HomeMy WebLinkAboutC-1414 - Water System Capital reimbursement agreementCity of Newport Beach
Newport Beach
California
WE ESTABLISH OUR IRREVOCABLE LETTER OF CREDIT NUMBER IC. 6185
Direct to beneficiary
AT THE REQUEST OF John D. busk & Son, Santa Ana, California
AND FOR THE ACCOUNT OF themselves
DATEDOCtober 23,1972 IN YOUR FAVOR
" UP TO THE AGGREGATE SUM OF TWO Hundred Seventy One Thousand Seven Hundred Fifty and no /100
United States ..Dollars* * *(US$271,750.00)
AVAILABLE BY YOUR DRAFT IS) AT — — — SIGHT KOM RHxXE0CI0M= DRAWN ON:
Security Pacific National Bank, Head Office, Los Angeles, California
AND ACCOMPANIED BY THE FOLLOWING DOCUMENTS:
1 Your signed certificate that John D. Lusk & Son have failed to fulfill their
obligations under the agreement dated November 22, 1971, and that amounts drawn
under this Letter of Credit shall be used as funds to fulfill aforesaid agreement
4 relative to Spyglass Hill Water Facilities.
k"
Rem xe '
LATEST NEGOTIATION. DATE OF THIS LETTER OF CREDIT IS April 19, 1974.
DRAFTS DRAWN AND NEGOTIATED UNDER THIS LETTER OF CREDIT MUST BE ENDORSED HEREON AND MUST BEAR THE CLAUSE:
"DRAWN UNDER SECURITY PACIFIC NATIONAL BANK LETTER OF CREDIT NUMBER 6185 DATEDOctobeY 23, 1972
WE HEREBY ENGAGE WITH .BONA FfDE HOLDERS THAT DRAFTS DRAWN'STRICTLY IN COMPLIANCE WITH THE TERMS OF THISCREOIT
AND AMENDMENTS SHALL MEET WITH DUE HONOR UPON PRESENTATION AT THE INTERNATIONAL BANKING' OFFICES OF THIS BANK,
OR AT THE OFFICE OF SECURITY PACIFIC INTERNATIONAL BANK, 270 PARK AVENUE, NEW YORK, NEW YORK. THIS CREDIT IS SUB:
[- JECTTO THE UNIFORM,CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS (1962 REVISION), INTERNATIONAL CHAMBER OF
t COMMERCE BROCHURE NUMBER 222._
pg'.. _
ILY HEN OPEN0D 13Y CABLE, THIS CREDIT IS'.ONLY AVAILABLE IF
ATTACHED TO OUR :CORRESPONDENT'S ADV3CI; OF CABLED
CREDIT, THE TWO CONSfITUT1NG EVIDENCE OF THE OUTSTAND ^
d ING AMOUNT OF—THIS CREDIT.
z*' xnaa' �✓fa�etr4ii° s`^a�r �ae`r' zamia x.a'enr �x�� � . -... �-" �` a«reo'F �"`�
n
w v��
IRREVOCABLE
DOCUMENTARY
LETTER OF CREDIT
SECURITY PACIFIC NATIONAL BANK
INTERNATIONAL BANKING DEPARTMENT
Post Office Box 7637 II�-I Head Office - Post Office Box 60402
San Francisco, California 94120 Los Angeles, California 90060
City of Newport Beach
Newport Beach,' California
CABLE ADDRESS
SEPACaANK
Post Office Box 1791
San Diego, California 92112
Advised by SMWAI LaCg= through:
Direct to Beneficiary
WE ESTABLISH OUR IRREVOCABLE LETTER OF CREDIT NUMBER IC- 6400 DATED June 6,1973 IN YOUR FAVOR
AT THE REQUEST OF John D. Lusk & 'Son, a Corporation doing Business as Spyglass Hill, Newport
Beach, California
AND FOR THE ACCOUNT OF themselves
UP TO THE AGGREGATE SUM OF One Hundred Five Thousand Eight Hundred Fifty Four and No /100 United
States Dollars(US$105,854.00) * * * *
AVAILABLE BY YOUR DRAFT (S) AT SIGHT F&ft DRAWN ON:
Security Pacific National Bank, Head Office, Los Angeles, California
AND ACCOMPANIED BY THE FOLLOWING DOCUMENTS:
1. Beneficiary's statement that John D. Lusk & Son has failed to fulfill its
obligation in connection with installation of a pumping station at Spyglass
Hill development, and that amounts drawn under this Letter of Credit shall be
r= used as funds to fulfill such obligation.
