HomeMy WebLinkAboutContracts & Agreements_46-2010_CCv0001.pdf MUNICIPAL UTILITIES & ENGINEERING DEPARTMENT
MEMORANDUM
TO- N. Enrique Martinez, City Manager
FROM- Rosemary Hoerning, Director of Municipal Utilities & Engineering •
DATE: April 13, 2010
SUBJECT: Agreement to Lease Crafton Water Company Shares to Craig Wesson
This memo is transmitting a request for your signature for the agreement to lease 30
shares of Crafton Water Company stock to Craig Wesson. The City in the past has
leased Crafton Water Company shares for the purpose of irrigating groves. Mr. Wesson
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
Thank you.
RH/pb
Attachment, Shares Lease Agreement
CONINJUNICATIONS
Meeting-Attendance - There were no reports forthcoming from Councilmembers
regarding any meetings attended at City expense, Councilmember Gil
commended Police Chief Rueermann for hosting,the Southern California Summit
on Policing, Parole and Prisoner Reentry in conjunction with the California
Correctional Peace Officers Association, the San Bernardino County Police
Chiefs and Sheriffs Association and the San Bernardino County District
Attorney's Office on May 14, 2007. Councilmember Gallagher also attended the
summit and commended Municipal Utilities Director Phelps and his staff for their
recent "Fly In" event at the Redlands Municipal Airport.
Water Stock Leases - Due to a potential conflict of interest, Councilmember
Gilbreath retired from the Council Chambers and did not participate in this
matter; a Public Disclosure of Potential Conflict of Interest form is on file in the
City Clerk's Office. Municipal Utilities Director Phelps explained how the City
derives it water supply especially to meet the demands during the summer
season, and he proposed that in future years the annual water stock leases be
entered into based upon recommendation by the Municipal Utilities Director to
the City Manager and City Attorney.
Councilmember Gallagher moved to
approve leases for Bear Valley Mutual Water Company stock from San
Bernardino Valley Municipal Water District (21,180 shares), David Knight
(1,000 shares) and Arnold and Margaret Wright (900 shares) for the 2007-08
water delivery season and authorized the Mayor to execute, and the City
Clerk to attest to, the document on behalf of the City. Motion seconded by
Councilmember Aguilar and carried by AYE votes of all present with
Councilmember Gilbreath having,abstained.
Crafton Water Compan - - Councilmember Gallagher moved to approve the
lease of 60 shares of Crafton Water Company stock to R. Craig Wesson,
10 shares of Crafton Water Company to Mike Micallef seven shares of
Crafton Water Company to Willis Bruns, five shares of Crafton Water
Company stock to Debbie Prutsman and 30.75 shares of Crafton Water
Company stock to Pete Marcum for the 2007-08 water delivery season and
authorized the Mayor to execute, and the City Clerk to attest to, the
document on behalf of the City. Motion seconded by Councilmember
Aguilar and carried by AYE votes of all present with Councilmember
Gilbreath having abstained.
L//Policy - Water Stock Leases - Councilmember Gallagher moved to authorize
that for future water delivery seasons that annual stock leases shall be
entered into based upon recommendation by the Municipal Utilities Director
to the City Manager and the City Attorney and as authorized by the City
Manager and the City Attorney. Motion seconded by Councilmember
Aguilar and carried by AYE votes of all present with Councilmember
Gilbreath having abstained,
?flay 15,2()07
SHARES LEASE
This agreement for the lease of Crafton Water Company Shares ("Lease") is entered into this 1St
day of April, 2010("Effective Date"), by and between the City of Redlands ("Lessor") and Craig
Wesson ("Lessee"). Lessor and Lessee are sometimes individually referred to herein as a"Party"
and,together,as the"Parties." Lessor and Lessee agree as follows:
RECITALS
WHEREAS, Lessor is the owner of shares of the Capital Stock of the Crafton Water Company
("Shares"); and
WHEREAS, Lessor desires to lease thirty (30) of its Shares (hereinafter the"Leased Shares")to
Lessee 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 leases the Leased Shares to Lessee and Lessee leases the same
from Lessor for the purpose of providing water to Lessee. Such water shall not be used by
Lessee for human consumption without prior treatment by Lessee to California Department of
Public Health, Office of Drinking 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, 2011, ("Lease term"). Notwithstanding the foregoing, Lessee agrees that(a)the real
property owned by the Lessor("Lessor's Real Property") could be the subject of a
condemnation proceeding or other taking, (b)the Leased Shares are not currently subject to
a condemnation proceeding or other taking, (c) in the event the Leased Shares are the
subject matter of a condemnation award or in the event, the Leased Shares as described 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 of Lessor and the Lessee shall have no
interest therein, (d) inthe event there isetaking 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$2,500.00 within three(3) business days from and
after the Effective Date ofthis Lease. Lessee further agrees topay Lessor the amount ofany
stock assessment onthe Leased Shares, which would result inanannual assessment in
excess of$80.00 per share, if any, and any delivery or entitlement charge levied by Crafton
Water Company for delivery ofwater associated with the Leased Shares.
4. Lessee shall not assign, sublet or otherwise transfer or encumber the Leased
Shares.
5. Voting Rights. Lessor retains voting rights associated with ownership of the Leased Shares.
6. Waiver. Lessee shall defend, indemnify and hold harmless Lessor from any loss, 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 Shares, from
whatever cause. Lessor assumes noresponsibility for the quality orpurity ofany water
attendant hothe Leased Shares.
This Lease iaexecuted onthe 12thday ofApril, 201O.
"Lessor:" "Lessee:"
City
[fCrai Wesson
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