CCSUD. To the fullest extent allowed by law, CCSUD agrees on behalf of itself and its successors and assigns to defend, save and hold harmless Kyle and Kyle’s trustees, officers, directors, and employees from and against any and all claims, losses, expenses, costs, demands, judgments, causes of action, suits, and liability in tort, contract or any other basis and of every kind and character whatsoever (including but not limited to all costs of defense, such as fees and charges of attorneys, expe

Staff Report & Agenda Item Details

CCSUD. To the fullest extent allowed by law, CCSUD agrees on behalf of itself and its successors and assigns to defend, save and hold harmless Kyle and Kyle’s trustees, officers, directors, and employees from and against any and all claims, losses, expenses, costs, demands, judgments, causes of action, suits, and liability in tort, contract or any other basis and of every kind and character whatsoever (including but not limited to all costs of defense, such as fees and charges of attorneys, expert witnesses, and other professionals and all court or other dispute resolution costs) arising out of or incident to the transportation, treatment and delivery of water pursuant to this Lease Agreement while possession remains in CCSUD. Section 1.07. Approvals. Unless otherwise required by law, each consent, approval, or other official action required of either party to this Lease Agreement by any provision of this Lease Agreement shall be deemed in compliance with this Lease Agreement when written evidence of such action, signed by the respective authorized representative is delivered to the party who is to receive evidence of such action. The parties to this Lease Agreement will not take any action or fail to take any action (including, without limitation, any exercise or denial of its consent or approval of any action proposed to be taken by the party or any of its agents hereunder), if taking or failing to take such action, respectively, would unreasonably delay or obstruct the delivery of water under this Lease Agreement. ARTICLE II PAYMENTS Section 2.01. Payment for Water. Kyle agrees to pay CCSUD’s monthly charges for water based upon the rate established in Section 2.02 for one-twelfth of the specified 250 acre-feet of potable water per year. As used in this Lease Agreement, the term “year” means the twelve calendar months beginning with the Effective Date. Kyle shall pay ARWA’s monthly invoice for the portion of ARWA water attributable to this Lease Agreement in accordance with ARWA’s billing requirements. Section 2.02. Rate Paid by Kyle for Water. Beginning with the conclusion of the first full calendar month following the Effect Date, Kyle shall pay CCSUD’s expenses that would otherwise be due and owing by CCSUD for its percentage ownership of CRWA’s share of the potable water supply obligated to be made available to CCSUD under Phase 1B, as follows: Board Meeting Packet 06/03/2026 4

This motion is scored as RESTRAINS_GOVERNMENT (Impact Weight: 4.9/10). Under the Bastiat Liberty Watchdog Index, voting YES on measures that cap or reduce ad valorem tax burdens, expand taxpayer exemptions, retire debt early, enforce competitive bidding caps, or remove regulatory/zoning barriers to private property rights earns a positive Pro-Liberty score.