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Contract - Newport - 1961-01-19 WWC mec 1/12/61 CONTRACT FOR CONVEYING SEWAGE THIS CONTRACT, made and entered into this 19-t4 , day of January, 1961 , between the CITY OF NEWPORT BEACH, a municipal cor- poration, hereinafter referred to as "City", and COSTA MESA SANITARY DISTRICT OF ORANGE COUNTY, CALIFORNIA, a sanitary district organized under the Sanitary District Act of 1923, hereinafter referred to as "District"; WITNESSETH WHEREAS, the District has a sewer line along Irvine Avenue from 23rd Street southerly to 21st Street with capacity adequate to serve all that area of District which is now or may hereafter be served by said sewer line plus capacity adequate to serve the area of land within City which District hereinafter agrees shall be served by said line, and WHEREAS, District maintains a pump station and other facil- ities of adequate capacity to collect and transport all the sewage to be collected from said area of District and said area of City from said District line to the Orange County Sanitation District lines , and WHEREAS, said area of City is proposed to be subdivided into approximately 162 residential lots all of which could be served by the District sewer line on Irvine Avenue and by the facilities of District used for transporting sewage to County Sanitation District lines; and WHEREAS, in the judgment of the Board of District and the City Council of City it is in the best interests of District and City and will result in a saving to the taxpayers of both agencies for the parties hereto to provide under the terms and conditions herein set forth for the District to receive the sewage from said area of the City in the District line along Irvine Avenue at the intersection of Irvine Avenue and 22nd Street, and transport the same to County Sanitation District lines ; NOW THEREFORE, in consideration of the payments herein provided and the several obligations hereof the parties agree 1 Conveyance of SewaEe by. District. District agrees to receive. and convey to County Sanitation District lines , or to the lines of any agency which succeeds the County Sanitation District or Districts during the term of this con- tract, all sewage delivered to its sewer line along Irvine Avenue at the intersection of Irvine Avenue and 22nd Street from the area of the City outlined in red on the map marked Exhibit "A" which is attached hereto and is hereby adopted and made a part hereof by this reference 2 Term. The term of this contract shall begin on the date of exe- cution and end on December 31 1985 provided, however, that if the City submits the question of whether this contract should be approved with a term ending December 31 , 2010, to the qualified voters of City at any general or special municipal election in calendar year 1961cr 1962 and a majority of the qualified electors voting on such question votes in favor of approving the longer term, then the term shall end on December 31 , 2010 3 Construction of Facilities City shall construct or cause to be constructed by the subdivider of said area of City, at no cost to District all sewer lines necessary to deliver sewage from this area of City to District's line at the intersection of Irvine Avenue and 22nd Street City shall also construct or cause to be constructed as aforesaid any additions or appurtenances to District 's facilities at the point the sewage is delivered to said line necessary to receive the sewage in said line from said area of City The construction of such additions or appurtenances to District facilities shall be done in accordance with plans and specifications approved by District and shall be completed to the satisfaction of the Board of District 2 4 Maintenance of District Line and Facilities District shall maintain its sewer line along Irvine Avenue, the appurtenances to the line at 22nd Street where the sewage from this area of City is taken into its line, and all other facilities used to convey said sewage to the Sanitation District lines 5 Maintenance of Cit Line and Facilities City shall maintain its mains in that area of City from which sewage is being received by District up to the point where the City main connects to the District main at 22nd Street and Irvine Avenue 6 Payment of Fees to District, City agrees to pay District as provided in this paragraph a fee for each lot shown upon the final recorded subdivision map or maps of said area of City for each year or portion of a year during which the City sewer line is connected to the District °s line at 22nd Street and Irvine Avenue During the month of December, 1961, and during the month of December each year thereafter until the second year following the year in which a final subdivision map is recorded subdividing all this area of the City not theretofore subdivided, the City shall prepare and transmit a written report to District indicating the number of lots within said area on which a building or buildings existed with plumbing facilities connected to the City sewer line which flows into the District sewer line at 22nd Street and Irvine Avenue at any time during such year Such report shall be accompanied by payment equal to the number of said lots multiplied by the fee per lot applicable for the year for which such report and payment are made During the month of December of the third year following the year in which a final subdivision map is recorded subdividing all this area of the City not theretofore subdivided, and during the month of December of each year thereafter during the term hereof, the City shall pay District a sum equal to the number of lots within this area of the City shown on the final subdivision map or maps 3 multiplied by the applicable fee per lot whether or not a building or buildings exist on such lots The fee per lot for the year 1961 and for each year there- after until changed pursuant to the terms of