HomeMy WebLinkAboutContracts & Agreements_230-2021AGREEMENT TO EXCHANGE ENTITLEMENT WATER
This water entitlement exchange agreement ("Agreement") is made and entered into this
% day of December, 2021 ("Effective Date"), by and between the City of Redlands, a
municipal corporation ("City") and Trevor Daniel and Whitney Amelia Van Meter ("Owner")
City and Owner are sometimes individually referred to herein as a "Party" and, together, as the
"Parties "
RECITALS
WHEREAS, the City and the Redlands Heights Water Company have entered into an
agreement dated August 1, 1967, to exchange irrigation water, a copy of which is attached hereto
as Exhibit "A," and
WHEREAS, Owner is a shareholder of record of six (6) shares of Redlands Heights
Water Company stock identified as No 1231 ("Shares"), and
WHEREAS, Owner wishes to take advantage of the opportunity to receive water from
the City's domestic water system in exchange for Owner's assignment of the Shares to the City,
NOW, THEREFORE, in consideration of the mutual promises contained herein, the City
of Redlands and Trevor Dame! and Whitney Amelia Van Meter agree as follows
AGREEMENT
1 Owner hereby assigns and shall cause all irrigation water entitlement derived
from Owner's Shares to be delivered to a City water treatment facility. In exchange, Owner will
receive an equal amount of potable water from City through City's domestic water system
2 Owner shall comply with the provisions of City's agreement with Redlands
Heights Water Company
3 City agrees to furnish water under the conditions and in the amount indicated in
comphance with City's agreement with Redlands Heights Water Company.
4 This Agreement constitutes the entire agreement between the Parties regarding the
subject matter hereof Any prior written or verbal agreements or representations respecting the
subject matter of this Agreement not expressly set forth herein are null and void
5 In the event any action is commenced to enforce or interpret the terms or
conditions of this Agreement 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
6 This Agreement may be amended only by wntten instrument, executed by the
Parties
I \ca\djm\Form Agreements\Exchange Entitlement Water Lease.doc
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date
CITY OF ED± A D S
BY
Paul T Banch, Mayor
ATTEST
BY
nne Donaldson, City Clerk
OWNERS
BY n— v,
T evor Darnel Valk Meter
BY (0�� P^
Whitney Amelia Van Meter
I \ca\djm\Form Agreements\Exchange Entitlement Water Lease.doc
A•
AGREEMENT
THIS AGREEMENT, executed by and between the City of Redlands, herein-
after called "City" and the Redlands Heights Water Company, hereinafter
called "Company" is
August
entered into this First day of
1967
RECITALS
1. The Company desires to relieve itself of the burden of maintaining
pipelines in many areas where the usage is not sufficient to warrant large
expenditures for such maintenance
2 The City, being a substantial stockholder in the Company, deems
it in the public interest to assist in the discontinuation of as many
unnecessary and little used pipelines as possible
3 Many of the Company's points of delivery may be served from the
City's domestic water system.
4. The physical means exist for the City to receive water from the
Company in exchange for water delivered by the City to Company stockholders
COVENANTS
For and in consideration of the mutual covenants set forth herein,
Company and City agree as follows
1 The Company shall determine the size of connection required to
serve each stockholder from the city system, and pay for installation of
such connections, which shall serve also al the domestic
shareholders entitled to receive water service
2. The Company, at its expense, shall make any connection
irrigation system from the domestic system of a customer
3 During irrigation months only, the customer may receive his stock
entitlement through the domestic meter and all water thereafter shall be
charged by the City at the domestic rates established by City ordinance or
resolution.
4. Company agrees to deliver or have delivered to the City, all water
entitlement due to any stockholder that is connected to the Cityts system in
accordance with this agreement All water shall be delivered in potable
connection to
to the
condition or to a City facility capable of making the water potable
All assessment and service charges for stock entitlement to such water shall
be paid by the stockholders
5 The City shall have the right to limit the maximum rate of delivery
in order to maintain adequate service to domestic consumers
6. The City shall make the exchange provided herein only for such
services and under such circumstances as, in the judgement of the City,
will result in the elimination of a substantial portion of the Company's
transmission lines
7 The Company shall pay the City ten cents ( 10) per MID delivered
in this manner and a bookkeeping charge of five dollars ($5 00) per year
per delivery point connected to the Cityls system. Billing shall be made
monthly
8 The Company shall maintain a service charge for providing service
to each point of delivery irrespective of the quantity of water delivered.
