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HomeMy WebLinkAboutCarlsbad Mutual Water Company; 1955-06-17;This agreement, made and entered into as of the 17th day of June, 1955, by and between CARLSBAD MUNICIPAL WATER DISTRICT, a municipal water district organized and in- corporated under the Municipal 'water District Act of 1911, as amended, hereinafter referred to as **Ihe District", and CARLSBAD MUTUAL ml'm COMPANY, a California corporation, here- inafter referred to as "The Mutual", and TBUttMAR W&TSB COMPAMf, a California corporation, hereinafter referred to as T er r a mar1*, WITNESS® Hi WHEREAS, Terraioar is desirous of purchasing water from The District, said water to be transported through the facilities of The Mutual} VIHERK&S, The District is willing to sell water to Terramar, upon the terms and conditions hereinafter statedj WHEREAS, The Kutual is willing to transport said water through its facilities from the connection installed and ear a contract entered into by and between the City of Ocean- side and The District, dated June 16, 195^f as extended and modified by an agreement dated June 17, 1955> to a point in its system, to be mutually agreed upon by The Mutual and T errajoar $ WHSRms, The District and The Mutual entered into a certain agreement as of the 17th day of June, 1955» which set forth the terms and conditions whereby The District agreed to sell and The Mutual agreed to purchase water re- ceived by The District froia the San Diego County Water Author- ity and The Metropolitan Water District of Southern Jalifornia, said agreement attached hereto as "Exhibit A" and incorporated 8A/55 herein by reference hereto with same force and effect as though set forth fully teuer-ein; NOW, THEREFORE, in consideration of One Dollar and other valuable considerations, and the covenants and agree- ments hereinafter contained, the parties agree as follows: (1) All parties agree that all covenants and agree- ments of "Exhibit A" are incorporated herein by reference here- to with same force and effect as though set forth fully herein, unless specifically modified or amended hereinafter. (2) Terramar shall arid hereby agrees to pay The District at the rate of Twenty-one Dollars (§21.00) an acre foot, for any and all waters received front The District. In addition thereto Terramar agrees to pay to The District Fifteen Dollars ($15.00) per acre foot as a transmission charge for the use of the facilities of The Mutual. If the San Diego County Water Authority shall, during the terras of this contract, change the per-acre-foot charge for water delivered to The District, then and in that event T err a mar and The District agree that the price per acre foot specified to be paid by the terras of this paragraph, shall be changed by a like amount. (3) Any and all water delivered by The District to Terramar shall be billed to Terramar by The District on the fifth day of each and every succeeding month during the term of this contract. All bills or charges shall be due and payable at the office of The District on the l^th day of the month in which they are billed. Bills not paid on or before the 22nd of such month will thereupon become delinquent and a penalty of ten per cent (10$) will be added thereto, charged to and. collected from Terramar. If the bill and added penalty -2- Is not paid by the 25th day of the month, water may be turned off by The District without further notice, and a further charge of On© Hundred Dollars (1100.00) may be juade, and shall be paid before water service is reestablished to Terramar, If Terramar shall fail to pay its water bill prior to delinquency, The District may, as a condition for further service, require a cash deposit equal to the amount of the average monthly bill of Terramar, to guarantee the proaipt payment of its account in the future. (*f) If any question or dispute arises as to the amount of water delivered to Terramar by The District, the de- cision of The District shall be final and conclusive as to the amount of water delivered to Terramar. The District is also authorized and empowered to fix and apportion the loss of water, if any, Incurred in the transportation of water from the facilities of the City of Oceanside to the point of deliv- ery to Terramar. (5) The District shall not be obligated to pay or advance any sums to the San Diego County Water Authority for water used by Terramar, or to The Mutual for transmission of water to Terraraar by The Mutual, except from funds advanced by or paid by Terraiaar to The District. (6) The obligation, if any, which The District aay have for the delivery of water to Terramar under this agree- ment} under the Municipal Water District Act of 1911, as amended, or otherwise, shall at all times be subject to any and all conditions, restrictions, rules or regulations which The Metropolitan later District of Southern California or the San Diego County feater Authority may from time to time law- -3- fully Impose upon The District in connection with the delivery of Colorado River water to or through The District. It is further agreed that The District, by the execution of this con- tract, does not have and does not incur any obligation whatso- ever to Terramar or its stockholders and consumers to deliver water to Terramar in any quantity in excess of that which is delivered to The District by The £an Diego County Ifeter Author- ity through the temporary connection installed on the facili* ties of the City of Oceanside, and that The District shall not be liable for damages by reason of The District*® inability or failure to deliver to Terraiaar the amount of water requested or the failure to be able to deliver any water at all. The District does agree, subject to the aforementioned conditions and available transadssion facilities, to deliver to The Mutual for the use of Terraiaar an amount of water hereafter set forth in Paragraph(1*0 of this agreement, said water for the use of Terraiaar to be delivered at the temporary connection installed on the facilities of the City of Oceanside as provided in Para- graph (1) of