this contract shall be $6 00 7 Increase or Decrease of Fees The parties agree that the cost of performance of this contract by District may increase or decrease during the term hereof by reason of an increase or decrease in costs of power, labor or administration and that the fees to be paid to District by City should be increased or decreased as hereinafter provided generally in accord- ance with such increase or decrease in said costs During the third quarter of the calendar year 1965 and during the third quarter of each succeeding fifth year of the term of this contract, either party hereto may request an increase or decrease in the fee per lot to be applicable during the next suc- ceeding five-year period of the term. Any such request shall be based upon an increase or decrease in the District costs of power, labor, or administration If the parties agree upon the fee per lot to apply to the next succeeding five-year period of the term, the fee per lot so agreed upon shall be paid by City to District as provided in Paragraph 6 hereof 8 Change of Fees by Arbitration If the parties are unable to agree upon the fee per lot to apply during the next succeeding five=year period within sixty (60) days after the request for a change in the fee is made, the matter may be submitted to arbitration before a three-man arbitration board in the following manner Either party may within fifteen (15) days after the expira- tion of such sixty (60) days appoint one member of said arbitration board, giving notice thereof to the other party The other party shall within fifteen (15) days after such notice appoint a second member of said arbitration board, giving notice thereof to the party 4 making the first appointment to said board and to the member of the arbitration board first appointed The two members of the arbitra- tion board so appointed shall within fifteen (15) days appoint a third member of the arbitration board If the two members are unable to agree upon the third member, either party or the two members of the arbitration board may apply to the Presiding Judge of the Superior Court of Orange County, or to any judicial officer occupying a position similar to that position during the term of this contract, for appointment of a third member of the arbitration board Notice of the appointment shall be given to both parties and to the members of the arbitration board by the party or the two members which obtain the appointment by said judicial officer The arbitration board so selected shall meet and determine the fee to apply during the next succeeding five-year period of the term; provided, however, that any increase or decrease in the fee shall be based upon an increase or decrease, respectively, in Dis- trict costs of power, labor or administration, and provided further that the fee shall not be increased or decreased by an amount in excess of ten per cent (1070) of the fee applicable to the five-year period of the term immediately preceding the five=year period for which the arbitration board is setting the fee 9 Giving Notice Any notice required or permitted to be given under the terms hereof shall be in writing Any such notice may be given to the City by serving a copy thereof upon the City Clerk personally or the Mayor personally or the City Manager personally or upon such officer of the City as the City Council may from time to time in writing advise the District to so serve The City may give any such notice to the District by serving such notice upon the Chairman of the Board personally or upon the Clerk of the Board personally or upon such officer of the District as the Board of the District may from time to time in writing advise the City to so serve 5 Any notice hereunder shall conclusively be deemed to have been given upon the date it is enclosed in a sealed envelope addressed to the party to whom intended at the following address If to the City City of Newport Beach City Hall Newport Beach, California Attention City Manager If to the District Costa Mesa Sanitary District of Orange County, California 695 West 19th Street Costa Mesa, California (or such other address as either party hereto may hereafter designate by notice in writing hereafter similarly given) , and deposited, postage prepaid, in the United States mail as registered or certified mail 10 Termination It is mutually understood that at some time during the term hereof City facilities may be constructed through which City can re- ceive and transmit for disposal all sewage originating in this area of the City If upon construction of such facilities City determines it is to the advantage of City to receive and dispose of such sewage through such facilities and to terminate this agreement, it may do so by giving District notice of termination at the time City makes the annual payment to District Such termination shall become ef- fective upon the date specified by City but not less than one year after notice of termination is given City shall pay District the applicable fee per lot up to the time of termination Prior to the effective date of termination City shall make any changes in the City facilities necessary to change the flow of sewage from the District line into City facilities Any reconstruc- tion of District facilities at the point sewage is delivered to District line along Irvine Avenue pursuant to this contract made necessary by the change over to City facilities shall be done by City at no cost to District 11 This contract shall be binding upon the successors 6 and assigns of District and City IN WITNESS WHEREOF, the parties have executed this agree- ment as of the day and year first above written / CITY 0 . NEWPORT B •f H ' . yor Attest City Cler CITY COSTA MESA SANITARY DISTRICT OF ORANGE COUNTY C LIFORNIA By ( a� APPROVED AS TO FOR14 Y a ' n of the Board DATED a y 2 q l /5 61 pU Attest WALTER W CHARAMZA ' By CITY ATTbRNEY Assistant Secretary DISTRICT 7