Agreement/Reche Canyon Mutual Water Company

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CITY OF COLTON REIMBURSEMENT AGREEMENT FOR FACILITY CONSTRUCTION WITH RECHE CANYON MUTUAL WATER COMPANY 1. PARTIES AND DATE. This Reimbursement Agreement For Facility Construction ("Agreement") is entered into this 20 day of February, 2001, by and between the City of Colton, a California municipal corporation organized under the laws of the State of California with its principal place of business at N. La Cadena, Colton, CA 92324 ("City") and the Reche Canyon Mutual Water Company, a mutual water company operating under the laws of the State of California with its principal place of business at 22125 Barton Road, Suite 600, Grand Terrace, CA 92313 ("Company"). City and Company are sometimes individually referred to as "party" and collectively as "parties" throughout this Agreement. 2. RECITALS. 2.1 Company. Company is authorized to provide water service to its shareholders. In order to provide such service, Company has acquired real property and other property interests, in order to construct, install, operate and maintain pipelines, reservoirs, and other facilities necessary for the provision of water service. By way of an agreement dated August 5, 1997, Company has become a customer of City for the sole purpose of receiving emergency water service ("Emergency Service") pursuant to provisions of said agreement and applicable rules and regulations of City. 2.2 Facilit . Company desires to construct an extension of a pipeline and appurtenant facilities (collectively, "Facility") located on or about Reche Canyon Road within City. The purpose of the Facility would be to provide a connection between (a) Company's metering/connection point to City's water system and (b) Company's booster station and other existing facilities. This connection would facilitate the delivery of Emergency Service to Company. 2.3 Oversizing. It is the desire of City that the Facility be of such capacity and in such a location as to provide for the orderly extension of City's water system ("Water System"). As a result, a portion of the Facility will be capable of providing water service to adjacent and/or additional real property that is not related to the provision of Emergency Service to Company ("Oversized Portion"). The Facility and the Oversized Portion are sometimes collectively referred to as the "Project" throughout this Agreement. The Project, and the real property upon which the Project will be located, is more particularly described in Exhibit "A" attached hereto and incorporated herein by reference. 2.4 Reimbursement. City has the authority to enter into this Agreement in order to provide for City to reimburse Company for the difference between the cost of the Facility with the Oversized Portion and the cost of the Facility. 2.5 Advancement. In addition to being solely responsible for the cost of designing, constructing and installing the Facility, Company is willing to advance the cost of designing,