleback Materials Company,Inc 20712 Indian Ocean Drive Lake Forest,CA92630 (949)837-7263 (949)583-9318Fax None Reported Has furnished or will furnish labor,services equipment or mateials of the following general description: Filled Sandbags For the building,structure or otheCifork of improvement located at: Capistrano Valley Water District 32400 Paseo Adelanto SJC CA 92675 An estimate of the total price abor,sfi:lO'ices,equipment or materials furnished or to beRarnishec.N: OWNER or Reputed Owner (on private work) or PUBLIC AGENCY on public work 32470 PaseoAdelanto SJCCA Job No 1436340 z ::0'-c::C"'",)z m--c::>::;-1 c::::("')---<W m~c-:.;~,..... ~,<..:::r;~»U):::CJ -~;~m::0 Q? $1600.00 ORIGINAL CONTRACTOR or Reputed Contractor,ifany. Trust Funds to which Supplemental Fringe Benefits are Payable:Additional Trust Funds to which Supplemental Fringe Benefits are Payable are listed on the backside. ECO Resources 32234 Paseo Adelanto Ste D San Juan Capistrano CA 92675 Proof of Service Affidavit I,D.HENNINGS declare that I served copies of the above PRELIMINARY NOTICE by first class certified or registered mail service,postage pre- paid,addressed to the following parties at the addresses listed on this notice. Ideclare under penalty ofperjury that the foregoing is true and correct..'/./~~. By:.::.~<..,~ Signature D.HENNINGS 11-25-03 NOTICETO PROPERTYOWNER: IFBILLSARE NOT PAID IN FULLFORTHE LABOR,SERVICES EQUIPMENTOR MATERIALSFURNISHED ORTO BEFURNISHED,AMECHANIC'SLIEN LEADING TOTHE LOSS,THROUGHCOURT FORECLOSURE PROCEEDINGS,OFALL OR PARTOFYOURPROPERTYBEINGSO IMPROVED MAY BE PLACEDAGAINSTTHE PROPERTYEVEN THOUGH YOU HAVEALREADY PAID YOURCONTRACTORIN FULL.YOU MAY WISHTOPROTECTYOURSELFAGAINSTTHISCONSEQUENCE BY (1)REQUIRING YOUR CONTRACTORTO FURNISH A SIGNED RELEASE BY THE PERSON ORFIRM GIVINGYOU THISNOTICE BEFOREMAKING PAYMENT TOYOUR CONTRACTOR OR (2)ANYOTHER METHODOR DEVICETHATIS AP- PROPRIATE UNDERTHE CIRCUMSTANCES. SUBCONTRACTOR/person orfirm who contracted for the purchase of such labor, services,equipment or material is: x ~f !4vtu ra ur' ARB Inc /4 /0326000CommercecenterDr Lake Forest CA 92630 Title Date CA236183 I III IIII Dated:11/19/03 7114 7389 6621 0693 3718 2 -Has furnished orwill furnish labor, services,equipment,or materials of the following general description: SCAFFOLDING &LABOR CALIFORNIA PRELIMINARY NOTICE In accordance with sections 3097 and 3098,California Civil Code This is not a Lien,This is not a reflection on the integrity of any contractor or subcontractor Reputed Owner 1 -You are hereby notified that 11/19/03 CA236183 BRAND SCAFFOLD RENTAL&ERECTION CAPISTRANO VALLEY WATER 6001 OBISPO AVE DISTRICT LONG BEACH CA 90805 32400 PASEO ADELANTO SAN JUAN CAPISTRANO CA 92675 Reputed Construction Lender or Lessee CO#DESALTER PROJECT BOND#24015060/LlBERTY MUTUAL INS CO/505 S MAIN ST #830 ORANGE CA 92868 3 -An estimate of the total price of the labor,services,equipment,or materials furnished or to be furnished is: $2,000.00 Reputed Original Contractor ECO RESOURCES 32234 PASEO ADELANTO #0 SAN JUAN CAPISTRANO CA 92675 4 -The building,structure or other work of improvement is located at: 70167/PO#25208-TR CONSTRUCTION OF DESALTER PROJECT 32470 PASEO ADELANTO SAN JUAN CAPISTRANO CA A.D.C.UNKNOWN 5 -The name of the person or firm who contracted for the purchase of such labor,services, equipment or material is: <rnc 1-800-366-5660 ARB-LKF PO BOX 5166 LAKE FOREST CA 92630 Signed Authorized Agent Cf).-.:t~§::0 6 -Name and address of Trust ~s to:Bhich rn Supplemental Fringe Benefits a[Do ~yab~("') (if applicable):Z_N rn~0 0 ==-Cr.u;~-;"U ---1,..-... ::0 W J:.'z Wo1:: 7 -Jobsite is Federal Public Work Title 40 USC Sec.270A-270E. Contract # Bond Co: NOTICE TO PROPERTY OWNER IF BILLS ARE NOT PAID IN FULL FOR THE LABOR, SERVICES,EQUIPMENT,OR MATERIALS FURNISHED OR TO BE FURNISHED,A MECHANICS'LIEN LEADING TO THE LOSS,THROUGH COURT FORECLOSURE PROCEEDINGS,OF ALL OR PART OF YOUR PROPERTY BEING SO IMPROVED MAY BE PLACED AGAINST THE PROPERTY EVEN THOUGH YOU HAVE PAID YOUR CONTRACTOR IN FULL.YOU MAY WISH TO PROTECT YOURSELF AGAINST THIS CONSEQUENCE BY (1)REQUIRING YOUR CONTRACTOR TO FURNISH A RELEASE SIGNED BY THE PERSON OR FIRM GIVING YOU THIS NOTICE BEFORE MAKING FINAL PAYMENT TO YOUR CONTRACTOR OR (2)ANY OTHER METHOD OR DEVICE THAT IS APPROPRIATE UNDER THE CIRCUMSTANCES. Construction Notice Services,Inc. CAl .·ORNIA PRELIMINARY NO'........CE IN ACCORDANCE WITH SECTIONS 3097 AND 3098,CALIFORNIA CIVIL CODE THIS IS NOT A LIEN,THIS IS NOTA REFLECTION ON THE INTEGRITY OF ANY CONTRACTOR OR SUBCONTRACTOR DATED: NAME /ADDRESS /PHONE NO.OF: REPUTED LENDER: AMEND 02 1.YOU A~~N.~TIFIED THAT '155D W UND,A V'SIt',DRIVE SAl'oJ fltt!.,RCOS.Cf\'920eg leu 47~·:Je(XI 2.has furnished or will furnish labor,services,equipment,or materials of the following general description: P!PF:2,VALVES FiTT!NGS.~RELATED ~';.r·\TEHlA1.S FOR WlHEP t.~Jt:'V~[R S\'~~TEMS REPUTED OWNER: ~:>AN JtH\N C,l\PISTRA,NG V,AiLEY WA1ER DISTRiCT ??4.0iJ PhSEO ADE1ANTC ~:~,~N JUAN Cf\PISTR.t\NO CA SI.67lj REPUTED ORIGINAL CONTRACTOR: '322,),,!PA::1[':)AD£LANTO,Sf£:D :3/\;\l JUAN (:,~\PI:;rR.l\NO,CA 82$1'5 949 if)·j'7'14 ••••JOINT CHECK REQUESTED •••• ••••NOTICE TO PROPERTY OWNER •••• 3.For use in and contributing to the building,structure or other work of improvement on the real nropertv located at:414·.)t::~40 "'("N';"rD1 1l;;·T"ll,,·/-"nEC'~l -r':p Opt','F'C'r11"",,)v~.t ',.t...,.J'J J fl.\..'--'.\...i I')......Jf 1J ....Jl"\L.,L:" ,..\Vd-~_','t ~NCLt.lOING W(':lL~:W,~TER lINE &DESAUNllAnc\ PLMffIiA.F'!OUS V'JELL &F·;PH.lNE LOCAT)ONS 32470 Pt\SEOADFLANTO ~)AN JUAN GAP;STHAJJO.ct~926l) 4.An estimate of the total price of the labor,services,equipment or materials furnished or to be furnished is: $E:37,500.00 5.The name of the person or firm who contracted for the purchase of such la~E~i~1~pipmentor material is: !600~1 COr..,ifv1ERCENTEH DHIVE 949 4S4.71~8 6.Bonding Company: If bills are not paid in full for the labor,services,equipment,or materials furnished or to be furnished,a mechanics'lien leading to the Joss,through coun foreclosure proceedings,of all or part of your property being so improved may be placed against the property even though you have paid your contractor in full.You may wish to protect yourself against this consequence by (1) requiring your contractor to furnish a signed release by the person or firm giving you this notice before making payment to your contractor or (2)any other method or d 'Vlce which IS appropnate under the CII:eUmstances X ~lfd V\;~ROOF OF SERVICE AFFIDAVIT l.j.,'j lOR tf V~'L 0"'<(SECTION 3097.1 &:3098 CALIFORNIA CIVIL CODE) I,,Ii ..I \p 2_/declare that I served copies of the above PRELIMINARY NOTICE (check appwp"ate box). D (a)By personally delivering\l~Jtsto AT on ,20 ,at .m , [Z](b)By First Class Certified or Registered Mail service,postage prepaid,addressed to each of the parties at the above address shown above on ).De~,20 ;~'{ I declare under the penalty of perjury that the foregoing is true and correct. Signed at ,California,on ,20 (ATTACH RECEIPTS OF CERTIFIED OR REGISTERED MAIL WHEN RETURNED) OWNER COpy Signature ofperson making service ,...--_...--_.__.------~,_.~-----.-/-.--.-......._- ~.. ;j1 •Complete items 1,2 &3.Also complete item 4 if~Restricted Delivery is desired."v-" ~1.Article Addressed To:(', o r\)o~ lJm--I--I~@ "oJJs::(f) ~;:~~t:1 '. NOTICE TO PROPERTY OWNER If bills are not paid In full for the labor.services.equipment or materials furnished or to be furnished,a mechanlc's lien leading to the loss.through court foreclosure proceedings.of all or part of your property being so improved may be placed against the property even though you have paid your contractor In full.You may wish to protect yourself against this consequence by (1)requiring your contractor to furnish asigned release by the person or firm giving you this notice before making payment to your contractor or (2)any other method or device that rs appropriate under the circumstances. ~',~'i*Ot~f·U::h·/j.;:t:PL ,U,Lli.l;HEr~~k*"~ (310)327-5554 •(800)423-4411 ·:-~~)if·,r ~J~J{~t~(,;):"1 ~)·~-r:f\l'.~(j1)C.:f\ L.,!L}~'PASFO ;:'~D,:L!~l'-~'l ~i Cj;-li:;.r-::~IPAN(!VAUt',;"Mfl,\I)I~;I;'(\ l.r;-,;F sn·Tti r \5'f~,~ntpa~ci8w,...(I:",',..i.:,'.I"it,Date_'.'_J./._,~,P,!"i't"i ,;1 ._.~.-.t....".,1.,) :D MAIL NUMBER Jlo 1112 4049 ..\,~j70 P~\~:;:~11 .'-\l'.'[Ll·.I',Tn '\DCL.OBl'3PO,~};~!.·.,/U 1,\.,~:l!'.',l :·.d 7.1rl."_ ;~:..: I..''''f",· r;l..!':,",C'fl::~r' ,-t:,t~{~~1 r',("!(,~itr",f~~t:t"~',f !:~~f"riF;:I \1 t~ :\/l i',:r,i>,(::1'.,i ~.'f'2 (]0- ,c ~r d J l.;:"f~J,":~\~)U,:;S()A ~.~.~/t';:..Cf~DErt·.'':'II,lF:::TY ~t..~*. ,«,l~· J'T',1--1.;"\::), ·.2 '::3 <;(,;:~I~:LU (\1)L!,i;rl{0 ,:jT(;t\ '':)H .115(·<1-1 c{~r"(~';n;~tlrU~(.();(?I>?