Contract - Canadian Indemnity - 1980-12-17 Recording requested by 40758 B K 1 4 0 0 1 PG 10 9 8
Fto.rine T Reichle
Vita t0 Assistant Secretary EXEMPT RECORDED IN OFFICIAL RECORDS
OF ORANGE COUNTY CALIFORNIA
Costa Mesa Sanitary District C2
P.O. Box 1200 -425 PM MAR30 '81
Costa Mesa, CA 92623REEMENT AND RESTRICTIVE COVENANT
LEE A. BRANCH. County Recorder
THIS AGREEMENT made and entered into this / 7-7 day of
Pee eM brf , 1980 by and between the COSTA MESA SANITARY
DISTRICT, a public agency organized and existing under and by
virtue of the Sanitary District Act of 1923 , hereinafter called
"DISTRICT" and United California Bank. Trustee under Deed of Trust executed
by The Canadian Indemnity Company for the benefit of the
hereinafter called OWNER policyholders of The Canadian Indemnity Company
within the United States,
W I T N E S S E T H T H A T
WHEREAS DISTRICT is a public agency engaged in the collec-
tion , transportation and disposition of liquid waste disposal in
its network of underground sewer installations in accordance with
its powers to levy taxes annex property and perform the public
service of collection, transportation and disposition of liquid
waste all as set forth in said Act and
WHEREAS OWNER is the applicant for services as provided
for by DISTRICT on real property currently being developed or
proposed to be developed with improvements which will require
sanitary sewer service, as said property is described in Exhibit
A attached hereto and
WHEREAS, DISTRICT policy is to annex OWNER' S real property
to DISTRICT resulting in the imposition of a tax to generate a
portion of the income needed by DISTRICT for its operation and
WHEREAS , after the passage of Assembly Bill 8 , Assembly
Bill 1019 , Assembly Bill 2212 Assembly Bill 2376 , and Senate
Bill 180 , taxes due to DISTRICT on completed annexations have
been impounded by the County of Orange and
BK 1400 it Po 1099
WHEREAS , pending an agreement between the County of Orange
and all of the special districts within the County as to the
methods and formulae to be followed in exchange of property tax
between the affected districts and the County , as required by
these legislative acts the Local Agency Formation Commission for
the County of Orange has declined to approve certain annexations
for a necessary act preceding annexation by DISTRICT, until the
question of tax exchange has been resolved and
WHEREAS , DISTRICT has declined to process annexations or
applications for service without receipt of a portion of the
property tax and has declined to operate DISTRICT at a financial
loss and
WHEREAS dependence upon a portion of the property tax to
be allocated at the sole discretion of the County of Orange is
deemed by DISTRICT as an unreliable source of revenue for DISTRICT
operations and not in keeping with good planning and sound fiscal
practices and
WHEREAS, DISTRICT finds and declares that methods available
to it for funding of the maintenance , repair, upkeep and replace-
ment of its network of underground liquid waste collecting trans-
porting and disposal system consists of two ( 2 ) , to wit interim
service contracts with OWNER and persons or entities in like
situations and ultimately an assessment district to insure suffi-
cient revenue for DISTRICT' S operation and
WHEREAS , DISTRICT, in following sound planning and respon-
sible fiscal practices , must annex OWNER' S property to DISTRICT
in order that said property may be in the assessment district
and
-2-
BK 14001 PG 1' 100
WHEREAS , DISTRICT must require , as a condition to providing
service as requested herein, compliance with all its ordinances
rules , regulations and policies and must provide for methods and
means for the effective administration of this AGREEMENT and for
guarantees that periodic payments will be made and
WHEREAS, the parties hereto desire to set forth their
rights and obligations in connection herewith
NOW, THEREFORE for and in consideration of the covenants
herein contained performed and to be performed the parties
hereto agree as follows
I
It is understood and agreed that OWNER, as used in this
AGREEMENT shall mean the owner of the fee title at the time of
the execution of this AGREEMENT any purchaser of the fee title
from OWNER, or any other successor in interest of OWNER or pur-
chaser from OWNER, a condominium or cooperative homwowner' s
association providing its bylaws and CC&R' s authorize it to
