1 FIRST AMENDMENT TO
WATER SYSTEM CONSOLIDATION AGREEMENT
THIS FIRST AMENDMENT TO AGREEMENT ( Amendment) made and entered into effective _ ________________, 2026, (Effective Date) amends the Water System Consolidation Agreement entered into between the City of Fresno, a California municipal corporation (City), and Three Palms MH Park, LLC, a California Limited Liability Company (Owner).
RECITALS
A. On February 25, 2025, the City and Owner entered into a Water System Consolidation Agreement ( Consolidation Agreement) pertaining to the consolidation of Three Palms Mobile Home Park Water System (Three Palms MHP WS) with the City’s water system for the purpose of providing water service to the Three Palms Mobilehome Park (Three Palms MHP).
B. Consolidation with the City’s water system will be performed pursuant to a Drinking Water Construction Grant Agreement ( Original Grant Agreement) between the City and the State Water Resources Control Board ( SWRCB), executed on January 2, 2024.
C. Since execution of the Original Grant Agreement and the Consolidation Agreement, certain changes have occurred to the project timeline and budget, necessitating amendments to the Original Grant Agreement and the Consolidation Agreement.
D. On January 8, 2026, the City and the SWRCB entered into Amendment No. 1 to the Original Grant Agreement t o amend the project timeline . The Original Grant Agreement and Amendment No. 1 are both attached hereto as Exhibit A. The Original Grant Agreement and Amendment No. 1 are collectively referred to as “Grant Agreement.”
E. The Grant Agreement requires that the City enter into a Water System Consolidation Agreement with the Owner under certain terms specified in the Grant Agreement.
F. The Parties now desire to amend the Consolidation Agreement to reflect the changes to the project timeline, as reflected in the Grant Agreement.
AGREEMENT
NOW, THEREFORE, the Parties agree that the aforesaid Agreement be amended as follows:
1. The recitals to this Amendment are incorporated and made a part of the Agreement.
2. Section A of the Agreement is amended to read as follows:
A. Term. This Agreement shall commence upon the Effective Date, as evidenced in the preamble, and shall remain in effect until July 31, 2062.
3. Section C of the Agreement is amended in its entirety to read as follows:
Docusign Envelope ID: B779BA79-3027-45A2-8341-E0CA1C7829A1 2 C. Construction Necessary to Establish Water Service. Connection to City’s public water system by the Owner shall be subject to the following conditions:
1. Metered Service Connection. Connection to the City’s water system requires installation of a master meter and meter vault for all domestic and irrigation water uses required for the Three Palms MHP. As required by the Grant Agreement, the City shall install a 6- inch water service c onnection, meter, and meter vault to establish connection. The City shall be responsible for performing all City Work.
2. Completion of On- Site Work .
The Owner will be responsible for
completing the following with the costs to be funded under the Grant Agreement in accordance with the terms of this Agreement and the Grant Agreement: (a) locate and expose existing distribution system connection points; (b) installation of 6” C900 pipe from meter t o distribution system; (c) installation of 6” shut off valve at meter box; (d) patching of asphalt associated with items a, b, and c; (e) disconnect all four on site wells from distribution system; (f) flush well water from distribution system; and (g) abandon three wells on the property in accordance with the requirements set forth in this Agreement (collectively On-Site Work).
3. Disconnection and Destruction of Existing Onsite Wells. a. Prior to the City commencing water service, the Owner shall physically disconnect the existing Three Palms Mobile Home Park Well 3.
b. Owner must also destroy the three (3) existing onsite wells in compliance with the State of California Well Standards, Bulletin 74-81 and 74- 90 or current revisions issued by California Department of Water Resources and City of Fresno standards (Well Destruction). All Well Destruction work must be performed by a C-57 licensed contractor. The Owner must complete the well destruction no later than two months after the establishment of a water service connection to the City’s water system.
c. The On-Site Work and the work specified in Sections 3(a) and 3(b) must be completed no later than July 31, 2026.
d. No later than five (5) years after July 31, 2026, Owner will destroy the Three Palms Mobile Home Park Well 3 in compliance with the State of California Well Standards, Bulletin 74- 81 and 74-90 or current revisions issued by California Department of Water Resources and City of Fresno standards (Well Destruction). All well destruction work must be performed by a C -57 licensed contractor. The destruction of Three Palms Mobile Home Park Well 3 is not eligible for reimbursement from the grant funds or otherwise and must be completed at the Owner’s sole expense.
Docusign Envelope ID: B779BA79-3027-45A2-8341-E0CA1C7829A1 3 e. Compliance with Grant Agreement Requirements . In the performance of the On-Site Work, the Owner shall comply with all SWRCB Drinking Water Construction Grant requirements,
including those requirements set forth in the Grant Agreement which is attached as Exhibit A and incorporated into this Agreement. This includes all requirements pertaining to the prevailing wage and competitive bidding.
i. The Owner must assist the City in the completion of progress reports and project completion reports, as addressed in Exhibit A.5 and A.6 in the Grant Agreement. The Owner must provide information requested for any reports required by the Grant Agreement within 14 calendar days of a request from the City.
ii. Once the SWRCB has authorized commencement of
construction and the Owner has commenced the On- Site
Work; the Owners shall submit monthly invoices to the City documenting the contractor’s performance of the On- Site Work. The Owner shall not submit any invoices after
September 30, 2026.
iii. The City will submit the monthly invoices from the Owner’s contractor to the SWRCB and will receive reimbursement
from the SWRCB for those invoiced amounts. The City shall not pay the Owner for work performed by its contractor until funds are received from the SWRCB.
iv. The City will pay the Owner no more than $150,000 per month to pay the Owner’s contractor’s monthly invoices. In no event shall the City pay the Owner more than the actual cost of the work performed by the contractor.
v. In addition to monthly invoices, the Owner will prepare and submit certified payroll to the City on a weekly basis beginning once construction commences.
