HomeMy WebLinkAboutContracts & Agreements_122-2006_CCv0001.pdf SHARES LEASE
This Shares Lease ("Lease") is entered into between the City of Redlands, a Municipal
Corporation ("Lessor") and Bear Valley Mutual Water Company ("Lessee"). Lessor and
Lessee agree as follows:
A. Lessor is the owner of 98 shares of the Capital Stock of the Grafton Heights Pipeline
Company ("Shares"); and
S. Lessor desires to lease its 98 Shares represented by stock certificate numbers 256,
425 and 428 (hereinafter the "Leased Shares") to Lessee on the terms and conditions set forth
hereinafter,
1. Lease. Lessor hereby agrees to lease the Shares to Lessee and Lessee agrees to
lease same from Lessor for the purpose of providing pipeline capacity to Lessee. Any water
transported by said pipeline capacity is not intended to be used for human consumption and shall
not be used by Lessee for human consumption prior to treatment by Lessee, to California
Department of Health Services, Office of Drinking Water Standards.
2. Term. The term of this lease shall begin on June 6, 2006 and end on June 1, 2007,
[in no event more than one year] ("Lease Term") Notwithstanding the foregoing, Lessee
understands and agrees that, there is no implied intention that this Lease or any rights or interest
hereunder will be extended beyond the Lease Term.
3. Rent. Lessee hereby agrees to pay Lessor the sum of$1,470.00("Rent")in full upon
execution of the Lease for the Leased Shares as set forth herein. Any and all capacity surcharges
or extra water charges associated with use by the Lessee of the Leased Shares are the sole
responsibility of the Lessee for the lease term.
4. Assignability. Lessor hereby agrees that Lessee shall have the right to assign or
sublet (rent pool) but not otherwise transfer or encumber the Leased Shares under this Lease.
5. Waiver. Lessee hereby agrees to hold harmless Lessor from any loss, cost,expense
and claims arising directly or indirectly out of the use of the Lessor's Leased Shares prior to
expiration of this Lease, and from any environmental contamination of any water attendant to the
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Leased Shares, from whatever cause. Lessor assumes no responsibility for the quality or purity of
any water attendant to the Leased Shares.
This Lease is executed on 6th day of June 2006
"Lessor": "Lessee":
City of Re lands Bear Valley Mutual Water Company
By: BY:
Jon Harrison Michael Huffstutler
Mayor General Manager
Attest:—
Cit y,Clerk