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BACKGROUND Roger and Jane Manning are Happy Valley property owners whose original 1970's home is at the new address of 5295 Clubhouse Drive. When the golf course was being constructed, the Manning's water well was in the planned location of the Fourth fairway. Rather than redesign the course, the Mannings agreed to have their water well capped. They thus lost the use of their well water, whereas well water is still used by most Happy Valley residents. To compensate for the loss of their well water, the Mannings have been allowed to use the non potable golf course water [which is irrigation run -off from the turf collected in the irrigation ponds, mixed with City water, and then re -used throughout the course] to water the landscaping on their lot. This use of non potable water for landscaping has been allowed at no cost to offset the loss of their well water, and is proposed to be of a limited duration. In addition, the Mannings did connect their house to City water and pay regular water costs for domestic water use. Also during course construction the Mannings and the City became aware of a 1,000 square foot area (20' x 50') of public property between the cart path and the Manning home which was bare of any golf course turf or landscaping. The Mannings then requested, and City staff agreed, that this area could be fenced as part of the Manning parcel. The Mannings have now landscaped this area with vineyards. DISCUSSION The proposed Use of Non Potable Water and License Agreement allows the Mannings to maintain the two existing connections to the golf course's non potable water irrigation lines, and use this non potable water exclusively for their landscaping at no cost for a term of 25 years. Section 2 makes clear that the non potable water is not drinkable or suitable for domestic use, and that the Mannings must monitor for leaks to conserve this Non potable water. The agreement gives the City has the right to install water meters and advise the Mannings if their use of the non potable water becomes excessive, and sets a process for the reduction of use, or payment for excessive use. The cost to install these meters is approximately $1,000, and is proposed to be paid by the golf course enterprise fund, as it relates to the original course construction. These terms were negotiated as an exchange for the closure of the water well to improve golf course play and operations. The agreement also would give the Mannings a license to fence, irrigate and maintain the landscaping (which has been planted with vineyards) on the 1,000 s.f. area of public property adjacent to their parcel, as shown on Exhibit A to the attached agreement (the "License Area Section 1 of the agreement prohibits the Mannings from building any structures in the area, nor interfering with course operations. In addition, the agreement gives the City complete discretion to terminate this license upon 30 days notice (see Section 3.a.). These provisions preserve the City's interest in the safe operation of the golf course. Page 2 of 3