HomeMy WebLinkAboutContracts & Agreements_140-2021TEMPORARY WATER SUPPLY SETTLEMENT AGREEMEMT BY AND BETWEEN THE
CITY OF REDLANDS AND REDLANDS PALM INVESTMENT, LLC
This temporary water supply settlement agreement ("Agreement") is made and entered
into this 20th day of July, 2021 ("Effective Date"), by and between the City of Redlands, a
California municipal corporation and general law city ("City") and Redlands Palm Investment,
LLC, a California limited liability company ("RPI") City and RPI are sometimes individually
referred to herein as a "Party" and, together, as the "Parties."
RECITALS
WHEREAS, RPI is the owner of certain real property located at 301 W Palm Avenue in
the city of Redlands, which is more specifically identified as county of San Bernardino
Assessor's Parcel No 0173-231-05-0000 (the "Property"), and
WHEREAS, RPI has filed applications with the City for the development of a residential
subdivision on the Property, which includes the preservation of two existing historic homes and
an historic citrus grove, in addition to several smaller contributing historic structures presently
existing upon the Property; and
WHEREAS, subsequent to RPI's filing of the development applications, RPI informed
City that a water line owned by the Redlands Water Company that was providing non -potable
irrigation water to the Property and the historic citrus grove failed, thereby jeopardizing the
healthy maintenance of the historic citrus grove and the Property; and
WHEREAS, City has an interest in both the preservation of the historic citrus grove on
the Property and the repair of the water line, because City is a significant shareholder of
Redlands Water Company, which owns the water line, and
WHEREAS, in a cooperative effort to assist in the preservation of the historic citrus
grove, and continue to efficiently and economically provide water service to the citrus grove and
the Property, RPI, as the owner of seventeen (17) shares of the corporate stock of Redlands
Water Company, offered to make available and have delivered to City's water treatment plant
RPI's full entitlement of non -potable water evidenced by such shares, in exchange for City's
provision of temporary domestic water service to the Property and the historic citrus grove, and
WHEREAS, City and RPI now wish to conclude such temporary water service on the
terms and conditions set forth herein below;
NOW, THEREFORE, in consideration of the mutual promises contained herein, and for
such other good and valuable consideration the receipt of which is hereby acknowledged, City
and RPI agree as follows
AGREEMENT
Section 1. Cessation of Temporary Water Service/Credit.
A. In exchange for City's provision of temporary water service to the Property for
the period of time from June 25, 2020 to July 20, 2021 (the "Exchange Period"), RPI shall cause
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Redlands Water Company to issue City a credit (deducted from the allotted water entitlement for
RPI's aforementioned seventeen (17) shares of Redlands Water Company corporate stock) for its
future delivery of non -potable water to City m an amount equivalent to the amount of domestic
water provided by City to RPI for the Property durmg the Exchange Period (the "Credit")
Redlands Water Company's confirmation of the Credit shall be delivered to City within sixty
(60) days of the Effective Date of this Agreement
B In the event RPI fails to cause Redlands Water Company to provide City with
written confirmation of the Credit as required by subsection A, above, RPI shall (i) pay City the
sum of twenty three thousand six hundred thirty eight dollars and mnety sixty cents
($23,638 96), which represents the actual amount owed to City by RPI for temporary use of
City's domestic water supply as of July 1, 2021, and the sum of one thousand two hundred
mnety six dollars and mnety six cents ($1,296 96) which represents the actual amount of usage
of City's other utility systems (sewer, refuse, household hazardous waste, street sweeping)
during the Exchange Period, and (n) the utility invoices issued by City to RPI m August for
RPI's pro -rated usage of City utilities from July 1, through July 20, 2021, the end of the
Exchange Period, within ten (10) days of the Redlands Water Company's failure to issue the
Credit
C From and after the Effective Date of this Agreement, RPI shall be charged for all
City domestic water and all other utilities provided to the Property m accordance with City's
then prevailing rates
Section 2 Entire Agreement/Amendment This Agreement constitutes the entire
agreement between the Parties with respect to the subject matter hereof Any prior verbal or
written representations or agreements respecting temporary water service to the Property not
expressly set forth herein are null and void This Agreement may be modified or amended only
by written instrument, executed by the Parties
Section 3 Attorneys' Fees In the event any action is commenced to enforce or
mterpret the terms or conditions of this Agreement the prevailing Party shall, m addition to any
costs and other relief, be entitled to recovery of its reasonable attorney's fees, including fees for a
Party's use of in-house counsel
CITY OF REDLANDS
Paul T Barich, Mayor
ATTEST
e Donaldson, City Clerk
REDLANDS PALM INVESTMENT, LLC
A California limited liability company
By Diversified Pacific Development Group, LLC,
A California li ' ted h.bihty company
Its Ma ger
atthew • Jor:' , V o-Managing Member
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