mm=
a.-
�F
.aya
ISO
T
C ��
I
F+
:a'. - -. F•, ao.�gly�,g� '. v: a' -.. u'ru -.ia r; a•. -,gu�irv�iaTiv�
Ems{ Pte$. 1
LATEST NEGOTIATION DATE OF THIS LETTER OF CREDIT IS June 4,1974
DRAFTS DRAWN AND NEGOTIATED UNDER THIS LETTER OF CREDIT MUST BE ENDORSED HEREON AND MUST BEAR THE CLAUSE:
"DRAWN UNDER SECURITY PACIFIC NATIONAL BANK LETTER OF CREDIT NUMBER 6400 DATED June 6,1973
WE HEREBY ENGAGE WITH BONA FIDE HOLDERS THAT DRAFTS DRAWN STRICTLY IN COMPLIANCE WITH THE TERMS OF THIS CREDIT
AND AMENDMENTS SHALL MEET WITH DUE HONOR UPON PRESENTATION AT THE INTERNATIONAL BANKING OFFICES OF THIS BANK,
THIS CREDIT IS SUB-
JECT TO THE UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS (1962 REVISION)),, INTERNATIONAL CHAMBER OF
COMMERCE BROCHURE NUMBER 222. / 1
///��� ���EN OPENED BY CABLE, THIS CREDIT IS ONLY AVAILABLE IF
I) JATTACHED TO OUR CORRESPONDENT'S ADVICE OF CABLED
,/�/vJ CREDIT, THE TWO CONSTITUTING EVIDENCE OF THE OUTSTAND-
ING AMOUNT OF THIS CREDIT.
5182
- - CX- 2053 3-7o P.S.
SN,Stant Vi(!d PTeSfdtfW "`e
t -zed Signature
IRq
fl�OTC
�i LE
❑.$
CREDIT
Office Box 7637
FfaOC e, California 94120
CABLE ADDRESS s5
SEPACBANIK
i
t
1 sow
F
7 77771-1
" 'LATEST NEOOYIATION DATE OF THIS LETTER OF CREDIT IS o -
DRAFTS DRAWN AND NEGOTIATED UND .A
I�THIS LETTER OF CREDIT MUSTJBE ENDORSED HEREONND MUST BEAR THE CLAUSE
"DRAWN UNDER SECURITY PACIFIC NATI"NAL.BANK.LETTER OF CREDIT NUMBER DATED
� a!
WE HEREBY ENGAPF -WITH BONA FIDE HOWFRS THATDRAFTS DRAWN STRICTLY IN COMPLIANCE WITH THE TERMS OFZH18.CREDIT
AND AMENDMENTS SHALL MEET WITH.DUE'HONIOR UPON PRESENTATION AT THE INTERNATIONAL BANKING :OFFICES OF;THIS. BANK,
• .:OR AT THE OFFICE OF SECURITY PACH 4t INTERNATIONAL BANK,270 PARK AVENUE, NEW YORK, NEW YORK THISCRE61* IS SUB-
;JECT TO THE UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTAAY,CREDITS (1962 REVISION), INTERNATIONAL CHAMBER OF
}
COMMERCE BROCHURE NUMBER 222 A
PNIWHE ABLN S;'�THIS!CREDIT IS ONLY AVAILABLE IF
TTA COEigESPONDENT'S ADVICE OF CABLED ..,�
CREDIT, 3 EVIDENCE OF THE OUTSTANb-
,�{j}TIN
LC ING AMO
1 62 s:s d
CX 2053 640 P.S. y %.•- '
.. .5
CITY OF NEWPORT BEACH
CALIFORNIA
City Hall
3300 W. Newport Blvd.
Area Gode 714
673 -2110
DATE June 19, 1973
TO: FINANCE DIRECTOR
FROM: City Clerk
SUBJECT: Contract No. r-1414 ndMent
Description of Contract watcn+ Syetom Capital j=XM ement- Constriction and
Reimbursement Agrement
Authorized by Resolution No. Anna adopted on Jtme 11, 1973
Effective date of Contract June 14, 1973
Contract with John D. Lusk & San
Address P. 0. Box 2140
Amount of Contract S,,,p pAg, 7
city Clerk
City Clerk
June 15, 1973
Public Works Department
City Clerk
Spyglass Hill Pump Station, Zone V
Enclosed are two signed copies of an amendment to the Water System
Capital Improvement Construction and Reimbursement Agreement for
subject pump station for transmittal to John D. Lusk and Son. This
was authorized by the Council on June I I by Resolution No. 8009.
