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10 Old Greenwoood Assignment of Water Agreement
AgendaItem#10TRUCKEEDONNERPublicUtilityDistrictACTIONTo:BoardofDirectorsFrom:LisaHailDate:January16,2019Subject:ConsiderationofAssignmentoftheOldGreenwoodWater-DevelopmentAgreement_________1.WHYTHISMATTERISBEFORETHEBOARDonNovember3,2003,theBoardhadpreviouslyapprovedaWaterDevelopmentAgreement(includingservice),withOldGreenwoodLLC,aDelawareCorporation.AnymodificationoramendmenttothisagreementrequiresBoardapproval.2.HISTORYTheDistrictestablishedtheOldGreenwoodCommunityFacilitiesDistrictinOctoberof2003.OnNovember3,2003,theDistrictenteredintoaWaterDevelopment(service)AgreementwiththeOldGreenwoodLLC(Attachment1).Theagreementestablishestermsforthecompletionofawaterdistributionsystem.TheagreementpreservestheDistrict’srightstoconstructuptofourgroundwaterextractionwellslocatedontheDeveloper’spropertyandestablisheswaterratesduetheDistrictforoperatingexpensereimbursements.ThisspecificWaterDevelopmentAgreementinsection18allowsforSuccessorsandAssignswhichstates“ThisAgreementshallbebindinguponandinsuretothebenefitofthesuccessorsandassignsofallparties;however,Developershallnotassignanyofitsrights,dutiesorobligationsunderthisAgreementwithoutthepriorwrittenconsentoftheDistrict.”3.NEWINFORMATIONTheTahoeMountainClubCEO,GlenClement,requestedameetingwithDistrictstaffinSeptemberof2018.ThepurposeofthemeetingwastodiscussthetransferoftheOldGreenwoodWaterDevelopment(service)AgreementfromOldGreenwoodLLCtotheTahoeClubCompany.AtthetimeofthemeetingMr.ClementdisclosedthatTahoeClubCompany,LLC,doingbusinessas(dba),TahoeMountainClubplannedtosellthebusinessbythefourthquarterof2018,andwantedtopreservethewaterratestructureandothertermsestablishedintheagreement. TheDistrictper[ormedadetailedrateandcapitalmaintenanceanalysistodetermineiftherateincludedintheoriginalagreementisadequatetocovercurrentcosts,whichitis.Additionally,theAssignmentandAssumptionAgreement(Attachment2)alongwiththeoriginalWaterDevelopmentAgreementweresenttoAlternativeCounselwhoreviewedthedocumentationandprovidedadvicetoclarifythetransaction.TheTahoeMountainClubrecentlyannouncedthatalocaldeveloper,Paradigm8,hadacquiredTahoeMountainClubassetsinOldGreenwoodandGray’sCrossing.Furthermore,thatacquisitionwouldtakeplacebyJanuary9,2019.Paradigm8isdevelopingtheSignatureHomeCollectionatOldGreenwoodandplanstodeveloptwoofthethreeundevelopedparcelscurrentlyavailableinGraysCrossing.Paradigm8willtakeoveroperationsfromTahoeMountainClubinJanuaryensuringoperationalcontinuityforthePavilion,whichhousestheBearfootBar&Grill,BeatNecessities,thefitnesscenter,theRetreat,andKidsCamp;theGray’sCrossingandOldGreenwoodgolfcoursesandgolfshops;andPJ’srestaurant.4.FISCALIMPACTTransferoftheagreementtotheTahoeMountainClubLLC,willcompletetheaquisition,furthermore,provideforthecontinuedwaterservicepaymentstotheDistrict.5.RECOMMENDATIONAuthorizetheGeneralManagertoexecutetheAssignmentandAssumptionAgreementrelatingtotheNovember3,2003WaterDevelopmentAgreementbyandbetweentheDistrict,OldGreenwoodLLC;totheTahoeClubCompany,LLC.óLtL:*I:tUULisaHallMichaelD.HolleyAdministrativeServicesDirectorGeneralManager 06/WATERDEVELOPMENTAGREEMENTBETWEENTHETRUCKEEDONNERPUBLICUTILiTYDISTRICTANDOLDGREENWOODLLCAPNS19-370-07,08&19-430-09,14-17ThisagreementisenteredintobetweentheTRUCKEEDONNERPUBLICUTILITYDISTRICT,alocalpublicagencyoftheStateofCalifornia,hereafterreferredtoas“theDistrict,”andOLDGREENWOODLLC,hereafterreferredtoas“Developers,”withrespecttothefollowingfacts:RECITALSA.DeveloperistheownerofthatcertainrealpropertylocatedwithinNevadaCounty,California,bearingAssessor’sParcelNumbers19-370-07,08&19-430-09,14-17onwhichDeveloperintendstoconstruct“OldGreenwood”,hereafterreferredtoasthe“Project.”B.N/AC.DeveloperintendstoconstructacompletewaterdistributionsystemfortheProjectfordomesticandfireprotectionuse,includingpipes,valves,servicelaterals,andrelatedequipmert,inaccordancewiththeapprovedplansandspecifications.Suchsystemshallhereafterbereferredtoasthe“waterdistributionsystem.”D.ThewaterdistributionsystemisanecessarypartoftheProject,andtheDeveloperhasrequestedthattheDistrictacceptthesystembyincludingitwithintheDistrict’sexistingintegratedsystems.TheDeveloperhasfurtherrequestedthat,uponcompletion,theDistrictthereafterown,operate,maintain,repair,andreplacethewaterdistributionsystemasnecessary.C.UponexecutionoftheDevelopmentAgreement,DevelopershallconveytoDistrictallwatersystemfacilitiesthathavebeenconstructedasofsuchdate,includingwaterpipelinesandthewaterstoragetank.DevelopershallconstructandconveytoDistrict,beforethesysteniisacceptedandserviceisprovided,allon-sitedistributionsystemfacilitiesinaccordancewithplansapprovedbyDistrict.E.TheDistrictiswillingtoacceptthewaterdistributionsystemprovidingitisproperlyconstructedinaccordancewiththeapprovedplans,specificationsandtermsofthisagreement.F.CompleteplansandspecificationsfortheconstructionofthewaterdistributionsystemhasbeenpreparedinaccordancewiththeDistrict’sRulesandRegulationsandwiththerequirementsandPage1of12 ,specificationsashereaftersetforth.CopiesoftheapprovedplansandspecificationsareonfileintheDistrict’sWaterDepartment.G.DeveloperhasselectedcontractorsforconstructionofthewaterportionofthisProject.Thenamesofthecontractingfirms,contactpersons,mailingaddresses,telephonenumbersandascheduleofconstructiondateshavebeenincludedondatasheetsentitledContractorFirmDataSheets,andareonfileintheDistrict’sWaterDepartment.H.ThefollowingitemsareonfileintheDistrictofficeandincorporatedhereinbyreference:.Developmentagreementapplication.Contractorfirmdatasheet—water.TemporaryBlanketPublicUtilityEasement.ProofofInsurance.Projectparcelmap.Siteandimprovementplans-water.Estimatedcostsandcalculationoffees—water.ImprovementsbyandResponsibilitiesofDeveloper—water.ImprovementsbyandResponsibilitiesofDistrict—water.ProjectdocumentationpolicyThepartiesagreeasfollows:I.PaymentofCostsandFees.TheDistricthaspreparedanestimateofitscostsformaterials,labor,consultants,andlegalexpensesthattheDistrictexpectstoexpendforadministrative,design,inspection,andactualconstruction(hereaftercollectivelyreferredtoasthe“constructioncosts”).Uponstartofconstruction,DevelopershalldepositwiththeDistrictamountsthatshallbeappliedtotheactualconstructioncostsincurredbytheDistrict.Iftheactualcostexceedstheamountdeposited,Developershallpaysuchexcesswithinthirty(30)daysofreceiptoftheDistrict’sinvoice.Iftheactualcostislessthantheamountdeposited,theDistrictshallrefundthedifferencewithinthirty(30)daysofunconditionalacceptanceofthewaterdistributionsystem.Uponexecutionofthisagreement,DevelopershallalsopaytotheDistrictthefeessetforthintheestimatedconstructioncostsandcalculationofwaterfees.Atthetimewaterserviceisrequestedandconstructionofbuildingsorotherfacilitiesrequiringwaterserviceareinitiated,thepaymentoffacilitiesandconnectionfeeswillberequired.Facilitiesandconnectionfeespaidwillbeattherateineffectatthetimeserviceisrequested.Allnormalandcustomaryfacilitiesandconnectionfeesshallapplytothisdevelopment,exceptthereshallbenoconnectionorfacilitiesfeesassociatedwithgolfcourseirrigationwaterorconstructionwater.2.N/A3.N/A4.ProvisionofEasements-PermissiontoEnterLand.DeveloperwillexecuteatemporaryblanketeasementgrantingtherighttodoallthingsnecessaryfortheconstructionofthePage2of12 waterfacilitiesincluding,butnotlimitedto,arighttoingressandegress,arighttotemporarilystoreequipmentandmaterials,toexcavate,todrivevehiclesover,toplacemarkerson,tosurvey,toinspectandrepair,andtoremoverocks,boulders,treesandplantlifeinthecourseofexcavationorre-excavation.ThetemporaryeasementwillbeabandoneduponreceiptbytheDistrictofapermanenteasementforthemaintenanceandrepairofthewaterdistributionsystem.DevelopershallprovidetoDistrict,attheappropriatetimeandmeetingreasonablerequirementsofDistrictandDeveloper,non-exclusiveeasementsonDeveloperpropertynecessarytoconnectOldGreenwoodtoGraVsCrossing.Thelocation,termsandprovisionsofsucheasementgrantshallbesubjecttoapprovalbyDeveloper.Inaddition,DevelopershallhavetherighttoinstallaseparatepipeconnectingtheOldGreenwoodandGray’sCrossinggolfcourseirrigationsystemsintheeasementareagrantedtoDistrict.DevelopershallpaythecostofsuchseparatepipeandreimbursetheDistrictinanamountequaltotheincrementalcostofinstallingsuchseparatepipeabovethecostofinstallingtheDistrict’spipesandotherimprovementswithinsucheasementarea.5,ProvisionofInsurance-Uponexecutionofthisagreement,DevelopershallprovidetheDistrictwithsatisfactoryevidenceofaninsurancepolicywrittenuponaformandbyacompanywhichmeetswiththeapprovaloftheDistrict,insuringtheDistrict,itsofficers,agentsandemployeesagainstlossorliabilitywhichmayariseduringtheconstruction,orwhichmayresultfromanyoftheworkorconstructionhereinrequiredtobedone,includingallcostsofdefendinganyclaimsarisingasaresultthereof.Theminimumlimitsofsuchpolicyshallbeintheamountof$1,000,000forthedeathoforinjurytoanypersoninanyoneaccidentand$1,000,000forthedeathoforinjurytomorethanonepersoninanyoneaccidentand$500,000forpropertydamageinanyoneaccident.SuchpolicyshallbewritteninfavorofDeveloperoritsgeneralcontractorandsubcontractorsandalsoinfavoroftheDistrict,itsofficers,agentsandemployeesandshallbemaintainedinfullforceandeffectuntilthewaterdistributionsystemisunconditionallyacceptedbytheDistrict.Suchinsurancepolicyshallstatebyitstermsorbyanendorsementthatitshallnotbecanceledwithoutthirty(30)dayspriorwrittennoticetotheDistrict.6.IndemnificationbyDeveloper.Developershallindemnify,defendandsaveharmlesstheDistrict,itsofficers,agentsandemployees,andeachofthem,ofandfromanyandallclaims,demands,causesofaction,damages,costs,expenses,losses,orliabilities,inlaworinequity,ofeverykindandnaturewhatsoever,for,butnotlimitedto,injurytoordeathofDeveloper,anysubcontractorofDeveloper,oranyofficers,agentsoremployeesoftheDistrict,ofDeveloper,orofanysubcontractor,oranyotherperson,anddamagestoordestructionofpropertyoftheDistrictoranyotherperson,arisingoutoforinanymannerdirectlyorindirectlyconnectedwiththeworktobeperformedunderthisAgreement,howevercaused,regardlessofanynegligenceoftheDistrictoritsofficers,agentsoremployees,beitactiveorpassive,exceptthesolenegligenceorwillfulmisconductoftheDistrict.7,,ImprovementsbyandResronsibilitiesofDeveloper.Developershallperformandberesponsibleforalllaborandmaterialexpensesinvolvedinperformingthewaterdistributionsystemimprovementsdescribedasfollows:I.Developershallscheduleapre-constructionmeetingwithDistrictPlanner,WaterForemanandthepipelinecontractor.Page3of12 2.Developershallprovideallpermitsrequired,includingtheTownofTruckeeencroachmentpermit.3_DevelopershallprovidealltrafficcontrolandtrenchprotectionasrequiredperapplicablelawsandTDPUDfieldsupervisor’srequirements.4.Developershallconstructwatersystemimprovementsperapprovedplans/constructiondrawing.5.DevelopershallperformallconstructiontomeetorexceedrequirementsofthecurrentDistrictWATERSYSTEMCONSTRUCTIONSTANDARDS.6.Developershallperformtesting/disinfectiononWaterSystemImprovementsperDistrictspecifications/requirements.7.Developershallprovidecompactiontestresultsbyalicensedprofessional.8.DevelopershallcoordinateallschedulingofDistrictstaffwiththeDistributionForeman(582-3926).AminimumoffiveworkingdaysnotificationisrequiredforDistrictcrewscheduling.9.DevelopershallcontacttheWaterSuperintendent(582-3957)tocoordinatedeliveryofprojectconstructionwater.I0.Developershallcertifythattheprojectwasconstructedwithapprovedmaterialsandincompliancewiththedevelopmentagreementandtheapprovedplans,exceptasnotedontheprojectdocumentationdrawings.II.DevelopershallscheduleandattendfinalwalkthroughinspectionwithcontractorandDistrictrepresentatives.8.ImprovementsbyandResponsibilitiesofDistrict.TheDistrictshallperformwaterdistributionsystemimprovementsatDeveloper’sexpenseasdescribedbelow.TheconstructioncostsdepositedwiththeDistrictshallbeappliedtotheactualconstructioncostsunlessotherwiseindicated.Iftheactualconstructioncostsexceedsuchdeposit,Developershallpaysuchexcesswithinthirty(30)daysofreceiptoftheDistrict’sinvoice.I.DistrictshallconstructmodificationsattheGtenshirewell,andotherfacilitiesnecessarytoprovidepotablewaterservicetotheOldGreenwoodproject.ConstructionofthewellmodificationshasbeencompletedasofJuly21,2003.Developer’sfinancialcontributionwillbe$120,000payableuponexecutionofthefinaldevelopmentagreement.Developershallbeentitledtoacredittobeappliedtowardsuchcontributionintheamountof$82,000,fordesignandconstructioncostspreviouslyincurredbyDeveloperinconnectionwiththewellmodifications.Page4of12 I2.DistrictshallcompensateDeveloper$60,000fortheupsizingofthewatertransmissionpipelinefromGlenshireDriveWelltotheOldGreenwoodwaterstoragetank,concurrentlywiththeconveyanceofsuchpipelinetoDistrict.3.Districtshalloperatewatersystemasrequiredincludingcustomernotification(outages),systemshut-downandsystemflushing.4.Districtshallattendpre-constructionmeeting(Planner&Foreman).5.DistrictshallinspectinstallationandconstructionofProject.6.Districtshallobservetesting/disinfectionofallwatersystemimprovements.7.Districtshalltakebacteriologicalsamples.8.Districtshalttestlocatorwireinstallation.9.Districtshallspecify,approveandinspectinstallationofallrequiredbackflowequipment.10.Districtshallattendfinalwalkthruinspectionandpreparepunchlistifnecessary.9.ConstructionInspection.TheDistrictshallinspecttheconstructionfromtimetotime,inordertodeterminethatthewaterdistributionsystemisinstalledinaccordancewiththeapprovedimprovementplans,constructionspecificationsandthetermsofthisagreement.a.TheDistrictshallnotifytheDeveloperand/ortheDeveloper’srepresentativesinwritingastoanydeviationfromtheapprovedimprovementplans,constructionspecificationsandthetermsofthisagreement.TheDeveloperand/ortheDeveloper’srepresentativesshallcorrectsuchdeviationorfailureassoonasisreasonablypracticable.10.TimelyConstructionRequired.Constructionofthewaterdistributionsystemshallbecompleted,asdefinedherein,withintwelve(12)monthsfromthedateofexecutionofthisagreement.IntheeventDeveloperfailstocompletethewaterdistributionsystemwithinthattime,theDistrictmayinitsdiscretion(1)increaseanyandallfeesandcoststoequaltheDistrict’scurrentcharges,(2)requireDeveloper’splansandspecificationstobeupdatedandredrawntocomplywiththeDistrict’scurrentstandards,and(3)terminatethisAgreementandrecoverfromDeveloperthefullcostofallexpensesandchargesincurredbytheDistrict,includingbutnotlimitedtomaterial,labor,backfill,pavingandoutsideservices.II.Developer’sWarranty.DeveloperwarrantsandguaranteesthataltlaborandmaterialssuppliedbyDeveloperareofagoodandworkmanlikequality,freeofanydefectsofanytypewhatsoeverforaperiodofone(1)yearafterunconditionalacceptancebytheDistrict.Withintheperiodofthiswarranty,Developershallrepairorreplace,atDeveloper’sexpense,anydefectivematerialorworkmanship.TheDistrictshallnotifyDeveloperofanymalfunctionornonconformitypromptlyupondiscovery.Withinfifteen(15)businessdaysafterreceivingnoticefromtheDistrict,DevelopershaltcommencetorepairorreplacethedefectivepartandPage5of12 