HomeMy WebLinkAboutContracts & Agreements_126-2005_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 Crafton Heights
Pipeline Company ("Shares"); and
B. 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 21, 2005 and end on June 1,
2006, [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 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 21st day of June 2005
"Lessor": "Lessee":
City of Redlands Bear Valley Mutual Water Company
By: e, By:
/Susan Peppler Michael Huffstutlef
Mayor General Manager
Attest:(�
Cli Clerk