LL:dg
Encl.
Laura Lagios, C. M. C.
z9
June 7, 1973
TO: CITY CLERK
H - _Z
FROM: Public Works Department
SUBJECT: SPYGLASS HILL PUMPING STATION (C -1488)
Attached are the two following items:
1. Amendment to Water System Capital Improvement -
Construction and Reimbursement Agreement.
2. Letter of Credit from John D. Lusk in the amount
of $105,854.00 in connection with construction
of the subject project.
The amendment to the existing agreement is scheduled for Council
consideration during its June 11, 1973 meeting. If execution by City is
authorized, please return two copies of the fully executed amendment to me.
The letter of credit is for your files in conjunction with the
Water System Capital Improvement- Construction and Reimbursement Agreement
with John D. Lusk and Son (Spyglass Hill).
If you have any questions or require additional information,
please contact me.
Bill Dye
Project Engineer
WBD:hh
Att.
AMENDMENT TO AGREEMENT
(Water System Capital Improvement- Construction
and Reimbursement Agreement)
THIS AGREEMENT is made and entered into this 1
day of �lLitl� 1973, by and between the CITY OF
NEWPORT BEACH, a municipal corporation, hereinafter referred
to as "CITY ", and JOHN D. LUSK AND SON, a California corporation,
hereinafter referred to as "DEVELOPER ".
W I T N E S S E T H
WHEREAS, CITY and DEVELOPER have entered into an agree-
ment dated the 22nd day of November, 1971, under which agreement
CITY agreed to design and prepare plans and specifications for a
project (certain "Master Plan" water service facilities) specified
in said agreement and to reimburse DEVELOPER the amount of all
advances made by DEVELOPER in accordance with provisions of said
agreement, a true copy of which is attached hereto as Exhibit
"A" and by this reference incorporated at this point; and
WHEREAS, DEVELOPER desires to provide domestic water
service to the water pressure Zone V service area of the Spy-
glass Hill Development; and
WHEREAS, a pumping station is required to provide
said water service; and
WHEREAS, by official City action on December 27, 1971,
said pumping station was added to City =s "MASTER PLAN" water
system facilities; and
WHEREAS, the parties hereto have determined that an
amendment to said agreement dated November 22, 1971, (Exhibit
"A ") is necessary to set forth the terms and conditions for the
construction of said pumping station;
-1-
NOW, THEREFORE, the parties hereto agree that said
agreement of November 22, 1971, is hereby amended as follows:
00
The Zone V pumping statirn located in the :vicinity
of Spyglass Hill Reservoir is included.in the term "project"
as defined in Section 2.O1 of said agreement dated November 22,
1971,
I
DEVELOPER shall advance funds for construction of Zone
V pumping station in accordance with Paragraph 2.04 and 2.05 of
that agreement dated November 22, 1971. Reimbursement of such
funds shall be in accordance with Sectiai III of said agreement.
III
DEVELOPER hereby grants a right of entry to CITY, its
employees and agents to the pumping station site for construction
and access purposes and across such lands as are necessary to
provide access to the pumping station site. DEVELOPER further
agrees to grade and maintain an access road to pump station
site in a condition suitable for normal use by the pumping
station contractor until this project is completed.
IN WITNESS WHEREOF, the parties hereto have caused
this agreement to be executed as of the day, month, and year
first above written.
✓ Y AN
ATTEST- „,n,.
1 C ty Clerk
M
i
APPROVED AS TO FORM:
yy
gssGCi Attorney
APPROVED AS TO CONTENT:
-2-
OF NEWPORT BEACH
JOHN D. 1,=K AND SON
Ass "t s«yc4c,. y
x
W
a
a
m
i
O(TO 449 Corporation) �
STATE OF CALIFORNIA
SS.