encumber real property for the purposes as expressed in this
AGREEMENT or lessee of property having a ground lease of twenty-
five (25 ) years or more OWNER as used in this AGREEMENT shall
not include a lessee of land or improvements of less than twenty-
five (25 ) years , a month-to-month tenant, a mortgagee or bene-
ficiary under trust deed, a tenant by sufferance, or trespasser
DISTRICT may, in its discretion, require a re-execution of this
AGREEMENT by subsequent purchasers of the property from OWNER
herein and OWNER agrees that if required by DISTRICT, it will
condition any sale of the property subject to this AGREEMENT
-3-
BK 14001 PG 1 ' 01
upon the re-execution of this AGREEMENT by the purchaser if
DISTRICT so requires
II
It is understood and agreed by and between the parties
hereto that the terms and conditions as set forth herein shall
be applicable and effective to any sanitary sewer service pro-
vided by DISTRICT outside the jurisdictional limits of the
DISTRICT but within the geographical limits of the City of Costa
Mesa and within the zone of influence of the City of Costa Mesa
but not otherwise in the territory of the County of Orange
III
DISTRICT proposes to provide collection, transportation
and disposition of liquid waste disposal from OWNER' S property
into the mains of DISTRICT in the public right-of-way under terms
and conditions and for the considerations as shall be hereinafter
set forth This AGREEMENT does not include the pickup and
disposal of solid waste materials which must be arranged for
separately by OWNER
IV
It is understood and agreed that the cost of construction
of collecting laterals , including manholes and pump stations, if
any, on OWNER' S property and to the connection to DISTRICT' S mains
in the public right-of-way and the repair, maintenance and upkeep
of collecting laterals, manholes and pump stations , if any, shall
be borne by persons or entities other than DISTRICT DISTRICT
agents shall nevertheless have the right to inspect the laterals
constructed on OWNER' S property prior to connection with DISTRICT' S
mains in the public right-of-way to insure that said construction
-4-
BK14001PG1102
meets all of the engineering standards and specifications of
DISTRICT No connection with DISTRICT mains in the public right-
of-way will be authorized unless and until DISTRICT Engineer
certifies that on-site construction meets the DISTRICT' S engineer-
ing standards and specifications All facilities on private prop-
erty shall be owned by OWNER as defined herein
V
It is understood and agreed that acquisition of right-of-
way , if any, shall be by persons or entities other than DISTRICT
and shall be without cost to DISTRICT Proof of acquisition of
right-of-way shall be provided to DISTRICT at the time of the
DISTRICT Engineer' s inspection as set forth herein and prior to
connection with DISTRICT' S mains in the public right-of-way
VI
It is understood and agreed that prior to the approval of
DISTRICT for a connection to DISTRICT mains in the public right-
of-way, OWNER shall have met the following conditions
1 The posting of inspection and administrative fees with
DISTRICT as provided for in DISTRICT Ordinance No 14
2 Application for annexation to DISTRICT and the payment
of the fees in connection therewith all as provided for in
DISTRICT Ordinance No 14
3 Payment to DISTRICT of fees and charges as required by
DISTRICT Ordinances No 6 and No 7 to the extent that the same
are applicable to development proposed by OWNER,
4 Payment in advance of the first and second years '
service charge hereinafter provided for adjusted to a July 1/
June 30 fiscal year
-5-
BK 1 4 0 0 1 1 0 n
5 Issued permit from the local agency having jurisdic-
tion for street excavation
6 Deposit with DISTRICT offices , Orange County Sanita-
tion District, acreage and unit fees , if any
7 Proof that OWNER has obtained or caused to be obtained
all necessary building and construction permits from any govern-
mental agency having jurisdiction over OWNER S project, including
the Coastal Conservation Commission, if applicable
8 Prepare or cause to be prepared and filed with the
offices of DISTRICT such environmental impact report or reports
or negative declarations as shall be required by any governmental
agency having jurisdiction over the project
The above set forth conditions imposed by DISTRICT before