the Agreement dated June 16, 195**» with such sale by The District to continue during the continuation of the current contract entered into by the City of Oceanside and The District, dated June 16, 195H, as extended and modified. (7) It is understood that this contract will ter- minate June 16, 1956, and that there Is no obligation on The District to renew or extend this contract or to enter into any arrangements with Terraoar for further delivery of water j that this contract Is being entered Into as a matter of accommoda- tion to Terramar by reason of the emergency which exists. (8) It is understood that Terraiaar has furnished without cost to The District or The Mutual all facilities In- cluding any rights of way, pipe lines, or meters or other measur- ing devices, valves, vaults, facilities and equipment for the delivery and transportation of water from the temporary service connection, Installed or to be Installed to the distribution system of The Mutual, said connection to b© aade at a point on The Mutual1s distribution system to be mutually agreed upon by The Mutual and Terramar. Terraiaar will also pay all and every cost, charge or expense In any way incurred in connecting its lines to, maintaining its lines to and disconnecting its lines from, the temporary connection to The Mutual*s distribution system. Terraaar shall also furnish, operate and maintain its own lines and distribution system for the distribution of any water re- ceived by Terraaar from The District and The District shall not be under any duty relative thereto or obligated to install or pay for any distribution or storage facilities to be used in distributing water to be delivered by The District to Terraraar. (9) It Is understood and agreed that all water de- livered by The District to Terraiaar may be raw or untreated water, except as may be chlorinated by The Mutual for its own use, and that there is no obligation on The District to chlori- nate said water. (10) Terraiaar promises and agrees that it will at all times indemnify and save harmless The District from any and all loss, cost, damage and expense and from and against any and all claims or desaands on account of injury to person or property, including reasonable engineer's and attorney's fees, which may be incurred by or asserted against The District, growing or aris- ing out of Terraiaar*s operation or the attachment, maintenance and operation of its facilities to or the removal of its facili- ties from the facilities of The Mutual. -5- (11) The execution of this contract does not give Terramar any greater right or Impose any greater obligation, if any obligation there now be, upon The District with regard to the delivery of water to Terramar or its stockholders, and The District is to have no responsibility whatsoever with regard to the quality or the amount of water delivered or jaad© available to Terraiaar. (12) If for any reason there is insufficient water available to The District to meet the demands of Terraraar and its stockholders and consumers and to meet the demands of other corporations, public agencies and individuals purchasing water from The District for use within its corporate area, then and in that event the water available to The District shall be pro- rated among its consumers in accordance with the terms of the Act under which it is organized5 and if for any reason there is in- sufficient water available to Terrajaar to meet the demands of its stockholders and consumers, Terramar agrees that any etnd all water delivered to it by The District under and pursuant to this agreement shall be delivered and rationed to its stockholders and users in accordance with the Municipal Uater District Act of 1911, as amended, and in accordance with the rules and regula- tions duly adopted by The District. It is further agreed that in the event it becomes necessary for The District in connection with the rationing of water, to limit water to use for domestic purposes, the quantity of water to be delivered to Terraaar under the provisions hereof shall be such proportion of the total quantity delivered into the facilities of The Mutual by or for The District, including quantities intended for Terrajaar, as the total use of water for domestic purposes in the area supplied by Terramar bears to the total use of domestic water in the area served by The Mutual and the area served by Terraiaar. .6- (13) It is definitely understood and agreed that water so to be delivered to T erramar is limited to a quantity of water equal to the quantity delivered to The Mutual for that purpose by The District, and that the mutual will not deliver to Terraaiar any water developed or received by The Mutual from any source other than water delivered into The Mutual1® facilities by or for The District for that purpose. (l*f) The Mutual agrees, to the best of its ability, to operate its system so as to provide the greatest possible amount of excess capacity for transportation of water to Terramar. The Mutual further agrees that unless restrained by order of court, or prevented from so doing by failure of any of its facili- ties, or other cause beyond its control, it will provide capacity sufficient to transport water to Terramar in the minimum amount of six-tenths (0,6) acre foot per day until October 31st, 1955, and thereafter at the rate of one (1) acre foot per dayj subject to the provision that if there exists a shortage of water In the area served by The Mutual, then in that event the water delivered to Terraiaar by The District through Mutual facilities may be re- duced to an amount of not less than ten per cent (10$) of the water being received by The District pursuant to the contract between The District and the City of Oceanside dated June 16, t as modified and extended. (15) Terramar agrees to take not less than ten per cent of the water received by The District. Terraaar agrees to notify The Mutual of the amount of water desired from time to time, and that it will accept all such water so ordered, and agrees to give forty-eight (W hours1 notice to The Mutual of intention to