These charges shall be divided equally among points of delivery of all stock-
holders and shall include but not be restricted to
a. Office Expenses
b Zanjero Expenses
c Administrative Expenses
d. Bookkeeping charges from the City
e Taxes.
IN WITNESS WHEREOF, the parties have hereunto subscribed their names
the day and year hereinabove written.
REDLANDS HEIGHTS WATER COMPANY
By ✓ 4j/ 24A. „"
/
Pres�.d nt -,"/)
,.
f \,ec '
Vice President
CITY OF REDLANDS
By‘ (
a
il
yor
Bid Rejection - On motion of Mayor Pro Tem Fostei, seconded by
Councilmembei Gardner, the City Council unammously approved the rejection of
all bids received in response to RFB A-2013-001 Refuse, Green Waste and
Recyclmg Automated Containers
LCNG Station Expansion - On motion of Mayoi Pro Tem Foster, seconded by
Councilmembei Harrison, the City Council unanimously approved a contract
between the City of Redlands and Fuel Solutions, Inc , m the amount of $37,883,
for technical consulting and design services associated with the Liquid
Compressed Natural Gas (LCNG) station expansion
Resolution No. 7047 — Water Entitlement Exchange Authority - On motion of
Mayor Pro Tem Foster, seconded by Councilmember Gardner, the City Council
unanimously approved Resolution No 7047 authonzmg approval and execution
of agreements to exchange entitlement water without prior Council approval.
Right -of -Way Services - On motion of Mayoi Pro Tem Foster, seconded by
Councilmember Gardner, the City Council unanimously approved an amendment
to an agreement between the City of Redlands and Paragon Partners LTD to
perform nght-of-way appraisal and acquisition services
PUBLIC HEARINGS
Resolutions No. 7313, 7316 and 7315 — Hillwood Investment Partners —
Apphcant — Mayoi Aguilar opened the hearing and called upon Manuel Baeza, of
the Development Services Department to provide background on the proposed
development of a 1,015,740 square foot warehouse/distribution "fulfillment"
centei on approximately 50 66 acres The project site is comprised of six (6)
contiguous parcels located on the south side of Lugonia Avenue, the east side of
Bryn Mawr Avenue immediately north of the I-10 Freeway, approximately 635
feet west of California Street As a public comment, Andrew Hoder questioned
the magmtude of impact considered in studies presented as to truck traffic
associated with the proposed facility and asked about the trees included m the
developer's landscape plan Tom Dodson, environmental consultant for the
applicant, addressed concerns expressed m a written comment received from
Briggs Law Corporation during the meeting On motions of Mayor Pro Tem
Foster, seconded by Councilmember Gardner, the City Council determined, based
on the whole of the administrative record to date, that the mformation contamed
in the whole record justifies the adoption of a mitigated negative declaration for
the fulfillment centei project, approved the Mitigated Negative Declaration and
the accompanying mitigation momtormg and reporting program for the Redlands
Fulfillment Center project, adopted Resolution No 7313 approving the Socio-
Economic Cost/Benefit Study for the project, adopted Resolution No 7316
approving Parcel Map No 19461 to revert to acreage six (6) contiguous lots into
one (1) parcel, which delineates dedications that will and will not be vacated and
dedications required in connection with the reversion to acreage, with an area of
September 3, 2013
Page 6
AGENDA ITEM NO --(g
COUNCIL MEETING OF 9/3/13
REQUEST FOR COUNCIL ACTION
SUBJECT: RESOLUTION NO. 7047 , AUTHORIZATION TO APPROVE AND
EXECUTE AGREEMENTS TO EXCHANGE ENTITLEMENT WATER
WITHOUT PRIOR COUNCIL APPROVAL
MOTION:
1 move to approve Resolution No. 7047
RECOMMENDATION.
Staff recommends the City Council adopt Resolution No. 7047 authorizing the Mayor or
any member of the City Council to approve and execute agreements for water exchange
entitlements for water received from the Santa Ana River and Mill Creek without prior
Council approval.
DISCUSSION:
The City derives the majority of its water supply from three primary sources. the Santa Ana
River, Mill Creek, and groundwater wells. The right to use surface water sources has been
acquired by the City through both direct ownership of water rights and through the
ownership of mutual water company stock.