sanitary service will be provided may be made conditions on any
subdivision map, parcel map approval of conditional use permit
or approval of variance by any local agency having jurisdiction
over improvements contemplated by OWNER on the property to be
served as provided for in this AGREEMENT DISTRICT may decline
service to OWNER herein until such time as the local agency
having jurisdiction over subdivision maps, parcel maps , condi-
tional use permits or variances as certified to the DISTRICT in
writing that conditions relating to sanitary sewers as set out
herein have been met
VII
It is understood and agreed by and between the parties
hereto that in addition to the fees and charges required to be
paid to DISTRICT prior to connection with DISTRICT' S mains in
public right-of-ways , all as heretofore provided, there shall be
-6-
BK 1 4 0 0 1 PG 1 1 04
imposed a service charge payable annually adjusted to the fiscal
year as heretofore provided and payable the first two ( 2 ) years
in advance which said service charge is reasonably calculated
to provide for OWNER' S share of DISTRICT administration costs
repair , maintenance , upkeep replacement and catastrophe contin-
gent funds on DISTRICT' S main line , laterals , pump stations, force
mains , alarm systems and all other facilities maintained by
DISTRICT in connection with the collection transportation and
disposal of liquid waste The annual service charge as herein-
after set forth will be adjusted annually in accordance with the
United States Department of Labor, Bureau of Labor Statistics
Consumer Price Index for All Urban Consumers for the Los Angeles/
Long Beach Average ( 1967=100)
VIII
The charge as heretofore provided for shall be on an annual
basis with the initial payment to be for the first and second
year in advance adjusted to the July 1/June 30 fiscal year and
based upon the fixture units provided for in Ordinance No 6 or
No 7 shall be as follows
$ per single family dwelling
$ per twenty (20) fixture units for commer-
cial/light industrial
$ /S, -frX per twenty ( 20 ) fixture units for profes-
sional/administrative
$ per one thousand ( 1 ,000) cubic feet for
manufacturing/heavy industrial
$ per twenty ( 20 ) fixture units for all other
uses not included above
-7-
BK14001PG1105
Ix
Subsequent to the payments made in advance as provided for
in the previous paragraphs OWNER shall be billed quarterly in
advance for services provided for in this AGREEMENT with advance
billings to be for the following quarters
First Quarter - July , August September
Second Quarter - October, November December
Third Quarter - January , February March
Fourth Quarter - April, May , June
X
It is understood and agreed that invoices for services as
provided for in this AGREEMENT will be mailed to OWNER at the
address set forth hereinafter in this AGREEMENT or to any new
mailing address provided to DISTRICT in writing at least fifteen
(15 ) days before the beginning of each quarter Unless DISTRICT
is notified of a change of address in writing , mailings shall be
presumed completed when deposited, postage prepaid to the address
set forth in this AGREEMENT Payments required for services as
provided for in this AGREEMENT shall be due on the first day of
each quarter and shall be mailed or delivered to DISTRICT' S head-
quarters as the address as hereinafter set forth in this AGREEMENT
Any payment not received in DISTRICT' S office by the fifteenth
day of the first month of the quarter shall be deemed delinquent
Any payment delinquent as set forth herein shall be subject to a
late charge of five percent ( 5% ) of said payment
XI
It is understood and agreed that the service charge pro-
vided for herein shall become on the first day of each quarter a
lien upon the entire property subject of this AGREEMENT as here-
tofore provided and shall be extinguished only upon the payment
-8-
BK 14001 PG 1 106
of service charge as provided for herein A certificate executed
and acknowledged by a majority of the Board of Directors of
DISTRICT stating the indebtedness is secured by a lien on the real
property subject to this AGREEMENT shall be conclusive upon the
Board and OWNER as to the amount of such indebtedness as of the
date of the certificate in favor of all persons who rely thereon
in good faith and such certificate shall be furnished to OWNER
upon request at a reasonable fee not to exceed Fifteen Dollars
( $15 00 )
XII
