HomeMy WebLinkAboutTerramar Water Company; 1956-12-26;EXHIBIT "B"
AGHKEMEMT
THIS AGREEMENT, made and entered into as of the 20th day of December, 1956,
by and between CAKLoBAD MUNICIPAL WATKR DISTRICT, a nuniolpal water district organized
and incorporated tinder the Municipal Water District Act of 1911, as amended, herein-
after referred to as "The District", and CARLSBAD MUTUAL WATLR G MPANI, a California
corporation, hereinafter referred to as "The Mutual", and TERHAMAR WATER COMPANY, a
California corporation, hereinafter referred to as "Terraaar",
WITNESSETH:
WHEREAS, Terraaar is desirous of purchasing water from The District, said
water to be transported through the facilities of The Mutual; and
WHEREAS, The id.strict is willing to sell water to Terraaar, upon the term*
and conditions hereinafter stated} and
WHEREAS, The Mutual is willing to transport said water through its facilities
froa the connection installed under a contract entered into by and between the City of
Ooeanside and The District, dated December 26, 1956; and
WHEREAS, The District and The Mutual entered into a certain agreement as of
the 26th day of December, 1956, which set forth the terms and conditions whereby Th~
Distrlct agreed to sell and The Mutual agreed to purchase water received by The District
from the San Diego County Water Authority and The Metropolitan Water District of South-
ern California}, said agreement attached hereto as "Exhibit A" and incorporated herein
by reference hereto with same force and effect as though set forth fully herein;
NOW, THEREFORE, in consideration of One Dollar and other valuable considera-
tions, and the covenants and agreements hereinafter contained, the parties agree as
follows I
(1) All parties agree that all covenants and agreements of "Exhibit A" are
incorporated herein by reference hereto with same force and effect as though set forth
fully herein, unless specifically modified or amended hereinafter*
(2) Terraaar shall and hereby agrees to pay The District at the rate of
Twenty-three and Fourteen One-hundredths Dollars ($23.14.) an acre foot, for any and
all waters received from The District. In addition thereto, Terraaar agrees to pay to
The District Fifteen Dollars ($15.00) per acre foot as a transmission charge for the
use of the facilities of The Mutual. If the ban Diego County Water Authority shall,
during the terms of this contract, change the per-acre-foot charge for water delivered
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to the District, then and in that event Terramar and The District agree that the price
per acre foot specified, to be paid by the terns of this paragraph, shall be changed by
a like amount,
(3) *ny and all water delivered uy The District to Terramar shall be billed
to Terrainar by The District on the fifth day of each and every succeeding month during
the torn of this contract, All bills or charges shall be due and payable at the office
of The District on the 15th day of the month in which they are billed. Mils not paid
on or before the 22nd of such month will thereupon becone delinquent and a penalty of
ten per cent (10$) will be added thereto, charged to and collected from Terranar. 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) nay be nade, and shall be paid before water service is reestablished
to Terramar. If Terranar 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 prompt payment of its
i
account in the future«
00 If any question or dispute arises as to the amount of water delivered to
Terranar by The District, the decision of The District shall be final and conclusive as
to the amount of water delivered to Terramar. The District is also authorized and -~
powered 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 delivery to Ter-
ramar*
(5) The District shall not be obligated to pay or advance any sums to the San
Diego County itfater Authority for water used by Terramar, or to the Mutual for trans-
mission of water to Terramar by the Mutual, except from funds advanced by or paid by
Terramar to The District.
(6) The obligation, if any, which The District may have for the delivery of
water to Terramar under this agreement; under the Municipal «rfater District Act of 1911,
as amended, or otherwise, shall at all times be subject to any and all conditions,
strictions, rules or regulations which The Metropolitan Water District of Southern Cali-
fornia or the San Diego County Water Authority may from time to time lawfully impos«
upon The District .n 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 Terramar or its stockhold—
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era and consumers to deliver water to Terramar in any quantity in excess of that which
is delivered to The District by The San Diego County Water Authority through the tempor-
ary connection installed on the facilities of the City of Oceanslde, and that The Dist-
rict shall not be liable for damages by reason ef The District's inability or failure to
deliver to Terramar 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 transmission facilities, to deliver to The Mutual for the use of Terramar an
mmommt of water hereafter set forth in Paragraph (H) of this agreement, said water for
the use of Terramar to be delivered at the temporary connection installed on the facili-
ties of the City of Oceanside as provided in Paragraph (1) of the Agreement dated June
16, 1954, with such sale by The iftstrict to continue during the continuation of the
current contract entered into by the City of Oceanside and The Jistrict, dated December
26, 1996, as extended and modified.
