HomeMy WebLinkAboutContracts & Agreements_39-2009_CCv0001.pdf SHARESLBASE
This Shares Lease ('Lease") is made and entered into this 1st day of April, 2009
("Effective Date) between the City of Redlands, a municipal corporation ("Lessor") and Beer
Valley Mutual VVabar Company ("Lessee"). Lessor and Lessee are sometimes individually
referred to herein as n Porty, and, together. as the Parties.
RECITALS
VVhenaee. Lessor is the owner of 98 shares of the Capital Stock of the Crofton Heights
Pipeline Company(^Gha,es"); and
Whereas, Lessor desires to lease its 98 Shares represented by stock certificate numbers
250. 425 and 428 (hereinafter the "Leased Shores") to Lessee on the terms and conditions set
forth hereinafter;
NOW, THEFlEFONE, in consideration of the mutual promises contained henein. Lessor
and Lessee agree aefollows:
AGREEMENT
1� lease. Lessor hereby leases the Shares to Lessee and Lessee agrees to lease
the same from Lessor for the purpose mfproviding pipeline capacity to Lessee. Any water
transported by said pipeline is not intended to be used for human consumption and shall not be
used by Lessee for human consumption without prior treatment by Lessee, to California
Department of Health ServiceS, Office of Drinking Water StandanJa, and all other applicable
|oVvs.
Z Term. This Lease shall commence on April 1. 2OOBand end on K4anoh 31. 2010
('^Lemnm Term"), Notwithstanding the fonaguinQ. Lessee understands and agrees that neither
this Leaee, nor any of the rights and obligations of the Parties to this Lease, shall be extended
beyond the Lease Term.
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3. Rend, Leasee shall pay Lessor, as nand for the Leased Sharee, the sum of
$1.470.00 ("Rent") within five (b) business days from and after Lessor's execution of this
Lease. Any and all capacity surcharges orextra water charges associated with use by Lessee
of the Leased Shares are the sole responsibility of Lessee for the Lease term,
4. Assignability. Lessee shall have the right to mami0n or sublet (rent pool) but not
otherwise transfer o[encumber the Leased Shares under this Lease; pnJv|deU, hovvever, that no
such assignment orsubletting shall relieve Lessee from compliance with its obligations under
this Lease.
5� Lessee shall defend, indemnify and hold harmless Lessor
from any |oea, cost expenae, c|einno and lawsuits arising directly or indirectly out of the use of the
Lessor's Leased Shares and from any environmental contamination of any water attendant to the
Leased Shares, from whatever cause. Lessor shall have no responsibility or liability for the
quality orpurity ofany water attendant tothe Leased Shares.
H This Lease constitutes the entire agreement between Lessor
and Leasee regarding the leasing of the Leased Shares to Lessee. Any prior written or oral
agreements or representations respecting the Leased Shares, or their leasing by Lessor or
Lessee, not expressly set forth herein are null and void.
7. In the event any eodnn is commenced to enforce or
interpret the terms or conditions of this Lease, the prevailing Party sha||, in addition to any costs
and other relief, be entitled to the recovery ofits reasonable attorneys' fees, including fees the for
use ofin-house counsel bya Party.
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This Lease is executed on this Istday of April 2009.
"Lessor": "Lessee":
City of Redlands Bear Valley Mutual Water Company
B W
riqu a i ez Michael Huffstutler
City Ma ger General Manager
Attest:
By`
Lora 'Poyzer, City Ier
1 cat.(iim`_ gretmer}is,�SflARt 5 LEAS F3LAR VAL I Y rev.3,09,doc