HomeMy WebLinkAboutC-881 - Assuming service of water from the Santa Ana Heights Water CompanyWWC: c x.. �.•.
11/ 163;'(6)
1 A G R E E M E N T
2
3 THIS AGREEMENT, made and entered into this 18th day of
4 November, 1963, by.and between the CITY OF NEWPORT BEACH, a
5 Municipal Corporation, hereinafter referred to as "CITY ", and
6 COSTA MESA COUNTY WATER DISTRICT, hereinafter referred to as
7 "DISTRICT ";
8 WITNESSETH:
9 WHEREAS, City has a contract to purchase from Santa.Ana
10 Heights Water Company, a California corporation, the assets of
11 said Santa Ana Heights Water Company, including its well site,
12 water wells, water rights, pipelines, a reservoir site and water
13 reservoir, including real property, fixtures, buildings, machinery;
14 equipment, and personal property, subject to the approval of the
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15 shareholders of said company; and
16 WHEREAS, the service area of said company is partially
17 within the boundaries'of City, partially within the boundaries of
18 the City of Costa Mesa, partially within the boundaries of
19 District, and otherwise outside the boundaries of said agencies;
20 and
21 WHEREAS, it is the objective of City to serve water to
22 all areas within the corporate limits of City and elsewhere as
23 necessary to comply with the terms of the contract with said
24 company; and
25 c WHEREAS, District agrees with that objective of City;
26 and
27 WHEREAS, in furtherance of this objective, it is the
28 desire of City; upon completion or in the process of said purchase,
29 to transfer to District a portion of the pro�erty;and facilities
30 as hereinafter specifically described, and on the terms and condi-
31 tions hereinafter set forth; and
32 WHEREAS, it is the desire of District to acquire said
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portion of the property and facilities and to serve water in a
portion of the area of said company as hereinafter provided in
this contract;
NOW, THEREFORE, subject to the contract.between the City
and said company being approved by the shareholders and performed
by the parties thereto, the parties hereto agree as follows:
1. Purchase and Sale.
District hereby agrees to purchase from City and City
hereby agrees to sell to District the following described property:
(a) All transmission and distribution water pipe-
lines being acquired by City from said Santa Ana Heights Water
Company within the area set forth within the black boundaries as
shown on Exhibit "A", attached hereto, westerly of Tustin Avenue
and Acacia Street and the proposed extension of Tustin Avenue to
Acacia Street, including all fire hydrants, meters and services
attached to said transmission and distribution mains.
Y
(1) The following facilities within said area
are hereby exempt from this sale and transfer by City to
District:
a. The 22" steel pipeline leading from
the well site on Paularino Avenue in Costa Mesa to the
reservoir site located on Palisades Road.
b. The pipeline leading from.the Metro
politan Water District connection on Palisades Road
being acquired by City from said company to the reservoir''
site.
C. The 12" pipeline along Palisades
Road from the reservoir site to Santa Ana Avenue..
d. The 8" pipeline along Palisades
Road from Santa Ana Avenue to Acacia Street until such
time as a pipeline is constructed and conveyed to City
as hereinafter provided or an alternate occurs which is
2.
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satisfactory to City in lieu thereof.
(b) Real property described as follows:
Lot 3 in Block "E" of the Berry Tract,
in the County of Orange, State of Cali-
fornia, as per map thereof recorded.in
Book 30, at page 74, of Miscellaneous
Records of Los Angeles County, California;
EXCEPTING THEREFROM the West one acre of
the South 5 acres of said Lot 3;
ALSO EXCEPTING from all of Lot 3 except
the South 5 acres, the West one acre
thereof;
ALSO EXCEPTING the Southerly 7 feet of
said premises, as granted to the County
of Orange by deed dated January 11, 1943,
and recorded in Book 1184, at page 96, of
Official Records, in the office of the
County Recorder of said Orange County.