(7) It is understood that t is contract will terminate June 25, 1957, and that
there is no obligation on The District to renew or extend this contract or to enter into
any arrangements with Terramar for further delivery of water; that this contract is being
entered into as a matter of aooomodation to Terramar by reason of the emergency which
exists*
(8) It is understood that Terramar has furnished without cost to The District
or The Mutual all facilities including any rights-of-way, pipe lines, or meters or other
measuring devices, valves, vaults, facilities and equipment for the delivery and transport-
ation of water from the temporary service connection, installed or to be installed to the
distribution system of The Mutual, said connection to be made at a point on The Mutual's
distribution system to be mutually agreed upon by The Mutual and Terramar. Terramar 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 Mutual1s distribution system. Terramar shall also furnish, operate and maintain
its own lines and distribution system for the distribution of any water received by Ter-
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 Terramar*
(9) It is understood and agreed that all water delivered by The District to
Terramar may be raw or untreated water, except as may be chlorinated by The Mutual for
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its own use, and that there is no obligation on The District to chlorinate said water.
(10) Terraaar promisee and agrees that it will at all times indemnify and
save harmless The Jistrict 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 pmmpprty,
including reasonable engineer*s and attorney's foes, which «ay be incurred by or asserted
against The District, growing or arising out of Terraraar'e operation or the attachment,
maintenance and operation of its facilities to or the removal of its facilities from the
facilities of The Mutual.
(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 made available to Terramar.
(12) If for any reason there is insufficient water available to The District
to meet the demands of Terramar and its stockholders and consumers and to meet the de-
mands 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 v ich it is organized; and if for any reason there is insufficient water
available to Terramar to meet the demands of its stockholders and consumers, Terramar
agrees that any and 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 rules and regulations duly adopted by The D^stri t. 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 Le delivered
to Terramar under the provisions hereof shall be such proportion of the total quantity
delivered into the facilities of The Mutual by or for The ^strict, including quantities
intended for Terramar, as the total use of water for domestic purposes in the a rea sup-
plied by Terramar bears to the total use of domestic water in the area served by The
Mutual and the area served by Tarraraar.
(13) It is definitely understood and agreed that water so to be delivered to
Terramar 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 Terramar any
water developed or rttoeivod by The Mutual from any source other than water delivered
into The Mutual1 s facilities by or for The District for tliat purpose.
(14.) The hfcitual agrees, to t,ht. best of its a. ill ty to operate i .u 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 doinr by failure of ;.ny of its Tac Cities, or oth r 3au.se beyond
its c ntrol, it will provice capacity sufficient to transport water to Terramar in the
minimum aiiount at t 'M rate of one (l) acre foot per day; subject to the provision Ui&t
if there exists a of water in the area served i.y fhe Mutual, then in T-oat event
the water delivered to Terranar by The District through Mutual facilities may be reduced
to an aacunt a' not lees than ten per cent (10/6) of the water being received by The
District pursuant to the c.-ntvaet between i"hf ^i^trlct an- ta<- Gity o,' Uceant5ide dated
December 26, 1956, as modified and extended.
(15) Terramar agrees io 1-ake not less than ten p;-r cent (10JI) of the water re
ceived by The District. Terramar agrees to notify The of the amount of water de-
sired from time to time, and that it will accept all such wat*..-r so ordered, and agrees
to give rorty-eight (48) hours' notice to The Mutual of intention to change thu atoount of
water so desired, subject to the understanding that The rhitual, through iis Manap-er, can
waive the required forty-eight (/+o) hours' notice,
(16) It is furiJier agreed t'lat In the event The i^utual is prevented by auch
cause or causes from delivery of such quantities c- water to Terraoar, The .iutual shall
not be liable eithor to ler.-amar or to The District for failure to deliver such uuantities
of water.
