HomeMy WebLinkAboutC-2180 - Interconnection of facilities & Interim Sewer Service�gVV�Rr
m CITY OF NEWPORT BEACH .
CALIFORNIA
City flail
1AL,FIDwN� 3300 W. Newport Blvd.
Area Code 714
May 21, 1980
DATE
TO: FINANCE DIRECTOR
FROM: City Clerk
SUBJECT: Contract No. 2180
Depription of Contract .Interim Sewer Service
Authorized. by Resolution No. 9766 , adapted on April 14, 1980
Effective date of Contract Mav 14, 1980
Contract with O C Sanitation District 5 & Irvine RwQn Water diGtrict
Address 10844 .Ellis Avenue 4201 Cawcs Drive
Fountain Valley, CA 92708 Irvine, CA 92715
Amount of Contract see Contract
•City Clerk
a
U V F_�
March 29, 1982
Mr. Dick Hoffstadt
CITY OF NEWPORT BEACH
3300 Newport Boulevard
Newport Beach, CA. 92663
cc
Subject: Bond For Sewer Interconnect
Dear Dick:
v r.'s'J
C{7:Y OF
^,KEW 3t ; BEACH, 0
Z a;;�i;R,
Attached is a copy of the $27,000 sewer interconnect bond
which we discussed on the telephone March 29. The attach-
ed bond was required as a condition of the May 14, 1980
sewer agreement between the Irvine Ranch Water District,
County Sanitation District and City of Newport Beach.
Very truLv yours,
Robert J. app
Director of Forward Planning
RJT /sh
attachment
' vG THE C,JADIA J
f "
tCEiuED4N.: ,,1: W .
Fib: Y
CENT€?AL REGOiiDS
KNOW ALL MEN BY THESE PRESENTS,
THAT we, DAON CORPORATION
INDE•. "JIT COM NY
BOND
as Principal,
and THE CANADIAN INDE:-?NITY CO;PAN'Y, a corporation a•.thorized to transact a general surety
business in.the State of California, as Surety, are held and firmly bound unto
THE CITY OF NEWPORT BEACH, A CHARTERED MUNICIPAL CALIFORNIA CORPORATION as Obligee
in the sum of TWENTY SEVEN THOUSAND AND N01100 * * : .. .. „ .. .. .. .. .. .. .. .. .. .. .. .. - rt
—
DOLLARS ($27,000.00 ' =),
for the payment whereof, in lawful money of the United States, said Principal and Surety
bind themselves, their heirs, administrators, successors and assigns, jointly and sever-
ally, firmly by these presents.
THE CONDITION OF THE FOREGOING OBLIGATION IS SUCH THAT,
,,HERF4S, the above bounden Principal has entered into an agreement dated _ 1S8(
with the Obligee:
TO INSURE FAI;ENT OF THE COST OF CONSIRUMON OF AN IN';TERCO ^::�_CTION
SYSTE!,' PURSUANT TO SECTION 5 OF SAID AGr,EETIENT.
E
if tide --love i;oun:'aa Pr'illCik 01 shall ell and _ruly *-.ae the furegoir.g
as per the .c• c: =nt, tF:en this ob;iL�ation -.';zll be void; otherwise to r ,. -:_.. in
full forcc and ei`rct.
Signed this _15TH _ day of _ *LAY 1580
MON CORPOPATION
BY:
BY: �i�r�-�' -•
h',ND NO. B392019 _ THE C1,NADLAN IND:2,!N1TY CC::�A.Ny
ris121IL7.
.f: 5540.00
-- - -- —
k_,.r ;♦ �-Hc— *LANIADIAN 1ND- _V'N*Y CO,V PANY
/1 F� 67S SOUTH PARK VIEW • Los ANGELES 9005.7 • 1ELEPHQNE 3— 6101
BOND
KNOW ALL MEN BY THESE PRESENTS,
THAT we, _ DAON CORPORATION
, as Principal,
and THE CkN-kDLAN INDE -1NITY CO:•1PANY, a corporation authorized to transact a general Buret
business•in the State of California, as Surety, are held and firmly bound unto
STATE OF CALIFORN(A
1 > Orange — _ Is E
COX iY OF�
0
epn way �8 �8O before me, the und,,s;gned, a Notary Public In and for
W.A. Colton III, Senior Vice President, Land
o said gate, personally appeared _.
known to me to be the '- - - - - -- Pres;dent, and_ Thsf^a5 J R i e 1 1 V "rc
c -�. F,s,pr Itj 4 ,
° known to me to be the President dent Secretary of the corporation that e>ecuted the within instrument,
Y
< and known to me to be the pe:sons who exe cued the within
_ insbun.ent on behalf of the co•puation ;herein carved, and ec- ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦� ♦� ♦� ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦ ♦� ♦ ♦ ♦ ♦ ♦�
OFFICIAL SEAL
kncwledBed to me that such corporat;on execv:ed the w;thin. _ .? DIANE NIARIE BONES
` ir.J w�snt p.naoaN to its b, 'awl or a of it, Loard of • C. n'' ^ += NOTARY PUBLIC- CALIFORNIA
i
a Gnat •Y' PRIHC:PAL OFFICE IN
♦ .. ORANGE COUNTY
1 �( my Co.-- ission Expi•es A,. J 25, 1983
o V.;Tr.FSS my hand and or.--:al seal. �1 ♦♦f♦ ♦ ♦ ♦ ♦ ♦ ♦� ♦♦ ♦ ♦f ♦ ♦ ♦ ♦f♦ ♦ ♦1�1♦
Diane Marie Bones
Nia > -e (-. d or Primed) - - -_ — - -- .._. 1TI-4 uea to, eF.c'a' n: r:al .eary
State of California
County of LOS ANGELES
Iss:
On MAY 15 — 1980 before me
personally appeared PSDA I. `AEL'_ ^.! r ---RA _.
known to me to be an Attorney.in-Fact of THE CANADIAN INDEh9NITY CONIPANY, the corporation
described in the within instrument, and known to me to be the parson tvho executed the said instrument
as the act o1 The Canadian Indemnity Company in accordance with authority conferred by said Company.
..............A ^NA t+I'NAfI....•
SIA
.. /.ter_ - \\ •rtcce Vau[ � /,,. ^.-,. /��- _� ;.r. 'ir- '_1_�/
Notary. Public
9; C: -,In F.;.: r.E pare` 23. 7.'64
Fwm 51a
N as Obligee
kRS ($27,000.00
rincipal and Suret
'jointly and sever
ted
,
Tr RCc:fECI
I ON
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+tair':ri s.e
to r-,::..=in
J
r
T1T1 CO'; ?.4::Y
E THE CANADIAN INDEMNITY C0111 ;? NY
POWER OF ATTORNEY No. US79 = 1
KNOW ALL MEN BY THESE PRESENTS, that THE CANADIAN
INDEMNITY COMPANY, of WINNIPEG, MANITOBA, CANADA, has made,
Constituted and appointed, and by these presents does hereby make, constitute
and appoint
AIDA I. WEERASEKERA
Los Angeles, California
its true, sufficient and lawful attorney, with full power and authority to make,
execute, attach its corporate seal thereto, and deliver for it, in its name and on its
behalf, ,
BONDS, GUARANTEES OR OTHER OBLIGATIONS OF SURETYSHIP
hereby giving its said attomey full power and authority to do everything
N +hatsoever requisite and necessary to be done for the purpose of making,
executing and delivering such obliations as fully as the officers of the said THE
CANADIAN INDEMNITY COMPANY could do, if personally present, and
hereby ratifying and confirming all that its said attorney shalt la%,fully do, or
cause to be done by virtue hereof, but resen ing to itself full poker of substitution
and revocation.
IN WI FXESS 1'; HEREOF, the said THE CANADIAN INDEMNITY
C r.".? NY 1 ..z e.a: >ed 0 seal lo be he:euni0 affixed and These presents
to be July -:Necutcd by its proper officers at the Executive Offices of the
Co'a :any ir.:be CITY OF TORONTO, ONTARIO, CANADA, on the 4th
day of M• v, 1979 A.D.
