HomeMy WebLinkAboutContracts & Agreements_144-2023AGREEMENT TO EXCHANGE ENTITLEMENT WATER
This water entitlement exchange agreement ("Agreement") is made and entered into this
9th day of August, 2023 ("Effective Date"), by and between the City of Redlands, a municipal
corporation ("City") and Zachary S. Hadley and Tiffany C. Hadley ("Owners"). City and Owners
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. 1242 (the "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 Zachary S. Hadley and Tiffany C. Hadley agree as follows:
AGREEMENT
1. Owner hereby assigns and shall cause all irrigation water entitlement derived
from Owners' Shares to be delivered to a City water treatment facility. In exchange, Owners
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
compliance 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 written instrument, executed by the
Parties.
1
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IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.
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ATTEST:
BY:
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Clerk, Jeanne Donaldson
2
OWNERS
BY:
ZacharS. Hadley
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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 stook; 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:
,e,,Qt.j.op 1. The City Council of the City of Redlands hereby authorizes the Mayor, or any
Couneitmember, to execute agreements to exchange entitlement water substantially in the form
hereto as Exhibit "A."
ADOPTED, SIGNED AND APPROVED THIS 3rd DAY OF SEP 'EMBER, 2013.
ATTEST:
Sam IrwinCity �erk
MeoleritlReaelutiorts1Ras 1000-709917047 lintittetnent Water Agreentent.daa 1
I, Saxn 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: Courieilmembers Harrison, Foster, Gardner, Gilbreath; Mayor Aguilar
NOES: None
ABSTAIN: None
ABSENT: None
]:luolorldrtesolntionAlles 1000-7499t7O47 entitlement Water Agre menkdoo 2
0
iT CYO I J 44 i $ i�'.. ` 11.4
AGRECNENT
f C� AO ANT, executed by and betweon the Oity of Redlands, herein-
after KOiv'y" and the Rectl,aada Heights Stater Company, hereinafter
oai7.ed cOompanym :i.a entered into this, )!'i.xst ... ' day of
, 1967.
;;t1CTTAIJ$
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
e aztdi.ttxres for. such maintenance.
2. The City, beings substantial stockholder in the Company, deems
it in the publ.io interest to assist in the discontinuation of as many
utaxs,eoessary and little used pipelines as possible.
3. Many of the Companys points of delivery maybe served from the
Oiity'e domestic water system.
14. The phyvical means exist for the City to receive water from the
Company in exchange for water delivered by the City to Company stoc holdet.s.
00 VEMANTS
For and in consideration of the mutual covenants set forth herein,
: Oar any •and City agree a$ 40I1OwS :
L. The Company shall determine the size of commotion required to
' servo each stockholder ,from the city system, and pay for installation of
such oonneotions, which shall serve also as the domestic connection to
shareholders entitled to receive water service.
2. The Company, at its expense, shall make any connection to the
irrigation system from the domestic system of a customer.
3. 'Iiu.ring irrigation months only,• the oustomox' may receive his stock'
entitlement through the domestic meter and all water thereafter .all be
charged by the Oity at the doomes•ti,o rates established by City ordinance or
resolution. ..i .
;..a'' :'.)
14. Company agrees to deliver oz' have delivered to the City, all, water
entitlement due to any stookhol.dor that is connected to the Oi,tyt s system ia
accordance with thie agreement. All water shall be delivered in potable
Aucfus.t •
condition or to a City facility capable of making the water potable.
All assessment and service charges ±'or stook entitlement to such water shall
be paid by the stockholders.
5. Tha City shah have the right to limit the maximum rate of delivery
Ma order to maintain adequate eerv'tca'to domestic consumers.
b. The City shall make the exchange provided herein only for such
services aad under such circumstances as) in the judgement of the City
will result in the elimination of s substantial portion of the Compaxcyis
transmiseion 1ixtas.
7„ The Aompany shall pay the City tort cents (.10) par MID delivered
in this manner and a bookkeeping charge of five dollars (MOO) per year
per delivery point connected to the C3,ty► s 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 ohargea shall be divided equally amo:tg points of delivery of all stook -
holders axtd shall include but not be restricted tot
a. Office Expenses. .
b. Zanjero Expenses.
o. ' Administrative Expenses.
d. Bookkeeping charges from the City.
e. Texas.
fit WITNESS 'WE REOF, the parties have hereunto subscribed their names
the day and year hereixtabove written.
R ]LANDS BIGHTS WATER C0 AN%
nY /" ti} J':G1 r� ',} .a. 1
Br Y
•' Vice President
CITY dr R✓DLANDS
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