ALSO EXCEPTING THEREFROM two acres thereof,
including the existing wells. The exact
location of said two acre parcel herein
being retained by City shall be described
with exactness by the mutual agreement of
the engineers of City and District, using
as factors that the parcel being retained
by City will enable City to operate the
two existing wells on the property and to
drill two additional wells. Another factor
to be considered is that suitable and
satisfactory entry and frontage on Paularino
Avenue shall be included in the parcel of
property being acquired by District.
ALSO EXCEPTING THEREFROM all water rights.
ALSO EXCEPTING THEREFROM an easement 15' in
width for the existing 22" pipeline; pro-
vided, however, that said.easement and
pipeline may be relocated to the westerly
property line at no cost to City.
City specifically agrees to limit its use of the property
being retained by it to water and appurtenant usage only and to use
the same for no other purpose.
City further agreev:that,in the event it abandons.the
use of said wells, it will first offer to the District herein the
option to purchase said property and all water rights of City in
said property and those herein retained by it at the then market
value as established by not more than three competent appraisers.
3.
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Each party shall select an appraiser and, if those two cannot
agree, they shall select a third and said value shall be estab"
lished by a majority vote of the three.
City is retaining the complete ownership of the 2.43
acre parcel located on Palisades Road which it is purchasing from
Santa Ana Heights Water Company, together with all appurtenances,
fixtures, and all water rights appertaining` thereto. City is also
retaining the Metropolitan Water District connection located on
Palisades Road and all other property being acquired from said
company not hereinbefore or hereinafter being sold and transferred
to District.
2. Purchase Price.
The total purchase price shall be the sum of the follow-
ing:
(a) Land -- the sum of $139,800, which is $30,000
multiplied by 4.66.
(b) For all other property herein being sold to
District by City, the sum of $47,559.
3. Construction of Water Line..
In exchange for the transfer of the 12" line in Newport
Boulevard, the 10" line in Santa Ana Avenue, both southerly of
Palisades Road, and the 8" line along Palisades Road from Santa
Ana Avenue to Acacia Street to District and the loss of water
transmission capacity in that part of the system being transferred
e
hereunder to District, District agrees to construct or have con-
structed and convey to City a 12" line and appurtenances connect-
ing the 12" line from the reservoir site to Santa Ana Avenue being
retained hereunder by City to the 10" line in•.Palisades Road at
Acacia Street being retained hereunder by City. City may require
said line to be a 16" or an 18" line; provided, however, that
City shall deposit with District an amount equal to the additional
3211 cost of constructing said 16" or 18" line on or before the date
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District is to begin construction. The amount shall be as agreed
upon between the engineers of District and City. In lieu of con=
structing said 12" line as herein provided, District may pay too
City the cost of constructing said 12" line and appurtenances in
the amount agreed upon by the engineers of District and City and
thereupon District's obligation under this paragraph shall be
fulfilled. The construction of said 16" or 18" line shall be in
accordance with plans and specifications approved by City and
shall be subject to inspection and approval by City. The require-
ments of City, however, shall not be greater than it' requires in
the construction of other similar lines.
4. Execution of Necessary Documents.
In furtherance of the performance of this contract,
City and District agree to execute and deliver deeds, bills of
sale, resolutions of the governing bodies of each, and other
documents necessary to effect the sale and transfer herein pro-
vided.
5. Replacement of Distribution Lines.
It is understood and agreed that City's predecessor in
interest, to wit, Santa Ana Heights Water Company, has agreed to
and is either in the process of, or will be in the process of,
replacing certain water distribution lines within the area
formerly-comprising the Santa Ana Heights Water Company. It is
understood and agreed that City shall cause all such replacements
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to be completed as provided for in its contract with said Santa
Ana Heights Water Company, whether the same are in the area herein
being transferred to District or elsewhere, and District hereby
agrees that City shall have the right to make all such replace-
ments even though the same may be made after the .transfer to
District.
6. Date of Sale and Closing.
The sale shall be completed on the closing date
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determined as hereinafter provided in paragraph 7 hereof, and title
to and possession of property shall pass to District as of that
date, subject to the terms hereof.
(a) The closing shall be handled in an escrow
account in the office of United California Bank, Mariners Branch,
which is hereby jointly designated by City and District as the
escrow agent for the purpose of the sale and transfer hereunderA.
