Agreement/Reche Canyon Mutual Water Company

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FINANCIAL IMPACT The City will participate in the line in an amount not to exceed $130,000. Reche Canyon Mutual will be responsible for all other construction costs including the interconnection and the line to their facilities. In addition, they will assume all of the responsibility to construct the line to the City's specifications and to effectuate any repairs to Reche Canyon Road. Further, they will turn the finished main extension over to the City, along with all the required warranties, to assure full functionality. Finally, Reche Canyon Mutual will not ask for any reimbursement agreements for future connection to the main they have constructed. All future connection fees will go directly to the City of Colton. The City's participation will be funded with available proceeds from the Water Revenue Bonds and will be expensed to account 551-8100-8106- 3890-1000. ENVIRONMENTAL IMPACT It is anticipated that this project will not have any adverse environmental impacts. Because this is not a City project, Reche Canyon Mutual will address this issue if it arises as part of their project. LEGAL REVIEW The Agreement was drafted by the City Attorneys and their approval is attached. �va,1- Jit�y�Attorn�ey RECOMMENDATION Staff recommends that the City Council approve the Participation Agreement Between the City and Reche Canyon Mutual Water Company for the extension of a ten -inch water line in Reche Canyon Road.