~; The name of the person or firm who contracted for the purchase of such labor,services,equipment or material furnished or to be furnished is.:'If\'f:,I !'·11 An estimate of the total price of the labor,services,equipment or material is '!l5 1 {~,!\rJ ~\ill "t:\(~:;<i;Cr~;>:/:'L COHTF:ACTGf,~lnn:~' !C:;.J h~r.~.~r'Ltr.~1 C,F~~~.~ CALIFORNIA PRELIMINARY NOTICE In accordance with sections 3097 and 3098,California Civil Code THIS IS NOT A LIEN.This is NOT a reflection on the integrity of any contractor or subcontractor You are hereby notified that TOM MALLOY CORP.DBA TRENCH SHORING CO.,636 E.Rosecrans Ave.,Los Angeles,CA 90059 has furnished or will furnish labor,service,equipment or material of the following general description:sales and rentals of trench shoring equipment for building structure,or other work of improvement located at f:~~J:n \.';1 :in ;:t ,~I'.'!~..~\NO \j(.;1.L[.'{I~H~!TrR o AgentoAdpressee ~'~~~ DYesoNo ~..:4 i ~";:;(_.:$, ,I':~,~~I ) ~,I ,I ~i,~~l 7178 8518 8010 1112 4049 ,i ,~q ti'lf~-~y ':I ....,l D.Is delivery address different from Item 1? If Yes,enter delivery address below: 4.Restricted Delivery?(Extra Fee) 3.Service Type !XI Certified 2.Article Number I COMPLETE THIS SECTION ON DELIVERY I oa3C1l~II I I~C.Signature C:J ~"XC1l~ c...c0<: <0coco PRELIMINARY NOTICE -PUBLIC WORK (pursuant to California Civil Code Section 3098) TO:ECQ Resources,Inc. Contractor 32234 Paseo Adelanto Address ofContractor San Juan Capistrano,CA 92675 TO:Capistrano Valley Water District Public Agency (Owner or End User) 32400 Paseo Adelanto Address ofPublic AgencySAnJuanCapistrano,CA 92675 TO:Liberty M~tual Insurance Co. Surety 175 Berkeley Street Address of Surety Boston,MA 02117 (f)»-..e::::::t:or:C""'"""J'-~c::C'")»-;r-ra .P ,.., CJ--.I ",>':.'CX)or.1)U)~: --(:::::::u:>.. -,U1....-0 ,, ;:0mom-<mo You are hereby notified that Weir Floway,Inc.dba Floway Pumps,2494 S.Railroad Ave.,P.O.Box 164, Fresno,California 93707 has furnished or will furnish labor,services,equipment or materials to: ARB,Inc,26000 Cornrnercentre Dr.,Lake Forest,CA 92630 Buyer For use on public work at the followingjobsite:San Juan Basin Authority Desalter Project,32470 Paseo Adelanto z San Juan Capistrano,CA 92675 The labor,services,equipment or materials are described as Vertical Turbine Pump(s),motor(s),and Accessories. Floway Order Number:_5_2_1_6_6 Payment Bond No._2_4_0_1_5_0_6_0 _ Purchase Order Number:14 3 6 - 3 4 0 - 0 0 3---'-_....:....--'---'-----'-""----------------------- Date:December 2,2 003 ~~l. Dalton Griffin )I v e:-V-- Credit Manager FAX 559-442-4296 Telephone 559-443-6460 Weir Floway,Inc. 2494 S.Railroad Avenue P.O.Box 164 Fresno,CA 93707 Tel:{559}442-4000 Fax:{559}442-3098 www.floway.com RECEIVED :Sq Excellent Engineering Solutions nEAR LIQUID December 2,2003 Capistrano Valley Water District 32400 Paseo Adelanto San Juan Capistrano,CA 92675 Attention:Controller Sold To:ARB,Inc. CO#:52166 Customer#3959 We are sending you the enclosed notice as part of the routine of conducting our business. Occasionally,customers have felt that such a notice is a reflection upon the credit of the contractor.We want you to understand clearly that we have no such intention,but that we are merely complying with the law.These notices are sent on jobs where we furnish material upon the order ofsomeone other than the owner ofthe property.In this way,we comply with the law in all cases,and you are fully informed regarding all materials ordered for yourjob. We are pleased to have the opportunity to serve you. If you have any problems,in connection,with your job,we hope that both you and your contractor will make use of any help we might be able to give.We want to be sure that you are not only satisfied but,completely enthusiastic,about our products and service. Sincerely, Floway Pumps ~~~ Dalton Griffin,Credit Manager Enc!.Preliminary Notice Telephone:(559)443-6450 FP0<:(559)442-4296 CALIFORNIA PRELIMINARY 20-DAY NOTICE IN ACCORDANCE WITH SECTION 3097 AND 3098,CAIFORNIA CIVIL CODE THIS IS NOT A LIEN,THIS IS NOT A REFLECTION ON THE INTEGRITY OF ANY CONTRACTOR OR SUBCONTRACTOR /-----------------_._.__..- Construction Lender,or Reputed Construction Lender,if any None Owner,or Reputed Owner (on private work) OR Public Agency (on public work) Capistrano Valley Water District 32400 Paseo Adelanto San Juan Capistrano,CA 92675 Original Contractor,or Reputed Contractor,if any ECO Resources 32234 Paseo Adelanto Ste.D San Juan Capistrano,CA 92675 Person or Firm with whom Claimant has Contracted ARB 26000 Commercecentre Drive Lake Forest,CA 92630 Notice to Property Owner: If bills are not paid in full for the labor, services,equipment,or materials furnished or to be furnished,a mechanic's lien leading to the loss,through court foreclosure proceedings,of all or part of your property being so improved may be placed against the property even though you have paid your contractor in full.You may wish to protect yourself against this consequence by (1) requiring your contractor to furnish a signed release by the person or firm giving you this notice before making payment to your contractor,or (2)any other method or device that is appropriate under the circumstances. You are hereby notified that L.T.Excavating,Inc. 27601 Forbes Rd.,#54 Laguna Niguel,CA 92677 c.J) Has furnished or will furnW1labo~rvic~equipment or materials of the followiijQ genetcrrdes{,;rftion: Excavation and Grading ~c.S ~;;;-=-.c:::\.~=--.rn(J.....0 For the estimated total pri~Pf:-0 < $10,945.00 (/)::m- For the building,structure,~otherWOrk o~provement located at::.:.&: Alipaz &Mariner Pump Stattbn ..0 Construction of Desalter Project 32470 Paseo Adelanto ,CA 92675 Person or Firm who Contracted for the purchase of labor,services,equipment or material ARB 26000 Commercecentre Drive Lake Forest,CA 92630 If notice is given by a subcontractor who is required to pay fringe benefits under a collective bargaining agreement,the names and addresses of the fringe benefit trusts follow: Operating Engineers,Laborers PROOF OF SERVICE AFFIDAVIT The undersigned served copies ofthis Preliminary 20-Day Notice by first class registered or certified mail, postage prepaid,on the persons and at the addresses shown on 11-10-2003 I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct. Dated:.,0 -D Signature:-vt.:.L.J~~L./..-.!-~Y-.:::::=~__ Name:Yvo P Shon Title:Contract Administrator Phone:(949)367-1941 JobDox Project ID:287 Preparer's Company Project ID:03-113 Copyright 2000-2003 byJobdox,LLC,The automated solution to management ofpreliminary notices,releases and payments.X ~~~II tli1~7;;~;~-19;););;;::rt http:/~.~ox.oom CA241205 IIIII III 7114 7389 6621 0705 0445 Dated:12/09/03 2 -Has furnished or will furnish labor, services,equipment,or materials of the following general description: HEAVY CONSTRUCTION EQUIPMENT CALIFORNIA PRELIMINARY NOTICE In accordance with sections 3097 and 3098,California Civil Code This is not a Lien,This is not a reflection on the integrity of any contractor or subcontractor Reputed Owner 1 -You are hereby notified that 12/09/03 CA241205 HERTZ EQUIPMENT RENTAL #9647 CAPISTRANO VALLEY WATER 25831 W WRIGHT ST DISTRICT FOOTHILL RANCH CA 92610 32400 PASEO ADELANTO SAN JUAN CAPISTRANO CA 92675 Reputed Construction Lender or Lessee $5,000.00 CO#DESALTER PROJECT BOND#24015060/UBERTY MUTUAL INS CO/505 S MAIN ST #830 ORANGE CA 92868 Reputed Original Contractor ECO RESOURCES 32234 PASEO ADELANTO #D SAN JUAN CAPISTRANO CA 92675 3 -An estimate ofthe total price of the labor,services,equipment,or materials furnished or to be furnished is: (J) }>:z '- 4 -The building,structure or otiiBvor~ improvement is located at:Z -<_ CJ148ARBINC-ARB IN »~N 32470 PASEO ADELANTO ~:;::.,U SAN JUAN CAPISTRANO C.A;j:;~ 92675 »z wo.r::: ::tJm (")m-<mo A.D.C.UNKNOWN NOTICE TO PROPERTY OWNER IF BILLS ARE NOT PAID IN FULL FOR THE LABOR, SERVICES,EQUIPMENT,OR MATERIALS FURNISHED OR TO BE FURNISHED,A MECHANICS'LIEN LEADING TO THE LOSS,THROUGH COURT FORECLOSURE PROCEEDINGS,OF ALL OR PART OF YOUR PROPERTY BEING SO IMPROVED MAY BE PLACED AGAINST THE PROPERTY EVEN THOUGH YOU HAVE PAID YOUR CONTRACTOR IN FULl.YOU MAY WISH TO PROTECT YOURSELF AGAINST THIS CONSEQUENCE BY (1)REQUIRING YOUR CONTRACTOR TO FURNISH A RELEASE SIGNED BY THE PERSON OR FIRM GIVING YOU THIS NOTICE BEFORE MAKING FINAL PAYMENT TO YOUR CONTRACTOR OR (2)ANY OTHER METHOD OR DEVICE THAT IS APPROPRIATE UNDER THE CIRCUMSTANCES. 