To the extent it is feasible, the escrow functions shall be per-
formed concurrently with the escrow functions on the sale of the
assets of said Santa.Ana Heights Water Company to City.
(b) On or before said closing date, City shall
deposit in said escrow:
(1) A grant deed to the real property.
(2) A bill of sale for all personal property
being sold hereunder.
(c) On or before said closing date, District shall
deposit in said escrow:
(1) The purchase price herein agreed upon.
(2) Escrow-instructions authorizing - payment of
the purchase price to City or its designee upon delivery to
District of said bill of sale, the recording of said grant
deed, and the receipt by escrow holder for District of a
standard owner's policy or policies of title insurance insur-
ing that title to the real property hereinabove described is
vested in District, subject only to exceptions theretofore
approved by District in writing, said policy or policies to be
in the amount of the purchase price for the parcel. Upon
receipt of a preliminary title report from Santa Ana Heights
Water Company, City shall send a copy tNereof;to District and
District shall within 10 days after receipt thereof indicate
to City in writing which exceptions therein listed, if any,
it does not approve.
6.
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mec
.8/63 (6)
(d) The title insurance policy premium and the cost
of all internal revenue stamps shall be paid by City. The record-
ing cost, if any, as to the documents conveying title to District
shall be borne by District.
(e) The escrow charges except as herein specifically
provided shall be borne equally by District and City.
7. Closing Date,
The closing date hereunder shall be the same as the
closing date in the sale and transfer by Santa Ana Heights Water
Company to City. Thereupon City shall, with all reasonable dis-
patch, make all the necessary connections it deems necessary to
connect the system so acquired and being retained by it to its
present water system. It shall notify District to proceed to make
the necessary connection between District's existing water system
to that portion of the former Santa Ana.Heights Water Company area
being acquired herein by District. Upon the completion of said
necessary connections, City and District shall concurrently'sever
the lines overlapping the area being transferred herein to District
from the area of the former Santa Ana Heights Water Company being
retained by City and,.upon completion of the foregoing, District
shall thereupon take possession of the water system within the
area herein being transferred to it. If it is not practicable for
District to assume service in all of the area being taken over by it
on the same date, it may take over service in a portion of the area
and thereafter when it has provided the necessary lines and facili-
ties assume service in an additional area or areas. City shall
continue to serve water to customers westerly of Tustin Avenue and
Acacia Street presently served from the distribution mains in said
streets and in other areas as necessary until District has install
lines in Tustin Avenue and Acacia Street and made other necessary
preparations to serve. Should any portion of the lines in Tustin
Avenue not be necessary.to City for service, such lines may be
7.
I
� :_i
63 . (6)
I relinquished to District by Engineer of City upon the exclusion of
2 the same from the City system and the inclusion thereof in District
3 system in a manner satisfactory to Engineer of City and at no cost
4 to City.
5 8. Operation of System During Transfer.
6 District shall offer employment to the present employees
7 of the Santa Ana Heights Water Company engaged in the operation of
8 the system except the manager thereof and the employee engaged in
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7 -a.
1 the billing operation. City shall offer employment to the employee
2 of said company that is engaged in billing. Such employees employe
3 by District shall continue to operate the system of said company
4 under the direction of City and, until such time as District takes
5 over service in a major portion of the service area of said
6 company, City shall pay District the payroll cost of said employees
7 plus 10% of said cost. Thereafter, such employees.shall be under
8 the direction of District.
9 As nearly as possible, District and City shall read the
10 meters on the date any area or areas are being taken over by
11 District and City shall bill all customers in such area or areas
12 within ten days thereafter. Such meter reading shall be the
13 closing reading for City and the opening reading for District on
14 such meters. District shall pay City or City shall pay District
15 such amount as may be necessary to adjust the billing to the date
16 District takes over service in any area.
17 The parties will also schedule the transfer of service
18 as to any area to avoid unnecessary interruptions of service or
19 unsatisfactory service.
20 9. Division of Real Property at Well Site.
