HomeMy WebLinkAboutContracts & Agreements_56-2009_CCv0001.pdf SHARESLEASE
This agreement for the lease ofCraftonWater Company Shares ("Leame") imentered into this 15th
day pfApril, 28O9 ("EffwotiveDmte'"), byand between the City of Redlands (''Lemmmr") and Pete
Marcum (^^Lmsmee"). Lessor and Lessee are sometimes individually referred bmherein ama "Party"
and,together, aathe ^^Pantiem'" 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 nnthe terms and conditions hereinafter set forth�
.
NOW, THEREF(}RE, in consideration of the mutual promises contained herein, Lessor and
Lessee agree asfollows:
AGREEMENT
1. Lease. Lessor hereby leases the Leased Shares hoLessee and Lessee leases the same
from Lessor for the purpose ofproviding water UzLessee. Such water shall not beused by
Lessee for human consumption without prior treatment by Lessee to California Department of
Public Health, [}ffima 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. 2010. /^Lemaeharm^\. 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 acondemnation proceeding then inthat event the entire amount ofany
such award shall bethe sole and exclusive property ofLessor and the Lessee shall have no
MUNICIPAL UTILITIES & ENGINEERING DEPARTMENT
MEMORANDUM
PR 2 02009
TO: N. Enrique Martinez, City Manager
' 'EPP
FROM: Rosemary Hoerning, Director of Municipal Utilities & Engineering
DATE: April 14, 2009
SUBJECT: Agreement for the Lease of Crafton Water Company Shares
This memo is transmitting a request for your signature for the agreement to lease
Crafton Water Company shares to Pete Marcum. After signing, can your staff please
forward to the City Clerk for signature.
RHlpb
Attachment: Crafton Water Company Share Lease Agreement-Marcum
interest therein, (d) inthe event there isataking 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 esdefined herein below, and (e) there ianoimplied intention that this Lease orany
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 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 Crafton
Water Company for delivery of water associated with the Leased Shares.
4. Assignability. Lessee shall not assign, sublet nrotherwise transfer orencumber the Leased
Shares.
5. Voting Rights. Lessor retains voting rights associated with ownership of the Leased Shares.
S. 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 buthe Leased Shares.
This Lease ioexecuted onthe 15mday ofApril, 2O00.
"Lessor:" "Lessee:"
City of Ian Pete Marc
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Cit ;anager
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/ ~i y lerk
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