willexpeditiouslypursuesuchworktocompletion.EmergencyrepairswiltbecoordinatedbyDistrictandchargedtotheDeveloper.12.NoEartyUseofProlect.Developershallnotrequestorobtainatemporaryoccupancypermit,finalinspectionapproval,norshallDeveloperuse,orpermitanyoneelsetouse,anyportionofthewaterdistributionsystemontheProject,norshallDeveloperuseorpermitanyoneelsetouseanywaterservicesuppliedbytheDistrict,untiltheDistricthasgrantedconditionalacceptanceinwriting.Developermay,however,withtheDistrict’spermissionandpriortoconditionalacceptance,usewaterforconstructionpurposes.TheDistrictshallbeentitledtoterminate,withoutnotice,anywaterusagebyDeveloperoranyotherperson,otherthanthatrequiredforconstructionpurposes,occurringpriortoconditionalacceptancebytheDistrictoftheentirewaterdistributionsystem.13.CompletionoftheSystems.ConstructionshallbedeemedcompletewhentheDistrictdeterminesthatthewaterdistributionsystemhasbeenentirelyfinished,properlytested,andreadytoservicetheProjectinaccordancewiththeDistrict’sRulesandRegulations.14.ConditionalAcceptance.WhentheDistricthasdeterminedthatthewaterdistributionsystemhasbeencompleted,theDistrictmayconditionallyacceptthesystemsandmayprovidewaterservice,onaconditionalbasis,totheProject.ConditionalserviceshallbeprovidedtoenableDevelopertousetheProjectwhileDeveloperisintheprocessofprovidingtotheDistrictthoseitemsspecifiedintheparagraphentitled“RequirementsforUnconditionalAcceptance.”Anyconditionalacceptanceshallbeinwriting.IfatanytimetheDistrict,initssolediscretion,determinesthatDeveloperisnotmakingadequateprogresstowardprovidingtheDistrictwiththerequireditems,thentheDistrictmay,afterprovidingthirty(30)dayspriorwrittennotice,discontinueconditionalwaterservicetotheProject.AnywaterserviceprovidedbytheDistrictpriortounconditionalacceptanceofthewaterdistributionsystemshallbedeemedconditionalservice.15.RequirementsforUnconditionalAcceptance.Withinthirty(30)daysaftercompletionasdeterminedbytheDistrict,Developershallfullycomplywithallstepssetforthbelow,anduponsuchfullcompliance,theDistrictshallunconditionallyacceptthewaterdistributionsystem.a.DevelopershallexecuteanofferofdedicationforthewaterdistributionsystemtotheDistrictinaformsatisfactorytotheDistrict,withoutcost,free,andclearofallliensandencumbrances.b.Developershallcertifythattheprojectwasconstructedwithapprovedmaterialsandincompliancewiththedevelopmentagreementandtheapprovedplans,exceptasnotedontheprojectdocumentationdrawings.c.DevelopershallprovidetheDistrictwithprojectdocumentationdrawingsincompliancewithDistrictpolicy(seeattached).d.DevelopershallprovidetheDistrictwiththeappropriatepermanenteasements.Page6of12 e.DevelopershallprovidetheDistrictwithamaintenancebondinaformsatisfactorytotheDistrictinasumequaltotwenty-fivepercent(25%)oftheultimateconstructioncostsoftheelectricand/orwaterdistributionsystems.Thisbondshallremainineffectforaperiodofone(1)yearafterunconditionalacceptanceofthewaterdistributionsystemsandprotectagainstanydefectsorfailuresinthesystemsthatmaydevelopduringthattime.DevelopershallprovidetheDistrictwithastatementofthe“as-built”dollarvalueoftheinstalledwaterdistributionsystemwithdocumentationtosubstantiatethestatedvalue.g.Developershallpayanyoutstandingcostsandfees.16.ResronsibilitiesAfterUnconditionalAcceptance.PriortounconditionalacceptanceofthewaterdistributionsystembytheDistrict,Developershallberesponsibleforallmaintenanceandrepairofthewaterdistributionsystem.UponunconditionalacceptanceofthewaterdistributionsystembytheDistrict,theDistrictshallthereafterown,operate,maintain,repairandreplacethewaterdistributionsystem,unlesssuchrepairsorreplacementsarecoveredbyDeveloper’swarranty.Thereafter,theDistrictshalluseitsbesteffortstoprovideadequatewatersen/icetotheProjectuponrequestandpaymentofallappropriateleesandcharges,inaccordancewithCaliforniatawandDistrictRulesandRegulations.I7.Notices.Noticesorrequestsfromeitherpartytotheothershallbeinwritinganddeliveredormailed,postageprepaid,tothefollowingaddresses:OLDGREENWOODA.WilliamFiveashP.O.Box2537Truckee,CA96161TRUCKEEDONNERPUBLICUTILITYDISTRICTPostOfficeBox309Truckee,California96160I8.SuccessorsandAssigns.ThisAgreementshallbebindinguponandinsuretothebenefitofthesuccessorsandassignsofallparties;however,Developershallnotassignanyofitsrights,dutiesorobligationsunderthisAgreementwithoutthepriorwrittenconsentoftheDistrict.19.DistrictPowers.Nothingcontainedhereinshallbedeemedtolimit,restrict,ormodifyanyright,duty,orobligationgiven,granted,orimposedupontheDistrictbythelawsoftheStateofCalifornianowineffect,orhereafteradopted,nortolimitorrestrictthepowerorauthorityoftheDistrict.TheDisffictmayenactrules,regu]ations,resolutions,orordinances,including,withoutlimitation,creationofservicezonesandratedifferentialsapplicablewithintheProjectareathatmaynotbeapplicableelsewhere,atitsdiscretion.Page7of12 