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HomeMy WebLinkAboutCarlsbad Mutual Water Company; 1956-12-26;THIS AOUBMEHT, made and entered into as of tne 26th day of December, 1956, bj and between CARLSBAD MUHICIPAL 'WATER DISTRICT, • Municipal later District organised and incorporated under the Municipal Water District Act of 1911, as amended, hereinafter referred to as "The District11, and CARLSBAD MUTUAL WATER CuMPANI, a California Corpora- tion, hereinafter referred to a« "The Mutual", WITNESSBTH* WHERIAS, The District neither own* nor operate* faeilitiea for the transporta- tion, storage or distribution of water, and the Board of Directors of The District has Toy resolution found and deelared that it is not practical, feasible or possible te Install or construct facilities for the transportstmam, storage or distribution of water until completion of construction of the arterial water system for Improvement District No, 1 or until June 25, 1997, whichever event occurs first} and WHEREAS, The District has heretofore declared (a) that The District does not endorse or recommend the practice of establishing temporary connections by separate entities for the distribution of Colorado River *ter within The District's corporate area to the facilities of the City of Oceanside or the San Diego County Water Authority, hereinafter referred to as "The City11 and "The Authority" respectively! (b) that an rgenoy exists within The District's corporate area caused by drought and other causes beyond the control of The District! (c) that because said emergency does exist, The District would, upon request, cooperate with those areas and agencies located en- tirely 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} and WHEREAS, The Mutual has heretofore (a) applied to The District for permission to install or cause to be installed a temporary service connection 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, 1954! *nd (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 Mater District of Southern California and The Authority insofar as they may pertain to the Mutual} and WHERSAS, The Mutual acknowledges that it is thoroughly familiar with the - 1- Best EXHIBIT E policies of The District and the terms and conditions upon which water will be delivered to The District by The Authoritji and WHEREAS, the parties mutually desire that The Mutual may purchase and receive until June 23, 1957, water from the connections installed under the contract heretofore entered into between The City and The District} and WHEREAS, the service area of The Mutual comprises the major portion of the developed area within The District) and WHEREAS, The Terramer Water Company serves water to an area included within the corporate area of The District, but outside the service area of The Mutual, and desires to purchase water from The District and is entitled to do so, but has no facilities tn»KHng it to take delivery of water from The District; and WHEREAS, The Mutual is willing to transport water furnished by The District through its facilities from the connections installed under said contract of ffune 17, 1954, ** 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 agreements, condi- tions and covenants herein contained| and WHEREAS, The District has heretofore entered into a contract with The City dated December 26, 1956, attached hereto, made a part hereof and marked Exhibit "A". (Specific attention is called to paragraph four of said agreement); NOW, THEREFORE, in consideration of One iJollar and other valuable considera- tion, and the covenants and agreements hereinafter contained, the parties hereby agree as follows» It \ f»:nvTn« r.nawRr>nr)£t The Mutual has paid all costs incurred in connec- tion with the installation of the temporary service connection heretofore installed and has agreed to pay any and all costs incurred in connection with the maintenance and re- moval of said facilities, including the costs of all valves, pipe, chlorinating plants, buildings, metering equipment, or other equipment required In connection with the install- ation, 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 the contract between The City and The District* (2) WATER RATE I 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 - 2 - billed to The Mutual by The District en the 9th day of each and aonth during the term of this contract. All bills or charge* ahall be due and pay*, able at the office of The District on the 19th day of the month in which they are billed* Oil In not paid on or before the 2.?nd of ouch aonth k/lll thereupon heonsM de- linquent and a penalty of ten per cent (10$) will be added thereto, charged to and collected frcm The Mutual. If the bin aol added penalty is not paid by the 29th day of the aonth, water nay be turned off by The District without further notice, and a further charpe of Ctoe-hundred Dollars ($100.00) nay be asde, and shall be paid before water service le reestablished to The Mutual. If the fatial shall fail to pay its wat^r bill prior to delinquency. The District any, as a. condition for further secrvioe, require a cash deposit equal to the amount of tiic average monthly hill of The Mutual, to puarantae the proapt payaont of its account in the future. (3) The ftitual shall and haroby agrees to pay The District at the rate of Twenty—three and Fourteen One-hundredth* Dollars (323.14) an acre foot for any and all waters, less sucti c-counts of water as are delivered by The District for the use and benefit of Terranar, discharged thr <ugh said temporary service connection and aeter, and The i>istrict agrees upon receipt of such money to pay to The authority, at its current rate, for- all water discharged connection and nxeter and The City itfl enlarges for the uee of its facilities. If The Authority ahall, during the term of thin contract, increase or decrease the per-acre-foot charge for water delivered to The Di strict, then and ID that event The .Hitual agrees with The Patriot tJiat the price per acre foot specified to be paid by the tare* of this paragraph ahall be increased or decreased by a like anount« (4) If any question or dispute arises aa to the amount of water delivered to The Mutual by The District, the, decision of The District shall be final and conclu- sive as to the a-riount of water delivered to rhe Mutual. The District is also authorised and empowered to fix anl apportion the loss of water, if any, incurred in the transporta- tion of water froia the facilities of The City to the point of delivery to The Mutual, (5) The District shall not be obligated to pay or advance any to The Authority for water need by The Mutual, except frcn funds advanced by or paid by The Mutual to The & strict. 