(17) It is further agreed that in the event of any occurrence which, in the
opinion of tho Manager .">f The rfutual, will prevent de-ivory of ouch quantity of water to
Terramar, Thn Mutual will notify The District iraraediatolj of such occurrence, axid that
in tho event it cnov.ld bu ieteniinod by a Court of competent jurisdiction tliat the discon-
tinuance of the delivery of water to lerramar by The i-hitual was not justified under the
provisions hereof, Tve Dieti-ivt hereupon, at itc option, may discontinue the sale of
water to The Mutual.
(18) Tlie District agrees to ailo-,v to The Mutual a credit on sums beeominf due
to The District for water furnished to The Mutual under this agreement in an ar,iount equal
fo Fifteen Dollars ($15.00) for each acre foot 01 Colorado River water delivered to Ter-
raraar through stxid facilitioB oi' Tlie Mutual under the provisions hereof.
(?_9) Any and nil water delivered through said connection from the City'a facil-
ities, less such a ounts as: are ^'.e-ivered by The District for the use and benefit of Tea*
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, shall be deemed to be delivered to The Mutual and shall be billed to The Mutual
bj The District on the 5th day of each and every succeeding month during the tena of
this contract. All bills or charges shall be due ana payable at the office of Hie Dist-
rict on the 15th day of the month in which they are billed. Bills not paid on or before
the 22nd of suoh month will thereupon become delinquent and a penalty of ten per cent
(10JI) 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 furthei&iotice, and a further charge ox' One-hundred Dollars (|100,00)
be aade, 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 th* Mutual, to guarantee the prompt 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
it* facilities in excess of that required to furnish water to its shareholders and others
entitled to water service from The Mutual, and only at such tines, it will, at the re-
quest of The 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 fc.r
the delivery of weter from the facilities of The Mutual into the facilities of Terraoar
have been and »; all be furnished by Terramar at its own expense; the design thereof shall
be submitted to, and shall be subject to the approval of, The Mutual) the work of making
the physical connection vith the facilities of The Mutual shall be performed by The Mu-
tual and the cost thereof shall be paid by Terramar upon demand* Both The Mutual and The
District shall have access at nil times to said meter. The meter shall be read by The
Mutual at the slose of each calendar raonth, and The Mutual immediately siiall notify The
District of the amount of th? meter reading. The Mutual ahall have control of the valve
controlling delivery of water from the facilities of The Mutual into the facilities of
Terramar and may close enoh vaJve and Jiscontinue service to Terramar at any time when
there is not capacity in The Mutual1 a facilities in excess of the capacity required to
furnish water to The Mutual'a shareholders and others entitled to water service from The
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(23) It ia specifically understood and agreed that The iiutual has and ex-
ercises oho rigii*/ to extract, watur from the surface or subterranean flow of the San
Luis iiey ittv«r for use oi' ito s'laroholders; that The Mutual is limited, und»r its
Articles of Irioorporatiou, tD fumis'ila*; such wator for use on lands located within
an area defined in said nrti^les} that the area served by 'lerramar is not located
within said areaj that water from said -an Luis .iey stiver is of a different quality
from that to be supplied to The i-i strict by The Authority; that The Mutual does not
intend or agree to cUlivcr water from sai.i s-urce to Terramar, but only water supplied
by i'ne , istrict, as herein prov-lded^ It is further understood and apreed, however,
that thv: ^aci?uix.ies througi- which Trie i-iuLual intend, s and agrees to transport water
delivered to it by i'he Jijtrict, for delivery to lerramar under thp provisions hereof,
constitute a portion 01 ^he- sanne fac .lities through which The Mutual transports water
from suid oan Luib -iey I-iver to i^s o\m service area, and thfit it will, or may be,
necessary, in order to traati, ort water for ie"livery to Torraraar, for The Mutual to
ruinpli water delivered t,o it for that pur one with water extracted by it from said San
Luis iiey River s urce of j^pply, aui tbjat neither Tht; District nor Ten^am&r shall hare
the right to demand. U«.:»t 'J.'iic Xututil transport or Terraraar water of the same
aa th;..t 'ieli'/eraci into "he 'lutual's facilitiec through the aforesaid temporary
service
'DISTRICT
•osident
Secretary
^'ATiui iii ANY, a
best
, President\ // , '.bYi ; ,/', ,f . . .
becretary
TERRAK/vR »i«TI-R COMPANY
California , Corporation
President