THE CANADIAN INDEMINITY COMPANY
ell,
G. F. W'at s', Vice— President Unaerwritir.g
1
W. B:'Gresham, Secretary
Subject: IRT,D /San 5 /City of Newport Beach Agreement
_res ter of Credit
-z7-Bond
--
Attached
pry raring the
tion 5 of the
District, Cori
are two sets of documents for your use in
letter of credit and bond pursuant to Sec-
agreement between the Irvine Ranch iSater
,ty Sanitation District No. 5 and the City of
1. °_ND. The same format can be used as in the
attached Lcr:d which Daon submitted to San 5 as advance
ccn,,ection charges to pay for the new San 5 se-,.ar facilities.
The oblicee will be "THE CITY OF NEWPORT BEACH, A Clia:,TERED
`UNICIPAL CkLIFORNIA CORPORATION." The sum of the b—nd
s'.-ou'd be $27,000.00 pursuant to the attached esti;r.,te
cuL- :itted by Don Seitz. The condition of the foregoiiig
obllication
the above 'bounden pri ncical has entered
into an agreement dated , 1980, with
the oblicee to insure.pay�ment of the cost of construc-
tion of an interconnection syste rsua to Section 5
of said agreement, in the sum of $27,000. "
2. LETTER OF CREDIT. See the Bank of America form
- "Irrevocable Letter of Credit" and wording suggested in the
attached letter from Joan Arneson, of Alexander Bowie's
office. The amount to be used in the irrevocable letter of
credit is the sum of $576,198.00, as set forth in Exhibit "D"
(s_�uplement to Exhibit "B ") as prepared by Don Seitz.
t4SF�
INSU
CE DE T.
.L .' _
. ..- .,
.. Er..,...
`..
SS5 CAPITOL MALL. I,L: 450 RECEIVED
•• ♦ '•
'• - -•f ♦••.
SAC n A M C I. TO. C A L I i 0 n N: A _5819
:916. 444--'900
May 6, 1980
_.
MEMOP,ANDUM
To:
Michael
K. Ryan
From: Dennis D. O'Neil
Subject: IRT,D /San 5 /City of Newport Beach Agreement
_res ter of Credit
-z7-Bond
--
Attached
pry raring the
tion 5 of the
District, Cori
are two sets of documents for your use in
letter of credit and bond pursuant to Sec-
agreement between the Irvine Ranch iSater
,ty Sanitation District No. 5 and the City of
1. °_ND. The same format can be used as in the
attached Lcr:d which Daon submitted to San 5 as advance
ccn,,ection charges to pay for the new San 5 se-,.ar facilities.
The oblicee will be "THE CITY OF NEWPORT BEACH, A Clia:,TERED
`UNICIPAL CkLIFORNIA CORPORATION." The sum of the b—nd
s'.-ou'd be $27,000.00 pursuant to the attached esti;r.,te
cuL- :itted by Don Seitz. The condition of the foregoiiig
obllication
the above 'bounden pri ncical has entered
into an agreement dated , 1980, with
the oblicee to insure.pay�ment of the cost of construc-
tion of an interconnection syste rsua to Section 5
of said agreement, in the sum of $27,000. "
2. LETTER OF CREDIT. See the Bank of America form
- "Irrevocable Letter of Credit" and wording suggested in the
attached letter from Joan Arneson, of Alexander Bowie's
office. The amount to be used in the irrevocable letter of
credit is the sum of $576,198.00, as set forth in Exhibit "D"
(s_�uplement to Exhibit "B ") as prepared by Don Seitz.
Michael K. Ryan
May 6, 1980
Page Two
Assuming the agreement is approved by the Sanitation
District No. 5 Board next Wednesday night, we can use that
date, May 19, 1980, for purposes of the bond and irrevocable
letter of credit. I would imagine that the bonding co *;•.,-,any
and bank would want a fully executed copy of the agreement
for their files.
If you have any questions concerning the above inforrea-
tion, please give me a call 'at your convenience.
i
Dennis D. O'Neil
DDO : rth
i,..I .. .i . . . r.
April 25, 1980
Mr. Dennis O'Neill
F,cDonough, Holland & Allen
4041 MacArthur Blvd., Suite 190
Newport Beach, CA 92660
Dear Dennis:
As requested, we have prepared a construction estimate for the City of
Newport Beach /Irvine Ranch : -later District interconnection to serve the
Aeronutronic Ford Tentative Tract 10391. This estimate is as follows:
400 LF Pavement Removal & Replacement @ S8.00 /LF = S 3,200.00
830 LF of 8 -Inch Sewer @ $20.00 /LF = 16,600.00
Connection to Existing Manhole Stub @ S500 ea. = 500.00
2 "anhoies @ $2000 ea. = 4,000.00
12 LF Concrete Encase5ient @ S25.00 /LF = 300.00
Subtotal = S24,600.00
Contingencies = 2,400.00
Total = $27,000.00
Tha estica'ed construction cost for the interconnection can be used for
the bond to be submitted by Daon.
Very trul y yours,
-'Donald C. Seitz
Vice President
4later Resources
DCS:pb
MARTIN M,DONOUGH
ALFRED E. HOLLAND
ORVCE F. ALLEN
V. BARLOW GOFF
JOSEPH E. COOMES,JR.
WILLIAM G. HOLLIMAN, JR,
DAVID J. SPOTTIS W OOO
ELMER R. MXIAttGFF
RICHARD W. NICHOLS
DONALD C. POOLE
RICHARD W. OSEN
RICHARD E. BRANDT
GARY F. LOVERIDGE
G. RICHARD BROWN
40
DENNIS 0.ONEIL
DAVID W. POST
SUSAN M. EOLING
BRUCE McDONOUGH
ALICE A. WOODYARD
MICHAEL T. FOGARTY
D. WILLIAM DENTINO
ANN M. MORRIS
DAVID F. BEATTY
HARRY E. HULL JR.
RICHARD L. OECOSNY, JR.
JEFFRY R. JONES
WILLIAM L.OWEN
40
MCDoxouGH, HOLLAND & ALLEN
A PROFESSIONAL CORPORATION
ATTORNEYS
555 CAPITOL MALL, SUITE 950
SACRAMENTO, CALIFORNIA 95814
(916) 444 -3900
May 19, 1980
Doris George, City Clerk
City of Newport Beach
3300 Newport Boulevard
Newport Beach, California 92663
Dear Doris:
FELIX S. WAHRHAFTIG
(1909-1969)
NEWPORT BEACH OFFICE
4041 MXC ARTHUR BOULEVARD, SUITE 190
NEWPORT BEACH, CALIFORNIA 92660
(7I4) 833 -2304
& O,
2 F ,
L\ 6��0
IN REPLY REFER TO:
77010/002
Enclosed herein please find a duplicate original copy
of the agreement between the Irvine Ranch Water District,
City of Newport Beach and Sanitation District No. 5 for
interim sewer service to the Ford site, dated May 14, 1980.
The agreement provides on page 5, section 5, for the
posting of a bond guaranteeing payment of the construction
costs for the interconnection system which is the subject of
the agreement. I am having this bond prepared at this time
and will be reviewing it with the City Attorney and Public
Works Director within the next ten days. Thereafter, I will
lodge the bond with you for retention in the official file
on this matter.
Ver, truly yours,
Dennis D. O'Neil
DDO:mh
Enclosure
CC: Rita J. Brown, County Sanitation District No. 5
Michael K. Ryan
•h. � 40780 -14 mh
AGREEMENT FOR INTERCONNECTION OF
FACILITIES AND INTERIM SEWER SERVICE
THIS AGREEMENT, for purposes of identification, is
hereby dated and effective the 14th day of May ,
1980, and is
BY AND BETWEEN
AND
AND
IRVINE RANCH WATER DISTRICT,
a California Water District
(hereinafter "IRWD ")
COUNTY SANITATION DISTRICT
NO. 5 OF ORANGE COUNTY,
CALIFORNIA (hereinafter referred
to as "District 5 ")
CITY OF NEWPORT BEACH,
a Charter City (hereinafter
referred to as "City ").
