HomeMy WebLinkAboutContracts & Agreements_138-2009_CCv0001.pdf SNARES LEASE
This agreement for the tease of Crafton Water Company SharesLease
(" ") is entered into this 2nd
day of September, 2009 ("Effective Date"), by and between the City of Redlands ("Lessor")and
Tiffany Ballard ("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 seven (7)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, 2010, (`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) 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 or interest hereunder will be extended beyond the Lease Term.
3. Rent. Lessee shall pay Lessor the sum of$426.62 within three (3) business days from and
after the Effective Date of this Lease. Lessee further agrees to pay 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 Crafton
Water Company for delivery of water associated with the Leased Shares.
4. Assignability. 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 no responsibility for the quality or purity of any water
attendant to the Leased Shares.
This Lease is executed on the 2nd day of S pterrber, 2009.
"Lessor"
City R di see:"
Tiffan r
g
N. E oq in
Ci anager
Attest: __ L
City #erk