21 City shall process any necessary application for sub -
Avenue,
22 division of the land on Paularino/ a portion of which is being
23 acquired by District. Should dedication of additional street
24 right -of -way on Paularino Avenue be required as a condition of
25 sucfi subdivision, the boundaries of the parcel being retained by
26 City shall be adjusted so that City contributes only 2/6.66 of
27 such right -of -way. Should dedication of right -of -way be required
28 on Baker Street, the parcel being retained by.City shall not be
29 reduced as a result thereof. Any fee or othdr out;-of-pocket costs
30 of processing said subdivision shall be shared by City and District
31 City shall pay any such fee and costs and District shall reimburse
32 City 70% thereof.
8.
1 10. Sales or Use Tax.
2 It is the belief of both parties that no sales tax or
3 use tax is applicable to the transaction encompassed in this agree-
4 ment. However, any sales or use tax which becomes payable under
5 the law of the State of California by reason of the sale of all: or
6 any portion of the property under this agreement shall be borne by
7 District and District agrees to reimburse City on demand for any
8 such tax City may be obligated to pay and does pay.
9 11. Records.
10 City is acquiring certain records from Santa Ana Heights
11 Water Company in connection with the purchase.of its assets. City
12 shall make all such records available to District as are necessary
13 to the operation of that portion of the water system being taken
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over by District. The records which.,apply exclusively to the
portion being taken over by District shall be delivered to District
and shall become the property of District.
Each party hereto shall promptly forward to the other all
correspondence, mail, payments and documents received by it which
belong to such other party.
12. Delivery of Possession; Destruction or Damage to
Property Prior to Closing; Force Majeure.
At the time of closing, all property agreed to be sold
hereunder shall.be delivered to District in the same condition as
City receives said property pursuant to its purchase from Santa Ana
e
Heights Water Company, except for ordinary use and wear thereof,
changes occurring in the ordinary course of business between the
date City obtains possession as aforesaid and date of closing as
hereinabove provided, and damage or loss from.causes beyond.the
reasonable power and control of City; provided, however, that if
at the time of closing the property to be sold hereunder shall have
suffered loss or damage on account of fire, flood, accident, act of
war, civil commotion, or any other cause or event beyond the
9.
•
1 reasonable power and control of City (whether or not similar to
2 the foregoing), to an extent which substantially affects the value
3 of the property to be sold hereunder, District shall have the right
4 at its election to complete the purchase, in which event it shall
5 be entitled to all insurance proceeds (excluding use and occupancy
6 insurance proceeds) collectible by reason of such loss or damage
7 or, if it does not so elect, it shall have the right, which shall
8 be in lieu of any other right or remedy whatsoever, to terminate
9 this contract. In the latter event all parties shall be released
10 from liability hereunder. If such loss or damage does not sub=
11 stantially affect the value of such property, District shall
12 complete the purchase but shall be entitled to all insurance
13 proceeds (excluding use and occupancy insurance proceeds) collect -
14 ible by reason of such loss or damage. In any case where District
15 shall become entitled to insurance proceeds by reason of loss or
16 damage to assets agreed to be sold hereunder as above provided,
17 the purchase price of the assets so lost or damaged shall not be
18 reduced because of such loss or damage.
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Except as provided above, if for any cause beyond the
reasonable power and control of City it shall be unable to comp
the sale hereunder in accordance with its terms, District may
elect to accept as full performance such partial performance by
City as shall not be so prevented or, if it does not so elect,
its sole and exclusive remedy shall be to terminate this contract.
In the latter event all parties shall be released from all liabil-
ity hereunder.
13. Notices.
All notices required or permitted to be given hereunder
shall be in writing and shall be sent by first class mail, postage
prepaid, and if intended for City shall be addressed to 3300
Newport Boulevard, Newport Beach, California, and if intended for
District shall be addressed to 1971 Placentia Ave., Costa Mesa,
10.
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California. Either party may by written notice to the other change
the address where notice is to be sent to it.
14. Nonassignability; Successors and Assigns.
Neither this agreement nor any interest therein shall, be
assignable by District without the prior written consent of the
City.
