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HomeMy WebLinkAboutCarlsbad Mutual Water Company; 1955-06-17; (3)4 £R IJ8 M E j[ T THIS AGREEMENT, made and entered into as of the 17th day of June, 1955, by and between CARLSBAD MUNICIPAL WAT IB DISTRICT, a Municipal Water District organized and incorpor- ated under the Municipal Water District Act of 1911, as amended, hereinafter referred to as ''The District", and CARLSBAD MUTUAL WATER COMPANY, a California corporation, hereinafter referred to as "The Mutual", WIT NESS ECU; WH5REAS, The District neither owns nor operates facil- ities for the transportation, storage or distribution of water, and the Board of Directors of The District has by resolution found and declared that it is not practical, feasible or possi- ble to install or construct facilities for the transportation, storage or distribution of water during the calendar year 1955} and WHSRE&S, The District has heretofore declared (a) that The District does not endorse or recommend the practice of es- tablishing temporary connections by separate entities for the distribution of Colorado River Water within The District's cor- porate area to the facilities of the City of Ceeanside or the San Diego County Water Authority, hereinafter referred to as "The City" or **Ehe Authority", respectively; (b) that an emer- gency exists within the District's corporate area caused by drought and other causes beyond the control of The Districtj (c) that because said emergency does exist, The District would, upon request, cooperate with those areas and agencies located entirely within its corporate area that desire to obtain a supplemental supply of water from The District through the facilities of member agencies of The Authority from the date the annexation of its corporate area to The Authority and to The Metropolitan Water District of Southern California becomes effective until July 1, 1955? and WHSIEAS, The Mutual has heretofore (a) applied to The District for permission to install or cause to be installed temporary service connections from the facilities owned and operated by The City upon the terms and conditions set forth in that certain contract entered into by and between The City and The District dated June 17, 1951+> as extended and modified by an agreement entered into between said parties dated June 17| 1955» attached hereto as "Exhibit A"; and (b) has heretofore applied to The District to purchase water from The District subject to such rules and regulations as may from time to time be adopted by The District, and such rules and regulations of The Metropolitan Water District of Southern California and The Authority in so far as they may pertain to The Mutual; and WHSISAS, The Mutual acknowledges that it is thoroughly familiar with the policies of The District and the terms and conditions upon which water will be delivered to The District by The Authority; and WHEREAS, the parties mutually desire that The Mutual may purchase and receive until June 16, 1956, water from the connections being installed under the contract entered into be- tween The City and The District attached hereto as Exhibit A during the life of said contract or any extension thereof; and WHEREAS, the service area of The Mutual comprises the ma^or portion of the developed area within The District; and -2- WHER1&S, Terramar Water Company, which serves water to an area included within the corporate area of The District, but outside the service area of The Mutual, desires to purchase water from The District and is entitled so to do, but the water system of said Water Company is located at a considerable dis- tance from the nearest point at which the District could deliver water, and The District has no facilities to enable it to de- liver water to said Terramar Water Company} and WHEREAS, The Mutual is willing to transport water fur- nished by The District through its facilities from the connec- tions installed under said contract of June 17, 1951* as modified and extended, to a point in its system to be mutually agreed upon by The Mutual and said Terramar Water Company, upon and subject to all the agreements, conditions and covenants herein contained? NOW, THIRM'ORE, in consideration of One Dollar and other valuable consideration, and the covenants and agreements herein- after contained, the parties hereby agree as follows* (1) SERVICE CONNECTION: The Mutual will pay any and all costs incurred in connection with the installation of the temporary service connection heretofore installed and any future temporary service connection which may be installed under and pursuant to the contract with The City, and any and all costs incurred in connection with the maintenance and removal of said facilities, including the costs of all valves, pipe, chlorinating plants, buildings, metering equipment, or other equipment required in connection with the installation, operation or maintenance of said connection. Any and all equipment paid for by The Mutual shall be the property of The Mutual and may be removed at the expiration of said contract between The City and The District. -3- 8A/55 (2) WATM RATE; Any and all water delivered through said connection from The City's facilities, less such amounts as are delivered 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 succeeding month during the term of this con- tract. 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 become delinquent and a penalty of ten per cent (10$) will be added thereto, charged to and collected from The Mutual. If the bill and added penalty 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 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 District may, as a condition for further service, require a cash deposit equal to the amount of the average monthly bill of The Mutual, to guar- antee the prompt payment of its account in the future. (3) The Mutual shall and hereby agrees to pay The District at the rate of Twenty One Dollars ($21.00) an acre foot for any and all waters discharged through said temporary service connec- tion and meter, excluding any and all waters that may be delivered to The Mutual by The District for delivery to Terramar, and which are actually delivered to Terramar by The Mutual, and The District agrees upon receipt of such money to pay to The Authority, at its current rate, for all water discharged through said connection and meter and The City its charges for the use of its facilities. If The Authority shall, during the term of this contract, increase or decrease the per-acre-foot charge for water delivered to The District, then and in that event The hutual agrees with The District that the price per acre foot specified to be paid by the terms of this paragraph shall be increased or decreased by a like amount. (k) It any question or dispute arises as to the amount of water delivered to The Mutual by The District, the decision of The District shall be final and conclusive as to the amount of water delivered to The Mutual. The District is also author- ized and empowered to fix and apportion the loss of wats*, if any, incurred in the transportation of water from the facilities of The City to the point of delivery to The Mutual. (5) The District shall not be obligated to pay or ad- vance any sums to The Authority for water used by The Mutual, except from funds advanced by or paid by The Mutual to The Dist- rict. (6) DBLiygg OF WATgU The