20.Severability.IntheeventthatanypartorprovisionofthisAgreementisfoundtobeillegalorunconstitutionalbyacourtofcompetentjurisdiction,suchfindingsshallnotaffecttheremainingparts,portions,orprovisionsofthisAgreement.21.Attorneys’Fees.Intheeventofanylitigationconcerninganycontroversy,claimordisputebetweenthepartieshereto,arisingoutoforrelatingtothisAgreementorthebreachhereof,ortheinterpretationhereof,theprevailingpartyshallbeentitledtorecoverfromthelosingpartyreasonableattorneys’feesandcostsincurredthereinorintheenforcementorcollectionofanyjudgmentorawardrenderedtherein.22.EntireAgreement.ThisAgreementcontainstheentireagreementofthepartiesandsupersedesanypriorwrittenororalagreementsbetweenthemconcerningthesubjectmailercontainedherein.Therearenorepresentations,agreements,arrangements,orunderstandings,oralorwritten,betweenthepartiesrelatingtothesubjectmailercontainedinthisAgreementwhicharenotfullyexpressedherein.TheprovisionsofthisAgreementmaybewaived,altered,amendedorrepealedinwholeorinpartonlyuponthewrittenconsentofallpartiestothisAgreement.23.Forum.AnylitigationtoenforceorinterprettheprovisionsofthisAgreementortheparties’rightsandliabilitiesarisingoutofthisAgreementortheperformancehereundershallbemaintainedonlyinthecourtsintheCountyofNevada,California.24.Captions.ThecaptionsandheadingsofthedifferentparagraphsofthisAgreementareinsertedforconvenienceofreferenceonly,andarenottobetakenaspartofthisAgreementortocontroloraffectthemeaning,construction,oreffectofthesame.25.NecessaryActs.EachpartytothisAgreementagreestoperformanyfurtheractsandexecuteanddeliveranyfurtherdocumentsthatmaybereasonablynecessarytocarryouttheprovisionsofthisAgreement.26.NoWaiver.Thewaiverbyonepartyoftheperformanceofanycovenant,conditionorpromiseshallnotinvalidatethisAgreement,norshallitbeconsideredasawaiverbysuchpartyofanyothercovenant,conditionorpromise.Thedelayinpursuinganyremedyorinsistinguponfullperformanceforanybreachorfailureofanycovenant,conditionorpromiseshallnotpreventapartyfromlaterpursuingremediesorinsistinguponfullperformanceforthesameoranysimilarbreachorfailure.27.GoverningLaw.ThisAgreementshallbegovernedbyandconstruedinaccordancewiththelawsoftheStateofCalifornia.28.Districtshallhavetherighttodevelopuptofourgroundwaterextractionwells(the“Wells”),locatedonDeveloperpropertysubjecttothetermsdescribedbelow.ThelocationofallWellsshallbeapprovedbyDeveloper.DistrictandDeveloperwillenterintoaleaseagreementwithrespecttotheWellsreflectingthefollowingterms:a)WellSitesandImprovements.Subjecttotheexecutionoftheleaseagreement,compliancewithapplicablelegal,regulatoryandpermitrequirements,obtainingPage8of12 necessaryapprovalsandprojectplanningandschedulingconstraints,Developershallconvey,inatimelymanner,toDistrictaleaseholdinterestintheWellsites.DistrictshallbethesoleownerofallWellimprovements.AllWellsite,storagetankandbuildinglocations,design,constructionandoperationshallbeapprovedbyDeveloperforaestheticissuesandcompatibilitywiththesurroundingdevelopment,andallimprovementsassociatedwithallWellsshallcomptywithallapplicabledesignreviewguidelines.b)PrimaryWelt.Districtshalldevelopandconstructaprimaryirrigationwell(the“PrimaryWell”)atalocationmutuallyagreeduponbytheparties,whichthepartiesanticipatewillbeanareaadjacenttotheOldGreenwoodgolfcourseirrigationpond.If,however,suchareadoesnotprovefeasible,thePrimaryWellshallbedevelopedandconstructedatsuchotherlocationmutuallyagreeduponbytheparties.c)WaterServiceObligations.Districtshallprovide,attheratedescribedinsubparagraphe)below,irrigationwatertoservetheirrigationneedsofthegolfcourseandwaterneededinthecourseofconstructionoftheOldGreenwoodandGray’sCrossingprojects.Districtacknowledgesthatdeveloperwillrequireapproximately100,000gallonsperdayofwaterduringconstructionoftheOldGreenwoodproject(anticipatedtobefrom8/1/02to6/30/04)anduptoI,000,000gallonsperdayduringgolfcourse“growin”fortheOldGreenwoodproject(anticipatedtobefrom7/1/03,to7/30/04).Districtshallsupplyconstructionandgolfcourse“growin”waterinamountsandattimesreasonablyrequiredbyDeveloperfortheGray’sCrossingproject.d)PriorityofWaterSources.IntheeventthePrimaryWellisnotadequatetoprovidethewaterrequiredbyDeveloper,whetherduetomaintenanceandrepairissues,watercapacityorqualityissues,constructiondelaysorotherwise,Districtshallsupplysuchwater(I)firstfromtheotherWells,andthen,(b)intheeventtheotherWellsarenotadequatetoprovidethewaterrequiredbyDeveloper,whetherduetomaintenanceandrepairissues,watercapacityorqualityissues,constructiondelaysorotherwise,fromotherDistrictwatersourcesattheratedescribedbelow.e)OperatingExpenseReimbursements.DevelopershallpaytoDistrictanamountequalto24.3centsperI,000gallonsofwaterusedplustheactualcostofelectricitytopumpwatertothegolfcoursepondsfromthePrimaryWell,calculatedunderDistrict’sapplicablecommercialrate.Districtestimatesthecostofthekilowatthoursnecessarytooperatesuchpumptobe16.24centsper1000gallons.ThisrateshallbesubjecttoadjustmentonJune1,2004andeveryyearthereafterasfollows:a.ThebaserateshallbeadjustedbasedonthechangeintheConsumerPriceIndex(1982-84)forallUrbanConsumersforSanFrancisco/OaklandareapublishedbytheUntiedStatesDepartmentofLabor,BureauofLaborStatistics(“Index”)whichispublishedfortheperiodimmediatelyprecedingthedateofthecommencementoftheterm(“BeginningIndex”).IftheIndexpublishedfortheperiodimmediatelyprecedingtheadjustmentdate(“Adjustmentlndex”)hasincreasedovertheBeginningIndex,themonthlybaserateforthefollowingyearshallbesetbymultiplyingthemonthlybaseratesetforthinthisAgreementbyaPage9of12 fraction,thenumeratorforwhichistheAdjustmentIndexanddenominatorofwhichistheBeginningIndex.Innoeventshallthemonthlybaserateincreasemorethanfivepercent(5%)inanyoneyear.b.IftheIndexischangedsothatthebaseyeardiffersfromthatusedasoftheperiodimmediatelyprecedingthedateonwhichthetermcommences,theIndexshallbeconvertedinaccordancewiththeconversionfactorpublishedbytheUnitesStatesDepartmentofLabor,BureauofLaborStatistics.Iftheindexisdiscontinuedorrevisedandnoreplacementindexisspecified,suchothergovernmentindexorcomputationwithwhichitisreplacedshallbeusedinordertoobtainsubstantiallythesameresultaswouldbeobtainediftheIndexhasnotbeendiscontinuesorrevised.C.DistrictandDeveloperagreeandacknowledgethatallpaymentsDevelopermakestoDistricthereunderrepresentpaymentforfacilitiesuseandoperatingandmaintenancecosts,andnotpaymentonaccountofthewateritself.f)ReservationofDeveloper’swaterrights.WithrespecttothedevelopmentofPrimaryWellbyDistrictandDeveloper,thepartiesrecognizethatDeveloperisanoverlayinguserofwaterfromPrimaryWellwithrespecttowaterdeliveredtothegolfcoursesforirrigationpurposes.TotheextentthatPrimaryWellisusedtodeliverwatertoDeveloper’sgolfcoursesforirrigationpurposesDeveloperexpresslyreservestheaccompanyingwaterrights,interestsandclaimsassociatedwithsaiduseofwater.ItisfurtherrecognizedbythepartiesthatDeveloper’sstatusasanoverlayinguserofwaterfromPrimaryWellhaspriorityovertheDistrict’sappropriativeuseofwaterfromPrimaryWell.g)WaterTransmission.IfthePrimaryWellislocatedadjacenttotheOldGreenwoodgolfcourseirrigationpond(I)waterdeliveredfromthePrimaryWellshallnotutilizeDistrict’stransmissionanddistributionsystem,(ii)Developershallberesponsibleforconstructionandmaintenanceofthedeliverypipelinetothegolfcoursepond(s)fromthePrimaryWelland(iii)District’spointofdeliverywithrespecttothePrimaryWellshallbelocatedatthewelldischarge.IntheeventthatthePrimaryWellisnotlocatedadjacenttotheOldGreenwoodgolfcourseirrigationpond,andwithrespecttoallotherWells,Developershallhavetherighttoconstruct,atitsexpense,(i)SdeliverypipelinedirectlyfromsuchWelltothegolfcoursepondlocatedontheOldGreenwoodProjectortheGray’sCrossingProject,orboth,asdeterminedbyDeveloper,and/or(ii)adeliverypipelinefromthatportionofDistrict’stransmissionanddistributionsystemnearesttoapplicablegolfcoursepond,inwhichcaseDistrict’spointofdeliverywithrespecttosuchWellsshatibelocatedattheconnectionpoint.Districtshallnotberesponsibleforanyconstruction,maintenanceorrepairsforanyfacilitiespastthepointofdelivery.h)DeveloperRighttoConstructOtherWells.DistrictagreesthatDevelopershallhavetherighttoconstruct,develop,operateandmaintainforitsownusesuchotherwellsasDevelopershallelecttodevelop,andDistrictshallcooperatewith,andnotobjecttosuchconstruction,development,operationandmaintenanceaslongassuchwellsarenotconstructedwithina2,500footradius(NOTE:thisnumberissubjecttoreductionbyPage10of12 I(DeveloperbasedonapprovedWeltlocations)ofanyWellconstructedbyDistrictunderthisTermSheet.29.tOldGreenwoodResponsibilities).a.OldGreenwoodwillinstallandbuilda20”waterlinefromalocationnearthe5988StorageTank,westerlytoalocationnearthefiberboardunder-crossingwithanapproximatelengthof5000feet.b.OldGreenwoodwillforward,forwatersources,anamountof$750,000.00toTruckeeDonnerPublicUtilityDistrictuponclosingofbonding.30.MelloRoosDistrict.TheDistrictandtheDevelopers,oranentityaffiliatedwiththeDevelopers,intendtoenterintoan“AcquisitionandDisclosureAgreement”whichisexpected,amongotherthings,toprovideforthepossibleacquisitionbytheDistrictiromtheDevelopers,oranaffiliate,ofsomeoralloftheProject.InthecaseofanyinconsistencybetweenaprovisionofthisWaterDevelopmentAgreementandaprovisionoftheAcquisitionandDisclosureAgreement,theprovisionofthisWaterDevelopmentAgreementshallcontrol,exceptthattheDevelopersortheiraffiliate,asthecasemaybe,shallbeentitledtobecompensatedfortheportionsoftheProjectdescribedintheAcquisitionandDisclosureAgreementifandtotheextentthatfundingthereforisavailableascontemplatedinthetotheAcquisitionandDisclosureAgreementThisAgreementshallbebindinguponthepartiesonlywhensignedbyallparties.TheDistrictrepresentativeshallnotsignthisAgreementuntilDeveloperhasprovidedallcosts,feesanditemsrequiredtobeprovidedbyDeveloper“uponexecutionofthisAgreement.”Dated:/1i’o;3OldGreenwoodLLCBy:EastWestResortDevelopmentV,L.P.,L.L.P.,itsManagerBy:HFHoldingCorp.,itsGeneralPartnerDated:LPeterL.Holzmeister,eneralMnagerTruckeeDonnerPublicUtilityDistrictPage11of12 