change the amount of water so desired, subject to the understanding that The Mutual, through its Manager, can waive the required forty-eight (M3) hours' notice. .7, &A/55 (16) It is further agreed that In the &vent The Mutual is prevented by such cause or causes from delivering such quanti- ty of water to Terramar, The Mutual shall not be liable either to I'erramar or to The District for failure to deliver such quan- tity of water. (1?) It is further agreed that in the event of any occurrence which, in the opinion of the Manager of The Mutual, will prevent delivery of such quantity of water to Terraioar, The Mutual will notify The District immediately of such occurrence, and that in the event it should be determined by a Court of com- petent jurisdiction that the discontinuance of the delivery of water to Terramar by The Mutual was not justified under the provisions hereof, The District thereupon, at its option, may discontinue the sale of water to The Mutual. (18) The District agrees to allow to The Mutual a credit on sums becoming due to The District for water furnished to The Mutual under this agreement in an amount equal to Fifteen Dollars ($15.00) for each acre foot of Colorado River water delivered to Terramar through said facilities of The Mutual under the provisions hereof. (19) Any and all water delivered through said connec- tion from the City's facilities, less such amounts as are deliv- ered by The District for the use and benefit of Terramar, shall be deemed to be delivered to The Mutual and shall be billed to The Mutual by The District on the 5th day of each and every suc- ceeding month during the term of this contract. All bills or charges shall be due and payable at the office of The District on the 15th day of the month in which they are billed. Bills not paid on or before the 22nd of such month will thereupon be- come delinquent and a penalty often per cent (10$) will be added -8- thereto, charged to and collected from The Mutual* If the bill and added penalty Is not paid by the 25th, day of th@ month, water aay be turned off by The District without further notice, and a further charge of One Hundred Dollars ($100.00) may be made, and shall be paid before water service is reestablished to The Mutual. If The Mutual shall fail to pay its water bill prior to delinquency, The IXLstrict may, as a condition for further service, require a cash deposit equal to the amount of the average monthly bill of The Mutual, to guarantee the proapt payment of its account in the future, (20) This contract may be revised or amended by mutual consent of the parties hereto at any time. (21) The Mutual agrees that, at any time or times when there is capacity in its facilities in excess of that re- quired to furnish water to its shareholders and others entitled to water service from The Mutual, and only at such times, it will, at the request of The District, transport through its facilities, for The District, water to be delivered to Terramar, and deliver such water into facilities furnished by The District or terramar at a point on The Mutual's system which may be mutually agreed upon by The Mutual and Terramar. (22) All pipes, fittings, meters, valves and other facilities necessary for the delivery of water from the facili- ties of The Mutual into the facilities of Terraaaar have been and shall be furnished by Terramar at its own expense} the design thereof shall be submitted to, and shall be subject to the ap- proval of, The Mutualj the work of making the physical connection with the facilities of The Mutual shall be performed by The Mutual and the cost thereof shall be paid by Terramar upon demand. Both The Mutual and The District shall have access at all times to -9- said meter. The meter shall be read by The Mutual at the close of each calendar month, and The Mutual Immediately shall notify The District of the amount of the meter reading. The Mutual shall have control of the valve controlling othe delivery of water from the facilities of The Mutual Into the facilities of Terramar and may close such valve and discontinue service to Terramar at any time when there is not capacity in The Matualts facilities in excess of the capacity required to furnish water to The Mutual*s shareholders and others entitled to water service from The Mutual. (23) It is specifically understood and agreed that The Mutual has and exercises the right to extract water from the sur- face or subterranean flow of the San Luis Bey Elver for use of Its shareholdersj that The Mutual is limited, under its Articles of Incorporation, to furnishing such water for use on lands lo- cated within an area defined in said Articles; that the area served by Terraaiar Is not located within said area; that water from said San Luis Key River Is of a different quality from that to be supplied to The Ustrlct by The Authority} that The Mutual does not intend or agree to deliver water from said source to Terraiaar, but only water supplied by The District, as herein pro- vided. It is further understood and agreed, however, that the facilities through which The Mutual intends and agrees to trans- port water delivered to it by The District, for delivery to Terra- mar under the provisions hereof, constitute a portion of the same facilities through which The Mutual transports water from said San Luis Bey Elver to its own service area, and that it will, or may be, necessary, In order to transport water for delivery to Terraxaar, for The Mutual to mingle water delivered to it for that purpose with water extracted by it from said San Luis Key Elver source of supply, and that neither The District nor -10- Terramar shall have the right to demand that The Mutual trans- port or deliver to Terraoar water of th© same quality as that delivered Into The Mutual's facilities through the aforesaid tem- porary service connection. MUNICIPAL WAT® DISTRICT By President tfojJL^ ft Secretary / CARLSBAD MOTUAL UATBa COMPAQ, a California corporation. By i TffiKAMAR WATM COJ4PANY, a California corporation. •..•-avTr -Turin.:. , -]fi -•.. -• , • "TrrrrPresident By* ____„___. -11-