Any such lien may be foreclosed by an appropriate action
in a court or in a manner provided by law for the foreclosure of
liens under power of sale Any action in court brought to fore-
close such a lien shall be commenced within one hundred and
eighty ( 180 ) days following the recording of the certificate
evidencing a lien In the event the foreclosure is under a power
of sale , as in the case of a mortgage the Board of DISTRICT or
any person designated by it in writing shall be deemed to be
acting as the agent of the lienor and shall be entitled to actual
expenses and such fees as may be allowed by law or as may be
prevailing at the time the sale is conducted Such sale shall
be conducted in accordance with the provisions of Section 2924 ,
sub-Sections (a) , ( b) and (c ) , of California Civil Code appli-
cable to the exercise of power of sale of mortgages and deeds of
trust, or any other manner permitted by law
XIII
It is further understood and agreed that OWNER will require
its contractor constructing any portion of its laterals in the
-9-
BK14001PG1107
public right-of-way to comply with Sections 6500 , through and
including 6707 of the Labor Code Section 42105 of the Govern-
ment Code the Davis/Bacon Act and such of the laws rules and
regulations as are applicable federal state and local, to the
construction of the said facility
XIV
OWNER hereby agrees to protect defend , indemnify and hold
DISTRICT, its elective board and officers and agents and employees
harmless from and against any and all attorneys fees , costs
expenses or damages of any nature by reason of injury sustained
by any person , including death at any time, resulting therefrom
or by reason of loss of use of , injury to or destruction of
property , including consequential damages of any nature, result-
ing therefrom arising out of the performance of this AGREEMENT by
or on behalf of OWNER including damages occasioned by or allegedly
occasioned by joint or contributory negligence or omission or
affirmative action in connection with supervision or direction of
the work by DISTRICT, its elective or appointed boards, officers ,
agents or employees This indemnity and hold-harmless AGREEMENT
shall not apply to damages occasioned by the sole negligence of
DISTRICT it elective boards officers , agents or employees , but
shall extend to any and all obligations and liabilities under any
statutes , laws or regulations pertaining to provisions of a safe
place for employment of workers or any similar statures , laws
or regulations with respect to injury sustained, including death
at any time resulting therefrom by any employee of OWNER OWNER'S
contractors or subcontractors or others performing under this
AGREEMENT or behalf of OWNER OWNER may insure against the losses
-10-
BK14001PG1108
as provided for in this paragraph however DISTRICT does not and
shall not waive any rights against OWNER which he may have by
reason of the aforesaid hold-harmless agreement because of the
acceptance by DISTRICT of the deposit with DISTRICT by OWNER of
any insurance policy obtained for this purpose
XV
OWNER shall maintain or cause any contractor or subcon-
tractor doing work in the public right-of-way pursuant to this
AGREEMENT to take out and maintain, during the life of any con-
struction project workers ' compensation insurance and OWNER
agrees to require contractor and subcontractors , if any to
indemnify DISTRICT for any damage resulting to it from failure of
either OWNER or OWNER' S contractor or subcontractors to take out
and maintain such insurance For that portion of any work to be
done in the public right-of-way said workers compensation
insurance shall name DISTRICT as an additional insured and said
policy shall provide that the insurance provided for therein may
not be cancelled without thirty ( 30) days advance notice of such
cancellation to DISTRICT
XVI
The term of this AGREEMENT shall be from the date hereof
until DISTRICT has initiated and completed an assessment district
and OWNER' S property is placed on the assessment roll for the
imposition of a real property tax to pay for the services rendered
by DISTRICT in this AGREEMENT This AGREEMENT shall not be ter-
minated by annexation of the property to DISTRICT and the eventual
development of a formula for the exchange of property tax between
DISTRICT and the County of Orange, provided, however that in the
-11-
BK 14001 P6 1 109
