Contract - Irvine Company - 1981-06-11 Recording requested by
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Rio T Reichle B K 1 4 1 0 6-pe 1597
Assistant Secretary ~< ,u 2 8 6 5 1
Costa Mesa Sanitary District
P.O. Box 1200 AGREEMENT AND RESTRICTIVE COVENANT EXEMPT
Costa Mesa, CA 92626 // Cl
T //
HIS AGREEMENT, made and entered into this a-1 day of
, 1981 , 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 THE IRVINE COMPANY, a Michigan corporation , hereinafter called
OWNER
W I T N E S S E T H T H A T
WHEREAS DISTRICT is a public agency engaged in the collection,
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
OOMO0 IN OFFICIAL NFCQfl
OF ONANBE cairn.CALL NIA
Rev 1/15/81 235 PM J111418 '81
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LEE A. BRANCH. Coenty Recorder
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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 proper-
ty 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 availa-
ble to it for funding of the maintenance , repair , upkeep and re-
placement of its network of underground liquid waste collecting ,
transporting 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
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WHEREAS, DISTRICT must require , as a condition to pro-
viding service as requested herein , compliance with all its ordi-
nances , 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 purchaser from
OWNER, a condominium or cooperative homeowner ' s association pro-
viding 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 beneficiary 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
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AGREEMENT 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 provided 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 con-
structed on OWNER' s property prior to connection with DISTRICT' s
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mains in the public right-of-way to insure that said construction
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 engineering standards and specifi-
cations All facilities on private property 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
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4 Payment in advance of the first and second years ' service
charge hereinafter provided for adjusted to July 1/June 30 fiscal year
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 governmental
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 , conditional 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
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paid to DISTRICT prior to connection with DISTRICT' s mains in public
right-of-ways all as heretofore provided there shall be 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 contingent 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 hereinafter set forth will be adjusted annually in
accordance with cost calculations furnished by the Director of
Finance of the DISTRICT based upon DISTRICT' s annual budget
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
calculated as follows , subject to annual budget adjustment as
heretofore provided
1 A minimum of Fifteen Dollars ( $15 00 ) per single
family unit
2 A minimum of Fifteen Dollars ( $15 00 ) per thirty ( 30 )
fixture unit for commercial , light industrial , profes-
sional administrative and all other uses not provided
for herein
3 A minimum of $ per thousand ( 1 000 ) cubic
foot capacity for manufacturing and heavy industrial
The basic Fifteen Dollar ( $15 00 ) charge set forth above
and the charge for thousand ( 1 ,000 ) cubic feet set forth above is a
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minimum charge irrespective of the number of fixture units or cubic
feet of capacity
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 headquarters
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
provided for herein shall become on the first day of each quarter
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a lien upon any delinquent parcel subject of this AGREEMENT as
heretofore provided and shall be extinguished only upon the payment
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 foreclose
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 Cali-
fornia Civil Code , applicable 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
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the public right-of-way to comply with Sections 6500 , through and
including 6707 of the Labor Code Section 42105 of the Government
Code the Davis/Bacon Act and such of the laws , rules and regula-
tions as are applicable federal state and local to the construc-
tion 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 , resulting 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, its elective
boards , officers , agents or employees , but shall extend to any and
all obligations and liabilities under any statutes , laws or regula-
tions pertaining to provisions of a safe place for employment of
workers or any similar statutes , 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 on behalf of OWNER OWNER
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may insure against the losses as provided for in this paragraph ,
however DISTRICT does not and shall not waive any rights ayainst
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 doiny 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 termi-
nated 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
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event DISTRICT is allocated some property tax under any exchange
formula developed with the County said tax, if imposed against
OWNER herein , shall be credited against the annual service charge
provided for in this AGREEMENT
XVII
All notice required to be given under this AGREEMENT shall
be deemed given if mailed with prepaid postage or delivered person-
ally to the parties hereto at the following addresses
OWNER
The Irvine Company
P 0 Box I
Newport Beach, CA 92663
Attn Manager of Ground Leases
DISTRICT
Costa Mesa Sanitary District
77 Fair Drive
Costa Mesa, CA 92626
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 performance of this AGREEMENT by OWNER or its successors in
interest
XIX
In the event of legal action , including suit, arbitration
administrative heariny , or other legal proceeding the prevailing
party shall be entitled to legal costs , including reasonable attor-
neys ' fees to be determined by the presiding officer or judge in
any of said proceedings
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IN WITNESS WHEREOF we have hereunto placed our hands and
seals on the day ana year first above written
COSTA MESA SANITAR DIS1TRICT
Y J^� J l,, resident
ATTEST
xl�"wn c� /Cite/ ec)
Assistant Secretary
OWNER
THE IRVI E Ct IPANY
APPROVED AS TO FORM y ,
/511/%
Rich :rs Cannon
Vic- resident
At orn y fo he DISTRICT
BY Anna 277
H. o d C Mi is
Assistant Secretary
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EXHIBIT A
Parcel 1 in the City of Costa Mesa County of Orange State of California
as shown on a Parcel Map filed in Book 124 Pages 16 and 17 in the office
of the County Recorder of said County
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STATE OF CALIFORNIA)
SS
COUNTY OF ORANGE )
On June 12, 1981 , before me the undersigned ,
a Notary Public in and for said State , personally appeared
James A. Wahner and Florine T Reichle
known to me to be the persons whose name , are
xaoc subscribed to the within instrument and
acknowledged to me that they executed the same
WITNESS my hand and official seal
Siynature £OII41A,4/ pY1 ein A -� OFFICIAL SEAL
��� 011111 a BARBARA L SURGES
n,.