RECITALS
WHEREAS, this agreement is intended by the parties to
allow for an interim service and emergency interconnection
of facilities by means of an existing IRWD gravity sewer
pending construction of either a District 5 Jamboree Road
Pump Station and Force Main or the Back Bay Drive gravity
line (hereinafter "District 5 Facilities ") and for permanent
service only in the event District 5 is unable to construct
such District 5 Facilities, thereby providing service to the
Residential Project as hereinafter defined; and
WHEREAS, the City has approved Tentative Map of Tract 10391
permitting development of 300 residential units and ancillary
facilities, not to exceed ten additional dwelling unit
equivalents, on approximately 100 acres of land, generally
known as the Ford Aeronutronic site (hereinafter "the Residential
s
0
Project "), more specifically designated in the attached
drawing marked Exhibit "A" and made a part herein by this
reference; and
WHEREAS, the Residential Project is planned to be
developed in phases based on filing separate Final Tract
Maps as generally depicted on Exhibit "C" attached hereto
and made a part herein by this reference; and
WHEREAS, Residential Project is located tributary to
the proposed District 5 Facilities within the boundaries of
District 5 and is uniquely situated adjacent to an existing
IRWD gravity sewer thereby facilitating an interconnection
for both an interim sewer service system and a permanent
emergency failsafe overflow system as depicted on Exhibit
"A" to this Agreement; and
WHEREAS, District 5 is in the planning process for the
construction and installation of the District 5 Facilities
to receive and dispose of the sewage and wastewater antici-
pated to be generated from the Residential Project; and
WHEREAS, District 5 has adopted Ordinance No. 510,
which among other things permits interim or alternative
facilities or methods of disposing of the Residential Pro-
ject wastewater upon a finding that District 5 reasonably
expects to have permanent additional facilities available to
serve the Project in a known period of time; and
WHEREAS, on March 12, 1980, District 5 adopted Resolu-
tion No. 80 -58 -5 approving interim sewer service to Tentative
Tract No. 10391 by an interconnection to IRWD upon a finding
that District 5 expects to have permanent additional facilities
available to serve the Residential Project within approximately
two years; and
WHEREAS, the County Sanitation Districts of Orange
County, including District 5, City and IRWD, heretofore have
entered into agreements from time to time to receive, treat
and dispose of sewage from various areas located within the
-2-
County Sanitation Districts of Orange County, including
District 5, in order to avoid unnecessary expenditure of
public funds and duplication of facilities, to minimize
operation and maintenance cost, and to provide for temporary
and /or emergency interconnection so as to avoid occurrence
of instances where sewage is not capable of being disposed
of in a manner consistent with the public health, safety and
welfare; and
WHEREAS, IRWD, City and District 5 have found and
determined that the herein proposed interconnection facilities
will provide: (i) a temporary interim interconnection; (ii)
a permanent emergency interconnection; and if necessary
(iii) a permanent interconnection. The proposed interconnec-
tion facilities would connect to an existing IRWD line
located to the north and adjacent to the Residential Project
and would be in the best interests of City and the respective
districts; and
WHEREAS, the parties believe that the formulae set
forth herein for calculating the payment due upon connection
of the Residential Project to IRWD's facilities, refund upon
connection to District 5, user fees, and emergency fail -safe
system charge are a reasonably precise and fair method of
calculating said amounts; and
WHEREAS, City recognizes that construction of the
Interconnection System will provide a means of disposing of
sewage and wastewater from the Residential Project and
agrees to issue building permits for said Residential Project
based on sewer service being provided by said Interconnection
System pursuant to the terms and conditions of this Agreement,
and at such time as plans have been checked and building
permit fees are paid.
NOW, THEREFORE, IN CONSIDERATION of the mutual promises
and covenants set forth in Part I between IRWD and City, and
in Part II between IRWD, City and District 5, the parties
hereto agree as follows:
-3-
PART I: COVENANTS BETWEEN IRWD AND CITY
Section 1. Interconnection of Facilities. It is
agreed by IRWD and City that an interconnection between the
sewage and wastewater facilities of IRWD and City as de-
picted on Exhibit "A" to this Agreement (hereinafter re-
ferred to as the "Interconnection System "), shall be estab-
lished consistent with the requirements of the IRWD and
sound utility management principles to provide an emergency
and interim and, if necessary, permanent means of receiving,
treating and disposing of the sewage and wastewater from the
Residential Project and ancillary facilities to be con-
structed according to Tentative Map of Tract 10391 of City.
Section 2. Interconnection Construction Costs. It is
understood that all costs associated with the construction
of the Interconnection System, including but not limited to
the preparation of the plans, specifications and contract
documents, engineering and legal costs associated therewith,
preparation of any required environmental documentation,
review and approval of plans and specifications and on -site
inspections by IRWD and City, and all costs for labor and
materials, shall be borne by the developer or developers of
the Residential Project.
Section 3. Ownership, Operation and Maintenance. Upon
completion of construction and acceptance by IRWD of the
Interconnection System, title to said facilities shall vest
in IRWD as depicted on Exhibit "A" to this Agreement. All
other facilities for the residential project, inclusive, but
not by way of limitation, of those depicted on Exhibit "A ",
shall be owned, operated and maintained by the City. IRWD
shall own and be responsible for only the operation and
maintenance of the Interconnection System. In the event
District 5 cannot provide permanent service as herein con-
templated, all the ownership of the herein described facili-
ties, as well as the obligation of operation and maintenance,
shall remain unchanged so long as this Agreement remains in
-4-
.q
1 r
effect.
Section 4. Payment Due Upon Connection, Fees and
Refund. The payment due upon connection and the monthly
user fees associated with providing the service by IRWD, and
any refund, as provided in this Agreement, shall be calculated
as set forth on Exhibit "B" to this Agreement, which is
attached hereto and herein incorporated by this reference.
Said amounts shall be paid and /or refunded in accordance
with the provisions of this Agreement, and are subject to
annual non - discriminatory adjustments from time to time by
IRWD.
Section 5. Performance Bond - Letter of Credit.
Within 30 days of the execution of this agreement by all
parties, the developer or developers of the Residential
Project shall post a surety bond or an irrevocable letter of
credit in an amount consistent with the formula set forth in
Exhibit "B ", and in a form approved by IRWD's General Counsel,
guaranteeing payment of the amount due upon connection.
Also, within 30 days of the execution of this Agreement, the
developer or developers of the Residential Project shall
post a surety bond or irrevocable letter of credit in an
amount satisfactory to the City and in a form approved by
the City Attorney, guaranteeing payment of the costs of
construction of the Interconnection System.
Section 6. Payment Due Upon Connection. The Residential
Project is intended to be developed in phases based on the
filing of a separate Final Tract Map for each phase, as
shown on Exhibit "C ". The connection payment for all dwelling
units in each Final Map shall be paid by the developer or
developers of the Residential Project on a per dwelling unit
basis, based on the formula set forth in Exhibit "B ", upon
issuance of the first occupancy permit for each Final Tract
Map and thereafter within thirty (30) days of written demand
by IRWD. The Final Maps may not necessarily be filed in
-5-
1 •
numerical sequence. The developer or developers of the
Residential Project may at its option from time to time have
the amount of the bond or irrevocable letter of credit, as
provided in this Agreement, reduced in proportion to the
connection charges paid, but in no event shall the amount be
reduced below the estimate at that time of the amount
necessary to guarantee payment of the remainder of the
connection amount required for the remaining Final Maps.
Said connection payment shall be computed as if IRWD were
providing permanent service, regardless of when it is antici-
pated that the Residential Project will be served by District 5.
Section 7. Refund of Connection Payment. IRWD shall
refund to the developer or developers of the Residential
Project the difference between any connection payment made
and the cost for providing actual service, at such time as
all of the Residential Project disconnects from IRWD and
connects to and is served by the District 5 Facilities.
