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HomeMy WebLinkAboutC-1474 - Service to area boundariesCITY OF NEWPORT BEACH TO: FINANCE DIRECTOR FROM: City Cleric SUBJECT: Contract No. C -1474 CALIFORNIA City Hall 3300 W. Newport Blvd. Area Code 714 673 -2110 Description of Contract Am,nchmnt tnAQre mant he w twoen the Tine Ranch L Water District relative to possible future adjustment of oge area boundaries. Authorized by Resolution No. AM4 , a�opteon g_ln_73 Effective date of Contract Reptemo -Ar in. 1(179 Contract with Sr.y4 no RaQCb jp at,ps N etr4 r .- Address o n �— n T Amount of Contract V -city fte; < CITY CLERK September 14, 1973 CITY ATTORNEY CITY CLERK AMENDED AGREEMENT WITH THE IRVINE RANCH WATER DISTRICT RE FUTURE ADJUSTMENT OF SERVICE AREA BOUNDARIES. Enclosed are two fully executed copies of subject agreermnt. This amendment was authorized by the Council on September 10 by the adoption of Resolution No. 8094. Please transmit one copy to the Irvine Ranch Water District and Alex Bowie, Attorney for the Irvine Ranch Water District, and retain one for your files. Laura Lagios, City Clerk LL:swk enc. Note: Above picked up by Dennis 9 -14 -73 8:30 am. S TO: FINANCE DIRECTOR FROM: City Clerk 0 CITY OF NEWPORT BEACH CALIFORNIA City Hall 3300 W. Newport Blvd. Area Code 714 673 -2110 SUBJECT: Contract No. 1474 Description of Contract Possible Future Adjustment of Service Area un axles Authorized by Resolution No. 7819 , adopted on Sep mbar 11, 1g79 Effective date of Contract September 11, 1972 Contract with Irvine Ranch Water District Address P. 0. Box D I Irvine, � A 92664 Amount of Contract City Cle c IJ 0 AMENDED AGREEMENT BETWEEN IRVINE RANCH WATER DISTRICT AND CITY OF NEWPORT BEACH RELATIVE TO POSSIBLE FUTURE ADJUSTMENT OF SERVICE AREA BOUNDARIES /o THIS AMENDED A REEMENT is made and entered into this -24ttr day of 1973, by and between the IRVINE RANCH WATER DISTRICT, hereinafter referred to as "District ", and the CITY OF NEWPORT BEACH, hereinafter referred to as "City ", for the purpose of amending that certain Agreement dated September 11, 1972, previously entered into by the parties to this Amended Agreement; W I T N E S S E T H WHEREAS, District and City have heretofore entered into that certain Agreement dated September 11, 1972, relative to possible future adjustment of service area boundaries; and WHEREAS, it is the desire of both City and District to memo- rialize an amendment to the hereinabove described agreement pre- viously approved by both City and District; and WHEREAS, Annexation No. 16 to District was submitted to the Local Agency Formation Commission for approval and approved by that Commission, and annexed by District on the basis of the terms of the hereinabove described agreement, inclusive of the amendment herein set forth; NOW, THEREFORE, in consideration of the mutual promises and covenants herein contained the parties to this Agreement do hereby -1- 0 Ll amend that certain Agreement dated September 11, 1972, so as to provide in the manner hereinafter set forth: 1. District agrees that as to the area designated in Exhibit "A" to this Agreement, which document is by this reference made a part hereof, it will initiate annexation proceedings upon approval of the proposed annexation by the Local Agency Formation Commission, and thereafter initiate and diligently pursue to completion annex- ation proceedings as well as proceedings to establish an author- ization of bonds to be issued, if, as and when needed. The pro- ceeds of the bonds so authorized shall be used to construct facili- ties for transmission, storage, and distribution of water, as well as collection, treatment, reclamation, or disposal of sewage and waste water, which proceedings shall include the area designated on the portion of Exhibit "A" as the area of possible service boundary adjustments between City and District. It is further agreed that in the event that such water and sewer facilities are constructed in this area by District and, if at a later date, City and the owners of the property depicted on Exhibit "A" to this Agreement or their successors desire to and do in fact accomplish the annexation of such territory in whole or in part to City, that District will convey to City such water and sewer facilities or capacities in such water and sewer facilities to the extent neces- sary to provide for water and sewer service to the area in question. The determination as to which water and sewer facilities or the -2- extent of the capacity in such water and sewer facilities to be conveyed to City by District shall be determined on the basis of sound engineering practices as well as existing practices of good utility management. it is acknowledged that in such instances a facility may be conveyed in its entirety or that only capacity in an existing facility may be conveyed. It is the intent of both parties that sufficient water and sewer facilities, or capacity in water and sewer facilities will be maintained by District to serve any