COUNTY OF Orange }
On June 4.1973 before me, the undersigned. a Notary Public in and for said
State, personally appeared Donovan D. Huennekens ,
known to me to be the Vice President, and Donald D. Steffensen
known to me to be Assistant Secretary of the corporation that executed the within Instrument,
known to me. to be the persons who executed the within
Instrument on behalf of the corporation therein named, and
acknowledged to me that such corporation executed the within
instrument pursuant to its by -laws or a resolution of its board
of directors.
WITNESS my nd and official sea]. t
Signature
Joyce A. Swineford
Name (Typed or Printed)
ITbia area I., aM.W notarial seal)
OFFICIAL SEAL
Joyce A. Swineford
NOTARY PUBLIC - CALIF.
*�
PRINCIPAL OFFICE IN
ORANGE COUNTY
MY COMMISSION EXPIRES AUGUST 17, 1976
ITbia area I., aM.W notarial seal)
RESOLUTION NO. 8 0 0 9
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH AUTHORIZING THE EXECUTION OF
AN AMENDMENT TO THE EXISTING WATER SYSTEM
CAPITAL IMPROVEMENT CONSTRUCTION AND REIMBURSE-
MENT AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH
AND JOHN D. LUSK AND SON TO ADD SPYGLASS HILL
PUMP STATION, ZONE V, TO LIST OF PROJECTS
WHEREAS, there has been presented to the City Council
of the City of Newport Beach an amendment to the existing
water system capital improvement construction and reimbursement
agreement between the City of Newport Beach and John D. Lusk
and Son to add Spyglass Hill Pump Station, Zone V, to list of
projects; and
WHEREAS, the City Council has considered the terms
and conditions of said amendment and found them to be fair and
equitable;
NOW, THEREFORE, BE IT RESOLVED that said amendment
to the existing agreement to add Spyglass Hill Pump Station,
Zone V, to list of projects, is approved, and the Mayor and City
Clerk are hereby authorized and directed to execute the same
on behalf of the City of Newport Beach.
ADOPTED this 11th day of June , 1973.
Mayor
ATTEST:
City Clerk
DON:sh
6/8/73
a
June 8, 1973
John D. Lusk & Soap
P. O. Box 2140
Newport Beach,, CA 92663
LI
Enclosed is Security Pacific National Bank's Letter of Credit
No. 5842 in the amount of $138, 602.00 in connection with the
construction of Master Plan Water Supply Facilities, Spyglass
Hill Reservoir (Big Canyon Pump Station and `Lone IV Transmission
Main). The Finance Director has verified that all billings in
this connection have been paid, and the Public Works Department
has authorised release of this Letter of Credit.
Laura Lagos, CMC
City Clerk
dg
Encl.
cc: Public Works Department
Finance Director
f�
.I
June 6, 1973
TO: FINANCE DIRECTOR
FROM: Public Works Department
SUBJECT: CONSTRUCTION OF MASTER PLAN WATER SUPPLY FACILITIES
Please verify that Spyglass Hill has paid all billings in conjunction with
Contract No. 1350 (Big Canyon Pump Station) and 1352 (Zone IV Transmission
Main). Final billings (No. 287 and 286) were transmitted to Spyglass Hill
on January 11, 1973.
If all billings have been paid, authorize the City Clerk to release Security
Pacific National Bank's Letter of Credit No. 5842 to John D. Lusk and Son.
If you have any questions or require additional information please contact
me.
Bill Dye
Project Engineer
WBD:hh
cc: City Clerk
TO: CITY CLERK
October 25, 1972
FROM: Public Works Department
SUBJECT: SPYGLASS HILL RESERVOIR,,B, -4351-
Attached for your files is the letter of credit submitted by
John D. Lusk and Sons which will provide 88% of the construction funds
for the subject project.
A w2 te%r system capital improvement construction and reimburse-
ment agreement,$xecuted by the City and John D. Lusk and Sons on November
22, 1971 requires that Lusk advance 88% of the construction cost.
The Council authorized execution of the above noted agreement
by Resolution No. 7562.
Bile("--
Project Engineer
WBD:hh
CITY OF NEWPORT BEACH
Date December 2, 1971
TO: Public Works Department
FROM: City Clerk
SUBJECT: Contract No. 1414
Project _ Hater Svetem Capital L:Vivvemant
Cmatmeticn and Aninbtreem nt Agreemmt
Attached are . 2 executed copies of subject contract for your files and for
transmittal to the contractor.