IRWD shall retain any interest earned on the connection
payment from time of payment until time of refund.
Section 8. User Fees. In addition to the City Sewer
Use Charge, all monthly operating charges or user fees for
sewer service provided by IRWD shall be collected by City
with the bills of City for water service based on the fee
schedule set forth in Exhibit "B ". City shall deduct
therefrom the reasonable, identifiable administrative costs
of making such collections, not to exceed 10% of the fees
collected. Said user fees minus administrative costs shall
be paid to IRWD. City shall no longer be responsible for
collecting said monthly operating charges for IRWD when all
such charges incurred up to the time District 5 commences
providing sewer service to the Residential Project have been
collected.
Section 9. Emergency Fail -Safe System Charges. City
shall reimburse IRWD for any extra expense caused by sewer
Q�
spill -over from the Residential Project based on the formula
shown on Exhibit "B" as applied at the time of such spill-
over. Said charges shall go into effect and be applicable
only after the Residential Project connects to District 5,
as provided in this Agreement, and when a spill -over condition
has existed for a continuous period in excess of 12 hours.
Section 10. Notice of Interconnection. The developer
or developers of the Residential Project shall be required
to give notice to all prospective purchasers of the dwelling
units located in said project, as required by law in the
California Department of Real Estate Subdivision Report
(White Report), of the possibility that IRWD may provide
sewer service to said dwelling units and setting forth the
schedule of IRWD and City monthly service charges. The
developer or developers of the Residential Project shall
cause to be placed in the covenants, conditions and restrictions
for said project a prohibition against the use of self -
regenerating water softeners, so long as the Residential
Project receives sewer service from IRWD.
Section 11. Unlawful Material or Substance. City
agrees that it will allow only domestic sewage to be de-
livered to IRWD and not any material or substance which
will, directly or indirectly or in combination with any
other material or substance delivered to IRWD by means of
the connection to IRWD's facilities designated on Exhibit
"A" to this agreement, prevent IRWD from complying with the
requirements established by any regulatory agency having
jurisdiction over the treatment, reuse or disposal of the
effluent from the Michelson Wastewater Reclamation Plant of
IRWD or other facilities of IRWD for treating and disposing
of sewage from or received by IRWD. City agrees to estab-
lish and exert its best efforts on a continuing basis to
enforce regulations prohibiting the discharge of toxic
materials to IRWD from the Residential Project. City further
-7-
agrees to prohibit self- regenerative water softeners in the
Residential Project so long as the project receives sewer
service from IRWD. In the event that such should occur
contrary to the provisions of this agreement, City shall
exert its best efforts to ascertain and establish that such
did occur, as well as cooperate in determining responsibility
for payment of any fines, penalties, engineering, accounting,
administrative and legal costs, together with any resulting
increased operating, maintenance, and replacement or repair
costs which are incurred as a result thereof.
PART II: COVENANTS BETWEEN IRWD, CITY AND DISTRICT 5
Section A. Service By IRWD - Service By District 5.
District 5 is presently studying all possible alternative
facilities that could be constructed in order to provide the
necessary expanded sewerage service capacity to serve the
Residential Project. District 5 agrees to initiate and
diligently pursue to completion all reasonable efforts to
design, construct and place into operation the District 5
Facility. In the event District 5 is unable for some unfore-
seen reason to complete construction of the District 5
Facilities so as to receive and convey to its treatment and
disposal plant the sewage and wastewater from the Residential
Project, within two (2) years of the date of this Agreement,
and it therefore becomes necessary for IRWD to continue to
receive, treat and dispose of such sewage and wastewater
from the Residential Project, District 5 and IRWD agree that
IRWD will continue to provide service thereto until such
time as District 5 has constructed the necessary facilities
to receive and dispose of the sewage from the Residential
Project.
Section B. Notice. Any notice or instrument required
to be given or delivered to either party to this Agreement
may be given or delivered by depositing the same in the
United States mail, registered or certified, postage pre-
paid, addressed to:
Mc
s
County Sanitation District No. 5
of Orange County
10844 Ellis Avenue
Fountain Valley, CA 92708
Irvine Ranch Water District
4201 Campus Drive
Irvine, CA 92715
City of Newport Beach
3300 Newport Boulevard
Newport Beach, CA 92663
Notice of a change of address shall be delivered in the same
manner as any other notice provided by this section, but
shall not be deemed effective until received by the other
party to this agreement.
Section C.. Modification. This Agreement may not be
altered in whole or in part except by modification in
writing, executed by all parties to this Agreement.
Section D. Activation of Sewage Lift Station. Upon
completion of District 5 Facilities and at such time as
District 5 is able to receive the sewage and wastewater
flows from the Residential Project, City agrees to activate
the sewage lift station located adjacent to the Interconnec-
tion System as shown on Exhibit "A ", in order to enable
District 5 to thereafter receive, treat and dispose of said
sewage and wastewater.
Section F. Attorneys' Fees. In the event any arbitra-
tion proceeding, administrative proceeding or litigation in
law or in equity, including any action for declaratory
relief, is brought to enforce or interpret the provisions or
performance of this agreement, the prevailing party or
parties shall be entitled to an award of reasonable attor-
neys' fees and all costs associated with the proceeding as
determined by the court, the presiding officer, or the
arbitrator authorized to make a determination of the issues,
in addition to any other relief to which the prevailing
party may be entitled.
If either party to this Agreement becomes a party
to litigation, an administrative proceeding or arbitration
concerning the enforcement or interpretation of the pro-
visions of this Agreement or the performance of this Agree-
ment by reason of any act or omission of the other party,
its agents, employees, officers, directors, or any other
representative of the other party that becomes a party to
that proceeding or its authorized representatives, the party
that causes the other party to become involved in the pro-
ceedings shall be liable to that party for reasonable
attorneys' fees and all costs of the proceeding incurred by
that party. The award of reasonable attorneys' fees and all
costs shall be determined as provided above. In the event
opposing parties have each prevailed on one or more causes
of action actually contested or admitted by pleadings,
discovery or prehearing documents on file, the arbitrator or
presiding officer may offset such fees and costs between
prevailing parties after considering the necessity of the
proceeding and the importance of the issue or issues upon
which each party has prevailed.
Section G. Indemnity. That neither IRWD, District 5
nor City nor any officer or employee thereof, shall be
responsible for any damage or liability occurring by reason
of anything done or omitted to be done by the other under or
in connection with any work or obligation performed under
this Agreement. It is also understood and agreed that,
pursuant to Government Code Section 895.4, IRWD, District 5
and City shall fully indemnify and hold each other harmless
from any liability imposed for injury (as defined by Govern-
ment Code Section 810.8) occurring by reason of anything
done or omitted to be done by the other under or in connec-
tion with any work, or obligation performed under this
Agreement.
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Section H. Termination. Failure by the developer or
developers of the Residential Project to post the necessary
surety bond or irrevocable letter of credit as provided in
this Agreement shall result in an automatic termination of
this Agreement, and the terms and conditions herein shall be
of no further force and effect.
IN WITNESS WHEREOF, the undersigned have set their
hands as of the day and year first above written.
APPROVED AS TO FORM:
ALEXANDER BOWIE,
A Law Corporation
By Fvi
APPROVED AS TO FORM:
ROURKE & WOODRUFF,
Attor ys at L 62 By
Gene 1 Counsel
APPROVED AS TO FORM:
By
C1W Att rney
ATTEST:
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By �T
City C erk
IRVINE RANCH WATER DIS RICT
By /M ff44,
President
By _
Secretary APR 141980
COUNTY SANITATION DISTRICT NO__.��5
OF ORANGE COUNTY,-CALIFORNI
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By `
AGREED TO AND APPROVED AS TO CONTENT:
DAO
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EXHIBIT "B"
•
SCHEDULE OF SEWER CONNECTION PAYMENTS AND USER FEES
1. Connection Payment
The connection payment consists of two components:
A. Sewer Connection Fee Component is based upon
IRWD's schedule of connection fees and is currently
$1,020 per sewer connection and may be adjusted
periodically. The rate in effect at the time of
issuance of the first occupancy permit for each
Final Map shall apply to such Final Map.
