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} <br />TAYLOR, SCOTT &. Nuc-HOt.s <br />A PROFESSIONAL LAW CORPORATION <br />RICHARD W. TAYLOR <br />W. STEPHEN SCOTT 120 N. HUNTER STREET - SECOND FLOOR MICHAEL J. MATTEUCCI <br />KENNETH A. NICHOLS STOCKTON. CA 95202 OF COUNSEL <br />MARK E. TRIBBLE POST OFFICE BOX 1930 TELEPHONE <br />MICHELE M. CARSON STOCKTON. CALIFORNIA 95201 12091 942-4300 <br />October 16, 1987 <br />Jogi Khanna, M.D. <br />San Joaquin Local Health District <br />1601 East Hazelton Avenue <br />Stockton, California 95202 <br />Re: Insured : San Joaquin Local Health District <br />File No. : C4435 <br />Claimant : Schlueter <br />D/Loss : 2-15-86 <br />Dear Dr. Khanna: <br />Enclosed please find the Covenant we have prepared in an attempt <br />to shield San Joaquin Local Health District from liability for <br />water conditions in the Wakefield Court area. <br />I understand that Mr. Scott previously explained that short of <br />halting construction in that area, there is noway to assure <br />that the Health District will not be involved in another suit <br />similar to Schlueter v. W.D.O. <br />I also understand that he explained that the best that could <br />be done as to Wakefield Court was to require indemnity from the <br />developer, Don A. Cose (this has been accomplished) and require <br />a disclosure to current and future buyers regarding the water <br />quality. As you can see, this Covenant contains such a <br />disclosure, alongwith a promise not to sue the Health District. <br />Ron Valinoti has given preliminary approval to the document and <br />I would therefore request that you execute it on behalf of the <br />Health District. <br />However, if you have any question or comment regarding the <br />document please feel free to contact me. <br />Very truly yours, <br />MICHELE M. LARSON b <br />A <br />MML:eg <br />Enclosure <br />