G'� .�gM NOTARY PUBLIC CALIFORNIA
Barbara L. Surges ` J ORANGE COUNTY
Name (Typed or Printed) r'u`t° My comm. expires JUL 30, 1984
-
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STATE OF CALIFORNIA)
SS
COUNTY OF ORANGE
On May 26 1981 , before me , the undersigned ,
a Notary Public in and for said State , personally appeared Richard
M Cannon, known to me to be the Vice President , and Harold C
Mills known to me to be the Assistant Secretary 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 corpora-
tion therein named, and acknowledged to me that such corporation
executed the within instrument pursuant to its bylaws or a resolu-
tion of its board of directors
WITNESS my hand and official seal
OFFICIAL SEAL
JANEAN D. McCRUM
Signature veLIryL ,N )LC. /Gn/
{ CALIFORNIA
Nny NOTARY PRINCIPAL PUBLIC OFFICE IN
Janean D McCrum �"" ORANGE COUNTY
MY COMMISSION EXPIRES OCT. 13. 1984
Name (Typed or Printed)
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ACKNOWLEDGEMENT AND ACCEPTANCE OF AGREEMENT
Redhill-Bristol Property
Agreement & Restrictive Covenant ( Agreement' )
Costa Mesa Sanitary District
Parcel 1 Book 124
Pages 16 & 17 of Parcel Maps County of Orange
Attached is a copy of an Agreement between the Costa Mesa Sanitary
District ( 'District ) and The Irvine Company ( 'TIC ) by virtue of which
the 'District' will provide sanitary sewer collection services to the
real property described above We have previously entered into a ground
lease with 'TIC covering a portion of said real property
We acknowledge that we have read the attached Agreement' and approve it
in all particulars We agree to comply with all the obligations of the
Owner as defined in the Agreement to the extent any such obligation
applies to the land leased to us and we agree that our leasehold in-
terest is subject to the Agreement with the same effect as if the
Agreement had been executed and recorded prior to the execution of our
ground lease
Rancho Penasquitos Ltd
By Chazan Penasquitos Associates General Partner
APP VED AS TO FORM:
By . iG.rer.��i� —'/
—�i +
A ORS. Y FO. ISTRICT
By
Date
To 11
(Partnership) SURE INSURANCE
AND MIST
} STATE OF CALIFORNIA ) ate.�..
J y SS.
COUNTY OF dos /i -vtt e-CS 1
1 On /'7q y j ry
before me, the undersigned, a Notary Public in and for said State, personally;appeared
m
G-c,'gc.,J 0-, rjNH2•'t-'mil
it
Id
I
m _/ -LTN L k� known to me
i to be r"• 674-.✓c.WAL of the partners of the partnership
mthat executed the within instrument,and acknowledged to me .---- -- - - _._._.-_ __- -
that such partnership executed the same. cu ^ ., OFFICIAL SEAL
IRMA M HOLMSTROM
WITNESS�y land and official seal. I ;s. g
\ ` �, NOTARY PUBLIC CALIFORNIA
J114.iP�.1"l LOS ANGELES COUNTY_T_I
r\— C"" • L�' 1 My Comm. expires MAY 26, 1984
Signature/� J/