Contractor: John D. Lusk 6 Son
Address: Santa Ana, CA or P. 0. Box 2140, Newport Beach, CA 92663
Amount: $ See ocntrwt
Effective Date: Wovwber 22, 1971
Resolution No. 7562 adopted on 11 -22 -71
i
LL:dg
Att.
cc: Finance Department ❑
CITY CLERK
Public Works Department
City Clerk
Water System Capital Improvement Construction
and Reimbursement Agreement
- / ///�z
December 2, 1971
Attached are the original and.dhi" copies of the Water System Capital
Improvement Construction and Reimbursement Agreement between the
City and John D. Lusk and Son which have been executed by the Mayor
Pro Tem and City Clerk. Will you please obtain the City Attorney's
approval as to form and the Public Works Director's approval as to
content, return the original to this office and forward the remaining
copies to the developer.
Laura Lagios
dg
Att.
IRREVOCABLE 10-- CABLE ADDRESS
DOCUMENTARY (• 0 SEPACBANK
LETTER OF CREDIT
SECURITY PACIFIC NATIONAL ANK
INTERNATIONAL BANKING DEPARTMENT
Post Office Box 7637 Head Office Post Office Box 60402 Post Office Box 1791
San Francisco, California 94120 ® Los Angeles, California 90060 El San Diego, California 92112
Advised by XXK19XHXMX@ii2MKzxliG]¢K
City of Newport Beach,
City Hall, 3300 Newport Blvd.,
Newport Beach, California Direct to Beneficiary
WE ESTABLISH OUR IRREVOCABLE LETTER OF CREDIT NUMBER IC- 5842 DATED 11122/71 IN YOUR FAVOR
AT THE REQUEST OF John D. Lusk & Son, Santa Ana, California
AND FOR THE ACCOUNT OF themselves
-UP TO THE AGGREGATE SUM OF One Hundred Thirty Eight Thousand Six Hundred Two and no /100 United
States Dollars *(US$138,602.00)
—= ._AVAILABLE BY YOUR DRAFT IS) AT - ----- -- SIGHT }EQ&C BRAWN ON:
— Security Pacific National Bank, Head Office, Los Angeles, California
AND ACCOMPANIED BY THE FOLLOWING DOCUMENTS:
Your statement that John D. Lusk & Son have failed to fulfill their obligations under
the agreement dated November 22, 1971 and that amounts drawn under this Letter of
Credit shall be used as funds to fulfill aforesaid agreement relative to Spyglass
Hill Water Facilities.
r EXX1Fi.�{4€3t?tSY�k4T�§�
MFfzxvV X ASM
XR34195^.(LCRLETP<CHS C?{�.£ft61Ftk�EA:C.X : taCR} P .IFSS�EYCSXCCXft�F£F&4�E`Oi�('.X
LATEST NEGOTIATION DATE OF THIS LETTER OF CREDIT IS May 22, 1972
DRAFTS DRAWN AND NEGOTIATED UNDER THIS LETTER OF CREDIT MUST BE ENDORSED HEREON AND MUST BEAR THE CLAUSE:
"DRAWN UNDER SECURITY PACIFIC NATIONAL BANK LETTER OF CREDIT NUMBER 5842 DATED 11122/71
WE HEREBY ENGAGE WITH BONA FIDE HOLDERS THAT DRAFTS DRAWN STRICTLY IN COMPLIANCE WITH THE TERMS OF THIS CREDIT
AND AMENDMENTS SHALL MEET WITH DUE HONOR UPON PRESENTATION AT THE INTERNATIONAL BANKING OFFICES OF THIS BANK,
OR AT THE OFFICE OF SECURITY PACIFIC INTERNATIONAL BANK, 276 PARK AVENUE, NEW YORK, NEW YORK. THIS CREDIT IS SUB
JECT TO THE UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS (1962 REVISION), INTERNATIONAL CHAMBER OF
COMMERCE BROCHURE NUMBER 222.
/V /HEN OPENED By CABLE, THIS CREDIT IS ONLY AVAILABLE IF �' Authorized Signa we
: - --
j ATTACHED TO OUR CORRESPONDENT'S ADVICE OF CABLED .-
CREDIT. THE TWO CONSTITUTING EVIDENCE OF THE OUTSTAND /`> 1 nr ^•
ING AMOUNT OF THIS CREDIT.
Authors. aria to re
sle2
C 2093 5-70 P.S.