adjacent property or portion of the area described in Exhibit "A" which are not annexed to City. The foregoing proviso is subject to and in furtherance of the authority of the Local Agency Formation Commission of Orange County or its successor to make such a decision as part of any such proceedings referred to hereinabove pursuant to the provisions of Section 56470 of the Government Code and any other applicable provisions of law. It is acknowledged and agreed that such may occur either as one annex- tion or as a series of annexations. It is further acknowledged and agreed that said boundary adjustments may require detachment of territory from District. District agrees that in such event it shall execute and deliver to City such documents as are reasonably necessary to convey the above described water and sewer facilities or capacity in the above described water and sewer facilities of City. Further, District, at the request of City, shall execute and deliver to City such documents as are -3- reasonably necessary to undertake detachment proceedings relative to detachment of territory from District to the extent necessary to accomplish the purposes of this Agreement. Such areas of possible detachment from District shall be only to the extent described on Exhibit "A" to this Agreement. It is agreed as a condition of any such requisite boundary adjustment and transfer of water and sewer facilities or capacity in water and sewer facilities that pursuant to the provisions of Section 56470 of the Government Code a portion of the District Reorganization Act of 1965 there shall be an apportionment of liability for payment of an appropriate portion of the principal and interest on bonds that have been issued, the proceeds of which have been used to construct water and sewer facilities affected by this Agreement. As an alternative means of accomplishing this purpose, City may pay to District an annual amount equal to what the territory in question would have paid in tax assessments or other charges had it remained part of the District to the extent that such are re- quired for debt service on outstanding bonds issued pursuant to the proceedings referred to in paragraph 1 of this Agreement. It is understood and agreed by City and District that the amount of any debt apportioned to City or to be paid in the alternative by City by means of an annual payment to District shall be based on investment in the facilities or the capacity in a facility acquired by City. This is not intended to include -4- any amounts from grants from the state or federal government, or both, nor any amounts received to that point in time by means of any acreage or connection charges paid to District relative to service to any territory annexed to City to the extent such have been collected and used or are to be used for debt service purposes on bonds issued for the construction of the facilities acquired by City or to construct a facility where capacity in a facility is to be acquired by City. 2. Interconnection of Facilities. It is agreed by District and City that a system of interconnections between the water facil- ities of City and District shall be established consistent with sound utility management principals to provide safeguards against the possible failure of either the system of City or District. It is the intent of this provision that each of the entities agree to provide water in such instances at its cost in the event of a fail- ure on the part of the facilities of either City or District. 3. In regard to the eighteen (18 ") inch water transmission line initially constructed to provide service to the commercial development in City known as Newport Center, City agrees that District may utilitize existing surplus capacity therein as an initial interim transmission line to the areas described in Exhibit "A" as the area of possible future service area adjustments, pro- vided that District shall furnish all water transmitted for use by -5- 0 0 District. This, as well as the other rights of District set forth herein, is in consideration of the commitments and obligations hereinabove set forth of District. It is agreed, however, that use of the eighteen (18 ") inch water transmission line by- District, to the extent hereinabove referred to is subject to the requirement that an emergency alternative means of transmission be established simultaneously with the connection of District's facilities to the hereinabove described facilities of City. It is acknowledged that such surplus capacity was previously constructed at no cost to City. Such initial use by District shall be terminated by District upon receipt of twelve (12) months' prior written notice from City. 4. It is further agreed that in the event at a future date City determines that it does not need capacity that it now owns in a certain water transmission facility located within the public highway known as Pacific Coast Highway, it agrees to extent to District the opportunity to purchase such facility based on the replacement costs less depreciation or such other terms and condi- tions as are mutually agreed upon. It is contemplated that District, in such event, may acquire such facility with bond proceeds proposed to be issued by District. In the event that City makes such deter- mination, it shall give notice of such determination to District, and District, upon receipt of such notice shall within ninety (90) days thereafter advise City of its election to purchase the facility in question. The notice of District shall specify the purchase M 0 0 price together with sufficient information to verify the manner in which the purchase price is determined. 