HomeMy WebLinkAboutContracts & Agreements_67-2011_CCv0001.pdf Shares Lease Agreement
(City As Lessor)
This Shares Lease Agreement ("Lease") is entered into the 24th day of May, 2011,
("Effective Date") by and between the City of Redlands, a general law city incorporated under
the laws of the State of California ("Lessor") and Brian Buoye ("Lessee"). Lessor and Lessee are
sometimes individually referred to herein as a "Party" and, together, as the "Parties."
RECITALS
WHEREAS, Lessor is the owner of shares of the common stock of the Crafton Water
Company; and
WHEREAS, Lessee desires to lease from Lessor Twelve (12) shares of the common stock
of the Crafton Water Company (the "Leased Shares") on the terms and conditions hereinafter set
forth;
Now, THEREFORE, in consideration of the mutual promises contained herein, Lessor and
Lessee agree as follows:
AGREEMENT
1. Lease. Lessor hereby agrees to lease the Leased Shares to Lessee and Lessee
agrees to lease the Leased Shares from Lessor for the purpose of providing water to Lessee.
Such water is not intended, nor shall it be used for human consumption or domestic purposes
until such time that Lessee treats such water in accordance with California Department of Health
Services, Office of Drinking Water Standards, and all other applicable state and local laws, rules
or regulations.
2. Term. This Lease shall commence on the Effective Date and shall terminate on
March 31 2012, unless earlier terminated. Lessee understands and agrees that neither this Lease,
nor any of the rights and obligations of the Parties to this Lease, shall extend beyond the Lease
Term.
3. Rent.
A. As rent for the Leased Shares, Lessee shall pay Lessor, an amount equal to the
total number of Leased Shares multiplied by One Dollar ($1.00), together with an amount equal
to the Crafton Water Company's annual per share stock assessment as reimbursement to Lessor,
if Lessor has paid such annual assessment for this calendar year ("Rental Amount"), and a One
Hundred Dollar($100) administration charge established by Lessor.
1AAdministration\Stock Leases Purchases\Stock Leases\2011\7037 water Lease Agreement(2011).doc
B. If Lessor has not paid the annual assessment for the Leased Shares for the
calendar year prior to the Effective Date of this Lease, the Rental Amount shall not include any
reimbursement payment. In such event, Lessee shall be obligated to pay the annual assessment
for the Leased Shares directly to the Crafton Water Company,
C. Lessee shall be obligated to pay for all water delivery charges imposed by
Crafton Water Company for the Lease Shares.
D. The Rental Amount shall be paid by Lessee to Lessor within ten (10) days of
the Effective Date of this Lease.
4. Assignability. Lessee shall not have the right to assign, sublet or otherwise
transfer or encumber the Leased Shares under this Lease.
5. Voting Rights. Lessor shall retain all the voting rights associated with ownership
of the Leased Shares.
6. Hold Harmless. Lessee shall hold Lessor harmless from and against any loss,
costs, expenses, damages, penalties or claims related to or arising directly or indirectly out of any
environmental or hazardous substance contamination of any water attendant to the Leased
Shares, from whatever cause. Lessee acknowledges that Lessor assumes no responsibility and
makes no representation as to the quality or purity of any water attendant to the Leased Shares.
7. Entire Agreement. This Lease constitutes the entire agreement between Lessor
and Lessee regarding the leasing of the Leased Shares to Lessee. Any prior written or oral
agreements or representations respecting the leasing of the Leased Shares not expressly set forth
herein are null and void.
8. Attorneys' Fees. In the event any action is commenced to enforce or interpret the
terms or conditions of this Lease the prevailing Party shall, in addition to any costs and other
relief, be entitled to the recovery of its reasonable attorneys' fees, including fees for use of in-
house counsel by a Party.
9. Waiver. The waiver by Lessor of the performance of any obligation hereunder
shall not invalidate this Lease nor shall it be considered a waiver by Lessor of any other
obligation hereunder.
[Signature Page Follows]
LNAdministration\Stock Leases Furchases\Stock Leases17037 Water Lease Agreement(2011).doc
IIS WITNESS WHEREOF, the undersigned have executed this Agreement as of this 24th
day of May,2011.
LESSEE LESSOR
BRIAN BLOYE CITY OF REDLANDS
By. By,
Mayor, City of Redlands.
Attest,
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By:
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I-Adniinistration\Stock teases PUrchases,,Stock 1.eases\7037 Water Lease yreernent(2011).doc
MUNICIPAL UTILITIES & ENGINEERING DEPARTMENT
MEMORANDUM
TO: Pete Aguilar, Mayor
THRU: N. Enrique Martinez, City Manager
Dan McHugh, City Attorney
Sam Irwin, City Clerk
FROM: Rosemary Hoerning, Director of Municipal Utilities & Engineering Pk
DATE: May 24, 2011
SUBJECT: Annual Agreement to Lease Crafton Water Company Shares Brian Buoye
Recommendation:
This memo transmits a request for your signature on the attached agreement to lease
Crafton Water Company water shares to Brian Buoye. In the past, the City has leased
Crafton Water Company shares for the purpose of irrigating groves. Mr. Buoye has
leased shares from the City in the past and wishes to do so again this year. After
signing, please forward to the City Clerk for signature/attest and further processing and
coordination with MUED staff.
Background:
On May 17, 2011 City Council unanimously approved Resolution No. 7037 authorizing
the Mayor or any member of City Council to approve and execute annual lease
agreements.
Thank you.
RH/pb
Attachment: Shares Lease Agreement