In the 1960s and 1990s the City entered into agreements with four local mutual water
companies to allow the City to receive water from these companies on behalf of its
shareholders. The water received is delivered to the City's Hinckley surface water
treatment plant, and then delivered to each share holder As part of the agreement the
shareholders are required to pay all assessments and delivery charges. To complete the
transaction, each share holder must sign a companion agreement with the City which
allows them to operate under the master agreement between the City and each of the four
mutual water companies.
This arrangement allows the City to minimize its expenses by not having to pay increased
assessments on water company stock owned by the City to make costly repairs to their
aging systems. In addition, all unused shareholder entitlement water is delivered to the
City at a significantly reduced cost. Because of this, the City receives significantly more
water then it delivers to the water company shareholders.
Currently the City has agreements with approximately 150 water company shareholders to
receive this water Each year staff receives approximately six customer requests to
transfer ownership from one customer to another, or add shares to their account,
Recently, City staff has been contacted by two water company shareholders requesting to
add shares to their agreements and execute new ones. Because these agreements
City Council Meeting of 9/3/13
Agreement To Exchange Entitlement Water
Page 2 of 3
provide benefit to the City, and are the mechanism to implement the Council approved
agreements, staff is requesting the Mayor, or any other Councilmember, have the authority
to sign the agreements without prior Council approval for each agreement. Finally, staff
will include, in the quarterly agreement tracking report from Finance and the City Clerk's
office, the number of entitlement agreements that are signed
The City Attorney has reviewed the forms of the Agreement to Exchange Entitlement
Water
FISCAL IMPACT
In general, water entitlement agreements provide an annual financial benefit to the City of
approximately $118,000 This estimated value is derived by the value of the excess water
transferred to the City for its use Additionally, because the construction of private water
company pipeline replacements are not necessary, and the City would be required to pay
for a portion of these facilities as the City owns portions of each of the companies, the City
realizes reduced costs by lower private water company assessments.
ATTACHMENT
Resolution No 7047
City Council Meeting of 9/3/13
Agreement To Exchange Entitlement Water
Page 3 of 3
Prepared by
CHRIS DIGGS
Deputy MUED Director
Review-d by'
SAVIPOUR
Municipal Utilities & Engineering Director
F
MO
Reviewed by
TINA T KUNDIG
Finance Director
Recommended by.
N.'NRI ARTIN
City Manager
Reviewed by.
DANIEL J cHUGH
City Attorney
RESOLUTION NO 7047
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS AUTHORIZING
APPROVAL AND EXECUTION OF AGREEMENTS TO EXCHANGE ENTITLEMENT
WATER WITHOUT PRIOR COUNCIL APPROVAL.
WHEREAS, the City derives the majority of its water supply from three primary sources,
the Santa Ana River, Mill Creek, and groundwater wells, and the right to use surface water
sources has been acquired by the City through both direct ownership of water rights and through
the ownership of mutual water company stock; and
WHEREAS, the City has entered into agreements with local water companies to allow
the City to receive water from local mutual water companies on behalf of their shareholders, and
as part of these agreements the shareholders are required to pay all assessments and delivery
charges; and
WHEREAS, the aforementioned arrangement allows the City to minimize its expenses by
not having to pay increased assessments on water company stock owned by the City to make
costly repairs to its aging systems, and in addition, all unused shareholder entitlement water is
delivered to the City at a significantly reduced cost; and
WHEREAS, because of this arrangement, the City receives significantly more water than
it delivers to the water company shareholders;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Redlands as
follows:
Section 1 The City Council of the City of Redlands hereby authorizes the Mayor, or any
Councilmember, to execute agreements to exchange entitlement water substantially in the form
hereto as Exhibit "A."