5. It is further agreed that City, in consideration of the matters hereinabove set forth, shall not oppose proposed Annexation No. 16 to District and shall cooperate in any reasonable manner necessary in order that District might accomplish proposed Annexa- tion No. 16 to District at the earliest possible date. 6. District hereby acknowledges that based on Section 4730 of the Health and Safety Code of the State of California it is not entitled by reason of the accomplishment of proposed Annexation No. 16 to District to have representation on the Board of Directors of County Sanitation District No. 5. 7. Notice. Any notice or instrument required to be given or delivered by depositing the same in any United Stated Post Office, registered or certified, postage prepared, addressed to the addresses of the parties hereto shall be as follows: TO DISTRICT: IRVINE RANCH WATER DISTRICT P. 0. Box D -I Irvine, California 92664 TO CITY: CITY OF NEWPORT BEACH City Hall 3300 Newport Boulevard Newport Beach, California 92660 and shall be deemed to have been received by the party to whom the same is addressed at the expiration of seventy -two (72) hours -7- 0 0 after deposit of the same in the United States Post Office for transmission by registered or certified mail as aforesaid. 8. It is further agreed by City and District that in the event Annexation No. 16 to District is not completed on or before October 1, 1972, this Agreement, without further act of either party, shall terminate and be of no further effect. IN WITNESS WHEREOF the parties hereto have executed this Amended Agreement the day and year first hereinabove set forth. IRVINE RANCH WATER DISTRICT By President By C Secretary CITY OF NEWPORT BEACH (SEAL) ✓�P FOaN -8- (SEAL) AFs' ;•DIED AS 70 FORRM :. 774111P T. U,,, - rji - y , amt- � � :. � �':� ,i ,� 1,' .:v •" 'k. /.. M IN a o ;U z q H 10 - C �.. 0 JOE, Cm 0 Cim f Ica. \w .W � h: '�_� �•: � { ,. .:,J :. x..11 1 \ -.. Y' l+P 4l •`_1! Pi I& TSt A6 IJ O.O '�i. I •' - � � :- 's;''• fit, a -a!, /, .5,� � . <,''� -✓' y.('�,, ��•�• D n J 1 N r �/• i .. Legend = / / /// area of possible service bqundary adjustment TI Legend = / / /// area of possible service bqundary adjustment RESOLUTI01 NO. - 01 t" A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF _�EWP0RT BEACH AUTHORIZING THE EXECUTION OP A3;r—�NDMENT TO AN ",GRS:_'dENT BET 'E'EN T FE C�%'_ OF NEWPORT BEACH AND THE IRVINE RANCH WATER DISTRICT RELATIVE TO POSSIBLE FUTURE ADJUST` ":INT OF SERVICE AREA BOUNDARIES WHEREAS, there has been presented to the City Council of the City Of Newport. B ?ach an amendment 1-0 the agreemenl- ba tW e e n the City of N WUOr`1 Seac,i and �-he __'. ine R' -,n "'n '%-? -+i'._ District relative to future adjustment of service area boundaries executed on September 11, 1972; and WHEREAS, the City Council has considered the terns and conditions of said amendment and found them to be reasonable and in the best interest of the City; NOW, THEREFORE, BE IT RESOLVED that said amendment relevant to the Agreement to Adjust Possible Future Service Area Boundaries 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 10th day of September , 19 73. ATTEST: ty Clerk Mayor 'DUN (.Lm 9,/-5,/7 3 AB:ct 9/6/72 i ! AGREEMENT BETWEEN IRVINE RANCH WATER DISTRICT AND CITY OF NEWPORT BEACH RELATIVE TO POSSIBLE FUTURE ADJUSTMENT OF SERVICE AREA BOUNDARIES THIS AGREEMENT is made and entered into this j /,X6 day of 1972, by and between the IRVINE RANCH WATER DISTRICT, hereinafter referred to as "District ", and the CITY OF NEWPORT BEACH, hereinafter referred to as "City "; W I T N E S S E T H: WHEREAS, District has heretofore undertaken investigations relative to how and in what manner the area now situated within District and area immediately adjacent thereto, southerly of the existing southerly boundary line of District, might be provided with water and sewer facilities in a timely, efficient, and economic manner, and WHEREAS, a proposal relative to Annexation No. 16 to District has been submitted to the Local Agency Formation Commis- sion of Orange County for consideration, and WHEREAS, accomplishment of such annexation at this time is necessary in order to permit District to establish and commence implementation of a program for financing and constructing the necessary facilities for the area depicted in Exhibit "A" to this Agreement, and