'I The obligation, if any, which The District ney have - 3 - for the delivery of water tc The Mutual under this agreement; under the Municipal Water District Act of 1911, as amended; or otherwise, shall at all tiaes be subject to any and all conditions, restrictions, rules or regulations which The Metropolitan Water District of Southern California or tho 3t.n Jiego County .-iatnr Authority oay from time U time lawfull; to impose upon The District in connection with the delivery of Colorado River water/or through The District. It is further agreed that The District, by execution of this contract, does not have and does not incur any obligation whatsoever to The Mutual or to its stock- holders to deliver water to The Mutual in any quantity in excess of that wbleh is deliv- ered to The Jietricit by The Authority through tbe temporary connection inetalled on The City's facilities, anrl that The District shall not be liable for damages by reason of The District's inability or failure to de.. iver to The: Mutual the amount of water re- quested or the failure to be able to deliver any water at all. (7) It is understood that this contract will terminate June 25, 1957, and that there is no obligation on The District to renew or extend this contract or to enter int< any arrangements with The Mutual for the delix'ery of water through said temporary service connection beyond the expiration date of the contract between The City and The District, or any extension thereof; that this contract is being entered into as a matter of accomodstion to the Mutual by reason r.f the emergency which exists in The Mutualrs service area due to periods of prolonged drought, and ic entered, into purely ais an emer- gency riefasure to preserve property values in The Mutual1 s area and to protect the public health. It is understood that The Mutual has furnished uithout coct to The Dist- rict all facilities including any rights—of-way, pipe lines, or meters or o-thcr measur- ing 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 aad 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 dis- tribution system for the distribution of any water received by The Mutual from The Dist- rict, and Thw District sha 1 not be under any duty relatif* thereto or obligated to install or pay for any distribution or storage facilities to be used in distributing water to be delivered by The Jistrict 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 watery and is agricultural water only, and or that there is no obligation on The District to chlorinate said water/to take any steps so as to qualify said water for domestic use. ICATIOMt The Mutual promisee and agrees that it will at all tinea indeanifr and sare harmless The District from any ani all loss, cost, damage and expense and from and against any and all claims or demands on account of injury te person or property, including reasonable engineer's and attorneys' fees, which oay be laourred by or asserted against The District, growing or rising out o- The Hutual's opeiMtico or the attachment, maintenance and operation of its facilities to or the r •oral of its facilities from the facilities of The City or from the discharge of water from said temporary service connection 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 Dist- rict 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 cr uiade available to The >jitual« (12) ^JTMlfifflii1 I** ior an? reason there it; insufficient water available to The Lie trie t 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 ifce corporate area, then and in that event the water avail- ble to The District shall be pro-rated among its consumers in accordance with the terms of the Act under which it is organized; and if for any reason there is insufficient water available to The Mutual to meet the deoania of i&s stockholders and consumers, The Mutual agrees that any s-ad all water delivered to it by The District under and pursuant to this agreement ahull be delivered and rationed to ite stockholders and users in ac- cordance with the Municipal Uater District Act of 19H, as amended, and in accordance with the rules and regulations 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 i'or domestic purposes, the quantity of water to be delivered to Terramar Watar Company undor the provisions hereof shall be such proportion of the total quantity delivered into the facilities of the Mutual oy or for The District, in- cluding quantities intended for Terraaar Water Company, ae the total use of water for doaawtic purposes in the area supplied by said Terraaar Mater Company bears tr the total use of domestic water in the area served by The Mutual and the area served by Terraaar. (13) MISCELLANEOUS » It is Mutually understood and agreed that The District nay at all times have access to any and all meters and measuring devices through which water is furnished to The Mutual either by The City or by The District. The Mutual agrees to abide by all rules and regulations vhioh The ^strict cor The Authority or The Metropolitan later District of southern California Bay from time to time establish or adopt, insofar as they apply te The Mutual1s operations. Water will not be turned on through said temporary service connection for a run of less than forty-eight US) hours, and the head of water will not be changed, nor will water be turned on or off through such service connection without a minima* advance notice of forty-eight (48) hours, except in the case of an emergency beyond the control of The District or The Mutual, in which event the water nay be turned on and off immedi- ately to prevent the waste of water} and The Mutual shall so conduct its operations that there shall be no bad: pressure on the facilities of The City or The Authority, (14) DBLIYERY TO TaaSAHAJR MATM GOKPANY* The Mutual agrees that at any time or time* that the Terraaar .Jator Company nay agree to execute a contract substantially in the form of the contract attached hereto, Bade a part hereof, and Barked "Exhibit B", and at such time as a price for the use of The Mutual's facilities onn be agreed upon botwoen The Mutual, Terraaar and The District, that The Mutual will execute such contract, (1$) The District hereby appoints the Manager of The Mutual as its representative to notify The City and The District of any and all changes in connection with the flow off (16) This contract may be revised or amended by mutual consent of the parties hereto at any tine. DAT£D< (SEAL) CARLSBAD MUNIGIP President Secretary lt a California (SEAL) President Secretary