WATER SYSTEM CAPITAL IMPROVEMENT
CONSTRUCTION AND REIMBURSEMENT AGREEMENT �. — �� /��r
THIS AGREEMENT is made and entered into this xr�,>
day of M Vito" asR , 1971, by and between the CITY OF NEWPORT
BEACH, a municipal corporation, hereinafter referred to as "City,"
and JOHN D. LUSK AND SON, a California corporation, hereinafter
referred to as "Developer."
I. RECITALS
1.01 This Agreement is made between City and Developer
with reference to Ordinance No. 1209 of City, entitled "An Ordinance
of the City of Newport Beach Adding Chapter 14.33 to the Newport
Beach Municipal Code Establishing a Procedure for Financing the
Expansion and Development of the City Water System in the Unde-
veloped Areas of the City," which Ordinance was adopted by the City
Council of City on March 13, 1967.
1.02 Developer is engaged in developing certain real
property within the boundaries of City and in connection therewith
City and Developer desire to provide for installation of certain
"Master Plan" water service facilities in accordance with the "Water
System Master Plan" adopted and revised by the City Council of City.
1.03 The Irvine Company, Landowner, has agreed to provide
a site for a reservoir included in "Master Plan" water service facili-
ties.
1.04 Pursuant to Section 14.33.070 of Ordinance 1209
referred to above, City has established a "Water System Development
Fund" as described therein and the moneys deposited and to be de-
posited therein are available for reimbursement of costs of design
and construction of "Master Plan" water service facilities advanced
by persons, such as Developer, to City.
1.05 It is the intention of City and Developer to establish
by this Agreement the terms and conditions pursuant to which certain
-1-
L]
"Master Plan" water service facilities will be constructed, and pur-
suant to which City will make reimbursement to Developer from such
Water System Development Fund for moneys advanced to City by Developer
for construction of "Master Plan" water service facilities.
II. AGREEMENT
2.01 It is mutually understood and agreed that the "Master
Plan" water service facilities to be constructed under this agree-
ment ( "Project ") are as follows:
a. Pumping stations and appurtenances for water
service pressure zones III and IV, to be located
on the Big Canyon Reservoir site.
b. A 16 -inch diameter transmission main and appur-
tenances extending from the zone IV pump station
to the intersection of San Joaquin Hills Road
with Spy Glass Hill Road, thence southerly ap-
proximately 200 feet along Spy Glass Hill Road.
C. A buried prestressed concrete reservoir and ap-
purtenances of 1.5 million gallons capacity
serving pressure zone IV, and providing suction
supply for pumps serving pressure zone V.
2.02 City agrees to design and to prepare plans and specifi-
cations for Project. City will then prepare the documents necessary
to call for public bids for construction of the improvements covered
by the Plans and Specifications, and call for and receive public
bids in accordance with the requirements of the City Charter relating
to contracts on public works. The Project may be constructed under
more than one contract.
2.03 It is mutually agreed by the parties that each contract
will be awarded to the lowest responsible bidder as determined by City
in accordance with its usual procedures. City reserves the right to
reject any bid, if it determines that the amount of said bid is ex-
cessive, and to abandon the Project or to order revisions in the Plans
-2-
• •
and Specifications. Developer reserves the right to review bids.
In the event Developer determines that the amount of a bid for a
portion of Project to be funded by Developer is excessive, such
bid will be rejected. The procedure for proceeding with such por-
tion of Project shall then be determined by mutual agreement between
City and Developer. City assumes no responsibility for any liability
or damages resulting from such bid rejection. Developer shall signify
his approval or disapproval of bids within five days of bid opening.
In the event written notice of disapproval of a bid is not received
by City from Developer within five days of bid opening, the bid shall
be considered as approved by Developer.
2.04 It is mutually agreed that Developer will advance
funds for the Zone IV pumping station and appurtenances, the 16 -inch
diameter transmission main and appurtenances, and 88% of the cost of
the 1.5 million gallon reservoir, and that City will advance funds
for the balance of Project. At the pump station site costs will be
incurred for certain common facilities such as site preparation and
construction of a 24 -inch diameter supply line; these costs will be
distributed 400% to the Zone IV pump station, 400/. to the Zone III pump
station and 20% to a pressure reducing station (not a part of "Project ")
which is also to.be constructed at the pump station site. The per-
centage distribution of costs to determine the funds which will be
advanced by City and by Developer shall be based on a detailed cost
estimate prepared by the Engineer preparing the plans. When bids
are received the prorata costs shall be adjusted upward or downward
as determined by a comparison of the successful low bid with the
Engineer's estimate.