EstimatedCostsandCalculationOfFeesTheEstimatedCostsareasfollows:AdministrativeanddesignConstructionandinspectionProjectdocumentationdeposit8.1Improvementby&ResponsibilityofDistrict8.1Imp.by&ResponsibilityofDistrict(credit)8.1ImD.by&ResponsibilityofDistrict(crediti$4,000.00$16,250.00$87,337.00$120,000.00t$82,000.00)($60.000.00)TotalEstimatedCostsLessDepositPaidinAdvance$85,587.00BALANCEDUEOldGreenwoodCFDafterBondClosing$81,270.00a.20inchwaterlineb.WaterSourcesBALANCEDUEInstalledandbuiltbyOldGreenwood$750,000.00$7507000.00FacilitiesandConnectionFeesaredueandpayableatthetimeserviceisrequestedandbuildingpermitsareappliedfor.Page12of12 ASSIGNMENTANDASSUMPTIONAGREEMENTOldGreenwoodThisAssignmentandAssumptionAgreement(this“Agreement”)ismadeeffectiveasof,2018(the“EffectiveDate”),byandbetweenOldGreenwood,LLC,aDelawarelimitedliabilitycompany(“Assignor”),TahoeClubCompany,LLC,aDelawareLimitedLiabilityCompany(“Assignee”),andTmckeeDonnerPublicUtilityDistrict,alocalpublicagencyoftheStateofCalifornia(“District”).Assignor,Assignee,andDistrictmaybecollectivelyreferredtohereinas“theParties.”RECITALSA.WHEREASDistrictandAssignorenteredintoa“WaterDevelopmentAgreementBetweentheTmckeeDonnerPublicUtilityDistrictandOldGreenwoodLLC,APNS19-370-07,08&19-430-09,14-17,”(hereinafterthe“WaterDevelopmentAgreement”),executedbytheAssignorandDistrictonNovember3,2003andNovember4,2003,respectively,(acopyofwhichisattachedheretoasExhibitA);andB.WHEREASAssignee,throughitsimmediatepredecessors-in-interest,onDec30,2004,acquiredownershipofaportionofthepropertythatisthesubjectoftheWaterDevelopmentAgreement;andC.WHERASAssignordesirestoassign,grant,transferanddelivertoAssigneeallofitsrights,titleandintereststotheWaterDevelopmentAgreement;andD.WHEREASAssigneedesirestoassumeAssignor’sremainingperformanceobligationsassociatedwiththeWaterDevelopmentAgreement;andE.WHEREASDistrict,accordingtothetermsoftheWaterDevelopmentAgreement,desirestoconsenttotheassignmentandassumptionthatisprovidedinthisAgreement.AGREEMENTNOW,THEREFORE,inconsiderationofthepromisesandtherespectiveagreementshereincontainedandothergoodandvaluableconsideration,thereceiptandsufficiencyofwhichisherebyacknowledged,thePartiesherebyagreeasfollows:Assignment.1.Assignment.EffectiveasoftheEffectiveDate,Assignorherebyassigns,grants,transfersanddeliverstoAssigneeallofitsrights,titleandinterestsinandtotheWaterDevelopmentAgreement,including,withoutlimitation,allamountsondepositwiththeDistrictasoftheEffectiveDate,asprovidedandrequiredbythetermsoftheWaterDevelopmentAgreement.AssignorwarrantsthattheWaterDevelopmentAgreementisinfullforceandeffectandthattherehasbeennobreachbyanyofthepartiestotheWaterDevelopmentAgreement.AssignorfurtherwarrantsthatAssignorisinfullcompliancewiththetermsandconditionsofalloftheWaterDevelopmentAgreement,thatAssignorhastherighttoassigntheWaterDevelopmentAgreement,andthatAssignorhasnotassignedorencumberedalloranypartofAssignor’srightsunderanyoftheWaterDevelopmentAgreement.AssignmentandAssumptionAgreement—OldGreenwoodPage1of6 AcceptanceandAssumption.2.AcceptanceandAssumption.Assigneehereby(a)acceptsandacquiresfromAssignortheassignmentsetforthinSection1above,(b)assumesandcovenantsandagreestofaithfullypay,performanddischargeallassumedliabilities.AssignoragreestoindemnifyandholdAssigneeharmlessfromanyclaimordemandresultingfromnon-performancebyAssignorunderthevendorcontractsonorpriortothedateofthisassignment.ConsentofDistrict.3.ConsentofDistrict.District,byandthroughitsexecutionofthisAgreement,herebyconsentstotheassignmentandassumptionprovidedinthisAgreement,whichconsentisexpresslyintendedbythePartiestoserveasthe“priorwrittenconsent”thatisrequiredatParagraph18oftheWaterDevelopmentAgreementFurtherInstruments.4.FurtherInstruments.ThePartiesherebyagreethattheywill,fromtime-to-time,executeanddeliversuchfurtherinstrumentsasmaybereasonablyrequiredtoimplementandeffectuatetheassignmentpursuanttothisAgreement.NoThird-PartyBeneficiaries.5.NoThird-PartyBeneficiaries.ThisAgreementisforthesolebenefitofthePartiesheretoandtheirpermittedassignsandnothinghereinexpressedorimpliedshallgiveorbeconstruedtogivetoanyotherperson,otherthanthePartiesheretoandsuchpermittedassigns,anylegalorequitablerightshereunder.6.Miscellaneous.Amendment.