2002 AGN OCT 15 I21 - Laserfiche WebLink

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3.7 Acknowledgment Regarding Mutual Water Company Status. 3.7.1 The Parties understand and agree that Riverside -Highland intends to retain its mutual water company status such that it does not become subject to the jurisdiction of the California Public Utilities Commission (PUC) and that Riverside -Highland would not enter into this Agreement were the provisions thereof thought to jeopardize Riverside -Highland's mutual water company status. To this end, the Parties acknowledge and agree that this Agreement is not intended to trigger the provisions of Public Utilities Code sections 2701, 2702, 2703, or any other relevant provision of law which could potentially subject Riverside -Highland to the jurisdiction of the PUC. 3.7.2 The Parties acknowledge that Public Utilities Code section 2705 provides that mutual water companies are not subject to the jurisdiction of the PUC if they deliver water to their stockholders or to certain public agencies, including cities, at cost. The Parties agree that any delivery of water contemplated by this Agreement by Riverside -Highland is meant to conform to section 2705. 3.7.3 The Parties further acknowledge that Public Utilities Code section 2705(d) states that A[i]n a bona fide water emergency, but for no longer than the existence of the emergency, [a mutual water company] may deliver water at cost to any person owning or leasing real property located within or adjacent to the service area of the mutual water company, provided that the water is delivered pursuant to a written contract signed by the mutual water company and the person to whom the water is delivered.@ The Parties acknowledge that Colton owns or leases real property within and adjacent to the service area of Riverside -Highland and is a stockholder in Riverside -Highland. The Parties agree that the delivery of water contemplated by this Agreement is meant to conform to section 2705(d). 3.8 Insurance. The selling Party shall procure and maintain, for the duration of this Agreement, insurance or self-insurance against claims for injuries to persons or damages to property that may arise from or in connection with the Agreement by the selling Party, its agents, representatives, employees, licensees, invitees, guests or subcontractors. Each Party shall obtain and furnish to the other Party proof of coverage of each Party's standard insurance coverage for water production, storage and delivery. The insurance coverage provided by each Party shall be approved by the other Party. 3.9 Termination. Either Party may unilaterally terminate this Agreement, for any or no reason, upon the expiration of thirty (3 0) days after written notice ofterminafion is provided to the other Party. 3.10 No Assignment. Neither Party may assign its rights under this Agreement without the express, written consent of the other Party. 3.11. Indemnification. Colton and Riverside -Highland shall each defend, indemnify and hold the other Party and its officials, officers, employees, consultants, subcontractors, volunteers and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, to the extent arising out or incident to any negligent acts, omissions or willful misconduct of the indemnifying party or its officials, officers, employees, consultants, subcontractors, volunteers and agents arising out of or in connection with the performance of this Agreement (including but not limited to the negligent or willful failure to provide emergency water of sufficient quality to meet all applicable federal, state and RVPUBISMM637266 - 3 -