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ATTORN£Y AT LAW
RESOLUTION NOo 516
A RESOLUTION AUTHORIZING THE PRESIDENT OF THE
BOARD OF DIRECTORS OF SOUTH TAHOE PUBLIC UTILITY
DISTRICT TO E~ECUTE A RESERVATION OF EIGHTS AGREE-
MENT WITH UNITED STATES FIDELITY AND GUARANTY COMPANY
BE IT RESOLVED by the Board of Directors of the SOUTH
TAHOE PUBLIC UTILITY DISTRICT, County of E1 Dorado, State of
California, as follows:
i. That the President of ~e Board of Directors of SOUT~
TAHOE PUBLIC UTILITY DISTRICT be, and he is hereby authorized to
execute a Reservation of Rights Agreement with United States Fide
and Guaranty Company, a copy of which said Reservation of Rights
Agreement is attached hereto and incorporated herein by reference°
2. The execution is authorized conditioned upon the
following:
(a) John C. Weidman being n~ned as associate counsel
David C. Rust as principal counsel, the expense of the servic~
of John C~ Weidman to be borne by the South Tahoe Public Uti
District.
(b) That any answer or stipulation be submitted to John
C. Weidman for his signature on behalf of South Tahoe Public
Utility District, and said John C. Weidman is hereby
to sign any answer or stipulation on behalf of South Tahoe
Public Utility District°
(c) That John C. Weidman receive notification of the
and place of all proceedings from said David C. Rust.
(d) That South Tahoe Public Utility District does not
admit any position of United States Fidelity and Guaranty
Company set forth in said Reservation of Rights Agreement°
(e) That the time within which SOUTH TAHOE PUBLIC UTILIT
DISTRICT may institute any declaratory judgment or other pro-
ceedings for determination of the obligations of United States
Fidelity and Guaranty Company is extended to a reasonable peri
of time after said District receives notification of refusal t
defend or refusal to pay any judgment against the District.
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-I~HN ~-. WEIDMAN
PASSED AND ADOPTED at a regular meeting of the Board of
Directors of South Tahoe Public Utility District on August 6~
196~ by the following vote:
AYES:
Directors Clarke~ Wakeman, Fesler, Stewart and
Kortes
NOES' None
ABSENT- None
ATTEST:
M~rY'Pars~y,'Acting Clean'of
the SouthYTahoe Public/~ility
District and ex offici~ Secretary
of the Board of Directors thereof
D na'ld L. Clarke~ President o~f the
Board of Directors of South Tahoe
Public Utility District
(SEAL)
RESERVATION OF M!GHTS AqREEMENT
--,.
It is hereby mutu~].ly agreed, by.:.mrt between Uniter! States FidelSty & Guarr, r, ty
mpany, A Corporation, bereig~fter c'7!].,~,~ "Com~,~,~y, and Snut~ T~hoe Public Utility
~istrict, hereinafter c~lled" ' , " - -
- .DTstrict" ~'sn'ing tb~s ~greement ~ follow~:
Tho Com..gay has ~ssued ~ ~ol~y ~ ff~ner~] ~'~nb~]~tv ~nsur~,~,ce coverin~ thir~
party ]i~b~]~ty ~-~ out of th~ owner~;b~[:, ~intenane~ ~,nd use ;-,ne oper-,'t~on of a
se~,zge trea[~en* plant in Tahoe V~,~]ey, r:~li~orn~a. S~,~ po!~c7 is numbered CLP 85719,
effective October 27, 1963 ~ e~p!rJng October 27, ~9~6. Attached t,o the policy ~s
en,~or~emeut C&L 1648 commonly., referred ta ~s "Ocnurren~ P,'o~erty Damage En~forseme~"
S,,mule copy of wh'ieh ~s ~,ttnched. "
Montgomery Developers h~ve filer1 ..q c]nlm ~nd have -insti. tuted nuit against the
D~.~trict for damages resulting f'~om 'the r]~ch~rc'e of sewa~'e from ~he spr~.yin~ of sa~d
sewage a~ross an~ over certain r~al propez't~ cunti~uou~ bc various Lubdivisicn lots
owned by Montgomery Developers. It is further alleged ~ - +
~ha. bi reason of the diuchar&e
of this sewage~ spray, odors and liquid mat~r]-.]_ u.pcn and u~ez' onto thc r~:~l property
~ ~',on~om~rj Developer:-, ~ condition ha~' b~,,n crc: 5 ~l,~n said property ~1 Nont~em~ry
~ve!oper,3 that makes the occupation tlleTecf J.::lpc6slbl~ tha~ creates a sit~,tJcn
d~n~erc~s to heath and welf{~re of parson6 upc~ ~'~"~,~ propePty of ~4ontgo~ery ~eloperG
aud has rendered the property u~les~ for th,. purpos~ of hum2n occupation and hak~tat!cn
and thzt for a period of time th~eaft~i thc .~roi~ertj wJr unsnleabl=, and that ccrtain
uth-r lots cf Montgomery
u~veloF~rs were not a~low~d to b~ included in Subdivision~
due to '~h~ E1 Dorado County
~.e~.lth D-partmenb's refusal to give it's cleuranc~ for the
a. ppro~al of said subdivision which in turn ~'!legedly was caused by the
operation.
The Company takes the position th'~t th~ d'q~, ,~:~, ti. ah. ed is not covered by the
~_zresaid pu].ic~ of insurance fo~, tli- fo].!owins re.~sons;
1. Th~ damage .complain~-,d. . of i.~ lnt~.nb=k=.' ...... ; '"~' ill ~:a+~ttra anl was not physicul
injury to the property.