B. Present Value of Taxes Component for applicable
facilities ities is a fixed fee of $863 per unit.
The connection payment shall be payable to IRWD as
provided in Section 6 of this Agreement.
Connection Payment =
No. of Sewer Connections x (Current Sewer
Connection Fee + $863)
2. Refund of Connection Payment
A refund of the Connection Payment shall be made to the
developer when the Residential Project connects to and
is served by the District 5 Facilities. The IRWD
average bond life is 20 years or 240 months; therefore,
the refund shall be equal to the total connection
payment divided by 240 months, multiplied by the
average number of months each sewer connection receives
service from IRWD, subtracted from the total connection
payment.
Refund =
Total Connect. Pmt. - Total Connect. Pmt. x Avg. Connect. Mos.
240 Mos.
3. User Fees
User Fees referenced in Section 8 of the Agreement
shall include those fees included in The Rules and
Regulations of Irvine Ranch Water District, Schedule
of Rates and Charges (Exhibit B) in effect during the
delivery of the wastewater from the Residential Project
to IRWD, as well as the City Sewer Use Charge. The
current IRWD rate is $9.20 per single - family DU per
month and may be adjusted periodically. The City
Sewer Use Charge is currently $1.50 per single - family
DU per month and may be adjusted periodically.
EXHIBIT "B" - Page 1 of 2
S •
4. Emergency Fail -Safe System Charge
The Emergency Fail -Safe System Charge shall be a daily
charge consisting of three components:
A. Service Charge Component is the effective IRWD
User Fee times the number of sewer connections,
divided by the average days per month (30.42).
Service Charge Component =
Current User Fee x No. of sewer connections
30.42 days/mo.
B. Capital Facility and Interest Component is the
effective IRWD Connection Fee time— s the number of
sewer connections divided by the average IRWD bond
life (240 months) divided by the average days per
month (30.42) times the capital recovery factor
for the average bond interest rate. The interest
rate shall be the effective Bond Buyers Index for
a bond life of 20 years. For example, an interest
rate of 8% yields a capital recovery factor of
2.037:
Capital Facility and Interest Component =
Current sewer connection fee x number
of sewer connections x the capital
r ecovery factor
240 mos. x 30.42 days/mo.
C. Present Value of Taxes Component for applicable
facilities is $863 times the number of sewer
connections, divided by the average IRWD bond life
(240 months) divided by the average days per
month (30.42).
Present Value of Taxes Component =
$863 x number of sewer connections
240 mos. x 30.42 days/mo.
In summary: Emergency Fail -Safe System Charges =
(A) Service Charge Component
(B) Capital Facility and Interest Component
(C) Present Value of Taxes Component
EXHIBIT "B" - Page 2 of 2
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By the Ci Y COUNCIL
U, TY QF t4W" ' BRACH
CITY OF NEWPORT BEACH
OFFICE OF THE CITY MANAGER
April 14, 1980
TO: MAYOR AND CITY COUNCIL
FROM: City Manager
5
COUNCIL AGENDA ITEM NOH -2 f
SUBJECT: AGREEMENT BETWEEN IRWD - SANITATION DISTRICT NO. 5 - CITY OF
NEWPORT BEACH FOR INTERIM SEWER SERVICE
On August 27, 1979, the City Council approved Tentative Map of
Tract 10391 which, among other things, allows a 300 -unit residential dwell-
ing development on the Ford - Aeronutronic site. The project is to be de-
veloped by the Daon Corporation.
In January of this year, Sanitation District Board No. 5 adopted
an urgency ordinance temporarily suspending the issuance of sewer connection
permits for projects such as the Daon development which are tributary to
the Jamboree Road -Big Canyon drainage area. Sanitation District No. 5 is
currently reviewing means to increase sewer capacity in the area by con-
struction of a new pump station or installation of a gravity line in Back
Bay Drive. Daon wishes to proceed with the grading of the site this summer,
but is reluctant to commence construction without having some assurance
that there will be adequate sewer capacity to serve the project when it is
ready for occupancy.
In order to provide this assurance, the Daon Corporation is pro-
posing a temporary interconnection to an existing IRWD sewer facility ad-
jacent to and just north of the subject property. An agreement between
Sanitation District No. 5, IRWD and the City of Newport Beach has been pre-
pared, which provides for this temporary interconnection. The agreement
has been approved in concept by both Sanitation District No. 5 and IRWD.
Under the terms of the agreement, the City of Newport Beach
would be responsible for collecting the IRWD monthly sewer service charge.
As administrative costs, the City will deduct and retain an amount up to
10% of the fees collected. The agreement has been reviewed by the City
Attorney, the Utilities Director, the Public Works Director, and the Finance
Director, and they favor the arrangement. It is possible that the new
District 5 sewer facilities will have been constructed by the time the
project is ready for occupancy, and if so, it will not be necessary to con-
nect to IRWD except in an emergency overflow situation.
It is recommended that the City Council adopt a resolution authoriz-
ing the Mayor and City Clerk to execute the agreement.
RLW:mn ROBERT L. WY NN
D40N SOUTHWEST
A division of Doon Corporation
4041 MacARTHUR BOULEVARD
POST OFFICE BOX 2770
NEWPORT BEACH, CALIFORNIA 92660
TELEPHONE (714) 752 -7855
BY the CITY COUNCIL
'.'!T QP sri H
d- . 4)
r
April 3, 1980 5 ent"
!! ' PR'/.Qy1r��
The Honorable Mayor and 01
Members of the City Council tl y pp 8�i►
City of Newport Beach 0 ra�9C
3300 Newport Boulevardl�F
Newport Beach, California 92663
Gentlemen:
On August 27, 1979, the City Council approved Tentative
Map of Tract 10391, permitting development of 300 residential
dwelling units on the Ford - Aeronutronic site. The project
is located within the Sanitation District No. 5, Jamboree
Road -Big Canyon drainage area. On January 15, 1980, Sanita-
tion District Board No. 5 adopted Ordinance No. 510 as an
urgency measure, temporarily suspending issuance of sewer
connection permits for projects within that drainage area,
because the existing facilities had reached their capacity.
In the spirit of cooperation and in order to assist the
District with the funding for new sewer facilities, Daon
Corporation on February 27, 1980, entered into an agreement
with the District guaranteeing to advance the sum of $400,000.
The Daon- District 5 agreement, as well as Ordinance No. 510,
provided a means whereby Daon, and other property owners
located within the Jamboree Road -Big Canyon drainage area,
could connect to alternate facilities on a temporary basis
should District 5 be unable to service their projects at the
time of commencing development.
On March 12, 1980, the Sanitation District Board No. 5
adopted Resolution No. 80 -58 -5 approving interim sewer
service for the Daon residential project by means of an
interconnection with an existing IRWD facility located
adjacent to the northern boundary of the Ford - Aeronutronic
site. On March 24, 1980, the Irvine Ranch Water District
Board of Directors approved the interconnection in concept.
It appears unlikely that Sanitation District No. 5 will
have the new sewer facilities constructed by the time Daon
0
City of Newport Beach -2-
April 3, 1980
proposes to obtain grading permits in order to grade the
site during the upcoming summer months.. In the event the
new District 5 facilities are not on line when the first
residential units are ready for occupancy, Daon understand-
ably wishes to have the assurance of and ability to provide
an alternate means of disposing of the sewage from the
project pending completion of the new District 5 sewer
facilities.
We have prepared and are submitting to the Council for
approval an agreement which generally provides for that
assurance. Pursuant to the agreement, Daon is obligated to
pay all costs associated with the construction of the inter-
connection. The interconnection is intended to also provide
a fail -safe system in the future in the event there should
be a malfunction and spill -over in the District 5 trunk
sewer. The City of Newport Beach is being requested to
collect the monthly sewer service charges with the City
water bills and forward those fees to IRWD, after deducting
an amount up to 10% of the fees as administrative costs.
