Attachment 1Attachment 1AGREEMENT FOR SALE OF CREDITS
Attachment 1
Attachment 1
ACOE #SPL-2006-01758, Lahonton RWQCB #WDID6B360906002,
CDFW #1600-2009-0063-R6
This Agreement is entered into this day of_____, 2023, by and between Desert Environmental Resources, Inc, (“Bank Sponsor”), and The City of Hesperia (“Project Applicant”), jointly referred to as the “Parties,” as follows:
RECITALS
The Bank Sponsor has developed The Mojave River Watershed Mitigation Bank (“Bank”) located in San Bernadino County, California; and The Bank has been developed pursuant to a Bank Enabling Instrument (“BEI”) entered into by and between Bank Sponsor, the United States Army Corps of Engineers (“USACE”) and the California Department of Fish and Wildlife (“CDFW”) Lahontan Regional Water Quality Control Board (“LRWQCB”) and Environmental Protection Agency (“EPA”); and Project Applicant is seeking to implement the project described on Exhibit “A” attached hereto (“Project”), which would unavoidably and adversely impact Waters of the United States and/or Waters of the State thereon, and seeks to compensate for such impacts by purchasing Credits from Bank Sponsor; and Project Applicant has been authorized by the USACE, RWQCB, and CDFW under permit numbers SPL-2006-01758, WDID6B360906002, and 1600-2009-0063-R6 to purchase from the Bank Sponsor 1.25 lakebed enhancement and 3.15 lakebed preservation Credits; and Project Applicant desires to purchase from Bank Sponsor and Bank Sponsor desires to sell to Project Applicant 1.25 lakebed enhancement and 3.15 lakebed preservation Credits.
NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:
Bank Sponsor hereby sells the Project Applicant and Project Applicant hereby purchases from Bank Sponsor 1.25 enhancement and 3.15 preservation Credits from the Bank for a total purchase price of $395,500. Upon payment of the total purchase price and the endowment in full, the Bank Sponsor will deliver to the Project Applicant an executed Bill of Sale in the manner and form attached hereto and marked as Exhibit “B”. The purchase price shall be paid by cashier’s checks or, at the option of the Bank Sponsor, by wire transfers of funds according to written instructions by Bank Sponsor to Project Applicant with these payments to occur within 30 days of this agreement.
The sale and transfer herein is not intended as a sale or transfer to Project Applicant of a security, license, lease, easement, or possessory or non-possessory interest in real property, nor the granting of any interest of the foregoing.
Project Applicant shall have no obligation whatsoever by reason of the purchase of the Credits, to support, pay for, monitor, report on, sustain, continue in perpetuity, or otherwise be obligated or liable for the success or continued expense or maintenance in perpetuity of the Credits sold, or the Bank. Pursuant to the BEI and any amendments thereto, Bank Sponsor shall monitor and make reports to the appropriate agency or agencies on the status of any Credits sold to Project Applicant. The Bank shall be fully and completely responsible for satisfying any and all conditions placed on the Bank or the Credits by all state or federal jurisdictional agencies.
The Credits sold and transferred to Project Applicant shall be non-transferable and non- assignable and shall not be used as compensatory mitigation for any other Project or purpose, except as set forth herein.
Upon purchase of the Credits and payment of the endowment specified in paragraph 1 of this Agreement, the Bank Sponsor shall submit to the parties listed in the Notices section of the BEI, copies of the: a) Agreement for Sale of Credits; b) Bill of Sale; c) Payment Receipt; and d) an updated ledger. The updated ledger must detail: i) The Project Applicant; ii) The Project Name; iii) Credit sale date; iv) The USACE and the CDFW file tracking numbers; v) Total Number of Credits Authorized to Sell; vi) Total Number of Credits Sold to Date (inclusive); and vii) Balance of all Credits Available. The ledger should include all sales data from Bank Establishment Date to the present.
IN WITNESS WHEREOF, the Parties have executed this Agreement the day and year first above written. This agreement may be executed in counterparts all of which shall be treated as part of the same agreement.
This Agreement may be executed by e-mail or facsimile signatures which shall be treated as original signatures for all purposes.