4. Surrender of Water System Permits . Upon connection to the City’s Water System, the Owner shall contact the SWRCB Drinking Water Division and surrender any domestic water supply permits or water system permits to ensure that the Three Palms MHP WS ceases to exist and operate as a community water system.
5. City to Provide Water Service. Upon the Owner’s full and complete performance of all obligations and responsibilities under this agreement, City agrees to commence water service, from City’s public water system to the Owner. The Parties agree that, as set forth below, commencement of water service is also conditioned on payment of all water capacity fees and connection fees required by the City. All water capacity fees and connection fees shall be paid for by grant funding, consistent with the terms of the Grant Agreement.
Docusign Envelope ID: B779BA79-3027-45A2-8341-E0CA1C7829A1 4 a. Continuing Obligations and Responsibilities of Owner. The Three Palms MHP will be established as a city water customer and the Owner shall be responsible to pay the fees and rates established for City water service and set forth in the City’s Master Fee Schedule.
The Owner shall comply with and be subject to all regulations applicable to City of Fresno water customers, including but not limited to the water use regulations and utility billing and collection procedures set forth in the Fresno Municipal Code.
b. Water Capacity and Water Connection Fees . The City’s obligation to provide Services is conditioned on payment to City of all required fees as determined by the City, which may be amended from time to time, including any and all water capacity fees and water connections fees required to establish service.
The Parties acknowledge that once calculated, the invoice for these fees will be submitted, by the City, as water capacity and water connection fees for reimbursement under the Grant Agreement. The Owner is not obligated to directly pay any water capacity fees or connection fees to the City.
c. Use of Wells . The Owner agrees that upon connection to the City’s Water System, Owner will not use any of the onsite wells for any purpose and will not apply any water from the onsite wells to the property.
6. Maintenance and Repair . The Owner shall be responsible for operation, maintenance, repair, and replacement of all “Private Portions” of the water system beyond the City’s Point of Service/Master Meter. Under no circumstances shall City be required or accountable to maintain, repair or replace the Private Portion or internal distribution system within Three Palms MHP. The Owner’s obligation to maintain, repair and replace the Private Portion of the water system shall include, without limitation, any operati on and maintenance, repair, replacement or modification of the Private Portion of the water system as may be reasonably required by City.
Should the Owner fail to operate, maintain, repair and replace the Private Portion of the water system as needed for proper operation of the Public Portion, the City shall have the right, but not the obligation to stop providing water service. The City will be responsible for maintaining the lateral from the City water main located at Golden State Boulevard to the propert y line (Public Portion).
7. Fire Protection Upgrades. The Owner shall be solely responsible for meeting any fire protection upgrades beyond the Point of Connection to the City’s water supply facilities that may be required by the City as the enforcement agency responsible for enforcing the requirements of the Mobilehome Parks Act, Division 13, Part 2.1 of Docusign Envelope ID: B779BA79-3027-45A2-8341-E0CA1C7829A1 5 the California Health and Safety Code, commencing with section 18200, and the implementing regulations set forth in Title 25, California Code of Regulations Division 1, Chapter 2.
8. Right to Access and Inspect Water Meters. City shall have the right of entry to access and inspect all water meters for compliance with AWWA standards, whether located on the Private or Public Portions.
9. Exclusive Use of Private Portion . The Private Portion is for the exclusive use of the Owner. After connection to the Public Portion, the Owner shall not permit the Private Portion to be used, either directly or indirectly, to provide water service to any other property regardless of whether the other property is owned by the Owner or a third party. The Private Portion will be maintain ed solely for the purpose of distributing water to the residents of Three Palms MHP.
10. Construction of Public Water Facilities . All public water facilities shall be constructed in accordance with City’s Public Works Department Standard Specifications and Drawings, standards, specifications, and policies. The Parties agree that the City will be constructing all public water facilities to be f unded by SWRCB funding.
4. Except as otherwise provided herein, the Consolidation Agreement entered into by the City and the Owner on February 25, 2025, remains in full force and effect.
[SIGNATURE PAGE FOLLOWS.]
Docusign Envelope ID: B779BA79-3027-45A2-8341-E0CA1C7829A1 6 IN WITNESS WHEREOF, the parties have executed this Amendment at Fresno, California, the day and year first above written.
CITY OF FRESNO,
a California municipal corporation
By:
Paul Amico
Director of Public Utilities
APPROVED AS TO FORM:
ANDREW JANZ
City Attorney
By:
Jennifer M. Quintanilla Date
Senior Deputy City Attorney
ATTEST:
AMY K. ALLER
Interim City Clerk
By:
Date
Deputy
THREE PALMS MH PARK, LLC, a
California Corporation
By:
Name:
Title:
(If corporation or LLC., Board Chair,
Pres. or Vice Pres.)
By:
Name:
Title:
(If corporation or LLC., CFO, Treasurer,
Secretary or Assistant Secretary)
Addresses:
CITY:
City of Fresno
Attention: Debbie Khounsavath
Project Manager
727 R Street
Fresno, CA 93706
Phone: (559) 621-1624
E-mail: [email protected]
OWNER:
THREE PALMS MH PARK, LLC
Attention: Elias Weiner, Manager
1910 Terracina Dr.
Sacramento, CA 95834
Phone: 530-400-2354
E-mail: [email protected]
Attachment:
Exhibit A – Original Grant Agreement & Amendment No. 1 to Grant Agreement
Docusign Envelope ID: B779BA79-3027-45A2-8341-E0CA1C7829A1 Elias Weiner
Manager
2/24/2026