(a)Amendment.ThisAgreementmaynotbeamendedormodifiedexceptbyaninstrumentinwritingsignedbythePartieshereto.WaiverandRelease.(b)(1)Waiver.Neitherthefailurenoranydelaybyanypartyheretoinexercisinganyright,powerorprivilegeunderthisAgreementwilloperateasawaiverofsuchright,powerorprivilege,andsingleorpartialexerciseofanysuchright,powerorprivilegewillprecludeanyotherorfurtherexerciseofsuchright,powerorprivilegeortheexerciseofanyotherright,powerorprivilege.(b)(2)Release.AssignorherebyreleasesDistrictandAssignee,includingtheirattorneys,agents,employees,officers,directors,contractorsandrepresentatives,affiliates,predecessors,parents,andsubsidiaries(collectively,the“Releasees”)fromallrights,claims,liabilities,costs,fees,obligations,accountings,orrepaymentobligations,whetherknownorunknown,discoveredorundiscovered,thatAssignormayhaveatanytimeagainsttheReleaseesandeverypersonknownorunknownhowsoeverarising,relatedorunrelatedtotheobligationsstatedherein,includingbutnotlimitedtoclaimsarisingoutofamountsondepositwiththeDistrict,andallotherclaims,exceptingAssignmentandAssumptionAgreement—OldGreenwoodPage2of6 onlyclaimsarisingoutofabreachofthisAgreement.Assignorexpresslywaivesallrightsaffordedbyanystatutewithrespecttounknownclaims,including,butnotlimitedto,Section1542oftheCaliforniaCivilCodewhichlimitstheeffectofareleasewithrespecttounknownclaims.Section1542oftheCaliforniaCivilCodereadsasfollows:“AGENERALRELEASEDOESNOTEXTENDTOCLAIMSWHICHTHECREDITORDOESNOTKNOWORSUSPECTTOEXISTINHISORHERFAVORATTHETIMEOFEXECUTINGTHERELEASE,WHICHIFKNOWNBYHIMORHERMUSTHAVEMATERIALLYAFFECTEDHISORHERSETTLEMENTWITHTHEDEBTOR.”GoverningLaw.(c)GoverningLaw.ThisAgreementandallactsandtransactionspursuantheretoandtherightsandobligationsofthePartiesheretoshallbegovernedby,andconstruedinaccordancewith,thelawsoftheStateofCalifornia,withoutgivingeffecttoprinciplesofconflictsoflawthereof.Notices.(d)Notices.Anynoticeorothercommunicationprovidedforinthisagreementorgivenunderthisagreementtoapartytothisagreementshallbeinwritingandshallbedeliveredinpersontosuchpartyormailedbyfirstclassmail,postageprepaid,addressedasfollows:ToAssignor:SuzanneStevensOldGreenwoodLLC10351FairwayDrTmckee,CA96161(530)550-2704sstevens@crescent.comToAssignee:GlenClementTahoeClubCompany13051FairwayDrTmckeeCA96161Tel:(530)550-2704gclement@tahoemountainclub.comAssignmentandAssumptionAgreement—OldGreenwoodPage3of6 ToDistrict:TruckeeDonnerPublicUtilityDistrictAttention:SaraOwens11570DonnerPassRoadTruckee,California96161saraowens@tdpud.orgortosuchotheraddresswithrespecttoapartyassuchpartyshallnotifytheotherpartyinwritingasprovidedabove.Integration(e)CompleteAgreement.ThisAgreementcontainsacompleteagreementamongthePartieswithrespecttotheassignmentoftheWaterDevelopmentAgreement,assumptionofobligations,consenttoassignment,andothertransactionscontemplatedbyitandsupersedesallprioragreementsandunderstandingbetweenthepartieswithrespectthereto.Otherthantheassignmentcontemplatedherein,theWaterDevelopmentAgreementremainsinfullforceandeffect.Counterparts.(f)Counterparts.ThisAgreementmaybeexecutedinanynumberofcounterparts,eachofwhichshallbedeemedanoriginalandallofwhichtogethershallconstituteoneandthesameinstrument.Facsimilesignatureswillbetreatedasiftheywereoriginals,andelectronicsignaturescomplyingwiththeUniformElectronicTransactionsAct(CivilCode§1633.1etseq.)willbeconsideredvalidandenforceable.Indemnity(g)Indemnity.Assigneeagreestodefend,withcounselreasonablyacceptabletoDistrict,indemnifyandholdtheDistrictanditsdirectors,officers,employeesandagentsharmlessfromandagainstallclaims,demands,actions,lawsuits,damages,liabilities,judgements,losses,costs,andexpensesincurredorpaidbytheDistrictrelatingtoorarisingfromthisAgreement,includingwithoutlimitation,thepaymentbytheDistricttoAssigneeofanymoneyheldondepositbytheDistrictpursuanttotheWaterDevelopmentAgreement.INWITNESSWHEREOF,eachofthePartieshascausedthisAgreementtobedulyexecutedanddeliveredasofthedatefirstsetforthabove.[SignaturePageFollows]AssignmentandAssumptionAgreement—OldGreenwoodPage4of6 ASSIGNOR:OldGreenwood,EECBy:(signatureofauthorizedrepresentative)(printnameofauthorizedrepresentative)Its:_______________________________________(titleofauthorizedrepresentative)ASSIGNEE:TahoeClubCompany,EECBy:(signatureofauthorizedrepresentative)(printnameofauthorizedrepresentative)Its:___________________________________________(titleofauthorizedrepresentative)DISTRICT:TruckeeDonnerPublicUtilityDistrictBy:(signatureofauthorizedrepresentative)(printnameofauthorizedrepresentative)Its:____________________________________________(titleofauthorizedrepresentative)AssignmentandAssumptionAgreementOldGreenwoodPage5of6 EXHIBITAAssignmentandAssumptionAgreementOldGreenwoodPage6of6