AGREEMENT FOR THE COLLECTION OF THE INLAND EMPIRE UTILITIES AGENCY WATER CONNECTION FEE BY THE CITY OF FONTANA This AGREEMENT FOR THE COLLECTION OF THE INLAND EMPIRE UTILITIES AGENCY WATER CONNECTION FEE BY THE CITY OF FONTANA (the “Agreement”) is entered into this ____ day of __________, 2024 (“Effective Date”) by and between the CITY OF FONTANA (“City”), and INLAND EMPIRE UTILITIES AGENCY, a municipal water district (“IEUA”).
RECITALS
WHEREAS, IEUA is a municipal water district organized and existing pursuant to California Water Code Sections 71000 et seq. and California Government Code Section 66013; and WHEREAS, the City of Fontana is a general law city located within the County of San Bernardino, State of California; and WHEREAS, IEUA has adopted Ordinance No. 104 establishing the Water Connection Fee (“WCF”) Program, effective January 1, 2016, to recover costs of creating regional water supplies to meet the future demands from development. The WCF is a one-time fee paid for new and upsized connections which include potable, recycled water, and landscape meters; and WHEREAS, IEUA and the City mutually agree that the City has the ability to effectively collect the WCF for all new and upsized water meters as part of the development and building permit process on behalf of IEUA; and WHEREAS, IEUA agrees to compensate the City for the collection and remittance of the WCFs.
NOW, THEREFORE, IN CONSIDERATION of the foregoing and the mutual covenants hereinafter contained, the parties agree as follows:
1. Collection of Fees The City shall collect the IEUA WCF for any water meter installed or upsized in the City as part of their building permit process.
2. Compensation IEUA shall compensate the City staff at a rate of $150.00 per building permit processed for the collection of WCFs (“Compensation Rate”). Beginning July 1, 2025, and every July 1 thereafter, the Compensation Rate shall be increased by five percent (5%).
3. Remittance of Fees collected The City shall hold the collected IEUA WCF in a separate account and remit payments to IEUA on quarterly basis. The remittance will deduct the City’s labor costs in Section 2 for the WCFs processed within that quarterly period.
4. Annual Audit and Reconciliation of EDUs
IEUA reserves the right to audit the WCF collection by the City. However, IEUA shall hold the City harmless should it be found the City made good faith efforts to collect the WCF and the WCF was not be collected as part of the building permit process. If the City of Fontana is unable to collect the WCF, IEUA shall initiate a lien process on the parcel.
The City and IEUA, on an annual basis, shall reconcile the number of building permits issued and WCF collections.
5. Indemnification Each party agrees to protect, defend, indemnify and hold harmless the other party and its officers, directors, agents, and employees free and harmless from any and all claims, liabilities, losses, costs, expenses, damages or injuries to property or persons, including wrongful death, in any manner arising out of or incident to any acts, conducted by the other parties, its employees, agents, and representatives arising out of or in connection with this Agreement whether or not there is concurrent, passive or active negligence on the part of the other parties.
6. Term The term of this Agreement shall commence upon the Effective Date. Should the IEUA or the City withdraw from this agreement, the initiating party shall notify the other party no less than 30 days of its intent to withdraw. No waiver or modification of this Agreement shall be binding unless consented to by both parties in writing.
7. Notices All notices permitted or required under this Agreement shall be deemed made when delivered to the applicable party’s representative as provided in this Agreement. Such notices shall be mailed or otherwise delivered to the addresses set forth below, or at such other addresses as the respective parties may provide in writing for this purpose:
CITY OF FONTANA INLAND EMPIRE UTILITIES AGENCY 8353 Sierra Avenue P.O. Box 9020
Fontana, CA 92335 Chino Hills, CA 91710
Attn: City Manager Attn: General Manager
Such notice shall be deemed made when personally delivered or when mailed, fortyeight (48) hours after deposit in the U.S. Mail, certified mail, return receipt requested, to the party at its applicable address.
8. Entire Agreement; Amendment. This Agreement contains the entire agreement of the parties hereto with respect to the matters contained herein, and supersedes all negotiations, prior discussions and preliminary agreements or understandings, written or oral. No waiver or modification of this Agreement shall be binding unless consented to by both parties in writing.
9. Consent to Breach Not Waiver No term or provision of this Agreement shall be deemed waived and no breach excused, unless such waiver or consent shall be in writing to the other party. Any waiver or consent by either parties for a breach by the other, whether expressed or implied, shall not constitute a waiver, consent or excuse for any other existing or subsequent breach.
10. Invalidity and Severability If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.
11. Governing Law This Agreement shall be governed by the laws of the State of California.
12. Authority to Enter into Agreement IEUA and the City warrant that they have all requisite power and authority to execute and perform this Agreement. Each person executing this Agreement on behalf of their party warrants that he or she has the legal power, right, and authority to make this Agreement and bind his or her respective party.
13. Attorneys’ Fees. In the event any action is commenced to enforce or interpret any term or condition of this Agreement, in addition to costs and any other relief, the prevailing party shall be entitled to its reasonable attorneys’ fees, expert fees and other reasonable costs of defense.
14. Incorporation of Recitals. The Recitals are incorporated herein and made an operative part of this Agreement.
15. Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.
CITY OF FONTANA INLAND EMPIRE UTILITIES AGENCY
By: By: ______________________________ Matthew C. Ballantyne Shivaji Deshmukh, P.E.
City Manager General Manager
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