WHEREAS, it has been determined by District and City that it would be in the best interests of both parties to execute an agreement relative to certain matters of mutual interest and benefit to both District and City, which matters are hereinafter specifically set forth; -1- 0 E NOW, THEREFORE, in consideration of the mutual promises and covenants herein contained, the parties to this Agreement do agree as follows: 1. District agrees that as to the area designated in Exhibit "A" to this Agreement, which document is by this refer- ence made a part hereof, it will initiate annexation proceedings upon approval of the proposed annexation by the Local Agency Formation Commission, and thereafter initiate and diligently pursue to completion annexation proceedings as well as proceedings to establish an authorization of bonds to be issued, if, as and when needed. The proceeds of the bonds so authorized shall be used to construct facilities for transmission, storage, and dis- tribution of water, as well as collection, treatment, reclamation, or disposal of sewage and waste water, which proceedings shall include the area designated on the portion of Exhibit "A" as the area of possible service boundary adjustments between City and District. It is further agreed that in the event that such water and sewer facilities are constructed in this area by District and, if at a later date, City and the owners of the property depicted on Exhibit "A" to this Agreement or their successors desire to and do in fact accomplish the annexation of such territory in whole or in part to City, that District will convey to City such water and sewer facilities or capacities in such water and sewer facilities to the extent necessary to provide for water and sewer service to the area in question. The determination as to which water and sewer facilities or the extent of the capacity in such water and sewer facilities to be conveyed to City by District -2- 0 shall be determined on the basis of sound engineering practices as well as existing practices of good utility management. It is acknowledged that in such instances a facility may be conveyed in its entirety or that only capacity in an existing facility may be conveyed. It is the intent of both parties that sufficient water and sewer facilities, or capacity in water and sewer facilities will be maintained by District to serve any adjacent property or portion of the area described in Exhibit "A" which are not annexed to City. The foregoing proviso is subject to and in furtherance of the authority of the Local Agency Formation Commission of Orange County or its successor to make such a decision as part of any such proceedings referred to hereinabove pursuant to the provisions of Section 56470 of the Government Code and any other applicable provisions of law. It is acknowledged and agreed that such may occur either as one annexation or as a series of annexations. It is further acknowledged and agreed that said boundary adjustments may require detachment of territory from District. District agrees that in such event it shall execute and deliver to City such docu- ments as are reasonably necessary to convey the above described water and sewer facilities or capacity in the above described water and sewer facilities to City. Further, District, at the request of City, shall execute and deliver to City such documents as are reason- ably necessary to undertake detachment proceedings relative to detachment of territory from District to the extent necessary to accomplish the purposes of this Agreement. Such areas of possible detachment from District shall be only to the extent described on Exhibit "A" to this Agreement. It is agreed as a condition of any such requisite boundary adjustment and transfer of water and sewer -3- E 0 facilities or capacity in water and sewer facilities that pursuant to the provisions of Section 56470 of the Government Code a portion of the District Reorganization Act of 1965 there shall be an appor- tionment of liability for payment of an appropriate portion of the principal and interest on bonds that have been issued, the proceeds of which have been used to construct water and sewer facilities affected by this Agreement. As an alternative means of accomplish- ing this purpose, City may pay to District an annual amount equal to what the territory in question would have paid in tax assess- ments or other charges had it remained part of the District to the extent that such are required for debt service on outstanding bonds issued pursuant to the proceedings referred to in paragraph 1 of this Agreement. 2. Interconnection of Facilities. It is agreed by District and City that a system of interconnections between the water facili- ties of City and District shall be established consistent with sound utility management principals to provide safeguards against the possible failure of either the system of City or District. It is the intent of this provision that each of the entities agree to provide water in such instances at its cost in the event of a failure on the part of the facilities of either City or District. 