15. Maintenance of System.
District agrees that, subsequent to the purchase of the
property and water system it hereby acquires, it will maintain said
system in good working order pursuant to the same policies that are
now or hereafter applied to the maintenance of the water system
presently owned and operated by District. Specifically, District
agrees not to impose special assessments for the acquisition,
construction, operation or maintenance of facilities necessary to
serve the property adjoining such facilities unless such policy is
made to apply in the other areas of District on a similar basis.
However, it will continue to be the policy of District to require
distribution facilities to be provided in connection with the
development of real property within the territory within which it
is assuming service on the same basis as is now imposed within its
boundaries.
In addition, District agrees that, upon any contractual
relinquishment of any area for service by another water distrib-
uting agency, it will require such agency to agree by such contract
not to impose assessments relative to or in recovery of any costs
or expenses of any nature whatsoever it shall directly or indire
have incurred and which are incidentto its acquisition, nor to
adopt a different policy with respect to special assessments for
the acquisition, construction; operation or inaintenance of water
facilities for any area in which District is assuming service by
this contract that may subsequently be served by any such agency
that does not apply to the remainder of the territory of such ag
11.
11/ /63 (6)
1 16. Water Rates.
2 Upon the completion of the purchase hereunder and the
3 assumption of service of water within the area herein provided,
4 District agrees that it will provide service to said area at its
5 regular water rates and charges and will not impose special rates
6 or charges that would not apply equally within the boundaries of
7 District under similar circumstances. District agrees that it
8 will also impose this condition upon any agency which assumes
9 service of water pursuant to a contract with District within any
10 portion of the area.now served by Santa Ana Heights Water Company.
11 17, Covenants Benefit Shareholders.
12 The purpose of the foregoing paragraphs is to express the
13 contractual obligations of District thereby imposed not to discrim
14 inate against the shareholders of the predecessor of City with
15 respectto water rates or charges or the replacement of distribution
16 lines. Such obligations are for the benefit of such shareholders
17 and may be enforced by them subsequent to any dissolution of Santa
18 Ana Heights Water Company to the same extent such company could
19 enforce such obligations prior to its dissolution.
20 18. Effective Date, Areas of Service.
21 The provisions of this contract relating to the service
22 of water by District within the service area of Santa Ana Heights
23 Water Company shall be effective immediately after City undertakes
24 the service of water within said area.
25 19. Exclusion of City Territory from District.
26 Upon written request by City, District agrees to process
27 an exclusion proceeding or proceedings to exclude any area of
now or in the future
28 District that is / within the boundaries of City. Water distribution
29 lines and appurtenances within any such area'or areas that are so
30 excluded shall be turned over to City for the purpose of serving
31 water users adjacent thereto within any such area or areas without
32 cost to City; provided, however, that should it be impractical to
12.
A..,
1
.1 8/63 (6)
1 sever any such facilities from the water system of District,
2 District may require as a condition of any such severance that -
3 City provide distribution mains to serve any such area or areas or,
4 if City prefers, to provide mains for District that will remove
5 the impracticality of any such severance. It is the present
6 intention of District and its representation to City that it
7 will proceed diligently and in good faith with such exclusion pro -
8 ceeding or proceedings in order to accomplish the ultimate objectiv
9 of eliminating any overlapping tax or service areas of District and
10 City.
11 IN WITNESS WHEREOF, the parties have executed this
12 contract as of the day and year first above written.