Name:
BANK SPONSOR:
Desert Environmental Resources, Inc
PROJECT APPLICANT:
By: ________________________ Date: _______
Name: ______________________________________
By:
Date:
NOTE: The California Department of Transportation (CALTRANS) may use the above Credit Sales Agreement in the process of purchasing credits from the Bank, or alternatively use a State of California Department of General Services Standard Agreement Form (STD 213), or both, to finalize credit purchases.
Exhibit “A”
DESCRIPTION OF PROJECT TO BE MITIGATED
Name of Project: Ranchero Road and BNSF Separation Project Project Location: Ranchero Road, between Santa Fe Avenue and Chase Avenue, in the City of Hesperia, San Bernardino County (34.383798, -117.305172).
Permitting Agency(ies) File/Tracking Number: SPL-2006-01758, WDID6B360906002, and 1600-2009-0063-R6 Project Description: The project, which was completed in June 2013, involved widening and realignment of Ranchero Road into a straight segment between Santa Fe Avenue and Chase Avenue by constructing an elevated roadway across Antelope Valley Wash. Five box culverts (one 12-foot by 12-foot reinforced concrete box and four 10-foot by 10-foot reinforced concrete box culverts) were placed to convey flows in the wash beneath the roadway. Downstream of the box culverts an 84-foot-wide channel with concreted rock side-slopes and soft-bottom design was constructed and tied into the existing channel.
Exhibit “B”
BILL OF SALE
Permitting Agency and File Tracking No.
In consideration of $395,500 for the purchase price, receipt of which is hereby acknowledged, Desert Environmental Resources, Inc, a Washington State Corporation (“Bank Sponsor”) does hereby bargain, sell and transfer to _City of Hesperia (the “Project Applicant” or “Buyer”), 1.25 enhancement and 3.15 preservation Credits in The Mojave River Watershed Mitigation Bank in San Bernadino County, California, developed and approved under the authority of the United States Army Corps of Engineers and California Department of Fish and Wildlife associated with the Project described in Attachment 1.
Bank Sponsor represents and warrants that it has good title to the Credits, has good right to sell the same, and that they are free and clear of all claims, liens, or encumbrances.
Bank Sponsor covenants and agrees with the Buyer to warrant and defend the sale of the Credits hereinbefore described against all and every person and persons whomsoever lawfully claiming or to claim the same.
DATED:
Desert Environmental Resources, Inc, a Washington State Corporation By: _
Attachment 1
The Mojave River Watershed Mitigation Bank
PAYMENT RECEIPT
PROJECT APPLICANT INFORMATION
PROJECT INFORMATION
Project Description: The project, which was completed in June 2013, involved widening and realignment of Ranchero Road into a straight segment between Santa Fe Avenue and Chase Avenue by constructing an elevated roadway across Antelope Valley Wash. Five box culverts (one 12-foot by 12-foot reinforced concrete box and four 10-foot by 10-foot reinforced concrete box culverts) were placed to convey flows in the wash beneath the roadway. Downstream of the box culverts an 84-foot-wide channel with concreted rock side-slopes and soft-bottom design was constructed and tied into the existing channel.
Project Location: Ranchero Road, between Santa Fe Avenue and Chase Avenue, in the City of Hesperia, San Bernardino County (34.383798, -117.305172).
Agency File/Tracking Number: SPL-2006-01758, WDID6B360906002, and 1600-2009-0063-R6 Species/Habitat Affected: 0.498 acre of ephemeral dry desert wash (Section 404 jurisdiction, waters of the state), 1.25 acre of CDFW jurisdictional resources.
Credits to be Purchased: 1.25 acre of lakebed enhancement, 3.15 acres of lakebed preservation.
PAYMENT INFORMATION
Payee: Desert Environmental Resources, Inc.
Payer: City of Hesperia
Total Payment Amount: $ 395,500
Credit Purchase Price: $ 140,000 (per enhancement credit); $70,000 (per preservation credit) Method of Payment:
Cash ______ Cashiers Check No. ______ Wire transfer _______ Received by: Desert Environmental Resources, Inc.
___________________________________
(Signature)
Date:
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