2.05 Developer agrees that prior to award of a contract
by City as provided above, Developer will advance to City such sums
as may be required to meet payments for the work to be funded by
Developer. Such advance may be in the form of an irrevocable letter
of credit or other form of assurance approved by the City Attorney.
-3-
•
The amount of such advance shall be the sum of the appropriate bid
prices plus 5% of such sum for contingencies. If unforeseen condi-
tions result in cost increases for the total work to be funded by
Developer exceeding the bid prices plus 5 %, the funding for such
increases shall be subject to further negotiation. Upon completion
and acceptance of the work a final accounting shall be made and ap-
propriate funding adjustments made.
2.06 After Developer makes the advance required in Sec-
tion 2.05 above, City will award and enter into a contract for
construction of the corresponding portion of the Project in ac-
cordance with its normal contract procedures and shall promptly
cause such contract to be executed in accordance with its terms and
conditions. As a condition of each such contract, City will require
its contractor to cooperate with Developer, its lessees or subsi-
diaries and /or any of their contractors or subcontractors in scheduling
and performing its work under the contract so as to not unreasonably
delay or interfere with development of the real property on which the
Project is located or which it is to serve. It is mutually under-
stood that the work will be done in phases, in accordance with Develo-
per's schedule, except, however, that in the event of a conflict be-
tween Developer's schedule and the provisions of a construction
contract for the work, the terms of the construction contract shall
govern. The provision regarding phasing shall not be construed as
limiting the City's right to construct Project in an orderly and
logical manner.
2.07 Developer agrees to excavate the reservoir site to a
configuration satisfactory to City, and to make available selected
material of a quantity and quality suitable for backfill at a loca-
tion near the reservoir site. Developer further agrees to grant
right of entry to City and its agents to the reservoir site for
construction and access purposes and across lands necessary to pro-
vide access to the reservoir site. Developer further agrees to grade
we
• •
and maintain an access road to the reservoir site in a condition
suitable for normal use by the reservoir contractor until the reser-
voir is completed. Developer further agrees to require its con-
tractors and subcontractors to cooperate with City and its contrac-
tors and subcontractors in the scheduling and prosecution of con-
struction of Project so as to not unreasonably delay or interfere
with completion of the Project.
2.08 It is mutually agreed that in the event development
by Developer does not proceed beyond the limits of Tentative Tract
No. 7432, the need for 1.5 million gallon Zone IV reservoir will
be reevaluated, and procedures for financing and constructing a Zone
IV reservoir will be subject to further negotiation.
III. AGREEMENT AS TO REIMBURSEMENT
3.01 The sum of all advances made by Developer pursuant
to Section 2.05 above shall be deemed to be Developer's "reimburs-
able cost" hereunder.
3.02 As of December 31 of each year, the original contract
amounts of all outstanding reimbursable contracts shall be totaled
and the percentage which each individual contract bears to this total
shall be computed. Concurrently, all Water Capital Improvement charges
collected, pursuant to Section 14.33.040 of Ordinance No. 1209, re-
ceived in the twelve months immediately preceding December 31 of the
year in question shall be totaled and any amounts used or encumbered
by the City to pay for design and construction of "Master Plan" facili-
ties constructed by the City shall be deducted. The funds remaining
after said deduction shall be available for distribution in accordance
with the provisions of Section 3.03.
3.03 On January 31 of each year 95% of the available Water
Capital Improvement charges for the prior year, as determined in
Section 3.02 above, shall be paid out to the reimbursement contract
holders on the following basis: Each individual contract holder
shall be paid a share of the total available funds based upon the
-5-
•
r
percentage formula described in Section 3.02 above, provided, however,
that if the City has advanced funds from any source other than the
Water System Development Fund to pay for the design and /or construc-
tion of "Water System Master Plan" facilities, the City shall be
reimbursed for said advance of funds at the same time and in the
same manner as the reimbursement contract holders with the exception
that the City shall have a first priority claim for reimbursement
over the other reimbursement contract holders to the extent of 25%
of the funds available for reimbursement.
