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Contract - OC Sanitation - 1960-01-27 AGREEMENT FOR PURCHASE OF SEWERAGE FACILITIES FROM COSTA MESA SANITARY DISTRICT OF ORANGE COUNTY, CALIFORNIA This agreement made on the 27 day of January, 1960, by and between COUNTY SANITATION DISTRICT NO 7 of Orange County, California, hereinafter called "SEVEN, " and the COSTA MESA SANI- TARY DISTRICT of Orange County, California, her einafter called "DISTRICT " WITNESSETH WHEREAS, Seven has heretofore received, avproved and adopted an engineer's report on September 16, 1959, describing a trunk sewer to be built by Seven, and WHEREAS, Seven has entered into an agreement with Irvine Company for the construction of a portion of said trunk sewer to Babb Street, and WHEREAS, District has found and determined that it is for its best interests to have said trunk sewer, as described in the enCineer's report of Se—en, adopted September 16, 1959, extended between the northerly extension of Babb Street, west- erly to College Avenue (being a portion of the Gisler trunk sewer) together with a pumping plant at College Avenue; NOW, THEREFORE, IT IS MUTUALLY AGREED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS 1 That Seven will pay to District the sum of One Hundred Thnusand ($100 000 00) Dollars upon demand of District 2 That District will ccnstruct or have constructed, a trunk sewer as described in the engineer s report adopted September 16, 1959, and modified by Seven, extending between the northerly extension. of Babb Street westerly to College Avenue (being a portion of the Cider trunk sewer), together with a pumping plant at College Avenue, and force main running south along College Avenue to a trunk sewer belonging to -1- County Sanitation. District No 6 in Baker Street, which connects to County Sanitation District Treatment Plant No 1 by means of the thirty-nine (39") inch trunk sewer siphon under the Santa Ana River 3 Seven shall, at its own expense, acquire the rights of way required for the construction of the sewer trunk and appurtenant sewerage facilities hereinabove described, and Seven will provide permits therefor where any portion of such rights of way are on public property not owned by Seven 4 Seven agrees to supply to District detailed plans and specifications, and all other engineering data, for the construction of the facilities above described, and District agrees to diligently cause said facilities to be constructed in and along said rights of way in accordance with said plans and specifications and related engineering data supplied by Seven 5 In connection with the construction of the facilities provided for herein, District agrees to let such work to the lowest responsible bidder, and District agrees to pay for all costs of construction and to keep detailed and ac- curate accounts showing the actual construction costs of said work 6 Upon completion of said construction of said facilities above described, District shall own 37 5% of the aforesaid trunk sewer running between the northerly extension of Babb Street and College Avenue 7 Seven shall, and does, hereby agree to buy back from District the 37 5% of the ownership of the aforesaid trunk sewer, and District hereby agrees to sell to Seven said 37 5 of the aforesaid trunk sewer It is agreed that the ultimate purpose and intent of the parties hereto is that Seven shall finally own all of the interest in the aforesaid trunk sewer owned by District -2- S Seven hereby agrees to pay to District the purchase price equal to District's total construction costs thereof, as shown by District 's accounts aforesaid, less the sum of One Hundred Thousand ($100,000 00) Dollars 9 The payments of money from Seven to District as hereinabove provided shall be made in accordance with the fol- lowing schedule, or more rapidly at the option of Seven Commencing in the month of June next occurring after final completion of the construction of the trunk sewer and related sewerage facilities, the sum of Ten Thousand ($10,000 00)Dollars, plus the sum of Ten Thousand ($10,000 00) Dollars annually in June thereafter, provided that all moneys unpaid after the third (3rd) payment as hereinabove provided, shall bear interest at the rate of four (47) per cent per annum until paid in full Such interest shall be included in said annual $10,000 payments commencing with the fourth such payment 10 Upon completion of the construction of said facilities, District will deliver to Seven, possession thereof, and Seven shall thereafter maintain, operate and use said facilities and permit District to use the same as District 's needs within the territories of Seven may require 11 Legal title to the 37 57 interest to said sewer trunk and appurtenant facilities shall remain in District until all payments on account of said purchase price and interest thereon shall have been made by Seven, and upon full payment thereof, District will convey to Seven good and valid title to its said interest to said facilities -3- IN WITNESS WHEREOF, each of the parties hereto have caused this agreement to be executed by its officers thereunto duly authorized, the date first above written. COUNTY SANITATION DISTRICT NO 7 OF ORANGE COUNTY, CALIFORNIA BY J airman _ Secretary PaO YEM COSTA MESA SANITARY DISTRICT OF ORANGE COUNTY, CALIFORNIA BY Of, ke President ", BY Q, l g Secretary -4-