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HomeMy WebLinkAbout83-30 - Establishing a Trust Account as a Depository for Royalty Payments Made as Just Compensation for Property Acquired Through Eminent Domain Proceedings (Tidelands Trust)• ORDINANCE NO. 83 -30 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH ESTABLISHING A TRUST ACCOUNT AS A DEPOSITORY FOR ROYALTY PAYMENTS MADE AS JUST COMPENSATION FOR PROPERTY ACQUIRED THROUGH EMINENT DOMAIN PROCEEDINGS (TIDELANDS TRUST). WHEREAS, in December of 1980, the City of Newport Beach adopted Resolution No. 9932 authorizing and directing the condem- nation of certain real properties for oil- drilling, pass- through and production purposes; and WHEREAS, the majority of the owners of parcels through which subsurface pass- through easements were required have grant- ed said easements to the City; and WHEREAS, there remain certain parcels on which the City • of Newport Beach must proceed to judgment in the Superior Court of Orange County; and WHEREAS, in accordance with the laws of the State of California, just compensation for the taking of the property must be paid to the Court and subsequently deposited, by the Court, into a trust fund maintained for the benefit of the property owners; and WHEREAS, the City of Newport Beach, in accordance with Chapter 74 of the Statutes of 1978, holds the Tidelands in trust for the People of the State of California; and WHEREAS, in accordance with the Joint Powers Agreement dated May 8, 1981, between the City of Newport Beach and the State Lands Commmission, for Acquisition and Construction of Tidelands Oil pumping and Storage Facilities, the City has been • ,designated to perform all powers of the City and Commission to accomplish acquisition, construction and operation of the facilities, including the designation of the City Treasurer to handle all receipts and disbursements required for the administration of the Agreement; and WHEREAS, the City is strictly accountable for all • receipts and disbursements made in the administration of the Agreement; and WHEREAS, the eminent domain proceedings instituted for subsurface, pass- through easements are an integral aspect of successful administration of the Agreement, and the City bears the responsibility to account for funds received and disbursed in connection therewith; and WHEREAS, these factors warrant the establishment within the City Tidelands Trust Account, of a Special Trust Fund into which just compensation in the form of royalty payments will be deposited to accrue at the legal rate of interest, with the City Finance Director holding said funds, in trust, for the Judgment Condemnees until such time as the Judgment Condemnees shall make application for disbursement. • NOW THEREFORE, the City Council of the City of Newport Beach DOES ORDAIN: Section 1• The City Finance Director of the City of Newport Beach is directed to establish a trust account into which just compensation in the form of royalty payments on certain parcels shall be deposited, as directed by the Court in connection with Judgments in condemnation entered on these parcels. This account shall be referred to as the "Tidelands Trust Account (Condemnation)" and shall be used for no other purpose connected with the Tidelands, or otherwise. Section 2: The royalty payments so deposited into said trust account shall accrue at the legal rate of interest. • Section 3• Upon application therefor, by the condemnees of the subsurface, pass- through rights, made to the City Finance Director of the City of Newport Beach, disbursement of royalty r� payments, including interest accrued to that time, shall be made • to the condemnees. Thereafter, royalty payments, as they accrue, shall be paid directly to the condemnees by the City of Newport Beach. Section 4• A status report of the Tidelands Trust Account (Condemnation) shall be included as part of the accounting made to the State Lands Commission by the City of Newport Beach. Section 5: At such time as all condemnees have made application for and received royalty accruals from the City Finance Director and have arranged for future royalty payments to be made directly to the condemnees rather than to the Tidelands Trust Fund (Condemnation), the said Fund shall be terminated. Section 6• • The royalty payment accruals on those parcels on which no application is made for disbursement of the Tidelands Trust Fund (Condemnation) royalty accruals, shall be subject to the operation of applicable Government or other Code sections dealing with unclaimed funds, held in the Tidelands Trust Fund (Condemnation) or in the official custody of City's officers for such time as prescribed by law; provided, however, that such unclaimed funds shall only be used for Tideland Trust purposes. k] This Ordinance was introduced at a regular meeting of • the City Council of the City of Newport Beach held on the 12th day of December , 1983, and was adopted on the 9th day of January , 1984 by the following vote, to wit: 0 AYES, COUNCILMEMBERS Hart, Maurer, Heather, Strauss, Plummer, Cox, Aqee NOES, COUNCILMEMBERS None ABSENT COUNCILMEMBERS None RDG /dt ORP /Royalty 4 E