13 CITY OF NEWPORTBEACH %
14 By L • ���
Mayor
15
Attu
16 c
`r
17 �� City C r�
18 CITY
19
COSTA MESA COUNTY WATER DISTRICT
20
By
21 Pr esident
22 By
ecretary
23
DISTRICT
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RISOLVfIM NO 5386
7
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21 A Rit�iii.�i IN 4W 10 CITY CAM IL Of = CITY Off`
3 T �LZIW Tip U=n*# Of A
MTK&CT VM 10 COSTA NM CO=TT WATU
41 DIMUCf
51 VWGUMv the City at Newport leach rasa antored, into a
6 omtract with the "ate aim Heights Wstw Cmepeaay, a Csliferuja
7 +ieogoratioaa, for the purchase of the "mate of said campanyt and
8 WAULFAS, +~ha City has aaarAmmd the obligation to swerve
9 water within the service area of said company; sated
10 WHMM, said *aft—act provides that the City way cmtnao
11 with other nester distributing a, ies to assn" the ab'ligatian of
12 service within portions of the service assa of aaatid coopfty; and
13 mpg, a contract has been prepay rd bets the City
14 and the Costa Mesa County Water District annder which mid District
15 would asamme the obligation to servo water within a patrtion of the
16 service area of the Santa Ana Heights Water Company tummUately
17 after the City undertakes the service of rater within said aswat
181 and
19 fig' said tract also provides for the" as" of a
20' port is a of the lead and certain lather assets being acquired by the
21 City from said company to the Costa Maass County Water District; and
22111 WiAiK V the City Commil bas reviewed the provisions of
23� said contrast and found the saw to be Lair sad oquitablo;
24 RMO Tga==, 'BE IT MOURN *At the Mayor Sod City
I
25 Clark be and are hereby aswtho rixad and directed to execute said
26 caatmet as behalf of the city,
27 ADOPM this 18th day of Novaadmm, 1%3.
281
29 ZL�,.�jj��
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ATii~ M �Ltytac
30
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0
TO: Finance Director
FROM: City Clerk
SUBJECT: Contract
Contract No. AAl
to
Date
WNYWOM 219 a
Authorized by Resolution No. __IM, , adopted on w....j6t L ^963
Date Mayor and City Clerk executed Contract 20 11"3
Coatr�tt !!Ot �•° &� A t.. 06.6.. W.Q.. 9%.&.
Effective date
Contract with
Address 1971 llieSw &is
Brief description of Contract
i. "I* i oltim of "id menu to Gm Ctn ftr Mrt •
Amount of Contract $127_39
City Clerk
CITY OF NEWPORT BEACH
CITY ATTORNEY
DEPARIMEN-77
November 19, 1963
To: Charles E. Hart, Mayor
From: City Attorney
Subject: Letter to shareholders of Santa Ana Heights Water
Company
The City Council authorized and directed an open letter to the
shareholders to be sent out by your office subject to a determina-
tion that the expenditure for the letter and mailing is a proper
expenditure.
No case has been found in which a decision on this particular type
of expenditure has been before the appellate courts. There is no
question that an expenditure by a city for the purpose of pro-
moting a bond issue is not a proper expenditure. This was decided
in the case of Mines v. Del Valle (1927), 201 Cal. 273. On the
other hand, an expenditure by a city for the purpose of influenc-
ing legislation has been determined to be a proper expenditure.
Powell v. City and County of San Francisco (1944), 62 C.A. 2d 291.
The proposed expenditure actually fits in neither category. Its
purpose is to support and defend the contract approved by the City
with the Santa Ana Heights Water Company. The purpose of the con-
tract is a proper purpose without any question; that is, the
acquisition of facilities to provide water service to the resi-
dents of the City. It is not possible to predict with any accu-
racy the conclusion a court would reach if someone contested this
expenditure. However, the probability of its being contested and
the result of a successful contest in view of the small amount
involved indicates there is little risk in proceeding with the
execution of the Council directive. If it were determined to be
an improper expenditure, it would be necessary to repay the amount
spent.
With your approval, we will consult with the City Manager on the
precise wording of the letter and have it ready for your signature
this afternoon.
WWC:mec h Wa W C ramza
cc - City Manager City Attorney
City Clerk
CITY OF NEWPORT BEACH
WhiiWO "IU�9
To: City Clerk
From: City Attorney
November 19, 1963
Subject: Contract with Costa Mesa County Water District
Transmitted are the original and two copies of the contract
with Costa Mesa County Water District.
It is requested that the on final and the carbon copy be executed
by you and the Mayor and returned to this office-for transmission
to the County Water District for execution. The Xerox copy
should be retained by you for your records pending execution by
the District and return of the original or carbon copy.
