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HomeMy WebLinkAboutContracts & Agreements_98-2024AGREEMENT TO EXCHANGE ENTITLEMENT WATER This water entitlement exchange agreement ("Agreement") is made and entered into this 29 day of May, 2024 ("Effective Date"), by and between the City of Redlands, a municipal corporation ("City") and Deborah Blevins and Justin Jordan ("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 five (5) shares of Redlands Heights Water Company stock identified as No. 1244 (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 Owner 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 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. I:\ca\djm\Fonn Agreements\Exchange Entitlement Water Lease.doc IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date. CITY OF REDLANDS OWNER ATTEST: I:\ca\djm\Form Agreements\Exchange Entitlement Water Lease.doc f cr) „c.v.4-1,-0•• A 9 3 No. of Shares Trrtifirs 011rat _ „,71,1y 17«,5 INCORPORATED MAY 9, 11391 AUTHORIZED CAPITAL STOCK SSOO,DEID SOOD SHARES PAR VALUE $100. N° 1244 Redlands Heights Water Company REDLANDS, SAN BERNARDINO COUNTY, CALIFORNIA ve-3,4,4 0 Date: April 18_ 2024 , Deborah Blevins and Justin Jordan is the registered holder, entitled to represent, and (subject to conditions printed on reverse side hereof) ___ No One (IF NO PLEDGE IS TO BE REGISTERED, WRITE IEND ONE" IN THIS SPACE) is registered as pledgee of Five 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 supplying 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 lien 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 ant- rized officers, and its Corporate Seal affixed the lar-tibave written. 1PfaatirSga ' /TN SECRETARY G '71_6-gae_A• • olt ITS- • , 14 • Eli 1-14 - • „E1E '1,Ne,72,.kaLQVAZOI. PRES !DENT AVI EA•Ewv V © GOES 35B _ 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 minimint 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 SEPTEMBER, 2013. Pete Aguilar, Mayor ATTEST: 1:ielerktttesolationates 7000.7099\7047 Entitlement Water Agreement.doo 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: Councilmernbers Harrison, Foster, Gardner, Gilbreath; Mayor Aguilar NOES: None ABSTAIN: None ABSENT: None City Clerk l:lccletktltesolntiats\Res 7000-70 7047 Entitlement Water Agreement.doe 2 AGREEMENT THIS AGREEMENT, executed by and between the City of Redlands, herein- after called "Cityf and the Redlands Heights Water Company, hereinafter. called rrCompanylr is entered into this First ' dly of Juqust , 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. C OVENANTS 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 oity system, and pay for installation of such connections, which shall serve also aq the domestic connection to shareholders entitled to receive water service. 2. The Company, at its expense, shall make any oonneotion to the irrigation system from the domestic system of a customer. 3. During irrigation months only, the customer may receive hie stook: 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. Z. Company agrees to dc]:iver or have delivered to the City, . a1. water_ entitlement due•to any stockholder that is connected to the City's system in accordance with this agreement. All water shall be delivered in potable condition or to a City facility capable of making the water potable. All assessment and service charges for stook entitlement to ouch water shall be paid by the stockholders. a. 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 exobange 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 lames. 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 City'e system. Billing shall_ be made monthly. 8. The Company shall maintain a service charge for providing servioe to each point of delivery irrespeotive of the quantity of water delivered. These charges shall be divided equally among'poiats of delivery of all, stock- holders mud shall, include but not be restricted to: a. Office Expenses. b. Zan.ero 'Expenses. G. Adminietrative 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 ,6I r� Br ci .4Gd Vice President CITY OF REDLANDS