Hopefully, by the time the residential units are ready
for occupancy, which we estimate to be at least two more
years, the new District 5 facilities will have been con-
structed and operational. Accordingly, the interconnection
as provided in the agreement will not be necessary, other
than to provide the aforementioned fail -safe system. How-
ever, we are respectfully asking for your approval of this
agreement now so that we can proceed with the planning and
construction of our project.
Very truly yours,
�YUy'L�i% v'1
Warren A. Colton III
Senior Vice President
WAC: DO: mh
cc: Michael K. Ryan, Project Manager
THIS AGREEMENT, for purposes of identification, is
hereby dated and effective the day of
1980, and is
BY AND BETWEEN
.Z 7
AND
IRVINE RANCH WATER DISTRICT,
a California Water District
(hereinafter "IRWD ")
COUNTY SANITATION DISTRICT
NO. 5 OF ORANGE COUNTY,
CALIFORNIA (hereinafter referred
to as "District 5 ")
CITY OF NEWPORT BEACH,
a Charter City (hereinafter
referred to as "City ") .
RECITALS
WHEREAS, this agreement is intended by the parties to
allow for an interim service and emergency interconnection
of facilities by means of an existing IRWD gravity sewer
pending construction of either a District 5 Jamboree Road
Pump Station and Force Main or the Back Bay Drive gravity
line (hereinafter "District 5 Facilities ") and for permanent
service only in the event District 5 is unable to construct
such District 5 Facilities, thereby providing service to the
Residential Project as hereinafter defined; and
WHEREAS, the City has approved Tentative Map of Tract 10391
permitting development of 300 residential units and ancillary
facilities, not to exceed ten additional dwelling unit
equivalents, on approximately 100 acres of land, generally
known as the Ford Aeronutronic site (hereinafter "the Residential
040780 -14 mh
o
APR 14
AGREEMENT FOR
INTERCONNECTION OF
By the CITY COUNCIL
CITY Go
FACILITIES AND
INTERIM SEWER SERVICE
THIS AGREEMENT, for purposes of identification, is
hereby dated and effective the day of
1980, and is
BY AND BETWEEN
.Z 7
AND
IRVINE RANCH WATER DISTRICT,
a California Water District
(hereinafter "IRWD ")
COUNTY SANITATION DISTRICT
NO. 5 OF ORANGE COUNTY,
CALIFORNIA (hereinafter referred
to as "District 5 ")
CITY OF NEWPORT BEACH,
a Charter City (hereinafter
referred to as "City ") .
RECITALS
WHEREAS, this agreement is intended by the parties to
allow for an interim service and emergency interconnection
of facilities by means of an existing IRWD gravity sewer
pending construction of either a District 5 Jamboree Road
Pump Station and Force Main or the Back Bay Drive gravity
line (hereinafter "District 5 Facilities ") and for permanent
service only in the event District 5 is unable to construct
such District 5 Facilities, thereby providing service to the
Residential Project as hereinafter defined; and
WHEREAS, the City has approved Tentative Map of Tract 10391
permitting development of 300 residential units and ancillary
facilities, not to exceed ten additional dwelling unit
equivalents, on approximately 100 acres of land, generally
known as the Ford Aeronutronic site (hereinafter "the Residential
40 so
Project "), more specifically designated in the attached
drawing marked Exhibit "A" and made a part herein by this
reference; and
WHEREAS, the Residential Project is planned to be
developed in phases based on filing separate Final Tract
Maps as generally depicted on Exhibit "C" attached hereto
and made a part herein by this reference; and
WHEREAS, Residential Project is located tributary to
the proposed District 5 Facilities within the boundaries of
District 5 and is uniquely situated adjacent to an existing
IRWD gravity sewer thereby facilitating an interconnection
for both an interim sewer service system and a permanent
emergency failsafe overflow system as depicted on Exhibit
"A" to this Agreement; and
WHEREAS, District 5 is in the planning process for the
construction and installation of the District 5 Facilities
to receive and dispose of the sewage and wastewater antici-
pated to be generated from the Residential Project; and
WHEREAS, District 5 has adopted Ordinance No. 510,
which among other things permits interim or alternative
facilities or methods of disposing of the Residential Pro-
ject wastewater upon a finding that District 5 reasonably
expects to have permanent additional facilities available to
serve the Project in a known period of time; and
WHEREAS, on March 12, 1980, District 5 adopted Resolu-
tion No. 80 -58 -5 approving interim sewer service to Tentative
Tract No. 10391 by an interconnection to IRWD upon a finding
that District 5 expects to have permanent additional facilities
available to serve the Residential Project within approximately
two years; and
WHEREAS, the County Sanitation Districts of Orange
County, including District 5, City and IRWD, heretofore have
entered into agreements from time to time to receive, treat
and dispose of sewage from various areas located within the
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County Sanitation Districts of Orange County, including
District 5, in order to avoid unnecessary expenditure of
public funds and duplication of facilities, to minimize
operation and maintenance cost, and to provide for temporary
and /or emergency interconnection so as to avoid occurrence
of instances where sewage is not capable of being disposed
of in a manner consistent with the public health, safety and
welfare; and
WHEREAS, IRWD, City and District 5 have found and
determined that the herein proposed interconnection facilities
will provide: (i) a temporary interim interconnection; (ii)
a permanent emergency interconnection; and if necessary
(iii) a permanent interconnection. The proposed interconnec-
tion facilities would connect to an existing IRWD line
located to the north and adjacent to the Residential Project
and would be in the best interests of City and the respective
districts; and
WHEREAS, the parties believe that the formulae set
forth herein for calculating the payment due upon connection
of the Residential Project to IRWD's facilities, refund upon
connection to District 5, user fees, and emergency fail -safe
system charge are a reasonably precise and fair method of
calculating said amounts; and
WHEREAS, City recognizes that construction of the
Interconnection System will provide a means of disposing of
sewage and wastewater from the Residential Project and
agrees to issue building permits for said Residential Project
based on sewer service being provided by said Interconnection
System pursuant to the terms and conditions of this Agreement,
and at such time as plans have been checked and building
permit fees are paid.
NOW, THEREFORE, IN CONSIDERATION of the mutual promises
and covenants set forth in'Part I between IRWD and City, and
in Part II between IRWD, City and District 5, the parties
hereto agree as follows:
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PART I: COVENANTS BETWEEN IRWD AND CITY
Section 1. Interconnection of Facilities. It is
agreed by IRWD and City that an interconnection between the
sewage and wastewater facilities of IRWD and City as de-
picted on Exhibit "A" to this Agreement (hereinafter re-
ferred to as the "Interconnection System "), shall be estab-
lished consistent with the requirements of the IRWD and
sound utility management principles to provide an emergency
and interim and, if necessary, permanent means of receiving,
treating and disposing of the sewage and wastewater from the
Residential Project and ancillary facilities to be con-
structed according to Tentative Map of Tract 10391 of City.
Section 2. Interconnection Construction Costs. It is
understood that all costs associated with the construction
of the Interconnection System, including but not limited to
the preparation of the plans, specifications and contract
documents, engineering and legal costs associated therewith,
preparation of any required environmental documentation,
review and approval of plans and specifications and on -site
inspections by IRWD and City, and all costs for labor and
materials, shall be borne by the developer or developers of
the Residential Project.
Section 3. Ownership, Operation and Maintenance. Upon
completion of construction and acceptance by IRWD of the
Interconnection System, title to said facilities shall vest
in IRWD as depicted on Exhibit "A" to this Agreement. All
other facilities for the residential project, inclusive, but
not by way of limitation, of those depicted on Exhibit "A ",
shall be owned, operated and maintained by the City. IRWD
shall own and be responsible for only the operation and
maintenance of the Interconnection System. In the event
District 5 cannot provide permanent service as herein con-
templated, all the ownership of the herein described facili-
ties, as well as the obligation of operation and maintenance,
shall remain unchanged so long as this Agreement remains in
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effect.