WerW. Ch aramza
WWC:mec City Attorney
Encs.
i
....... .. 1ka. Ag;s
To:
From:
Subject:
i
CITY OF NEWPORT BEACH
CITY ATTORNEY
DEPARTMENT—
November
City Clerk
City Attorney
0
19, 1963
Contract with-Santa Ana Heights Water Company
Transmitted is a copy of the contract with Santa Ana Heights
Water Company concerning the purchase of its assets.
It is requested that the original and a carbon copy be executed
by you and the Mayor and returned to this office for trans-
mission to Troy Miller for execution. The Xerox copy being
transmitted herewith should be retained by you for your
records.
WWC:mec
Enc.
Pater W. Charamza
City Attorney
City Clark
City Attornor Rata &WOWS
City Clark Kwpwy mar
1b+anLsr to, 1%3
]tae "Contrast to Ind sell" betaor the City
of DaAort Use and Santa ya iKshts Vater
Compaby (COW) .
Agrorant vita Costa VA" Cathy Yates District (C -M) .
Tralmitw beravith WO dw on coal Ties of
the 'I to asatioaod d.0mv. a vita a
1ia� cop at +mt aanddaasats
haft sad bass he scai of the City of Newport SaasL.
I a also emolosinS A. sepy of uselatias No. M49
ant herisi,� t6a a ica of the saatraat with
Santa = lfeight.� C� y6 ad a cop of
Lsolution Yo. 5836 au 121TiaS tM aaa�iaa
of the oostrsst �rit� tba Casts 11ssa Covoty Yatar
District.
Met"
0
CITY OF NEWPORT BEACH \
� I
CITY ATTORNEY
DEPMETWMENT —;
November 18, 1963
i
To: The Honorable Mayor and
City Council
From: City Attorney '
Subject: Contract with Costa Mesa County Water District
Transmitted is a proposed resolution which, if adopted by the
City Council, would authorize the execution of the contract
under which the County Water District assumes the service of
water within a portion of the.service area of the Santa Ana
Heights Water Company and provides for the purchase by the
District of a portion of the assets being acquired by the
City from the company.
The objective of the contract is to segregate the service area
of the company and to agree at this time on what area will be
served by the City and what area will be served by the County
Water District. The figure of.$47,559 appearing in paragraph
2(b) is subject to adjustment depending upon the final number
of meters being taken over by the City and the number being
taken over by the District.
It would be in-order for the City Council to adopt the resolution
authorizing the execution of the contract which will be before
the Board of Directors of the Costa Mesa County Water District
at a.meeting this evening.
W�I�e!t'' "Dl. Charamz
WWC:mec City Attorney `/
Enc. '
WAFT
WWCIMO
,.
The City of Newport Beach has offesrd to pwrohsse the
assets of the Santa des $eights Netter Company. The only objective
of the City is to provide an adsqpsto and wean asWly of Motor
to all residents within the City at the lowst possible costs
Cpoo approval of the contract to pumbasso all share-
holders of the aoepsgy will have the we and the advantage of the
reservoir, p=ppiag plants„ transmission stains, and intorcoarrecting
distribatioa mains of the City of Newport Beach or the Costs press
Cosec Outer astriot,
t7' �e a Blair of afty minions Of
�'- 11i�o�"iL;eaf '�,- D- c.i/..�n- .,e.ci �,�..d.. .-L..vta: fN -t�.. ie „�i.v ".: " rt,a �.`.� 'h •r.'y
daliaucso_ isomers. .�
The City Coms:il of Mouport $each #eels that the decieioa
of the Beard of birseters of time aoepMy to authoriae the contact
was a sound and advantagems decision and in the burst fatuous
of the shareheldars.
Pau
CITY OF NEWPORT BEACH
CITY ATTORNEY
DEPARTMENT
November 12, 1963
To: The Honorable Mayor and
City Council
From: City Attorney
Subject: Purchase of Santa Ana Heights Water Company
Transmitted are the following:
1. Page 14 of the proposed contract between the City and the
Santa Ana Heights Water Company relating to the purchase of
its assets. The original of the contract as revised is
being delivered to the City Clerk.