2. Thc piping and spraying of sewage, effluent on the land contiguous to
that of Montgomery. Developers "~nd the discharge of s~wa~je, s[~r~y, odors
and liquid materials upon, over '~nd onto the ~lontgomery Developers land
was known and was the natural -md snticfpated r~su]t cf said o~erat~on.
In order to Permit a resolution of this question, District agrees %hat the Company
or its r~presenta~ives or attorneys may proceed to investig-at, the cause or circum-
stance:; surrounding- the alleged rYamTg-~s to ~ro~erty of Ncntgomer5, Developer~ ~s co
specified in Action 13012 filed in the Superior Court of ~hc Stat~ of ~' '
- ~allfoz'nia for
the County of El Dorado.
It is further understood by the District th~.t in consideration of the trouble and
expense in so doing the above that the ComFany, it's agent~, representatives, adjusters
or attorneys may investigate i~repare for defense or actual!y defend tho District without
pr.cjudice to the Company under the above policy, ond still reserving onto said Company
ull of its rights and defenses under c~id policy of injurer:ce us fully and completely
as if said Company had refused to take any steps wh:~tever in the investigation ~,nd/or
d~fens~ of the above referred to action.
Ali of 'h- acts of nil p,;~rtjc, s t,, ! .... :~i,;r.,.,ment with r~,,"[,~r:t to t}:~, m:ytter:; herein
i,~Pl'~d I,O~ r;ha]] [)e ht.~]d to b~, vo[unt.'.ry '~nd tc }~(. done pur:.;ur~nt to the agreement
h,~rein expressed.
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The intent ..',nd purpose bf this agreemont j~:~ to p~rm:~t an impartial ~',~nd full in-
sti~ntJon into thc scope .Rnd extent cf f)ol.i, cy covera~7~ of said. insurgence po!ic$, ~.n<~
~n [.mpa~tial and full investigation :~nd/or defense of a].] matters relatJ, ng to the
dam?,~,s complained of as hereinbefore refers, ed to, and [.]:e .].jnbilit3, if an3, of th~
District without incurrin~ an~ admission of tiabilit~ ~n~] to preserve without es:%opf~],
waiver or forfeiture, an~ and ,~]1 of the rijhts of all of the p.arties hereto.
Signed in quodrup!icate this
d~y of 196;~ ~.~t
Witness
South T~hoe Public Utility District
United Stmtes Fide!~ty & Guar~.nty Co.
W~tness
By:
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~I:3HN ~. WEIDMAN
CERTIFICATE OF RESOLUTION
STATE OF CALIFORNIA
Co~ty of E1 Dorado
I, MARY PARSLEY, Acting Clerk of the SOUTH TAHOE PUBLIC
UTILITY DISTRICT~ County of E1 Dorado~ State of California~ and
ex officio Secretary of the Board of Directors thereof~ do hereby
certify that the attached Resolution No. 516 is a true, full and
correct copy thereof, and that said Resolution was duly adopted
by the Board of Directors of SOUTH TAHOE PUBLIC UTILITY DISTRICT
at a duly held regular meeting on August 6, 1964, and that the
original of said Resolution is on file in the office of s~ d
SOUTH TAHOE PUBLIC UTILITY DISTRICT. Said Resolution was passed
by the following vote of the members of the Board of Directors
AYES '
Directors Clarke~ Wakeman, Fesler, Stewart and
Kortes
NOES: None
ABSENT: None
thereof'
(SEAL)
Mar] Par/~ey, Acting Cle~ of the
SOUTH T~/~I~O~ .EOE PUBLIC. UTI L~TYY _][DISTRIC~
and ex offlczo Secretary o£ the
Board of Directors thereof
WHJM:JHH:rd '{/20/o, Oc
NOTICE OF HEARING ON AMENDED ASSESSMENT
SANITARY SEWERAGE PROJECT 1952-1
NOTICE IS HEREBY GIVEN that pursuant to the order of the
Board of Directors of the South Tahoe Public Utility District,
the District Engineer thereof has filed with me an amended
assessment, together with his report and map thereof, of the
parcels shown as the Diagram and Assessment number indicated on
Exhibit "A" attached hereto and by reference made a part hereof,
on the diagram and assessment heretofore confirmed by Resolution
No. 55 of said Board, adopted on October 7, 1955, pursuant to
Supplemental Resolution of Intention No. #7, adopted by said
Board on September 3, 1955, to all of which reference is here-
by made for further particulars.
NOTICE IS FURTHER GIVEN that on the $,d.-- day of
___SF2~R , 1964, at 8:00 o'clock P.M., at the District
office, Tahoe Valley Fire Station, South Tahoe, California, a
hearing will be had on said amended assessment at which time all
persons interested in said original assessment or in the lands
affected thereby, or on the bonds secured thereby, may appear
and protest against the same.
Dated: ~,,~,,~ ~ , 1964.
Acting Cl~rk and/~x-o~flci6 Secreta~y/~.~
the Boar,/of Directors of the[/ ~
South Tahoe Public Utility DiStrict
EXHIBIT "A"
SANITARY SEWERAGE PROJECT 1952-1
1964-5 Changes
Old Asst.
No.
1-A
Old Ass'rs. Old New Asst.
Parcel No. Assessment No.
27-010-19
$ 703.50 ( 157
(
158
New Ass'rs.
Parcel No.
27-010-20
27-010 -21
New
Assessment
351.75
351.75
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7-A' ~3
27-020-01
27-020 -02
27-020 -03
27-020-07
27-020 -08
175.00
175.00
175.00
626.50
213.50
159
27-020-11
1,365.00