Section 4. Payment Due Upon Connection, Fees and
Refund. The payment due upon connection and the monthly
user fees associated with providing the service by IRWD, and
any refund, as provided in this Agreement, shall be calculated
as set forth on Exhibit "B" to this Agreement, which is
attached hereto and herein incorporated by this reference.
Said amounts shall be paid and /or refunded in accordance
with the provisions of this Agreement, and are subject to
annual non - discriminatory adjustments from time to time by
IRWD.
Section 5. Performance Bond - Letter of Credit.
Within 30 days of the execution of this agreement by all
parties, the developer or developers of the Residential
Project shall post a surety bond or an irrevocable letter of
credit in an amount consistent with the formula set forth in
Exhibit "B ", and in a form approved by IRWD's General Counsel,
guaranteeing payment of the amount due upon connection.
Also, within 30 days of the execution of this Agreement, the
developer or developers of the Residential Project shall
post a surety bond or irrevocable letter of credit in an
amount satisfactory to the City and in a form approved by
the City Attorney, guaranteeing payment of the costs of
construction of the Interconnection System.
Section 6. Payment Due Upon Connection. The Residential
Project is intended to be developed in phases based on the
filing of a separate Final Tract Map for each phase, as
shown on Exhibit "C ". The connection payment for all dwelling
units in each Final Map shall be paid by the developer or
developers of the Residential Project on a per dwelling unit
basis, based on the formula set forth in Exhibit "B ", upon
issuance of the first occupancy permit for each Final Tract
Map and thereafter within thirty (30) days of written demand
by IRWD. The Final Maps may not necessarily be filed in
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M
numerical sequence. The developer or developers of the
Residential Project may at its option from time to time have
the amount of the bond or irrevocable letter of credit, as
provided in this Agreement, reduced in proportion to the
connection charges paid, but in no event shall the amount be
reduced below the estimate at that time of the amount
necessary to guarantee payment of the remainder of the
connection amount required for the remaining Final Maps.
Said connection payment shall be computed as if IRWD were
providing permanent service, regardless of when it is antici-
pated that the Residential Project will be served by District 5.
Section 7. Refund of Connection Payment. IRWD shall
refund to the developer or developers of the Residential
Project the difference between any connection payment made
and the cost for providing actual service, at such time as
all of the Residential Project disconnects from IRWD and
connects to and is served by the District 5 Facilities.
IRWD shall retain any interest earned on the connection
payment from time of payment until time of refund.
Section 8. User Fees. In addition to the City Sewer
Use Charge, all monthly operating charges or user fees for
sewer service provided by IRWD shall be collected by City
with the bills of City for water service based on the fee
schedule set forth in Exhibit "B ". City shall deduct
therefrom the reasonable, identifiable administrative costs
of making such collections, not to exceed 10% of the fees
collected. Said user fees minus administrative costs shall
be paid to IRWD. City shall no longer be responsible for
collecting said monthly operating charges for IRWD when all
such charges incurred up to the time District 5 commences
providing sewer service to the Residential Project have been
collected.
Section 9. Emergency Fail -Safe System Charges. City
shall reimburse IRWD for any extra expense caused by sewer
Win
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spill -over from the Residential Project based on the formula
shown on Exhibit "B" as applied at the time of such spill-
over. Said charges shall go into effect and be applicable
only after the Residential Project connects to District 5,
as provided in this Agreement, and when a spill -over condition
has existed for a continuous period in excess of 12 hours.
Section 10. Notice of Interconnection. The developer
or developers of the Residential Project shall be required
to give notice to all prospective purchasers of the dwelling
units located in said project, as required by law in the
California Department of Real Estate Subdivision Report
(White Report), of the possibility that IRWD may provide
sewer service to said dwelling units and setting forth the
schedule of IRWD and City monthly service charges. The
developer or developers of the Residential Project shall
cause to be placed in the covenants, conditions and restrictions
for said project a prohibition against the use of self -
regenerating water softeners, so long as the Residential
Project receives sewer service from IRWD.
Section 11. Unlawful Material or Substance. City
agrees that it will allow only domestic sewage to be de-
livered to IRWD and not any material or substance which
will, directly or indirectly or in combination with any
other material or substance delivered to IRWD by means of
the connection to IRWD's facilities designated on Exhibit
"A" to this agreement, prevent IRWD from complying with the
requirements established by any regulatory agency having
jurisdiction over the treatment, reuse or disposal of the
effluent from the Michelson Wastewater Reclamation Plant of
IRWD or other facilities of IRWD for treating and disposing
of sewage from or received by IRWD. City agrees to estab-
lish and exert its best efforts on a continuing basis to
enforce regulations prohibiting the discharge of toxic
materials to IRWD from the Residential Project. City further
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M 40
agrees to prohibit self- regenerative water softeners in the
Residential Project so long as the project receives sewer
service from IRWD. In the event that such should occur
contrary to the provisions of this agreement, City shall
exert its best efforts to ascertain and establish that such
did occur, as well as cooperate in determining responsibility
for payment of any fines, penalties, engineering, accounting,
administrative and legal costs, together with any resulting
increased operating, maintenance, and replacement or repair
costs which are incurred as a result thereof.
PART II: COVENANTS BETWEEN IRWD, CITY AND DISTRICT 5
Section A. Service By IRWD - Service By District 5.
District 5 is presently studying all possible alternative
facilities that could be constructed in order to provide the
necessary expanded sewerage service capacity to serve the
Residential Project. District 5 agrees to initiate and
diligently pursue to completion all reasonable efforts to
design, construct and place into operation the District 5
Facility. In the event District 5 is unable for some unfore-
seen reason to complete construction of the District 5
Facilities so as to receive and convey to its treatment and
disposal plant the sewage and wastewater from the Residential
Project, within two (2) years of the date of this Agreement,
and it therefore becomes necessary for IRWD to continue to
receive, treat and dispose of such sewage and wastewater
from the Residential Project, District 5 and IRWD agree that
IRWD will continue to provide service thereto until such
time as District 5 has constructed the necessary facilities
to receive and dispose of the sewage from the Residential
Project.
Section B. Notice. Any notice or instrument required
to be given or delivered to either party to this Agreement
may be given or delivered by depositing the same in the
United States mail, registered or certified, postage pre-
paid, addressed to:
am
J 11 N N
County Sanitation District No. 5
of Orange County
10844 Ellis Avenue
Fountain Valley, CA 92708
Irvine Ranch Water District
4201 Campus Drive
Irvine, CA 92715
City of Newport Beach
3300 Newport Boulevard
Newport Beach, CA 92663
Notice of a change of address shall be delivered in the same
manner as any other notice provided by this section, but
shall not be deemed effective until received by the other
party to this agreement.
Section C. Modification. This Agreement may not be
altered in whole or in part except by modification in
writing, executed by all parties to this Agreement.
Section D. Activation of Sewage Lift Station. Upon
completion of District 5 Facilities and at such time as
District 5 is able to receive the sewage and wastewater
flows from the Residential Project, City agrees to activate
the sewage lift station located adjacent to the Interconnec-
tion System as shown on Exhibit "A ", in order to enable
District 5 to thereafter receive, treat and dispose of said
sewage and wastewater.
Section F. Attorneys' Fees. In the event any arbitra-
tion proceeding, administrative proceeding or litigation in
law or in equity, including any action for declaratory
relief, is brought to enforce or interpret the provisions or
performance of this agreement, the prevailing party or
parties shall be entitled to an award of reasonable attor-
neys' fees and all costs associated with the proceeding as
determined by the court, the presiding officer, or the
arbitrator authorized to make a determination of the issues,
in addition to any other relief to which the prevailing
ME
40 IF
party may be entitled.
