HomeMy WebLinkAboutContracts & Agreements_32-1989_CCv0001.pdf AGREEMENT BETWEEN CRAFTON WATER COMPANY AND THE
CITY OF REDLANDS FOR REIMBURSEMENT FOR A PORTION
OF THE CONSTRUCTION COST OF MILL CREEK 2A REPLACEMENT WELL
This Agreement is made and entered into this 20th day
of June, 1989, by and between the City of Redlands (hereinafter
"City" ) and the Crafton Water Company (hereinafter "Crafton" ) .
RECITALS
WHEREAS, City and Crafton each own certain water rights
to Mill Creek and together operate joint water facilities,
including wells, which supplement the surface flow of Mill Creek;
and
WHEREAS, City and Crafton have determined that Mill
Creek Well No. 2 has a deteriorated well casing which could cause
the well to fail at any time; and
WHEREAS, City and Crafton agree that Mill Creek Well No .
2 should be replaced by the construction of a new well to be
designated as Mill Creek Well No . 2A; and
WHEREAS, City has funds available from the proceeds of
the sale of its 1986 Water Certificates of Participation to pay
for its portion of Well No . 2A in addition to funds to finance
Crafton' s portion of the construction costs of Well No . 2A; and
WHEREAS, Crafton will own 55% and City 45% of Well 2A;
NOW, THEREFORE, in consideration of the mutual promises
contained herein the City and Crafton agree as follows:
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AGREEMENT
Section 1 . Apportionment of Costs . The total costs
for the design and construction of Mill Creek Well No. 2A shall
include the retention of a consulting groundwater geologist
and an environmental consultant, well drilling contracts, well
equipment and electrical service, City-purchased materials and
City labor to design, bid and install the well equipment and
discharge pipeline. Fifty-five percent of the design and construc-
tion costs of Mill Creek Well No. 2A shall be paid by Crafton
and forty-five percent of such costs shall be paid by City.
Section 2 . Reimbursement. Crafton shall reimburse
City in no more than 10 annual payments for its share of the
construction costs as stated in Section 1. Interest will accrue
starting 10 days after Crafton receives the complete accounting
of all costs as indicated in Section 3 . The minimum payment
will be 1/10th of the principal and 7% simple interest on the
balance due. Crafton may make additional payments over the
minimum amount which shall reduce the principal amount without
a prepayment penalty. The first payment from Crafton will be
due no later than June 1, 1990 .
Section 3 . Accounting. City shall provide Crafton
with a complete accounting of all costs incurred by City in
designing and constructing Mill Creek Well No. 2A within 30
days after Mill Creek Well No. 2A is operational.
Section 4 . Entire Agreement. This Agreement represents
the entire agreement of the parties hereto as to the matters
contained herein. This Agreement shall not be amended except
by written instrument, executed by both parties .
Section 5 . Successors and Assigns . This Agreement
shall be binding upon and inure to the benefit of the successors
and assigns of the parties .
CRAFTON WATER IC ANY CITY OF REDLANDS
t
B By:
Mayor, City of Redlands
Title: ATTEST:
Citylerk, of Redlands
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