obligation, if any, which The District may have for the delivery of water to The Mutual under this agreement; 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 Water District of Southern California or the San Diego County Water Authority may from time to time lawfully im- pose 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 contract, does not have and does not incur any obligation whatsoever to The Mutual or to its stockholders to deliver water to The Mutual in any quantity in excess of that which is delivered to The District by The Au- thority through the temporary connection installed on The City*s facilities, and that The District shall not be liable for damages by reason of The Districts inability or failure to deliver to The Mutual the amount of water requested or the failure to be able to deliver any water at all. (7) It is understood that this contract will termin- ate June 16, 1956, and that there is no obligation on The Dist- rict to renew or extend this contract or to enter into any arrange- ments with The Mutual for the delivery of water through said tem- porary service connection beyond the expiration date of the con- tract between The City and The District, or any extension there- of | that this contract is being entered into as a matter of ac- commodation to The Mutual by reason of the emergency which exists in The Mutual*s service area due to periods of prolonged drought, and is entered into purely as an emergency measure to preserve property values in The Mutual»s area and to protect the public health. (8) It is understood that The Mutual has furnished without cost to The District all facilities including any rights of way, pipe lines, or meters or other measuring devices, valves, vaults, facilities and equipment for the delivery and transporta- tion of water from the temporary service connection installed or to be installed to the distribution system of The Mutual, and that The Mutual will 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 service connection to be installed by The City. The Mutual shall also furnish, operate and maintain its own lines and distribution system for the distribution of any water received by The Mutual from The District, and The District shall not be under any duty relative thereto or obligated to install or pay for any distri- bution or storage facilities to be used in distributing water to be delivered by The District to The Mutual. (9) It is understood and agreed that all water that is delivered by The District to The Mutual is raw or untreated -6- water, and is agricultural water only, and that there is no ob- ligation on The District to chlorinate said water or to take any steps so as to qualify said water for domestic use. (10) IIP BONIFICATION* The Mutual promises and agrees that it will at all times indemnify and save harmless The Dist- rict from any and all loss, cost, damage and expense and from and against any and all claims or demands on account of injury to person or property, including reasonable engineer*s and attor- ney^ fees, which may be incurred by or asserted against The District, growing or rising out of The Mutual*s operation or the attachment, maintenance and operation of its facilities to or the removal of its facilities from the facilities of The City or from the discharge of water from said temporary service connec- tion installed or to be installed by The City at the request of The District for the benefit of The Mutual. (11) The execution of this contract does not give The Mutual 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 The Mutual or its stockholders, and The District is to have no responsibility whatsoever with regard to the quality or the amount of water delivered or made available to The Mutual. (12) RATIONING* If for any reason there is insuffi- cient water available to The District to meet the demands of The Mutual, and its stockholders, 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 prorated among its consumers in accordance with the terms of the Act under which it is organized} and if for any reason there .7. is insufficient water available to The Mutual to meet the de- mands of its stockholders and consumers, The Mutual agrees that any and all water delivered to it by The listrlct under and pur- suant to this agreement shall be delivered and rationed to its stockholders and users in accordance with the Municipal Water District Act of 1911t as amended, and in accordance with the rules and regulations duly adopted by The District. It is fur- ther agreed that in 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 Terramar Water Company 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 in- tended for Terramar Water Company, as the total use of water for domestic purposes in the area supplied by said Terramar Water Company bears to the total use of domestic water in the area served by The Mutual, and the area served by Terra.jaar. (13) MISCELIAIfEOUS t It is mutually understood and agreed that The District may at all times have access to any and all meters and measuring devices through which water is furnish- ed to The Mutual either by The City or by The District. The Mutual agrees to abide by all rules and regulations which The District or The Authority or The Metropolitan Water District of Southern California may from time to time establish or adopt, in so far as they apply to The Mutual»s operations. Water will not be turned on through said temporary ser- vice connection for a run of less than forty-eight 0*8) hours, and the head of water will not be changed, nor will water be turned on or off through such service connection without a mini- mum advance notice of forty-eight hours, except in the case of -8- 8A/55 an emergency beyond the control of The District or The Mutual, in which event the water may be turned on and off immediately to prevent the waste of water; and The Mutual shall so conduct its operations that there shall be no back pressure on the facilities of The City or The Authority. (1*0 DELIVgtY. TO TglBAMp mTER COMPANY i The Mutual agrees that at any time or times that the Terramar Water Com- pany may agree to execute the contract substantially in the form of the contract attached hereto, made a part hereof, and marked "Exhibit B*«, and at such time as a price for the use of The Kutual's facilities can be agreed upon between The Mutual, Terramar and The District, that The Mutual will execute such contract. (15) This contract is subject to securing the consent of The Authority to the delivery of water through the facili- ties of The City, under the contract of June 17, 195^1 as modi- fied and amended. (16) The District hereby appoints the Manager of The Mutual as its representative to notify The City and The Dist- rict of any and all changes in connection with the flow of water. (17) The Mutual agrees that The City was entitled to and has exercised its option to purchase certain equipment in accordance with the terras set forth in the agreement extending and modifying the agreement of June 17» 195^, and that it will convey good title to the equipment to be purchased by The City uatder the terms of said option. (18) This contract may be revised or amended by mutual consent of the parties hereto at any time. .9. (Seal) CARLSBAD MUNICIPAL WAT HI DISTRICT By By JUxx, (//• PMsldent/ Secretary (Seal) CARLSBAD MUTUAL WAT® COMPANY, a California corporation Secretary -10-