ADOPTED, SIGNED AND APPROVED THIS 3rd DAY OF SEP I E,MBER, 2013
Pete Agui1itr, Mayor
ATTEST
Sam Irwin, City Cferk
I:\ccrk\RefioIutjons\Res 7000-7099\7047 Entitlement Water Agrecment.doc
I, Sam Irwin, City Clerk of the City of Redlands, hereby certify that the foregoing resolution was
adopted by the City Council at a regular meeting thereof held on the 3rd day of September, 2013
by the following vote:
AYES Councilmeinbers Harrison, Foster, Gardner, Gilbreath, Mayor Aguilar
NOES None
ABSTAIN None
ABSENT None
City Cleric --(X))---
I:\celcrk\Resolntions\Res 7000-7099\7047 Entitlement Water Agreementdoe 2
EXIHIIBIT "A"
AGREEMENT TO EXCHANGE ENTITLEMENT WATER
This water entitlement exchange agreement ("Agreement") is made and entered into this
day of , 201_ ("Effective Date"), by and between the City of Redlands, a
municipal corporation ("City") and ("Owner"). City and Owner are
sometimes individually referred to herein as a "Party" and, together, as the "Parties."
RECITALS
WHEREAS, the City and the Water Company have entered into an
agreement dated to exchange irrigation water, a copy of which is
attached hereto as Exhibit "A," and
WHEREAS, Owner is a shareholder of record of ( ) shares of
Company stock identified as Nos. (the "Shares"); and
Water
WHEREAS, Owner wishes to take advantage of the opportunity to receive water from
the City's domestic water system in exchange for Owner's assignment of the Shares to the City;
NOW, THEREFORE, in consideration of the mutual promises contained herein, the City
of Redlands and agree as follows.
AGREEMENT
1 Owner hereby assigns and shall cause all irrigation water entitlement derived
from Owner's Shares to be delivered to a City water treatment facility In exchange, Owner will
receive an equal amount of potable water from City through City's domestic water system.
2. Owner shall comply with the provisions of City's agreement with
Water Company
3 City agrees to furnish water under the conditions and in the amount indicated in
compliance with City's agreement with Water Company
4 This Agreement constitutes the entire agreement between the Parties regarding the
subject matter hereof. Any prior written or verbal agreements or representations respecting the
subject matter of this Agreement not expressly set forth herein are null and void.
5 In the event any action is commenced to enforce or interpret the terms or
conditions of this Agreement 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
I:lcclerk\Resolutions'Res 7000-7099\7047 Cntitkment Water Agreement.doc 3
6. This Agreement may be amended only by written instrument, executed by the
Parties.
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.
CITY OF REDLANDS OWNER
BY BY
Mayor
ATTEST
BY
CityClerk
I: I ccleratesolutions\Res 7000-7099\7047 Entitlement Water Agreement.doc 4
i
No. of Shares
=6=
INCORPORATED MAY 9 1891
AUTHORIZED CAPITAL STOCK $500,000
SOOD SHARES PAR VALUE $100.
1231
llll.,iCYYllllliC/llllll ./Yl ./' lJlll✓111111✓llllllll..!l!!l!./✓1111111✓llllllll✓lJllllll✓!✓llll✓'
Redlands Heights Water Company
REDLANDS, SAN BERNARDINO COUNTY, CALIFORNIA
llll .r✓,/✓'✓lllllllllll✓'✓llll✓lll✓!!✓l✓l./',/I ll✓✓lull.�C'rllJ✓llll✓J✓lll✓lllllllll././✓.Y'
Date. March 6, 2018 ____
Trevor Daniel Van Meter and Whitney Amelia Van Meter, husband and wife as j.oint tenants
is the registered holder, entitled to represent, and (subject to conditions printed on reverse side hereof)
No One
OF NO PLEDGE IS TO BE REGISTERED, WRITE "NO ONE" IN THIS SPACEI
is registered as pledgee of -- _ _____ Six _ shares,
each of the par value of One Hundred Dollars, of the Capital Stock of
Redlands Heights Water Company
a corporation organized under the laws of the State of California, for the purpose (In addition to any others)
of sat p plying -water to Its shareholders.
The shares evidenced here are assessable and may be sold or forfeited for non-payment of an assessment.
Each assessment is a lien upon the shares assessed from the time of the adoption of the resolution levying the
assessment, until paid Each charge or toll for water delivered or other service rendered by the corporation to or
for the registered holder of these shares by virtue of or in respect of ownership of said shares is a hen against said
shares from the time when furnished or rendered, until paid No transfer of these shares can or will be made on
the books of the corporation while any such assessment, charge or toll thereagainst remains or is unpaid.
IN WITNESS WHEREOF, said corporation has caused this certificate to be signed by its duly
authorized officer and its Corporate Seal affixed the daY_ebove written.
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fC10'
ant
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SECRETARY
PRESIDENT