5 -The name of the person or firm who contracted for the purchase of such labor,services, equipment or material is: 6003093/ARB INC 26000 COMMERCENTRE DR LAKE FOREST CA 92630 6 -Name and address of Trust Funds to which Supplemental Fringe Benefits are payable (if applicab!9): 7 -Jobsite is Federal Public Work Title 40 USC Sec.270A-270E. Contract # Bond Co: Signed 1-800-366-5660 CA210813 II II II Dated:08/30/03 2 -Has furnished or will furnish labor, services,equipment,or materials of the following general description: CRANE RENTAL 7114 7389 6621 0633 0944 CALIFORNIA PRELIMINARY NOTICE In accordance with sections 3097 and 3098,California Civil Code This is not a Lien,This is not a reflection on the integrity of any contractor or subcontractor Reputed Owner 1 -You are hereby notified that 08/30/03 CA210813 MR CRANE INC CAPISTRANO VALLEY WATER 647 N HARITON ST DISTRICT ORANGE CA 92668 32400 PASEO ADELANTO SAN JUAN CAPISTRANO CA 92675 Reputed Construction Lender or Lessee CO#L1NE &DESALINIZATION PLANT BOND#24015060/L1BERTY MUTUAL INS CO/505 S MAIN ST #830 ORANGE CA 92686 Reputed Original Contractor ECO RESOURCES 32234 PASEO ADELANTO #D SAN JUAN CAPISTRANO CA 92675 A.D.C.UNKNOWN NOTICE TO PROPERTY OWNER IF BILLS ARE NOT PAID IN FULL FOR THE LABOR, SERVICES,EQUIPMENT,OR MATERIALS FURNISHED OR TO BE FURNISHED,A MECHANICS'LIEN LEADING TO THE LOSS,THROUGH COURT FORECLOSURE PROCEEDINGS,OF ALL OR PART OF YOUR PROPERTY BEING SO IMPROVED MAY BE PLACED AGAINST THE PROPERTY EVEN THOUGH YOU HAVE PAID YOUR CONTRACTOR IN FULL.YOU MAY WISH TO PROTECT YOURSELF AGAINST THIS CONSEQUENCE BY (1)REQUIRING YOUR CONTRACTOR TO FURNISH A RELEASE SIGNED BY THE PERSON OR FIRM GIVING YOU THIS NOTICE BEFORE MAKING FINAL PAYMENT TO YOUR CONTRACTOR OR (2)ANY OTHER METHOD OR DEVICE THAT IS APPROPRIATE UNDER THE CIRCUMSTANCES. 3 -An estimate of the total price ofthe labor,services,equipment,or materials furnished or to be furnished is: $3,575.00 4 -The building,structure or other work of improvement is located at: LINE &DESALINIZATION ~~ PLANT ~8 ::0 32470 PASEO ADELANTO ~n ~m SAN JUAN CAPISTRANO Ck::-0 C)~n ~m 5 -The name ofthe person or~;;wh~ntr"'~d for the purchase of such labo~eivic@i Tn' equipment or material is:2:..0 ....--ARB INC C>00 2600 COMMERCENTER DR LAKE FOREST CA 92630 6 -Name and address of Trust Funds to which Supplemental Fringe Benefits are payable (if applicable): 7 -Jobsite is Federal Public Work Title 40 USC Sec.270A-270E. Contract # Bond Co: Signed Authorized Agent 1-800-366-5660 File:61.666 (CA PB) N;tice Requested by and Return to: United Rentals Northwest,Inc. 19772 MacArthur Blvd.#260 Irvine,CA 92612 Owner Customer:ARB INC LAKE FOREST CA Cust #:ND their Job# Job Name:Construction of Desalter Project/J Job #:50334945025 Cert #:7003 0500 0003 1018 9038 PRELIMINARY 20-DAY NOTICE (PUBLIC WORK) THIS IS NOT A LIEN.THIS IS NOT A REFLECTION ON THE INTEGRITY OF ANY CONTRACTOR OR SUBCONTRACTOR TO THE OWNER OR REPUTED OWNER Capistrano Valley Water District Attn:Construction Disbursement Officer 32400 Paseo Adelanto San Juan Capistrano,CA 92675 1.The following is a general description of the labor,or materials furnished or to be furnished by the undersigned: Miscellaneous,Construction &Equipment Rentals 2.Estimated Price $12,400.00 POBOX 5166 TO THE ORIGINAL OR REPUTED CONTRACTOR ECO Resources Inc/ECO Capistrano Valley Inc 32234 Paseo Adelanto D San Juan Capistrano,CA 92675 TO THE LENDER/SURETY OR REPUTED LENDER/SURETY San Juan Basin Authority Lease Revenue Bonds BNY Trust Company 700 S Flower St Los Angeles,CA 90017 Bond/Loan #24015060 3.The name of the person who furnished that labor,service,equipment or materials is: United Rentals Northwest,Inc. Attn:Ms.Eve Gower 19772 MacArthur Blvd.#260 Irvine,CA 92612 4.The name of the person who contracted for purchase of that labor,service,equipment or material is: ARB INC LAKE FOREST CA USE FOR ALL ARB BRANCHES LAKE FOREST,CA 92630 5.The description of the jobsite is: Construction of Desalter Project/Job#1331119T 32470 Paseo Adelanto San Juan Capistrano,CA 92675 REQUEST FOR COPY OF PAYMEMT BOND AND NAME OF SURETY COMPANY TO CONTRACTING BODY:Capistrano Valley Water District The undersigned claimant hereby declares that he has supplied labor or materials as described above,that payment has not yet been made therefore,and that he hereby requests that the contracting body furnish a certified copy of the Payment Bond,if any,to the claimant,at the address listed above,and the current address of the contracting public entity. NOTICE TO PRIME OR GENERAL CONTRACTOR that I am authorized to file this claim on behalf of the claimant. document and know the contents thereof;the same is true of my own t ~erjury t at the foregoing is true and correct.Executed at~_~.•_·t~d Rent Northwest,Inc .. ------Q.." By: THIS IS NOT A LIEN.THIS IS NOT A REFLECTION ON THE INTEGRITY OF ANY CONTRACTOR OR SUBCONTRACTOR.THE UNDERSIGNED HAS ENTERED INTO A CONTRACT TO PERFORM LABOR OR FURNISH MATERIALS FOR THE ABOVE-DESCRIBED PUBLIC PROJECT,AND WILL LOOK TO YOU AND YOUR SURETIES FOR PAYMENT IF THE PERSON ORDERING SUCH MATERIALS AND LABOR FAILS TO PAY FOR THEM. (/) );>......., I2lave rjid t~ k~wledg~I ~lare s~nva1AAy,cDr10n Z-,-0 (") ?__.c-,~'_,•!._mSalinaReyes,Lien Administrator =~--~ PROOF OF SERVICE BY MAIL AFFIDAVIT ~~(l>~ I declare that I served a copy of the above document,and any related documen~by tiS reered by law)first-class,certified or registered mail,postage prepaid,addressed ~the-aPove named parties,at the addresses listed above,on 08/28/03.I declare under penalty ~perj~y that the fOregOing~\t~~\and Cqr~J:ct.Executed at Simi Valley,CA on 08/28/03. ,\ )I By:~,;....-..Qt,,'Salina Reyes,Lien Administrator I II I 8/28/2003 Capistrano Valley Water District Attn:Construction Disbursement Officer 32400 Paseo Adelanto San Juan Capistrano,CA 92675 Re:Notice To Owner Or Public Entity Dear Sir or Madam, 70030500000310189038 We are required by the laws ofthis state to notify you that we are furnishing labor,services,equipment or materials ofthe type described on the enclosed standard form for the work ofimprovement known as the:Construction of Desalter Project/Job#1331119T,located at 32470 Paseo Adelanto,San Juan Capistrano,CA 92675. Such labor,services,equipment or materials were contracted for by:ARB INC LAKE FOREST CA,who is one ofthe owners, general contractors or subcontractors ofthis project. We are further required by law to notify you at this time that ifbills are not paid in full for labor,services,equipment or materials furnished,or to be furnished,the improved property may be subject to mechanic's liens or stop notices,or a notice to withhold funds may be filed where applicable.The enclosed notice is not intended to reflect in any way on the integrity or credit standing ofthe contractors involved in this job,but is given merely to comply with the laws ofthis state.However,to fully protect yourself you may consider (l)requiring your contractor to furnish a signed release from the person or firm giving you this notice before making payment to your contractor,or (2)any other method or device which is appropriate under the circumstances to guarantee payment ofthis debt.We appreciate the opportunity offurnishing our services for this job and we hope it is progressing to your satisfaction. Should you have any questions concerning this request,please feel free to call us at (949)553-2167.Thank you. Sincerely, ~Q"4.\) By:~Salina Reyes,Lien Administrator For:United Rentals Northwest,Inc. 19772 MacArthur Blvd.#260 Irvine,CA 92612 Phone:(949)553-2167 Fax:(949)862-1110 THIS IS NOT A LIEN.THIS NOTICE IS GIVEN PURSUANT TO SECTIONS 3097 AND 3098, CALIFORNIA CIVIL CODE.THIS IS NOT A REFLECTION ON THE INTEGRITY OF ANY CONTRACTOR OR SUBCONTRACTOR.I 1I1II1 CALIFORNIA PRELIMINARY NOTICE 708877 I ZOOl SEP I~pu t~If.t'tfREBYNOTIFIED THAT... STANDARD CONCRETE PRODUCTS INC OWNER or Reputed Owner (on private work)02 CITY CLEii>io BOX 15326 or PUBLIC AGENCY (on public work)UA""C~0 laT~""In..T'----¥.Il..LI..J....~rJ JPd ."fLRl-~"A CA 92735-5326 112317 3422 949-493-1515 CAPISTRANO VALLEY WATER DISTRICT 32400 PASEO ADELANTO SAN JUAN CAPISTRANO CA 92675 CONSTRUCTION LENDER or Reputed Construction Lender,ifany. NONEIBOND #240150601BOND CO: SAN JUAN BASINAUlHORITY LEASE REVENUE BONDSIBNY TRUST CO 700 S FLOWER ST #2 LOS ANGELES CA 90017 ORIGINAL CONTRACTOR or Reputed Contractor,ifany. 949-218-7714 ECO RESOURCES 32234 PASEO ADELANTO #D SAN JUAN CAPISTRANO CA 92675 03 has furnished or will furnish labor,services,equipment or materials ofthe following general description:1331119T READY MIX CONCRETE AND/OR BUILDING MATERIALS for the bUilding,structure or other work ofimprovement located at: "CONST OF DESALTER PROJ" 32470 PASEO ADELANTO SAN JUAN CAPISTRANO CA JOB #1331-119T (WELLS,WATER LINE &DESALINIZATION PLANT) An estimate ofthe total price ofthe labor,services, equipment or materials furnished orto be furnished is: $25,488.00 Trust Funds to which Supplemental Fringe Benefits are payable: SUB CONTRACTOR Iperson or firm who contracted for the purchase of such labor,services,equipment ormaterials is: 949-598-9242 ARB INC 26000 COMMERCENTRE DRIVE LAKE FOREST CA 92630 BY:CiJvJ..tL (A'ayO (Signature) 09/03/2003 R L Agent (Title) Dated:09118/2003 OTHER INFORMATION,ifany. BOND AGENT: MCGOWAN &ASSOCIATES 1450 GRANT AVE #210 NOVATO CA 94945 Thisform prepared byCAPRENOS INC 4345 Murphy Canyon Rd NOTICE TO PROPERTY OWNER IF BILLS ARE NOT PAID IN FULL FOR THE LABOR, SERVICES,EQUIPMENT,OR MATERIALS FURNISHED OR TO BE FURNISHED,A MECHANIC'S LIEN LEADING TO THE LOSS,THROUGH COURT FORECLOSURE PROCEEDINGS,OF ALL OR PART OR YOUR PROPERTY BEING SO IMPROVED MAY BE PLACED AGAINST THE PROPERTY EVEN THOUGH YOU HAVE PAID YOUR CONTRACTOR IN FULL YOU MAY WISH TO PROTECT YOURSELF AGAINST THIS CONSEQUENCE BY (1)REQUIRING YOUR CONTRACTOR TO FURNISH A SIGNED RELEASE BY THE PERSON OR FIRM GIVING YOU THIS NOTICE BEFORE MAKING PAYMENT TO YOUR CONTRACTOR OR (2)ANY OTHER METHOD OR DEVICE THAT IS APPROPRIATE UNDER THE CIRCUMSTANCES. 