If either party to this Agreement becomes a party
to litigation, an administrative proceeding or arbitration
concerning the enforcement or interpretation of the pro-
visions of this Agreement or the performance of this Agree-
ment by reason of any act or omission of the other party,
its agents, employees, officers, directors, or any other
representative of the other party that becomes a party to
that proceeding or its authorized representatives, the party
that causes the other party to become involved in the pro-
ceedings shall be liable to that party for reasonable
attorneys' fees and all costs of the proceeding incurred by
that party. The award of reasonable attorneys' fees and all
costs shall be determined as provided above. In the event
opposing parties have each prevailed on one or more causes
of action actually contested or admitted by pleadings,
discovery or prehearing documents on file, the arbitrator or
presiding officer may offset such fees and costs between
prevailing parties after considering the necessity of the
proceeding and the importance of the issue or issues upon
which each party has prevailed.
Section G. Indemnity. That neither IRWD, District 5
nor City nor any officer or employee thereof, shall be
responsible for any damage or liability occurring by reason
of anything done or omitted to be done by the other under or
in connection with any work or obligation performed under
this Agreement. It is also understood and agreed that,
pursuant to Government Code Section 895.4, IRWD, District 5
and City shall fully indemnify and hold each other harmless
from any liability imposed for injury (as defined by Govern-
ment Code Section 810.8) occurring by reason of anything
done or omitted to be done by the other under or in connec-
tion with any work, or obligation performed under this
Agreement.
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N N
party may be entitled.
If either party to this Agreement becomes a party
to litigation, an administrative proceeding or arbitration
concerning the enforcement or interpretation of the pro-
visions of this Agreement or the performance of this Agree-
ment by reason of any act or omission of the other party,
its agents, employees, officers, directors, or any other
representative of the other party that becomes a party to
that proceeding or its authorized representatives, the arty
that causes the o�her party to become involved in t pro-
ceedings shall be fable to that party for reason le
attorneys' fees and all costs of the proceeding "`incurred by
that party. The awa d of reasonable attorneys' fees and all
costs shall be determined as provided ab7e. In the event
opposing parties have each prevailed on 'one or more causes
of action actually contested or admitted by pleadings,
discovery or prehearing documents pi file, the arbitrator or
presiding officer may offset'.sucpf fees and costs between
prevailing parties after considering the necessity of the
proceeding and the importance of the issue or issues upon
which each party has prevailed.
Section G. Indemni'y. That`,neither IRWD, District 5
nor City nor any officer or employee thereof, shall be
responsible for any Aamage or liability occurring by reason
of anything done o omitted to be done by the other under
or in connection with any work, authority or jurisdiction
not delegated o IRWD, District 5 or City under this Agree-
ment. It is also understood and agreed that, pursuant to
Government ode Section 895.4, IRWD, District 5 and City
shall ful y indemnify and hold each other harmless from
any liability imposed for injury (as defined by Government
Code Section 810.8) occurring by reason of anything done or
omitted to be done by the other under or in connection with
any work, authority or jurisdiction not delegated to IRWD,
District 5 or City under this Agreement.
-10-
M
Section H. Termination. Failure by the developer or
developers of the Residential Project to post the necessary
surety bond or irrevocable letter of credit as provided in
this Agreement shall result in an automatic termination of
this Agreement, and the terms and conditions herein shall be
of no further force and effect.
IN WITNESS WHEREOF, the undersigned have set their
hands as of the day and year first above written.
IRVINE RANCH WATER DISTRICT
APPROVED AS TO FORM:
ALEXANDER BOWIE, By
A Law Corporation
By By
APPROVED AS TO FORM:
ROURKE & WOODRUFF,
Attorneys at Law
M
APPROVED AS TO FORM:
Ur
I
City Attorney
ATTEST:
By
City Clerk
COUNTY SANITATION DISTRICT NO. 5
OF ORANGE COUNTY, CALIFORNIA
S
OR
CITY OF NEWPORT BEACH
0
Mayor
AGREED TO AND APPROVED AS TO CONTENT:
DAON CORPORATION
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EXHIBIT "B"
SCHEDULE OF SEWER CONNECTION PAYMENTS AND USER FEES
1. Connection Payment
The connection payment consists of two components:
A. Sewer Connection Fee Component is based upon
IRWD's schedule of connection fees and is currently
$1,020 per sewer connection and may be adjusted
periodically. The rate in effect at the time of
issuance of the first occupancy permit for each
Final Map shall apply to such Final Map.
B. Present Value of Taxes Component for applicable
facilities is a fixed fee of $863 per unit.
The connection payment shall be payable to IRWD as
provided in Section 6 of this Agreement.
Connection Payment =
No. of Sewer Connections x (Current Sewer
Connection Fee + $863)
2. Refund of Connection Payment
A refund of the Connection Payment shall be made to the
developer when the Residential Project connects to and
is served by the District 5 Facilities. The IRWD
average bond life is 20 years or 240 months; therefore,
the refund shall be equal to the total connection
payment divided by 240 months, multiplied by the
average number of months each sewer connection receives
service from IRWD, subtracted from the total connection
charges.
Refund = Total Connection Payment x Avg. Connection Mos.
240 Mos.
3. User Fees
User Fees referenced in Section 8 of the Agreement
shall include those fees included in The Rules and
Regulations of Irvine Ranch Water District, Schedule
of Rates and Charges (Exhibit B) in effect during the
delivery of the wastewater from the Residential Project
to IRWD, as well as the City Sewer Use Charge. The
current IRWD rate is $9.20 per single - family DU per
month and may be adjusted periodically. The City
Sewer Use Charge is currently $1.50 per single - family
DU per month and may be adjusted periodically.
EXHIBIT "B" - Page 1 of 2
4.
N M
Emergency Fail -Safe System Charge
The Emergency Fail -Safe System Charge shall be a daily
charge consisting of three components:
A. Service Charge Component is the effective IRWD
User Fee times the number of sewer connections,
divided by the average days per month (30.42).
Service Charge Component =
Current User Fee x No. of sewer connections
30.42 days/mo.
B. Capital Facility and Interest Component is the
effective IRWD Connection Fee times the number of
sewer connections divided by the average IRWD bond
life (240 months) divided by the average days per
month (30.42) times the capital recovery factor
for the average bond interest rate. The interest
rate shall be the effective Bond Buyers Index for
a bond life of 20 years. For example, an interest
rate of 8% yields a capital recovery factor of
2.037:
Capital Facility and Interest Component =
Current sewer connection fee x number
of sewer connections x the capital
recovery factor
240 mos. x 30.42 days/mo.
C. Present Value of Taxes Component for applicable
facilities is $863 times the number of sewer
connections, divided by the average IRWD bond life
(240 months) divided by the average days per
month (30.42).
Present Value of Taxes Component =
$863 x number of sewer connections
240 mos. x 30.42 days/mo.
In summary: Emergency Fail -Safe System Charges =
(A) Service Charge Component
(B) Capital Facility and Interest Component
(C) Present Value of Taxes Component
EXHIBIT "B" - Page 2 of 2
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Illy the � Cil"'/�ShctT YCI�pCFI
RESOLUTION NO. 261Q
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH AUTHORIZING THE MAYOR AND
CITY CLERK TO EXECUTE AN AGREEMENT BETWEEN THE
IRVINE RANCH WATER DISTRICT, COUNTY SANITATION
DISTRICT NO. 5 AND THE CITY OF NEWPORT BEACH
FOR INTERCONNECTION OF FACILITIES AND INTERIM
SEWER SERVICE
WHEREAS, there has been presented to the City
Council of the City of Newport Beach a certain agreement
between the Irvine Ranch Water District, County Sanitation
District No. 5 and the City of Newport Beach for interconnec-
tion of facilities and interim sewer service; and
WHEREAS, the City Council has reviewed the terms
and conditions of said agreement and finds them to be satis-
factory and that it would be in the best interest of the City
to execute said agreement,
NOW, THEREFORE, BE IT RESOLVED by the City Council
of the City of Newport Beach that the agreement 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 14th day of April
Mayor
ATTEST:
City Clerk
1980.
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4/7/80