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HomeMy WebLinkAboutContracts & Agreements_44-2003_CCv0001.pdf AGREEMENT TO EXCHANGE ENTITLEMENT WATER This Agreement is made and entered into this 4th day of March, 21003 by and between the City of Redlands. a municipal corporation ("City") I and Steven and Sharon Guggisberg. ("Owners"), which together are sometimes referred to herein as the "Parties." RECITALS WHEREAS, the City of Redlands has entered into various agreements to provide domestic and irrigation water in exchange for entitlement water from mutual water companies to promote the efficient use of water delivery systems and the continuation of citrus and other greenscape landuses within the City-, and WHEREAS, Owners are shareholders of record of four (4) shares of Lugonia Park Water Company stock. and WHEREAS, Owners wish to take advantage of the opportunity to receive water from City's existing domestic water system in exchange for delivering the water represented by their Lugonia Park Water Company shares to City's Hinckley Water Treatment Plant; NOW, THEREFORE, in consideration of the mutual covenants contained herein, the City of Redlands and Steven and Sharon Guggisberg agree as follows: AGREEMENT I On the terms and conditions stated herein, City commits to provide water service for both domestic and irrigation purposes to the two contiguous parcels of real property owned by the Owners with the common addresses of 1327 and 1329 Sylvan Blvd., Redlands, California (hereinafter referred to as "Subject Property") based upon the ownership of four (4) shares of Page 1 Lugonia Park Water Company stock by Owners. Owners hereby assign and shall cause all irrigation water entitlement derived from Owners' shares of stock in the Lugonia Park Water Company to be delivered to a City water treatment facility. In exchange, Owners will receive an equal amount of potable water through the City's domestic water system. The City shall deliver water to meet its obligation under this Agreement through the existing domestic water meters at the Subject Property. City is obligated under the terms of this Agreement to provide irrigation service to the Subject Property only for so long as the Subject Property is devoted to: 1) agricultural usage; 2) greenbelt usage; 3) a mixed agricultural and greenbelt usage; or 4) a mixed usage which involves the Owners' personal residential usage of the Subject Property together with agricultural and/or greenbelt usage. If and when any parcel comprising the Subject Property is subdivided for residential purposes or is otherwise developed for a usage not related to agricultural or greenbelt purposes, City's obligation to provide water service to the Subject Property under this Agreement shall cease with regard to that parcel. 2. Owners shall, at their own expense, make any required on-site connections to the irrigation system of Owners from the City's domestic water system. 3. Owners shall receive their stock entitlement of water through a City domestic meter, and all water thereafter shall be charged by City at the domestic rates established by City. 4. Owners shall notify Lugonia Park Water Company to deliver to City all water entitlement due to Owners upon the Subject Property being connected to the City's system. All water delivered by Company shall be in potable condition, or delivered to the City's Hinckley Water Treatment Plant in a condition capable of being made potable by conventional water treatment methods. All assessments and service charges for stock entitlement to such water shall be paid by Owners. 5. During periods of high water demand City shall have the right to determine the rate of Page 2 delivery to Owners in order to maintain equitable and adequate service to all of City's customers, but City's obligations to deliver Owners' full entitlement of water shall not be abrogated or diminished in any way. 6. Owners shall pay City ten cents ($0.10) per miner's inch per day ($0.0058 per 100 cubic feet) of water delivered pursuant to this Agreement and a bookkeeping charge of five dollars ($5.00) per year. City shall bill Owners on a monthly basis for such fees and charges. The payment of all Lugonia Park Water Company assessments and Bear Valley Mutual Water Company service charges shall be the obligation of Owners and not the obligation of City. 7. In the event any legal action is commenced to enforce or interpret this Agreement, the prevailing party shall, in addition to any costs and other relief, be entitled to recover its reasonable attorneys' fees. 8. This Agreement may be amended only by written instrument executed by the Parties 9. This Agreement shall be binding upon and inure to the benefit of the successors-in- interest and assigns of the Parties IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the dates set forth opposite their respective signatures hereto. Page 3 OWNERS BY: A Dater` Steven Guggisbe I BY: `` Date. ' --to Sharon Guggisberg CITY OF REDLANDS BY: Date:_March 18 , 2003 Karl N. (Kasey) Haws Mayor ATTEST: BY: ✓ Date: March 18 , 2003 Lor ie Poyzer — City Clerk Page 4