200,San Diego CA92123 (800)854-2100,FAX (858)560-7626 C,--'I\I\,--':::I\'I:I\ESL·:;'L\\T PL,\:::TI,,' :-L\TEI\I.\L5 (?5[PP1-'1:5 CALIFORNIA PRELIMINARY NOTICE Acct.#51J493 (Log #13-0829 Prelim #:3IHP 161-1~ ""1--N-A-C~C-O-R-O-A-N-C-E-W-IT-H-S-E-C-T-IO-N-3-09-7-A-N-O-3-09-S--',DESCRI PTION OF MATERIALS,LABOR,SERVICES OR CALIFORNIA CIVIL CODE.THIS IS NOT A LIEN,THIS EQUIPMENT FURNISHED. IS NOT A REFLECTION OF THE INTEGRITY OF ANY CONTRACTOR OR SUBCONTRACTOR. YOU ARE HEREBY NOTIFIED THAT..... INDIVIDUAL OR FIRM IIAI\I\I:\UTO:\I0:DL 'STI\L\L PLASTICS 1--!--!SO YL'I\13;\A\/E CIII:\,--,C;\9 11 10 ADDRESS OF BUILDING,STRUCTURE,WORK OF IM- PROVEMENT 9(J9-59j-Sh-!1 IIA~01":\\'"11,1,FI 'J\NI~f!L\130J\,~f;I\\'ILr>,b~l'IPj\lENT01\\L\TEr\L\L. The name of the person of firm who contracted for the purchase of such labor,services,equipment or material is: :::;\:\Jl.\:\B,\51:\,\l'Tlk'I\ITY !)I:::-:\IJEI\ 3,'2-!/0 P,\5b..',\DEI.,\\T",' :::,\:\Jl ,\:\C,\I)J5TI\I\\"''''--~i\()~h'JS ESTIMATED TOTAL PRICE OF THE LABOR,SERVICES, EQUIPMENT OR MATERIALS DESCRIBED HEREON. TO: CONSTRUCTION LENDER OR REPUTED CONSTRUCTION LENDER TO: BOND CO. TO: OWNER OR REPUTED OWNER TO: ORIGINAL CONTRACTOR OR REPUTED CONTRACTOR AI\13,/:'\C. 36000 C'--'0\1\\E/\CE~TI\E D!\. L\KE 1-<'1\I;ST,CA Cf2630 ;\CCT#()30S-!3 ®5IW?J6J-I\-S OW':\[I\/FII\;\]\CED 51102J61-1\-. BOllJ #. 51102J6J-I\-B CAPIST1\;\:\L'VALLEY \'CATEI\DlSTI\ICT A COMPON[:\T [:\IT OF THE CITY L'F S.J.C. 3.?-!()()P/\SE,--'ADELAI\Tl' S;-\:\Jl :A:\C/\PISTRA,\,--'CA C)2h75 51 I()2J6J-/\-I.) [CO /\ES,---,[:I\CES I\JClECL'CAP/STI\AN,--,\'Al 32:'23--!-PASE,--,ADEL\:\TL' 51\1'\Jl :;\:\C\PISTR/\:\'--'C\92615 I~"'(~."'105/J(),'2J6J-I\-,--~19 u --', S IOO,UOO.OO ,\,\\[:\])1:1) BUT NOT LIMITED TO TRUST FUNDS TO WHICH SUPPLEMENTAL FRINGEBENEFITS ARE PAYABLE (j) l>"-0):e ::0 C:c;e,...,m?:=i !:ti..:-,(")~~N m -0'- (MATERIAL MEN NOT REa~~TOFu;DsH TH~VE) ........ NOTICE TO PROPERty OWNER If bills are not paid in full for the labor,services,equip- ment,or materials furnished or to be furnished,a mechanic's lien leading to the loss,through court fore- closure proceedings,of all orpart of your property being so improved may be placed against the property even though you have paid your contractor in full.You may wish to protect yourself against this consequence by (1) requiring your contractor to furnish a signed release byttrepersonorfirmgivingyouthisnoticebeforemaking paym'ent to your contractor or (2)any other method or device which is appropriate under the circumstances. I,~~~~~~~~~~~~~~~~~~~~~~_declarethatlservedcopiesoftheabovePreliminary Notice by first clas mail,postage prepaid,on the lender,owner,original contractor,and the prime subcontractor ai1t.e..0,ve addres~esx,nm i,'t11 OCLU9-03.,~.,1 _.()~/2/OS ~D PRELIM SERVICES,INC. 7108 1800 8317 0448 9025 I III"II ITHISISNOTALIEN.THIS NOTICE IS GIVEN PURSUANT TO SECTIONS 3097 AND 3098, CALIFORNIA CIVIL CODE.THIS IS NOT A REFLECTION ON THE INTEGRITY OF ANY CONTRACTOR OR SUBCONTRACTOR. 704489 I Make all checksjointly payable OWNER or Reputed Owner (on private work) or PUBLIC AGENCY (on public work) 02 YOU ARE HEREBY NOTIFIED THAT... EL TOROMATERIALS 20851 EL TORO RD LAKE FOREST CA 92630 CALIFORNIA PRELIMINARY NOTICE 110008 1184 949-493-1515 CAPISTRANO VALLEY WATER DISTRICT 32400 PASEO ADELANTO SAN JUAN CAPISTRANO CA 92675 has furnished orwill furnish labor,services,equipment or materials ofthe following general description:1632 SAND AND GRAVEL MATERIALS CONSTRUCTION LENDER or Reputed Construction Lender,ifany.for the bUilding,structure or other work of improvement located at: NONEIBOND CO: SAN JUAN BASINAlITHORITY LEASE REVENUE BONDSIBNY TRUST CO 700 S FLOWER ST #2 LOS ANGELES CA 90017 ORIGINAL CONTRACTOR or Reputed Contractor,ifany. 03 "CONSTRUCTION OF DESALTER PROJECT" 32470 PASEO ADELANTO SAN JUAN CAPISTRANO CA JOB #1331119T (WELLS,WATER LINE & DESALINIZATION PLANT) /ECO RESOURCES 32234 PASEO ADELANTO #D SAN JUAN CAPISTRANO CA 92675 An estimate ofthe total price ofthe labor,services, equipment or materials furnished or to be furnished is: $35,000.00 m (') m-U1 Trust Funds to which Supplemental nge Be~lts are payable:Z gs J("")>r-~r.·1~§l 1)< BY:_C_"JII:..JN1'Io6Ii/_O,-J(..u.ALIooI'err.......,.O__~&:w.e;;....n..;.,.t--...~i=._at_ed.....e;::=·,../_11_/2_0_03_ (Signature)~itle)+: 08/22/2003 G R L 714-447-9760 ARBINC POBOX 1404 PARAMOUNT CA 90723 SUB CONTRACTOR lperson or firm who contracted for the purchase ofsuch labor,services,equipment or materials is: OTHER INFORMATION,if any. BOND #24015060IBOND AGENT: MCGOWAN &ASSOCIATES 1450 GRANTAVE #210 NOVATO CA 94945 NOTICE TO PROPERTY OWNER IF BILLS ARE NOT PAID IN FULL FOR THE LABOR, SERVICES,EQUIPMENT,OR MATERIALS FURNISHED OR TO BE FURNISHED,A MECHANIC'S LIEN LEADING TO THE LOSS,THROUGH COURT FORECLOSURE PROCEEDINGS,OF ALL OR PART OR YOUR PROPERTY BEING SO IMPROVED MAY BE PLACED AGAINST THE PROPERTY EVEN THOUGH YOU HAVE PAID YOUR CONTRACTOR IN FULL.YOU MAY WISH TO PROTECT YOURSELF AGAINST THIS~~~CONSEQUENCE BY (1)REQUIRING YOUR CONTRACTOR TO FURNISH A SIGNED RELEASEltall\l ~.BY THE PERSON OR FIRM GIVING YOU THIS NOTICE~Dtl BEFORE MAKING PAYMENT TO YOUR CONTRACTOR OR (2)ANY OTHER METHOD OR DEVICE THAT IS APPROPRIATE UNDER THE CIRCUMSTANCES. This form prepared by CAPRENOS INC 4345 Murphy Canyon Suite 200,San Diego CA 92123 (800)854-2100,FAX (858)560-7626 VULCAN MATERIALS CO CALMAT DIV 3200 SAN FERNANDO RD LOS ANGELES CA 90065 THIS IS NpT A LIEN.THIS NOTICE IS GIVEN PU~SUANT TO SECTIONS 3097 AND 3098, CALIFORNIA CIVIL CODE.THIS IS NOT A REFLECTION ON THE INTEGRITY OF ANY CONTRACTOR OR SUBCONTRACTOR. 706209 I Make all checks jointly payable OWNER or Reputed Owner (on private work) or PUBLIC AGENCY (on pUblic work) I III IIIII 7108 1800 8317 0620 9027 YOU ARE HEREBY NOTIFIED THAT... 02 CALIFORNIA PRELIMINARY NOTICE 199812 5665 CAPISTRANO VALLEY WATER DIS1RICT 32400 PASEO ADELANTO SAN JUAN CAPISTRANO CA 92675 has furnished or will furnish labor,services,equipment or materials of the following general description:1183877 CONSTRUCTION LENDER or Reputed Construction Lender,ifany. READY MIX CONCRETE,ROCK, SAND,GRAVEL,PAVING MATLS ASPHALT,PRODUCTS &SVCS for the building,structure or other work of improvement located at: NONEIBOND CO: SAN JUAN BASIN AUTHORITYLEASE REVENUE BONDS,BNY TRUST CO 700 S FLOWER ST LOS ANGELES CA 90017 ORIGINAL CONTRACTOR or Reputed Contractor,if any.03 "CONSTRUCTION OF DESALTER PROJECT" 32470 PASEO ADELANTO SAN JUAN CAPISTRANO CA SUB JOBIPO #1331119T CRAIG (INCLUDES WELLS,WATER LINE & DESALINIZATIONPLANT) ;' 949-218-7714 ECO RESOURCES/ECO CAPISTRANO VALLEY INC 32234 PASEO ADELANTO #D SAN JUAN CAPISTRANO CA 92675 An estimate ofthe total price ofthe labor,services, equipment or materials furnished or to be furnished is: $4,000.00 Trust Fundsto which Suppleme Fringe JaeIlefrts are payable::z:g SUB CONTRACTOR Iperson or firm who contracted for the purchase of such labor,services,equipment or materials is: 949-598-9242 ARBINC 26000 COMMERCENTRE DR LAKE FOREST CA 92630 ~£2 ~I'T1 ......-j -0 "'""--<'"~f;c;.C.J'1 m-oreng ,.,<: --i;-;;:U m BY:CJI\1ca:..;'IlO:!:OJ:liIQR,-~.w.:LU"""t'f(_Q"----_-=~~.g~en-t-W-D-a-t$..-..._09_/1_1_/2_00_3_ (Signature)5 (Title).r:: 08/27/2003 R L - NOTICE TO PROPERTY OWNER IF BILLS ARE NOT PAID IN FULL FOR THE LABOR, SERVICES,EQUIPMENT,OR MATERIALS FURNISHED OR TO BE FURNISHED,A MECHANIC'S LIEN LEADING TO THE LOSS,THROUGH COURT FORECLOSURE PROCEEDINGS,OF ALL OR PART OR YOUR PROPERTY BEING SO IMPROVED MAY BE PLACED AGAINST THE PROPERTY EVEN THOUGH YOU HAVE PAID YOUR CONTRACTOR IN FULL.YOU MAY WISH TO PROTECT YOURSELF AGAINST THIS CONSEQUENCE BY (1)REQUIRING YOUR CONTRACTOR TO FURNISH A SIGNED RELEASE BY THE PERSON OR FIRM GIVING YOU THIS NOTICE BEFORE MAKING PAYMENT TO YOUR CONTRACTOR OR (2)ANY OTHER METHOD OR DEVICE THAT IS APPROPRIATE UNDER THE CIRCUMSTANCES. OTHER INFORMATION,ifany. This form prepared by CAPRENOS INC 4345 Murphy Canyon d uite 200,San Diego CA92123 (BOO)854-2100,FAX (858)560-7626 Western DMslon It is impossible for Vulcan to know with any exact certainty the total doUar amount of materials and sen'ices to be provided by Vulcan to the work of improvement.Because of this,before any amounts are paid to the contractor,or subcontractor,you should request a signed release document from Vulcan. 