3.04 Water capital improvement charges which may become
due of Developer pursuant to Chapter 14.33 of the Municipal Code
are hereby waived up to a maximum amount equivalent to the funds
advanced pursuant to Section 2.05 above, less any reimbursements
tendered under the terms of this agreement.
IV. GENERAL PROVISIONS
4.01 This agreement may not be terminated by Developer
or by City so long as any amount of Developer's "reimbursable cost"
for any Project for which funds have been advanced hereunder shall
not have been paid in full, but shall otherwise be terminable by
either party upon sixty (60) days written notice to the other, ex-
cept, however, that this agreement shall automatically terminate
twenty -five (25) years from the date of execution unless extended
by mutual consent of both parties, and City shall have no obliga-
tion to make further reimbursement at the end of such twenty -five
(25) year period.
4.02 City assumes no obligation, and makes no covenant,
to make any reimbursement or other payment to Developer except from
moneys collected by the City as "water capital improvement charges,"
as defined in Ordinance No. 1209 and required to be held by City in
the Water System Development Fund provided for in such Ordinance.
0
4.03 City agrees to continue to collect such "water
capital improvement charges" and not to reduce the amount or
method of computation of the same, by amendment or repeal of
Ordinance No. 1209 or otherwise, so long as this agreement shall
remain in effect without the prior written consent of Developer.
4.04 Developer shall have the right to assign its rights
to receive reimbursement payments hereunder, or any portion thereof,
to others upon written notice to City of such assignment, giving
the name, address and amount to be paid to the assignee, such notice
to be delivered to City not less than ten (10) days prior to any
date for payment hereunder.
4.05 If, after a period of twelve (12) months from the
date any payment is to be made, Developer has failed to claim the
reimbursement tendered Developer by City under the terms of this
agreement, the reimbursement payment shall be forfeited.
4.06 Notices to City may be addressed as follows:
City of Newport Beach
City Hall
3300 Newport Boulevard
Newport Beach, California 92660
Attention: Public Works Director
Notices to Developer may be addressed as follows:
John D. Lusk and Son
Post Office Box 2140
Newport Beach, California 92663
All such notices shall be deemed received upon receipt or, if mailed
in the County of Orange, forty -eight (48) hours after mailing, post-
age prepaid, registered or certified mail, return receipt requested.
Either City or Developer may change its address for notices by
written notice to the other party so given.
-7-
0
0
All parties hereto have caused this agreement to be executed
as of the day and year first above written.
APPROVED AS TO FORM:
Ci torney
APPROVED AS TO CONTENT:
M-M
JOHN D. LUST -AND SON
•!.,,
Title: 4�0.0
DEVELOPER
CITY F NEWPORT BEACH
0 Gt Mayor
By:_ o-�
City Clerk
I hereby certify under penalty of perjury that the above
agreement was approved by resolution of the City Council of the
City of Newport Beach adopted at a regular meeting of said Council
held on the ZZnd day of November 1971, by the following
vote, to wit:
AYES, COUNCILMEN: McInnis, Kymla,
Rogers, Hirth, Croul, Parsons
NOES, COUNCILMEN:
ABSENT COUNCILMEN:
None
Dostal
Dated at Newport Beach, California, this :v -�'d day of�� ,
1971.
L Ltifc
City Clerk
DO'N dm
11/16/71
WE
RESOLUTION NO. 756 2
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH AUTHORIZING THE EXECUTION OF
A COOPERATIVE FINANCING AND REIMBURSEMENT
AGREEMENT BETWEEN THE CITY OF NEWPORT BEACH
AND JOHN D. LUSK AND SON FOR CONSTRUCTION OF
MASTER PLAN WATER SUPPLY FACILITIES
WHEREAS, there has been presented to the City Council
of the City of Newport Beach a cooperative financing and reimburse-
ment agreement between the City of Newport Beach and JOHN D. LUSK
AND SON in connection with construction and development of "Master
Plan Water Supply" facilities, and
WHEREAS, the City Council has considered the terms and
conditions of said agreement and found them to be fair and equitable;
NOW, THEREFORE, BE IT RESOLVED that said agreement for
the services above described is approved, and the Mayor and City
Clerk are hereby authorized and directed to execute the same on
behalf of the City of Newport Beach.
ADOPTED this 22nd day of November , 1971
Mayor
ATTEST:
City Clerk
DO'N dm
11/16/71