event DISTRICT is allocated some property tax under any exchange
formula developed with the County said tax if imposed against
OWNER herein, shall he credited against the annual service charge
provided for in this AGREEMENT
XVII ti
All notice required to be given under this AGREEMENT shall
be deemed given if mailed with prepaid postage or delivered
personally to the parties hereto at the following addresses
OWNER
United California Bank, Trustee for The Canadian Indemnity Company
P. 0. Box 3667 Terminal Annex _
Los Angeles , Ca. 90051 _
Attention W F Lewis W9-4
DISTRICT
Costa Mesa Sanitary District
77 Fair Drive
Costa Mesa California 92626
V. XVIII
This AGREEMENT shall be deemed as a covenant running with
the land, and the duties and obligations provided for herein
cannot be assigned or otherwise conveyed in any manner that will
excuse the peformance of this AGREEMENT by OWNER or its successors
in interest
XIX
In the event of legal action, including suit arbitration,
administrative hearing , or other legal proceeding the prevailing
party shall be entitled to legal costs , including reasonable
attorneys ' fees to be determined by the presiding officer or
judge in any of said proceedings
-12-
BK14001P @1110
IN WITNESS WHEREOF , we have hereunto placed our hands and
seals on the day and year first above written
COSTA MESA SANITARY DISTRICT
1 \ J
Presi•ent
ATTEST
Assistant Secretary
OWNER United California Bank Trustee under
Deed of Trust executed by The Canadian
Indemnity Company for the benefit of the
policyholders of The Cana.iam Indemnity
Company within the it•i States
APPROVED AS TO FORM Ilk ,,
By , t ii. • V . —u- t.-
Vice resident
At�torn y or the DISTRICT By � /�
Trust Cicer
—13—
BK 1 4 0 0 1 P6 1 1 1 1
STATE OF CALIFORNIA )
SS
COUNTY OF Los Angeles )
On December 17,_19R0 before me the undersigned a
Notary Public in and for said State, personally appeared
James E. Hanna , known to me to be the
Vice President, and W. F. Lewis
known to me to be the Trust Officer Mxt( OXy of the corporation
that executed the within instrument, and known to me to be the
persons who executed the within instrument
on behalf of the corporation therein named
and acknowledged to me that such corporation
executed the within instrument pursuant to
its bylaws or a resolution of its board of
directors
WITNESS my hand and official seal
OFFICIAL SEAL
Signa �__." —�j 4 y S'HEILAH D MORRIS
..� NOT RY PUBLIC CALIFORNIA
� o PRINCIPAL OFFICE IN
i.ter LOS ANGELES COUNTY
Name (Typed or Printed) My Commission Expires Dec. 30, 1982
BK14 (Dal P61112
STATE OF CALIFORNIA )
) SS
COUNTY OF ORANGE
On December 31, 1980 before me the undersigned
a Notary Public in and for said State personnaly appeared
James A Wahner known to me to be xxxx
President and Florine T Reichle known to me to be the
Assistant Secretary of the Costa Mesa Sanitary District
that executed the within Instrument on behalf of the District
therein named and acknowledged to me that such District
executed the within Instrument pursuant to its bylaws or a
resolution of its Board of Directors
WITNESS my and offic ' a = 1 c•:y OFFICIALSBAL
• 74�t ELENOR NI.EVANS
• !; -• +.1 NOTARY PUBLIC CALIFORNIA
G ORANGE COUNTY
Signature ? , My Comm' Expires May 9.1983
• • . • _ . �Vvwwww^
Eleanor P1 Evans
Name (Typed or Printed) (Seal)
or
BK14001P61113
The land referred to herein is described as follows:
PARCEL A
PARCEL 1, IN THE CITY OF COSTA MESA, COUNTY OF ORANGE, STATE OF
CALIFORNIA, AS PER MAP FILED IN BOOK 149 PAGES 29 AND 30 OF PARCEL
MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY
EXCEPTING THEREFROM WATER, WATER RIGHTS, CLAIMS OR TITLES TO WATER
ALSO EXCEPT ALL OIL, GAS, AND OTHER HYDROCARBONS AND MINERALS NOW AND
HEREAFTER IN, ON OR UNDER THAT PART OF THE PROPERTY LYING BELOW A DEPTH
OF 500 VERTICAL FEET BELOW THE SURFACE OF THE PROPERTY, BUT WITHOUT
ANY RIGHT OF ENTRY UPON SAID LAND OR 'WITHIN THE TOP 500 FEET THEREOF
FOR 4NY PURPOSES WHATSOEVER AS RESERVED IN THE DEED FROM C J SEGERSTROM
& SONS, A CALIFORNIA GENERAL PARTNERSHIP RECORDED AUGUST 28, 1980
PARCEL B
RECIPROCAL EASEMENT FOR A COMMON DRIVEWAY, INGRESS, EGRESS AND PUBLIC
UTILITY PURPOSES; ACCESS EASEMENTS TO SOUTH COAST DRIVE AND INCIDENTAL
PURPOSES, ALL AS MORE PARTICULARLY SET FORTH IN THAT CERTAIN EASEMENT
AGREEMENT RECORDED AUGUST 28, 1980
EXCEPTING ANY PORTION INCLUDED WITHIN PARCEL A ABOVE
Exhibit A
_,
_. . _:. ;:• ✓....I'i< ='r' c".f., .�+tea++