3200 SAN FERNANDO ROAD.LOS ANGELES,CALIFORNIA 90065-1415.TELEPHONE 323 258-2777 7100 6309 2640 1938 8476 ,CER"~~MAIL NL"':'-,CALlfiivahlA PRELIMINARY NO:UCE In accordance with sections 3097 and 3098,California Civil Code THIS IS NOT A LIEN.This is NOT a reflection on the integrity of any contractor or subcontractor. .ras furnished or will furnish labor,service,equipment or material of the following general ;..tI r;':,~...for ~~Iding structure,or other work of improvement ;f r·f·'-;..; ;" I, :You a~~~,~rEftrw,,~i~'~Hat; ,description: I located at :The nflm~of;~~per~riPf~j~."?wfPff>n~f.ft~for t~purchase of such labor,services,equipment or material furnished is r ;An eS~'l19~qt,lt~n.¥>l~~p~~~t~E(Ifflw,~~ryiges,equipment or material is :'I "l<.()I!',';:/"10 NOTICE TO PROPERTY OWNER q ~0 \0 If bills are not paid In full lor the labor,services,equipment or materials furnished ~or to be furnished,a mechanic's lien leading to thl loss,through court foreclosure I ,('•i H\:proceldlnp,of all or part of your propert,being so Improved ma,be placed against~the propert,lVen though ,ou han paid ,our contractor In full.You ma,wish to,H 'H"H,!,I:,:,i prol8cl ,ourself against this consequence b,(1)requiring ,our contractor 10 lurnlsh asigned rele.e b,the person or Ilrm gl,lng ,ou this notice before maiIlR.pa,mlnt to ,our contractor or (2)any other method or dlVlce that Is appropriate under the circumstances.'t;j S \~iS\d~J ~\'V\~r NON~)nr:1'\J ,J.. b\dJS (~~l 0"~\d 03 ~,;atiatl;":",:i,;::j'~J::·,> """,.P,X ~J\12-~~~~~,:,; C127073 CALIFORNIA PRELIMINARY NOTICE IN ACCORDANCE WITH SECTION 3097 AND 3098,CALIFORNIA CIVIL CODE THIS IS NOT A LIEN,THIS IS NOT A REFLECTION ON THE INTEGRITY OF ANY CONTRACTOR OR SUBCONTRACTOR 714-522-4403 YOU ARE HEREBY NOTIFIED THAT .... WEST COAST SAND &GRAVEL 73120RANGETHORPE BUENA PARK,CA 90621 ::0mBUILDINGMATERIALS&RELATED SAN JUAN CAPISTRANO,CA has furnished orwill furnish labor,services,-..ipment or materials of the following general description:~g c....'-'c::C")(;')l>-,.." PRODUCTS,DELIVERY ===2 -0 ("') C")-m for the building,structure or other work of i~~eme~ocate<!:!t CONSTRUCTION OF DESALTER en :::::.'1)" PROJECT,WELLS,WATER LINE &DESAWiiATIGlt)PLA~ CAMINO DEL AVION &ALIPAZ ~~0 o 0 CONSTRUCTION LENDER or Reputed construction Lender,if any. (BOND)#24015060 MCGOWAN & ASSOC. 1450 GRANT AVE #210 NOVATO,CA 94945 71006309264022300847 such labor,services,equipment or material is: ARB INC 26000 COMMERCENTRE DR LAKE FOREST,CA 92630 OWNER or Reputed Owner (on private work) or PUBLIC AGENCY (on public work)949-598-9242 An estimate ofthe total price ofthe labor,services,equipment or materials furnished or to be furnished is: $5100.00 CITY OF SAN JUAN CAPISTRANO 32400 PASEO ADELANTO SAN JUAN CAPISTRANO,CA 92675 Trust Funds to which Supplemental Fringe benefits are payable: NOTICE TO PROPERTYOWNER If bills are not paid In full for the labor,services,equipment,or materials furnished or to be furnished,a mechanic's lien leading to the loss,through court foreclosure proceedings,of all or part of your property being so improved may be placed against the property even though you have paid your contractor In full.You may wish to protect yourself against this Ctlll..;e::tuc...nc~;;:'''"Ij rt.'-i"iri••"ft'~.-'-.,I..~.a",,,)r .""iur...:.ih Q..s .,.,C:-C-._~~;::.».;;. by the person orfirm giving you this notice before making payment to your contractor or (2)any other method or device that Is appropriate under the circumstances. 71006309264022300854 Dated 9/4/2003 , .'.... -----_-----:-<--,~---~-------- ORIGINAL CONTRACTOR or Reputed Contractor,if any. Signature (title) ARB INC 26000COMMERCENTREDR LAKE FOREST,CA 92630 PRELIM SYSTEMS INC.,P.O.BOX385,LA VERNE,CA 91750-0385 •cdit..._'~---- ''::RTIFlriD MAll NUMBER CALIFor ''''A p-.,JlLIMINARY NOTICE In c:._-,vrdance with sections 3097 and 7100 6309 26 40 195 5 8602 3098,California Civil Code THIS IS NOT A LIEN.This is NOT a reflection on the integrity of any contractor or subcontractor. You are hereby notified that has furnished or will furnish labor,service,equipment or material of the following general for building structure,or other work of improvement;.description: located at ,~"I , The name of the person or firm who contracted for the purchase of such labor,services,equipment or material furnished is 'j.j'.1 'ldl;t 1 .~ An estimate of the total price of the labor,services,equipment or material is (J-; NOTICE TO PROPERTY OWNERIIbillsarenotpaidInlulllorthelabor.services.•qulpm.nt or mat.rliis furnished or to b.lurnlsh.d,a m.chanlc's ~I.adlng to the loss.through court foreclosur. proce.dlnp.of all or part of your::JflP.rty b.ln~Imprned may b.plac.d agllnst the prop.rty ev.n though you hlJl:pald your ~ractor iI'You mlY wish to prot.ct yours.1I against this consa:u.nceby (l)"'IQulring y ontractor to furnish aslgn.d rel.ase by the p.rson or Ing ygls notlc r.making paym.nt to your contrlctor or (2)any oth ---'or laP that roprlat.und.r theclrcumstanc.s.-:"'?'7"'---"'"rn~()..D (~~.f .:.i~.,_.<m o !'!}':li:f.-i1 L_·:I•.(fJ'!,'; CA229460 IIII III Dated:10/28/03 2 -Has furnished or will furnish labor, services,equipment,or materials of the following general description: CRANE RENTAL REC:r1 \1~D6621 0676 1434 In aC~~~~~~~~im~~~~~~I~o~rlgv~Code This is not a Lien,This is not a feflec~i91J·~n the integrity of any contractor or subcontractor _J"I L....1••._-:._I ...j • Reputed Owner Sfdl ,;U CISTR,r.,r:0 1 -You are hereby notified that 10/28/03 CA229460 MR CRANE INC CAPISTRANO VALLEY WATER 647 N HARITON ST DISTRICT ORANGE CA 92668 32400 PASEO ADELANTO SAN JUAN CAPISTRANO CA 92675 Reputed Construction Lender or Lessee CO#L1NE &DESALINIZATION PLANT BOND#24015060/L1BERTY MUTUAL INS CO/50S S MAIN ST #830 ORANGE CA 92686 Reputed Original Contractor ECO RESOURCES 32234 PASEO ADELANTO #0 SAN JUAN CAPISTRANO CA 92675 A.D.C.UNKNOWN NOTICE TO PROPERTY OWNER IF BILLS ARE NOT PAID IN FULL FOR THE LABOR, SERVICES,EQUIPMENT,OR MATERIALS FURNISHED OR TO BE FURNISHED,A MECHANICS'LIEN LEADING TO THE LOSS,THROUGH COURT FORECLOSURE PROCEEDINGS,OF ALL OR PART OF YOUR PROPERTY BEING SO IMPROVED MAY BE PLACED AGAINST THE PROPERTY EVEN THOUGH YOU HAVE PAID YOUR CONTRACTOR IN FULL.YOU MAY WISH TO PROTECT YOURSELF AGAINST THIS CONSEQUENCE BY (1)REQUIRING YOUR CONTRACTOR TO FURNISH A RELEASE SIGNED BY THE PERSON OR FIRM GIVING YOU THIS NOTICE BEFORE MAKING FINAL PAYMENT TO YOUR CONTRACTOR OR (2)ANY OTHER METHOD OR DEVICE THAT IS APPROPRIATE UNDER THE CIRCUMSTANCES. 3 -An estimate of the total price ofthe labor,services,equipment,or materials furnished orto be furnished is: $1,947.00 4 -The building,structure or other work of improvement is located at: DESALINIZATION PLANT 32470 PASEO ADELANTO SAN JUAN CAPISTRANO CA 5 -The name ofthe person or firm who contracted for the purchase of such labor,services, equipment or material is: ARB INC 2600 COMMERCENTRE LAKE FOREST CA 92630 6 -Name and address of Trust Funds to which Supplemental Fringe Benefits are payable (if applicable): 7 -Jobsite is Federal Public Work Title 40 USC Sec.270A-270E. Contract # Bond Co: 1-800-366·5660 CALIFORNIA PRELIMINARY NOTICE In accordance with sections 3097and3098,California Civil Code.THIS IS NOTA LIEN.Fi:£t"!r'q~on on the integrity ofany contractor or subcontractor. You are hereby notified that REPUTED CONSTRUfMlIM 2lNt*:fJ:,0 ALL AMERICAN PIPE &STEEL INC. C\"fY CLEm, SAN JUAN CAP\STRANO CERTIFIED MAIL # REPUTED OWNER(S)/PUBLIC BODY CAPISTRANO VALLEY WATER DISTRICT 32400 PASEO ADELANTO SAN JUAN CAPISTRANO CA 92675 CERTIFIED MAIL #7002 3150000021033232 REPUTED ORIGINAL CONTRACTOR ECO RESOURCES 32234 PASEO ADELANTO SUITE D SAN JUAN CAPISTRANO CA 92675 CERTIFIED MAIL #7002 3150000021033225 REPUTED SUB-CONTRACTOR (S) ARB INC. 26000 COMMERCE CENTRE DRIVE LAKE FOREST,CA 92630 P.O.BOX 1738 FONTANA CA 92334 has furnished or will furnish labor,service,equipment the following general description: STEEL PRODUCTS for the project located at SAN JUAN CAPISTRANO DESALTER PROJECT SAN JUAN CAPISTRANO,CA The name ofthe person or firm who contracted for the purchase ofsuch labor,services,equipment or material furnished is: ARB INC. An estimate ofthe total price ofthe labor,services, equipment or material is:$20,000.00 Attn:Subcontractors Section 3097 requires that ifyou give this notice and you have failed to pay all compensation due to your laborers on the job,this notice shall also contain the identity and address ofany laborer and any express trust fund to whom employer payments are