Contract - Newport - 1962-05-14 WWC•mec
4/4/62
CONTRACT FOR CONVEYING SEWAGE
THIS CONTRACT, made and entered into this pia day of
, 1962 , between the CITY OF NEWPORT BEACH, a municipal cor-
poral on, 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, District has a sewer line in Tract No 3068, as
shown on a map recorded in Book 93 , pages 99_11, of Miscellaneous
Maps , Records of Orange County, which tract is within the boundaries
of both City and District , 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 Tract No 4444 in the
City of Newport Beach, as shown on a map recorded in Book 156
page 11-12, of Miscellaneous Maps , Records of Orange County, which
Tract No 4444 is within the boundary of City but not within the
boundary of District and which District hereinafter agrees shall be
served by said line, and
WHEREAS , District maintains a pump station and other fa-
cilities of adequate capacity to collect and transport all the
sewage to be collected from District and from said area of City
to the Orange County Sanitation District lines , and
WHEREAS, said Tract No 4444 is proposed to be developed
with 33 single-family residences and one lot of common ownership
for residential use , all of which could be served by the District
sewer line in Silver Lane in said Tract No 3068 and by the facil-
ities 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
Tract No 4444 in the District line in Silver Lane in said Tract
No 3068, 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 Sewage 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 in Silver Lane in said
Tract No 3068 from said Tract No 4444
2 Term.
The term of this contract shall begin on the date of exe-
cution and end on December 31 , 1987 ; provided, however, that if
the City submits the question of whether this contract should be
approved with a term ending December 31 , 2012, to the qualified
electors of City at any general or special municipal election in
calendar year 1962 or 1963 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 , 2012 , provided, however,
that any such approval and extended term shall not limit the power
of the City Council to amend, rescind or terminate this contract
3 Construction of Facilities
City shall construct or cause to be constructed by the
developer of said Tract No 4444 , at no cost to District , all sewer
lines necessary to deliver sewage from said Tract No 4444 to
District 's said line in Tract No 3068 City shall also construct
or cause to be constructed as aforesaid any additions or appurte-
nances to District 's facilities at the point the sewage is delivered
to said line necessary to receive the sewage in said line from said
Tract No 4444
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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
4 Maintenance of District Line and Facilities
District shall maintain its sewer line in said Tract No
3068, the appurtenances to the line at the point where the sewage
from said Tract No 4444 is taken into its line, and all other
facilities used to convey said sewage to the Sanitation District
lines
5 Maintenance of City Line and Facilities
City shall maintain the mains owned by it in said Tract
No 4444 and those leading to the point where sewage is to be re-
ceived by District
6 Payment of Fees to District
City agrees to pay an annual fee of Six Dollars ($6 00)
to District for each of the 33 lots in said Tract No 4444 which
are designed for a single-family residence The first payment shall
be made in December of 1963 or the year thereafter in which connec-
tion is made to District line for that year, and thereafter the
annual payment shall be made in December for each year during the
term hereof
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 gener-
ally in accordance with such increase or decrease in said costs
During the third quarter of the calendar year 1970 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
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succeeding 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 arbitra-
tion 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
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 and succeeding 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
officer
The arbitration board so selected shall meet and deter-
mine the fee for each of said 33 lots to apply during the next
succeeding five-year period of the term, provided , however, that
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any increase or decrease in the fee shall be based upon an increase
or decrease, respectively, in District costs of power, labor or
administration, and provided further that the fee shall not be in-
creased or decreased by an amount in excess of ten per cent (10%)
of the fee applicable to the five-year period of the term immedi-
ately 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
Any notice hereunder shall conclusively be deemed to have
been given upon the date it is enclosed in a sealed envelope ad-
dressed 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 certi-
fied mail
10 Termination
It is mutually understood that at some time during the
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term hereof other facilities may be constructed through which City
can receive and transmit for disposal all sewage originating in said
Tract No 4444 If upon construction of such facilities City deter-
mines 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
effective 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 such other facilities Any re-
construction of District facilities at the point sewage is delivered
to District line pursuant to this contract made necessary by the
change over to such facilities shall be done by City at no cost to
District
11 Cancellation
If Tract No 4444 should not be developed as now planned
or if other facilities should be constructed prior to the time the
proposed connection is made to the District line as aforesaid and
the use of District line therefore becomes unnecessary, City may
cancel this contract without obligation to District
12 This contract shall be binding upon the successors
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 OF AEWPORI BEACH) COSTA MESA SANITARY DISTRICT OF
B (1/ q�/LC l /�lf ORANGE corny CALIFORNIA
Mayor By m j 6"f the
C = i % r1 the Board
Attest f
By LA q1 n ity 41.
erk B�test{�� p �
IL'/� 'I,v(� Secretary
CITY
6 DISTRICT