3. In regard to the eighteen (18 ") inch water transmission line initially constructed to provide service to the commercial development in City known as Newport Center, City agrees that Dis- trict may utilize existing surplus capacity therein as an initial interim transmission line to the areas described in Exhibit "A" as the area of possible future service area adjustments, provided that District shall furnish all water, transmitted for use by District. -4- 6 r This, as well as the other rights of District set forth herein, is in consideration of the commitments and obligations hereinabove set forth of District. It is agreed, however, that use of the eighteen (18 ") inch water transmission line by District, to the extent here- inabove referred to is subject to the requirement that an emergency alternative means of transmission be established simultaneously with the connection of District's facilities to the hereinabove described facilities of City. It is acknowledged that such surplus capacity was previously constructed at no cost to City. Such initial use by District shall be terminated by District upon receipt of twelve (12) months' prior written notice from City. 4. It is further agreed that in the event at a future date City determines that it does not need capacity that it now owns in a certain water transmission facility located within the public highway known as Pacific Coast Highway, it agrees to extend to District the opportunity to purchase such facility based on the replacement costs less depreciation or such other terms and condi- tions as are mutually agreed upon. It is contemplated that District, in such event, may acquire such facility with bond proceeds proposed to be issued by District. In the event that City makes such deter- mination, it shall give notice of such determination to District, and District, upon receipt of such notice shall within ninety (90) days thereafter advise City of its election to purchase the facility in question. The notice of District shall specify the purchase price together with sufficient information to verify the manner in which the purchase price is determined. 5. It is further agreed that City, in consideration of the matters hereinabove set forth, shall not oppose proposed Annexa- tion No. 16 to District and shall cooperate in any reasonable manner -5- necessary in order that District might accomplish proposed Annexa- tion No. 16 to District at the earliest possible date. 6. District hereby acknowledges that based on Section 4730 of the Health and Safety Code of the State of California it is not entitled by reason of the accomplishment of proposed Annexation No. 16 to District to have representation on the Board of Directors of County Sanitation District No. 5. 7. Notice. Any notice or instrument required to be given or delivered by depositing the same in any United States Post Office, registered or certified, postage prepaid, addressed to the addresses of the parties hereto as follows: TO DISTRICT: Irvine Ranch Water District P.O. Box D -I Irvine, California 92664 TO CITY: City of Newport Beach City Hall 3300 Newport Boulevard Newport Beach, California 92660, and shall be deemed to have been received by the party to whom the same is addressed at the expiration of seventy -two (72) hours after deposit of the same in the United States Post Office for transmission by registered or certified mail as aforesaid. 8. It is further agreed by City and District that in the event Annexation No. 16 to District is not completed on or before October 1, 1972, this Agreement, without further act of either party, shall terminate and be of no further effect. IN WITNESS WHEREOF, the parties hereto have executed these presents the day and year first hereinabove set forth. CITY OF NEWPORT BEACH By Mayor BY l���l- .�(.�.od i City Cle ry I- IRVINE RANCH WATER DISTRICT i BY - Presi.dent i Secretary / -7- C7 Xq e N1 < 1i� -` -• Y`� �. O IN z O y .0 ` Dp a m 0 p .a D 9 CD�� CO C D O p A D jT1 �`s t `y T D a •, l r r , N T M rl Legend = / / /// area of possible service bqundary adjustment RESOLUTION NO. ; 1 J A RESOLUTION OI' THE CITY COUNCIL OF NEWPORT BEAC17 AUTHORIZING THE AN AGREENPENT BETWEEN THE CITY OF BEACH AND THE IRVINE RANCH WATER RELATIVE TO POSSIBLE FUTURE ADJU SERVICE AREA BOUNDARIES OF THE CITY EXECUTION OF NEWPORT DISTRICT 3TMENT OF WHEREAS, there has been presented to the City Council of the City of Newport Beach a certain contract between the City of Newport Beach and the Irvine Ranch Water District, relative to possible future adjustment of service area boundaries; and WHEREAS, the City Council has considered the terms and conditions of said contract and found them to be fair and equitable; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Newport Beach that said contract 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 11th day of September, 1972. ATTEST: City Clerk Mayor DON:mh 9/7/72