HomeMy WebLinkAboutContracts & Agreements_108-2009_CCv0001.pdf August 3, 2009
MEMORANDUM
To: Enrique Martinez
From: Chris Diggs 4>
Through: Rosemary Hoerning
Subject: Bear Valley Water Shares Lease
Each year the City leases shares of Bear Valley Mutual Water Company stock from
company shareholders. The water received by lease of the stock is typically used at the
City's Hinckley surface water treatment plant. Because the utility is now supplying water
to the Sports Park it is prudent to lease additional shares to meet the irrigation demands.
The leased shares entitle the City to an inexpensive source of water which can be utilized
at the Sports Park.
Attached are two copies of a lease agreement needing you signature to allow the City to
receive water for use at the Sports Park. This agreement was approved by the City
4::�
Attorney earlier this year to lease other Bear Valley stock. If you have any question,
please give me a call.
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SHARESLEASE
This agreement for the lease of Bear Valley Mutual Water Company Shares ("Lease") is entered
into this 3rd day of August, 2009 ("Effective Date"), by and between Arnold and Margaret Wright
("Lessor") and the City ofRedlands, mmunicipal corporation (^^Lessee°`). Lessor and Lessee are
sometimes individually referred twherein ama ^'Pmrty'" and, together, msthe ^^Parties'`° Lessor and
Lessee agree smfollows:
RECITALS
WHEREAS, Lessor is the owner ofshares of the Capital Stock of Bear Valley Mutual VVobyr
Company(^Shanee^); and
WHEREAS, Lessor desires to lease nine hundred and eighteen (918) of its Ghon*a (hereinafter
the"Leased Shanes") hoLessee onthe terms and conditions hereinafter set forth�
.
NOW, THEREFORE, in consideration of the mutual promises contained herein. Lessor and
Lessee agree eofollows:
AGREEMENT
1. Lease. Lessor hereby leases the Leased Shares to Lessee and Lessee leases the same
from Lessor for the purpose ofproviding water &nLessee. Such water shall not beused by
Lessee for human consumption without prior treatment byLessee toCalifornia Department of
Public Health, Office ofDrinking Water standards, and all other applicable laws.
2. Term. The term of this Lease shall commence on its Effective Date and shall end on March
31, 2010, ("Lease term"). Notwithstanding the foregoing, Lessee agrees that (o) the real
property owned by the Lessor ("Lessor's Real Property") could be the subject of a
condemnation proceeding orother taking, (b) the Leased Shares are not currently subject to
a condemnation proceeding or other taking. (u) in the event the Leased Shares are the
subject matter of acondemnation award orinthe event, the Leased Shares aadescribed are
the subject matter of a condemnation proceeding then in that event the entire amount of any
such award shall be the sole and exclusive property ofLessor and the Lessee shall have no
interest therein, (d) in the event there is a taking of the Leased Shares by condemnation, then
in that event this Lease shall terminate and Lessee shall be entitled to a pro rata refund of the
Rent as defined herein below, and (e) there is no implied intention that this Lease or any
rights orinterest hereunder will beextended beyond the Lease Term.
3. Rent. Lessee shall pay Lessor the sum of $2,754.00 within thirty (30) business days from
and after the Effective Date ofthis Lease. Lessee further agrees bopay Lessor the amount of
any stock assessment on the Leased Shares, which would result in an annual assessment in
excess of $80.00 per share, if any, and any delivery or entitlement charge levied by Bear
Valley Mutual Water Company for delivery ofwater associated with the Leased Shares.
4. Assignabillity. Lessee shall not assign, sublet or otherwise transfer or encumber the Leased
8honsa.
5. Votinci Rights. Lessor retains voting rights associated with ownership of the Leased Shares.
6. Waiver. Lessee shall defend, indemnify and hold harmless Lessor from any |oao, cost,
expense and claims arising directly or indirectly out of(a) condemnation of the Lessor's Real
Property or the Leased Shares prior to expiration of this Lease. (b) this Lease, and (c) from
any environmental contamination of any water attendant to the Leased Ghares, from
whatever cause. Lessor assumes no responsibility for the quality or purity ofany water
attendant tothe Leased Shares.
This Lease isexecuted onthe 3rd day ofAugust, 200S.
^Leomor:^ "Lessee:"
Arnold and Margaret Wright City of land
BY4. 2..'Li B
�Nri Martinez
City Manager
BY:
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