due. NOTICE TO PROPERTY OWNER If bills are not paid in full for the labor,services, equipment or materials furnished or to be furnished,a mechanics'lien leading to the loss,through court foreclosure proceedings,of all or part ofyour property being so improved may be placed against the property even though you have paid your contractor in full. You may wish (1)requiring your contractor to furnish a signed release by the person or firm giving you this notice before making payment to your contractor or (2)any other method or devise that is appropriate under the circumstances. Date:OCTOBE~~rey Perry Signature:<::~dit Dept. Telephone:909-823-8555 CA207947 I111I1111 Dated:08/25/03 7114 7389 6621 0626 8384 2 -Has furnished or will furnish labor, services,equipment,or materials of the following general description: 714-551-2544 HEAVY CONSTRUCTION EQUIPMENT CALIFORNIA PRELIMINARY NOTICE In accordance with sections 3097 and 3098,California Civil Code This is not a Lien,This is not a reflection on the integrity of any contractor or subcontractor Reputed Owner 1 -You are hereby notified that 08/25/03 CA207947 HERTZ EQUIPMENT RENTAL #9636 CAPISTRANO VALLEY WATER 16351 CONSTRUCTION CIRCLE WEST DISTRICT IRVINE CA 92714 32400 PASEO ADELANTO SAN JUAN CAPISTRANO CA 92675 Reputed Construction Lender or Lessee CO#CONST OF DESALTER PROJ BOND#24015060/SAN JUAN BASIN AUTH LEASE REV BONDS%MCGOWAN & ASSOC/NOVATO CA 94945 Reputed Original Contractor ECO RESOURCES 32234 PASEO ADELANTO #0 SAN JUAN CAPISTRANO CA 92675 3 -An estimate ofthe total price ofthe labor,services,equipment,or materials furnished or to be furnished is~ $5,000.00 ~g """'"<-en :J> 4 -The building,structure or o~oraf improvement is located at:~-<Nc-:a-6 -ARB YARD -ARB Y ~r: CONST OF DESALTER PROJj)~LJ 32470 PASEO ADELANTO ;ci:;:;:~ SAN JUAN CAPISTRANO C~0 92675 0 U'l ::0rn (") m <mo 1·800-366·5660 6 -Name and address of Trust Funds to which Supplemental Fringe Benefits are payable (if applicable): 5 -The name of the person or firm who contracted for the purchase of such labor,services, equipment or material is: 6003093/ARB INC 26000 COMMERCENTRE DR LAKE FOREST CA 92630 Signed Authorized Agent 7 -Jobsite is Federal Public Work Title 40 USC Sec.270A-270E. Contract # Bond Co: IF BILLS ARE NOT PAID IN FULL FOR THE LABOR, SERVICES,EQUIPMENT,OR MATERIALS FURNISHED OR TO BE FURNISHED,A MECHANICS'LIEN LEADING TO THE LOSS,THROUGH COURT FORECLOSURE PROCEEDINGS,OF ALL OR PART OF YOUR PROPERTY BEING SO IMPROVED MAY BE PLACED AGAINST THE PROPERTY EVEN THOUGH YOU HAVE PAID YOUR CONTRACTOR IN FULL.YOU MAY WISH TO PROTECT YOURSELF AGAINST THIS CONSEQUENCE BY (1)REQUIRING YOUR CONTRACTOR TO FURNISH A RELEASE SIGNED BY THE PERSON OR FIRM GIVING YOU THIS NOTICE BEFORE MAKING FINAL PAYMENT TO YOUR CONTRACTOR OR (2)ANY OTHER METHOD OR DEVICE THAT IS APPROPRIATE UNDER THE CIRCUMSTANCES. x' NOTICE TO PROPERTY OWNER A.D.C.UNKNOWN Construction Notice Services,Inc. l~I.-'[\I\,--'S [\'1:1\[:S I:3T,\\T llL,\STIC j\\XIT[\I.\LS (?SlPPLlI:S CALif _ANIA PRELIMINARY I JTICE Accl.#511493 (L(1~#10/-0/'29 Prelim #31103161 r--IN-A-C-C-O-R-O-A-N-C-E-W-I-T-H-S-E-C-T-IO-N-a-O-g7-A-N-O-a-O-g-S,-DESCRIPTION OF MATERIALS,LABOR,SERVICES OR CALIFORNIA CIVIL COOE.THIS IS NOT A LIEN,THIS EQUIPMENT FURNISHED. IS NOT A REFLECTION OF THE INTEGRITY OF ANY CONTRACTOR OR SUBCONTRACTOR. YOU ARE HEREBY NOTIFIED THAT..... INDIVIDUAL OR FIRM IIAI:(r:(lf\l~T,--'N 1;\1)lST]\I.\L PLASTIC:3 J--IA-80 Yl11\BA AVE C1[I!\,--'C,\9 Ji J() ADDRESS OF BUILDING,STRUCTURE,WORK OF IM- PROVEMENT 909-597-86--1-1 1L\~\...'1\\,\'1 LL IT1\1\1:-:II 1..\B01\,:-:I:1\\'11...'[:-:,1:(111P.\1E\'T \...'1\;\IX[T1\1\I.. The name of the person of firm who contracted for the purchase of such labor,services,equipment or material is: :3A\)lI\\15:\:31\,\lTI k'I\ITY I)I:S\I."I"l:I\ lll\,--'J [:cr 3.?-l-iO P.\:3I:,--',\j)I:L,\\-k' :3:\\)l ,\\l~,\PI:3Tl\,\\,--'C\l),?()j~:; ESTIMATED TOTAL PRICE OF THE LABOR,SERVICES, EQUIPMENT OR MATERIALS DESCRIBED HEREON. :urn (')rn-<an TO: CONSTRUCTION LENDER OR REPUTED CONSTRUCTION LENDER TO: BOND CO. TO: OWNER OR REPUTED OWNER TO: ORIGINAL CONTRACTOR OR REPUTED CONTRACTOR 1\1:(13,INC. .2hOOO C'--'j\L\\EI\CU\T[\E DI\. L\KE FUl\EST,CA.92630 ACCT#0308--1-3 ®51103IhJ-S l'\Vl\E]\/F1\;\1\CEJ) 51103J 6J-. Bond #. 51/03161-13 l~APISTI\A!\l'\';\LLI~Y \X!ATI~I:(])1:3TI\ICT, A Cl'011J ,--,\[NT LNIT ,--'F TIl[CITY l'F S.).C. 32--1-00 PA:3El'!\DEL,\\T,--' Si\r\Jl 'AN C\PISTI:(;\\,--'CA 9.'2675 511031 6J -'--' EC,--,I:(E:3,--'l I\C[:3 1NC/ECl'C\PI STI\.\\I.-'\'A1 3.2.23--1-P;\SE'--'ADEL\\:Tl' SAN H';\\:CAPISTI\;\Nl'CA 926i5 5H()3161-l~ S i 5,000.llO BUT NOT LIMITED TO TRUST FUNDSTO WHICH SUPPLEMENTAL FRINGE BENEFITS ARE PAYABLE (J)»:z: C-en ~»~as%-< ~~..0 -Om »U;~?-i......, ::u c;>C :t>(MATERIAL MEN NOT REQUIRED2Q FURNIS!CDtEABOVE).-..rn NOTICE TO PROPERTY OWNER If bills are not paid in full for the labor,services,equip- ment,or materials furnished or to be furnished,a mechanic's lien leading to the loss,through court fore- closure proceedings,of all or part of your property being so improved may be placed against the property even though you have paid your contractor in full.You may wish to protect yourself against this consequence by (1) requiring your contractor to furnish a signed release by the person or firm giving you this notice before making patym'ent to your contractor or (2)any other method or device which is appropriate under the circumstances. I,declare that I served copies of the above Preliminary N~tice by first cla~gi-FZ~=mail,postage prepaid,on the lender,owner,original contractor,and the prime sUbcontractd'r~'it~esses X ~~\.(LQ....:J~U8-IS-(Htr~{("1 i()~LAND PRELIM SERVICES,INC. r ..·.IFORNIA PRELIMINARY NOTlr- THIS IS NOT ALIEN.THIS NC,._.,E IS GIVEN PURSUANT TO SECTIONS 309',...40 3098,CALIF.CIVIL CODE NOTICE TO PROPERTY OWNER IF BILLS ARE NOT PAID IN FULL FOR THE LABOR,SERVICES,EQUIPMENT,OR MATERIALS FURNISHED OR TO BE FURNISHED,A MECHANICS'LIEN LEADING TO THE LOSS,THROUGH COURT FORECLOSURE PROCEEDINGS, OF ALL OR PART OF YOUR PROPERTY BEING SO IMPROVED MAY BE PLACED AGAINST THE PROPERTY EVEN THOUGH YOU HAVE PAID YOUR CONTRACTOR IN FULL.YOU MAY WISH TO PROTECT YOURSELF AGAINST THIS CONSEQUENCE BY (1)REQUIRING YOUR CONTRACTOR TO FURNISH A SIGNED RELEASE BY THE PERSON OR FIRM GIVING YOU THIS NOTICE BEFORE MAKING PAYMENT TO YOUR CONTRACTOR OR (2)ANY OTHER METHOD OR DEVICE THAT IS APPROPRIATE UNDER THE CIRCUMSTANCES. (THIS STATEMENT IS APPLICABLE TO PRIVATE WORKS ONLY) YOU ARE HEREBY NOTIFIED: THE NAME AND ADDRESS OF THE PERSON OR FIRM WHO HAS FURNISHED OR WILL FURNISH LABOR,SERVICE,EQUIPMENT OR MATERIAL OF THE FOLLOWING DESCRIPTION IS:DATE:July 22,2003 JOHNSON-PELTIER ELECTRIC (NAME) 12021 S.SHOEMAKER AVE. (ADDRESS) DESALTER PROJECT (DESCRIPTION OF MATERIALS.lABOR,SERVICESOR EQUIPMENTFURNISHED OR TO BE FURNISHED) 32470 PASEO ADELANTO (ADDRESS OF BUILDING,STRUCTURE,WORK OF IMPROVEMENT) SAN JUAN CAPISTRANO,CA 92675 (CITY)(STATE)(liP) THE NAME AND ADDRESS OF THE PERSON WHO CONTRACTED FOR THE PURCHASE OF (PRIVATE WORKS)OR WHO WILL BE FURNISHED (PUBLIC WORKS) SUCH LABOR,SERVICE,EQUIPMENT OR MATERIAL IS CAPISTRANO VALLEY WATER DISTRICT BNY TRUST COMPANY /700 S.FLOWER ST. SAN JUAN BASIN AUTHORITY,LEASE REVENUE ESTIMATED PRICE OF THE LA~SERVICs:taUIP~T OR MATERIALS DESCRIBED HEREO~6 ;U 2CJ E=rn $J>~r-0-------iiiiX--==<:::t'--ro~-...rnP"t--- (Address) (Name) (Name)N.E •C •A . (Name) LEASE HOLD OWNER(S)(TENANT IMPROVEMENT) ORTRUST FUND (IF APPLICABLE) (Address) (Address)401 SHATTO PL.,LOS ANGELES,CA92675 90017 92630 CA CA CA ARB,Inc. LAKE FOREST, LOS ANGELES, 32400 PASEO ADELANTO 26000 COMMERCENTRE DRIVE SAN JUAN CAPISTRANO, PROOF OF SERVICE AFFIDAVIT »,< (SeCTION 3097.1 CAUFORNIA CML CODe)~~» I,_KAR_E_N_S_T_R_U_T_MAN ,declare that Iserved copies of the above PRELI~NO~E (~ropriate box): a.0 By personally delivering copies to at ~ (name(s)and title(S)ofperson served)teessl CJ" on ,at .m.0 W-----,(=aatr::t"ej------(IImej b.fZI By first-class certified or registered mail service,postage prepaid,addressed to each of the parties at the addresses shown above on JULY 22 (2003 I declare under penalty of pe~ury that the foregoing is true and correct. Signed at 12021 S.SHOEMAKER AVE.SANTA FE SPRINGS ,California,on _JU_L_Y_2_2.....,:..,_2_0_0_3 _ ATTACH RECEIPTS OF CERTIFIED OR REGISTERED MAIL WHEN RETURNED Fill outform and maka7r co""latad form as naadad _.-oX j!1vu(f Avw(/4:1;~7~~~1 0q-7237 (Signature ofperson making service) FORMA I"~"t:'~)~)Ut t l I ;:\,;~t~.C C.1 i'~ ~!'Jf?\";~,(",rH\",,C H.(~J CERTIFIED MAll NUMBER CA'~-C •~REL1IIJ"~RY NOTICE "i I al..~.xdance with sec"~+.~Q97 and}.7100'6309 2640 1826 723'9 3098,California Civil Code THIS Uf~ LIEN.This is NOT a reflection on ·tRe..... integrity of any contractor or subcontractor. lJm-i-i=i@), .......-.-~_.