2. A resolution which, if adopted by the City Council, will author-
ize the execution of the contract on behalf of the City.
3. A proposed ordinance which, if enacted by the City Council,
would add Section 7241.3 to,the Municipal Code and would author-
ize the service of water outside.the City within the service
area of the company.
In considering the contract at its meeting on November 11, the Board
of the company made some changes in paragraph 19 and proposed an
additional paragraph numbered 23. Upon consideration of the pro-
posed changes, it.was determined by the undersigned that they would
not be satisfactory to the City. Further discussion with repre-
sentatives of the company indicate that paragraph 19 as contained
in the draft transmitted herewith is the most feasible language
which may be acceptable to both parties. It is, therefore, sug-
gested that the contract be authorized and returned to the company
for consideration by its Board of Directors.
The proposed ordinance adding Section 7241.3 to the Code would seem
to be necessary to authorize service in this area outside the City.
It is suggested that it be introduced at 'the meeting on November 12
and, if it appears on November 25 that the purchase will be consum-
mated, it be adopted at that time. It would then be effective on
or about the time the City would possibly be assuming service in
the service area of the.company ogt4de *h( Gib.
WWC:mec
Encs.
cc - City.Manager
Public Works Director
City Clerk ,/
t6SyF FLa� �.i�:l „L 1
,
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iii J', ' i � ..i t, � • ,t b .,�{'.,' . y t • y., , 1 , , '1 .
T.
or MT WAGN
n n
Savember no 4763
F y
� l
1 Tat The 8onoubla Mayer and.: , 1
City Council
tO
: City Attorney
"Jeott Turcbnaa of Matt Ana Heights Water Campan
.4 M1
Transmitted is a C of the
Company. the P� a#ed esatrrUtwith that campaanypand the grant
deed.
These are being delivered to the City Council
De artment on November 11 in order that �' the Polie4.': '.
p you may have an
ooppportunity to review them prior to the meeting on November
12. The original of the contract and letter are beang
.' .. delivered to Mr. g 4..:,•.:" ";,
` Hsi to Water Q boy Miller. lrerideat of the sane Ana
r° ompaa for consideration by its Board of .•,.;,:
£; Dirt�Ctors at its weed: tonight.
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11 F
swea rt Us 1963 '
' T A Santa Ana Heights Water Company
f�. 1126 S.E. Palisades Road
Santa Ana* California
.. ,; bear Sirs:
The City Council on behalf of the City of Newport Beach has
== authorized an offer to purchase all of the assets of the Santa
Heights Water Company by the City and has directed that the
offer be submitted to you in accordance with the terms of this
;. `t♦ y > <:, letter and the contract transmitted herewith.
The City offers to pay $3509000 for the assets as rovided in the
proposed contract. This amount is broken down as Follows: 1. For
the 6.66+- acres of land and appurtenances owned b the company Y"
', "' `'.,'• e ` ''. 1 between Paularino Avenue and Baker Street y
lying , ¢199,800. 2. For
the 2.43+- acres of land and appurtenances awned by the company om '
Palisades Road, $85p050. 3. For all other assets of the c
Vr
$6501500
��y� 1
i
Under the policy of the City and your ad companyi, the distribution
mains from whit water is served o jacent property are initiall
Pop b
"` provided by the owners or developers 'o the land to a served at
s•:::..;: no cost to the City or company.. No compensation is, therefore*
n;.a...� being offered for those linent
if this offer meets with the a proval of the Board, it is Bug
Seated that the Board accept the offer and authorize the execution
The City Council meets
of the contract on behalf of the company. y
again on November 120 1963, at a regular meeting and could author•
.;..:.,:.. ize the execution of the contract on behalf of the City if the
Board has acted favorably on the offer by the City and has author+.:., "..`':f
ized the executions of this contract on behalf of the company. If
;c.;;'
Y'''' = " Board does not accept this offer at your meeting tonight
t
it will continue until and way be accepted an or before Navem�isr
no 1963.
a 11=1 s
Charles Y Bart
.tt ! >; lb7+Bee City. 08 lfewj►orC Beach
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