__J fiIST 32~00A)ASEO ~DELANTO S~N JGHN CAPISTRANO. ,'::~.~lt2i~:l CDi'ill't!E.RCENTHE UH. l.A~F ;ORES1.CA 926~0 "',_::,~~. .,->'::1 4 ~You are hereby notified that i4~:.d'IhTEli ~F.Hr~~Crf·~~fjr:f)' ;r'4;=~Jr;(tkT BEHCH,r'A.,E0 has furnisAe~or \vnT lur"nish'labor,service,equipment or material of the following general T'~description:F:EAlh iTl <ED _,::dCPLTF for building structure,or other work of improvement~;located at .·;~)if-,!!~Pi.j~:;.Fl.J ~·:;lUft]JJUN"'~{};1 f4r i2-~dgJ '{:.~. j The name of the person or-firm who contracted for the purchase of-such labor,services,equipment or material furnished is~~~~pp.INC JOB#t:i3b341l'l i.<J BDX :!lLr:..' C ~;An estimate of the total price of the labor,servicel§A<t(Ji~~t:'di man:wial is'.']i j Iii.i.ll~J(1.Itj~'j~,*.,,~..GLNCHi:.jL LONTRA'T'rF ...*fi--'NOTICE TO PROPERTY OWNER):'1 ELLl R[~3DUHeE~:'If bills are not paid In full for the labor,services,equipment or materials furnished ~or to be furnished,a mechanic's lien leading to the loss,through court foreclosure ;proceedings,of all or part of your property being so Improved may be placed against":;~:':::3·.P~t~::;EG ADELANTU '~~J1T_D the property even though you have paid your contractor In full.You may wish toI~...':1..1·.·.•,'I t...I.AI.····'.[.,.-.H";I",I '."::'-'·.·r R.H:'-·t·'.'OJ.'"'r''.'.,·_:'.'.~w:·"",J t::•._-,protect yourself against this consequence by (1)requiring your contractor to furnish •".j".'-""4..t-.~,.rr,·i -,.asigned release by the person or firm giving vou this notice before making paymentitoyourcontractoror(2)any other method or device that Is appropriate under the I circumstances.f ~.*'ite,{LENDER /SUHETY ~lHH~ ,~_IBERTY MUTUAL lNS CO ,BND#24015060i5,,;5 c',GUTH MtHN StREETtOf/ANGlo CA3;"8E.fl ,~*.*CUSTOMER **** ARB I~C JOB.t~36340 -,-,-..,'----~- rH"\:'" I :,f,! ;~JC:(\J( ;CERTIFIED MAIL NUMBER ,~006309 2640 1826 CALIFORNIA PRELIMINARY NOTICE ,accordance with sections 3097 and697::1 J09S,California Civil Code THIS IS NOT A LIEN.This is NOT a reflection on the integrity of any contractor or subcontractor, '.......->~"~"'It~.("..(~.)., (943)253-2800 CH 324~~PASEO ADELAN1D Sr.:IIJ JU~iN CAP I ::::T R~iNfi. NOTICE TO PROPERTY OWNER If bills are not paid In full for the labor,services.equipment or materials furnished or to be furnished,amechanic's lien leading to the loss,through court foreclosure proceedings,of all or part of your property being so Improved may be placed against the property even though you have paid your contractor In full.You may wish to protect yourself against this consequence by (1)requiring your contractor to furnish asigned release by the person or firm giving you this notice before making payment to your contractor or (2)any other method or device that Is appropriate under the circumstances. CA 32234 PASE0 ADELAN10 SAN JbAN CAPISTRANO. *If.lf-iti U:.NDEP/SURETY lHHHt LIBERT\,'l'tlUTUAL INS eli BNDik:t,1l!1~i06('1 ~5il15 SOUTH I'riAIN STHEE'r ~;;UTI~1830 JIJ,.,M,1l {1\lrQlAl~'''E....j ..l.r.:J.i.:_.\J..""h•..I:i, ORfINGE,CA 928hB 1YLl /1Yl{'v.v·(,/((J V~.'if "-,-<W'. HH CUSTOMER HH )(f (*I *<~~_~'~NE~~~~u,rEO l)l"~J~H,~,~H(-tR~NL U CHI-1....:olt~RNt.'vHLLcY W~lcK LI •••)T ~>G BOX ;:d bL .J(JB#1i}2.E,-34~?I ;:(,~:H?I~l [liiYIMERCE·}HRL DR. :You are hereby notified that;tJL.un!'L't t.•:!'r>r.t C~~\f r:~, r !'it:viPOFn AE'-lCH.C );f.!S(j has furnis~~Jor wihlu'r~Ysh labor,service,equipment or material of the following general •description:PE(.:\)Y t'!I Xi-:.n CUNC RF,T~:for building structure,or other work of improvement :located at ::......if }l,:l rti~,EC.lyr·C!.ntJT.J.S,cll1)OrOON 2fl:H p I'2!!/2 {en ;The name,of t~~~~rso..~~,r fi~n;~ho c?l1'~ac.t~~f?rthepurchase of-~uch labor,services,equipment or material furnished is ;~4Rb r:",L ~}(J .i.A,;\.·~LI',.ltJl~#i.t.I .....G)H·,"I:'v •._ :An estimate of the total price of the labor,services~NPdt4pt:t>rCrnatEitiaJ i$,')'~~Ql.1(100.t:'Vf,*~*.GLNERAL CONTr~CTOR ~*fr~ I I \ j I•~I~-,....~~. CA192777 "11111111 Dated:07/07/03 7114 7389 6621 0592 5271 2 -Has furnished or will furnish labor, services,equipment,or materials of the following general description: HEAVY CONSTRUCTION EQUIPMENT CALIFORNIA PRELIMINARY NOTICE In accordance with sections 3097 and 3098,California Civil Code This is not a Lien,This is not a reflection on the integrity of any contractor or subcontractor Reputed Owner 1 -You are herebynotified that 07/07/03 CA192777 HERTZ EQUIPMENT RENTAL #9647 CAPISTRANO VALLEY WATER 25831 W WRIGHT ST DISTRICT FOOTHILL RANCH CA 92610 32400 PASEO ADELANTO SAN JUAN CAPISTRANO CA 92675 3 -An estimate of the total price ofthe labor,services,equipment,or materials furnished or to be furnished-cr,: :Jc....c:2:r.} 4 -The building,structure ~,!:other~rk ofC~ improvement is located at:·'....0 •.j 139 ARB INC -ARB IN .( 32470 PASEO ADELANTO VARIOUS WELL &PIPEL1NE LOCATIONS/SAN JUAN u CAPISTRANO CA 92675 $50,000.00 Reputed Original Contractor ECO RESOURCES 32234 PASEO ADELANTO #0 SAN JUAN CAPISTRANO CA 92675 Reputed Construction Lender or Lessee CO#L1NE &DESALINIZATION PLANT BOND#24015060/L1BERTY MUTUAL INS CO/505 S MAIN ST #830 ORANGE CA 92686 1-800-366-5660 6 -Name and address of Trust Funds to which Supplemental Fringe Benefits are payable (if applicable): 5 -The name of the person or firm who contracted for the purchase of such labor,services, equipment or material is: 6003093/ARB INC 26000 COMMERCENTRE DR LAKE FOREST CA 92630 Signed Authorized Agent 7 -Jobsite is Federal Public Work Title 40 USC Sec.270A-270E. Contract # Bond Co: IF BILLS ARE NOT PAID IN FULL FOR THE LABOR, SERVICES,EQUIPMENT,OR MATERIALS FURNISHED OR TO BE FURNISHED,A MECHANICS'LIEN LEADING TO THE LOSS, THROUGH COURT FORECLOSURE PROCEEDINGS,OF ALL OR PART OF YOUR PROPERTY BEING SO IMPROVED MAY BE PLACED AGAINST THE PROPERTY EVEN THOUGH YOU HAVE PAID YOUR CONTRACTOR IN FULL.YOU MAY WISH TO PROTECT YOURSELF AGAINST THIS CONSEQUENCE BY (1)REQUIRING YOUR CONTRACTOR TO FURNISH A RELEASE SIGNED BY THE PERSON OR FIRM GIVING YOU THIS NOTICE BEFORE MAKING FINAL PAYMENT TO YOUR CONTRACTOR OR (2)ANY OTHER METHOD OR DEVICE THAT IS APPROPRIATE UNDER THE CIRCUMSTANCES. NOTICE TO PROPERTY OWNER A.D.C.UNKNOWN Construction Notice Services,Inc. ,ALIFORNIA PRELIMINARY NOl ..- IN ACCORDANCEWITH SECTION 3097, 3098,AND3111 OF THE CALIFORNIACIVIL CODE (asamended by Assembly Bill 4092,effectiveJanuary 1,1997,and January 1,1978) THIS IS NOTA LIEN OR A REFLECTION ON THE INTEGRllY OF ANYCONTRACTOR OR SUBCONTRACTOR. YOU ARE HEREBY NOTIFIED THAT ... CONSTRUCTION LENDER or Reputed Construction Lender,if any NONE ---FOLD HERE AMERICAN STANDARD CONCRETE PUMPING,INC. 215 NORTH JOY STREET CORONA CA 92879 -1323 Has furnished or will furnish labor,services,equipment ormaterials of the following description: CONCRETE PUMPING SERVICES furnishedor10befumished) forthebuilding,structure or other 'Mlrk or improvement located at 32470 PASE ADELANTO -ARB J0B#1466340 SAN JUAN CAPISTRANO CA.92675 COUNTY OF ORANGE OWNER or Reputed Owner (on private work) or PUBLIC Agency (on public work) The name of the person or firm who contracted for the purchaseofsuch labor, services,equipment or material is: (I) .:t>~~S ARB INC.~<J ~.:0 CAPISTRANO VALLEY WATER DIST. 32400 PASEO ADELANTO SAN JUAN·CAPISTRANO CA.92675 FOLD HERE ORIGINAL CONTRACTOR or Reputed Contractor,ifany Notice is hereby given of acollective-bargaining agreerriim to pay s~ental 0 fringe benefits intoan express trust fund orfunds as cJe£fued in sect..!2J 3111 Thesefunds are listed as follows: NOTICE TO PROPERTY OWNER Ifbills are not paid in full for the labor.services,equipment,or materials furnished or to be filnished,a mechanic's lien leading to the loss, through court foreclosure proceedings,of all or part ofyour property being so improved may be placed against the property even though you have paid your contractor in full.You may wish to protect yourself against this consequence by (1)requiring your contractor to furnish a signed release by the person or finn giving you this notice before making payment to your contractor or (2)any other method or device which is appropriate under the ci'cumstances. ECO RESOURCES 32234 PASEO ADELANTO SUITE D SAN JUAN CAPISTRANO CA.92675 Dated:July 3 2003 1$ijriiIUtit} Tel.No:909-278-2311 (iii) CLEA M.PERRIN,Controller (Wi-!1vvt1((JV!t"1~t3IO)~ CALIFORNIA PRELIMINARY NOTICE (Page 2) CUSTOMER ARB INC. 28000 COMMERCENTRE DR. P.O.BOX 5166 LAKE FOREST CA 92630 SURETY CO. LIBERTY MUTUAL INSURANCE CO. 505 S.MAIN STREET #830 ORANGE CA.92686 BOND NO.24015060 PROOF OF SERVICE AFFIDAVIT I,CLEA M.PERRIN,declare that I served copies ofthe above Preliminary Notice (check appropriate box). (a)D By personally delivering copies to _ Names andTitles ofpersonsserved at on _ at m. time address date (b)[K]By First Class Certified or Registered Mail service,postage prepaid, addressed to each of the parties at the address shown above on July 3.2003 I declare under penalty ofperjury that the foregoing is true and correct. Signed at RIVERSIDE COUNTY,California on July 3,2003 ARB INC.:ARB107 CLEA M.PERRIN,Controller Signature ofPerson A-faking Service CA184023 il I II II Dated:06/10/03 7114 7389 6621 0573 0455 :::0m ("")m <i'"no -............ ::;:v W:::>••4 -The building,structure or ottiitr workc9f improvement is located at:0 J 03L061NARIOUS WELL AND PIPELINES THROUGHOUT SAN SAN JUAN CAPISTRANO/3247 PASEO ADELANTO/SAN JAUN CAPISTRANO CA 92675 2 -Has furnished or will furnish labor, services,equipment,or materials of the following general description: REINFORCING STEEL ~:z '-Cc;L. 3 -An estimate of the total price:Df:th,e §E labor,services,equipment,or m~eAaIS_ furnished or to be furnished is:»:=- $112,000.00 CALIFORNIA PRELIMINARY NOTICE In accordance with sections 3097 and 3098,California Civil Code This is not a Lien,This is not a reflection on the integrity of any contractor or subcontractor Reputed Owner 1 -You are herebynotified that 06/10/03 CA184023 PACIFIC COAST STEEL INC CITY OF SAN JUAN CAPISTRANO 7155 MISSION GORGE RD FKA CAPISTRANO VLY WTR DIST SAN DIEGO CA 92120 32400 PASEO ADELANTE SAN JUAN CAPISTRANO CA 92675 Reputed Original Contractor ECO RESOURCES 32234 PASEO ADELANTO #0 SAN JUAN CAPISTRANO CA 92630 Reputed Construction Lender or Lessee CO#SAN JUAN CAPISTRANO BOND#24615060/L1BERTY MUTUAL INS CO/505 S MAIN ST #830 LOS ANGELES CA 92686 1·800·366·5660 6 -Name and address of Trust Funds to which Supplemental Fringe Benefits are payable (if applicable): 5 -The name of the person or firm who contracted for the purchase of such labor,services, equipment or material is: ARB INC 26000 COMMER CENTRE DR LAKE FOREST CA 92630 Signed Authorized Agent 7 -Jobsite is Federal Public Work Title 40 USC Sec.270A-270E. Contract # Bond Co: NOTICE TO PROPERTY OWNER IF BILLS ARE NOT PAID IN FULL FOR THE LABOR, SERVICES,EQUIPMENT,OR MATERIALS FURNISHED OR TO BE FURNISHED,A MECHANICS'LIEN LEADING TO THE LOSS,THROUGH COURT FORECLOSURE PROCEEDINGS,OF ALL OR PART OF YOUR PROPERTY BEING SO IMPROVED MAY BE PLACED AGAINST THE PROPERTY EVEN THOUGH YOU HAVE PAID YOUR CONTRACTOR IN FULL.YOU MAY WISH TO PROTECT YOURSELF AGAINST THIS CONSEQUENCE BY (1)REQUIRING YOUR CONTRACTOR TO FURNISH A RELEASE SIGNED BY THE PERSON OR FIRM GIVING YOU THIS NOTICE BEFORE MAKING FINAL PAYMENT TO YOUR CONTRACTOR OR (2)ANY OTHER METHOD OR DEVICE THAT IS APPROPRIATE UNDER THE CIRCUMSTANCES. Construction Notice Services,Inc. A.D.C.UNKNOWN Cust #: Job Name:San Juan Basin Authority/Job#980 Job #:56732493743-003 Cert #:7003 0500 0003 1629 7546 E'ile:t/7623 (CA PB) Notice Requested by and Return to: United Rentals Northwest,Inc. 19772 MacArthur Blvd.#260 Irvine,CA 92612 Owner Customer:Ogden Co ruction Bakersfield CA PRELIMINARY 20-DAY NOTICE (PUBLIC WORK) THIS IS NOT A LIEN.THIS IS NOT A REFLECTION ON THE INTEGRITY OF ANY CONTRACTOR OR SUBCONTRACTOR TO THE OWNER OR REPUTED OWNER Capistrano Valley Water District Component unit of the City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano,ca 92675 1.The following is a general description of the labor,or materials furnished or to be furnished by the undersigned: Miscellaneous equipment rentals &sales 2.Estimated Price $6,000.00 ::0m ("') m <mo 3.The name of the person who furnished that labor,service,equipment or materials is: United Rentals Northwest,Inc. Attn:Mr.Jeff Hopkins 19772 MacArthur Blvd.#260 Irvine,CA 92612 4.The name of the person who contracted for purchase of that labor,service,equipment or material is: Ogden Construction Bakersfield CAen8401Rockport» Bakersfield,CA 93312 ~c... 5.The description of the jobsit~rs:i: San Juan Basin AuthoritY/Job#~~-< 32470 Paseo Adelanto ~~~ San Juan Capistrano,CA 92675-o~ u;;T)U REQUEST FOR COPY OF PAYMEMT BOND AND NAME OF SURETY COMPAN~~~:>q:TO CONTRACTING BODY:Capistrano Valley Water District ~~ The undersigned claimant hereby declares that he has supplied labor or material~as d~ribed above,that payment has not yet been made therefore,and that he hereby requests that the contracting body furnish a certified copy of the Payment Bond,if any,to the claimant,at the address listed above,and the current address of the contracting public entity. TO THE ORIGINAL OR REPUTED CONTRACTOR ECO Resources Inc/ECO Capistrano Valley Inc 32234 Paseo Adelanto 0 San Juan Capistrano,CA 92675 TO THE LENDER/SURETY OR REPUTED LENDER/SURETY San Juan Basin Authority Lease Revenue Bonds BNY Western Trust Company 700 S Flower St Los Angeles,ca 90017 Bond/Loan # NOTICE TO PRIME OR GENERAL CONTRACTOR THIS IS NOT A LIEN.THIS IS NOT A REFLECTION ON THE INTEGRITY OF ANY CONTRACTOR OR SUBCONTRACTOR.THE UNDERSIGNED HAS ENTERED INTO A CONTRACT TO PERFORM LABOR OR FURNISH MATERIALS FOR THE ABOVE-DESCRIBED PUBLIC PROJECT,AND WILL LOOK TO YOU AND YOUR SURETIES FOR PAYMENT IF THE PERSON ORDERING SUCH MATERIALS AND LABOR FAILS TO PAY FOR THEM. Salina Reyes,Lien AdministratorBy: I declare that I am authorized to file this claim on behalf of the claimant.I have read the foregoing document and know contents thereof;the same is true of my own knowledge.I declare under penalty of per'ury tha e foregoing is true and correct.Executed at Simi Valley,CA on 05/16/03 for U ' e R tals west,Inc .. -.Q,... PROOF OF SERVICE BY MAIL AFFIDAVIT I declare that I served a copy of the above document,and any related documents,by (as required by law)first-class,certified or registered mail,postage prepaid,addressed to the above named parties,at isted above,on 05/16/03.I declare under penalty of perjury that the foregoing t.Executed at Simi Valley,CA on 05/16/03. By:Salina Reyes,Lien Administrator II III 70030500000316297546 5/16/2003 Capistrano Valley Water District Component unit ofthe City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano,ca 92675 Re:Notice To Owner Or Public Entity Dear Sir or Madam, We are required by the laws ofthis state to notify you that we are furnishing labor,services,equipment or materials ofthe type described on the enclosed standard form for the work ofimprovement known as the:San Juan Basin Authority/Job#980,located at 32470 Paseo Adelanto,San Juan Capistrano,CA 92675. Such labor,services,equipment or materials were contracted for by:Ogden Construction Bakersfield CA,who is one ofthe owners,general contractors or subcontractors ofthis project. We are further required by law to notify you at this time that ifbills are not paid in full for labor,services,equipment or materials furnished,or to be furnished,the improved property may be subject to mechanic's liens or stop notices,or a notice to withhold funds may be filed where applicable.The enclosed notice is not intended to reflect in any way on the integrity or credit standing ofthe contractors involved in this job,but is given merely to comply with the laws ofthis state.However,to fully protect yourselfyou may consider (1)requiring your contractor to furnish a signed release from the person or firm giving you this notice before making payment to your contractor,or (2)any other method or device which is appropriate under the circumstances to guarantee payment of this debt.We appreciate the opportunity offurnishing our services for this job and we hope it is progressing to your satisfaction. Should you have any questions concerning this request,please feel free to call us at (949)553-2166.Thank you. Sincerely, By:~.........~salinaReyes,Lien Administrator For:United Rentals Northwest,Inc. 19772 MacArthur Blvd.#260 Irvine,CA 92612 Phone:(949)553-2166 Fax:(949)862-1110 DIRECT DIAL:(949)725-4053 JKRAWIEC@SYCR.COM VIAFEDEx STRADLING YOCCA CARLSON &RAUTH A PROFESSIONAL CORPORATION ATTORNEYS AT LAW 660 NEWPORT CENTER DRIVE,SUITE 1600 NEWPORT BEACH,CA 92660-6422 TELEPHONE (949)725-4000 FACSIMILE (949)725-4100 February 3,2003 SAN FRANCISCO OFFICE 44 MONTGOMERY STREET.SUITE 4200 SAN FRANCISCO.CALIFORNIA 94104 TELEPHONE (415)283·2240 FACSIMILE (415)283·2255 SANTA BARBARA OFFICE 302 OLIVE STREET SANTA BARBARA.CALIFORNIA 93101 TELEPHONE (805)564·0065 FACSIMILE (805)564-1044 Ms.Cynthia L.Russell Administrative Services Director Capistrano Valley Water District 32400 Paseo Adelanto San Juan Capistrano,CA 92675 Re:$31,555,000 San Juan Basin Authority Lease Revenue Bonds (Ground Water Recovery Project)Issue of2002 Dear Cindy: Please find enclosed the original "Construction Performance Bond No.24015060,"the original "Payment Bond No.24015060"and original "Rider Adding Additional Obligee"issued by ARB,Inc.and Liberty Mutual Insurance Company in connection with the closing of the above- referenced financing,for your safekeeping. Very truly yours, STRADLING YOCCA CARLSON &RAUTH-)~.~\~~~J~KraWiec Senior Public Finance Paralegal Enclosures DOCSOC\949364v1\22658.0017