1952-1946and.
RESOLUTION NO. P74 4 4.
4.
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ANAHEIM AUTHOR ZING THE
SALE OF CERTAIN CAPACITY RIGHTS IN THE MAGNOLIA
TRUNK SEWER AND PUMPING PLANT AND FORCE MAIN TO
MIDWAY CITY SANITARY DISTRICT: FIXING THE PRICE
AND CONDITIONS OF SALE AND AUTHORIZING THE CITY
OF ANAHEIM, AS CONTRACTING AGENT FOR THE CITIES
AND SANITARY DISTRICTS HEREINAFTER NAMED TO
EXECUTE A CONTRACT FOR AND ON BEHALF OF SAID
CITIES AND SANITARY DISTRICTS FOR THE SALE OF
SAID CAPACITY RIGHTS.
WHEREAS, the Cities of Anaheim, Fullerton and Orange, and the
Buena Park, Garden Grove, La Habra and Placentia Sanitary District8,
hereinafter referred to as "Sellers and each of them, are owners
of certain undivided fractional interests in those certain portions
or sections of the Magnolia Trunk Sewer and Pumping Plant and Force
Main, generally described and commonly known as "Section A Section
B "Section C and the Force Main and Pumping Plant, all of which
said property is located in the County of Orange, State of Califor-
nia, and more particularly described as follows:
Section A: The 78" sewer main on Bushard Street from the
pumping plant at Ellis Avenue to and including
the manhole at Talbert Avenue.
Section B: The 48" sewer main on Bushard Street from the
manhole at Talbert Avenue to and including
manhole at Slater Avenue.
Section 0: The 48" sewer main on Bushard Street from the
manhole at Slater Avenue to Smeltzer Avenue,
thence on Smeltzer Avenue to Cannery Street,
thence on Cannery Street to and including the
manhole on Bolsa Avenue.
Force Main and Pumping Station: The pumping plant at
Ellis and Bushard Streets and the 18" sewer
force main on Ellis Avenue and Bushard Street
to the existing grit chamber southerly of
Ellis Avenue at the existing treatment plant;
WHEREAS, said Sellers at the present time are jointly operat-
ing said Magnolia Trunk Sewer and Pumping Plant and Force P,-Main for
the purpose of collecting and disposing of sewage arising in their
respective areas, and
-1-
WHEREAS, the Midway City Sanitary District, hereinafter re-
ferred to as the "Buyer desires to purchase and the Sellers are
willing to sell to said Midway City Sanitary District, capacity and
capacity rights in those portions of the Magnolia Trunk Sewer and
Pumping Plant and Force Main hereinabove described, in the percent-
ages hereinafter set forth, so as to enable the Buyer to discharge
into said portions of said Magnolia Trunk Sewer and Pumping Plant,
sewage collected within the boundaries of said Midway City Sanitary
District, at the prices and at the time and upon the terms herein
stated, and said Buyer is willing to purchase said capacity and
capacity rights in the above described portions of the Magnolia
Trunk Sewer and Pumping Plant and Force Main, at the prices and
upon said terns and conditions; and
WHEREAS, the City Council of the City of Anaheim
does hereby find and determine that the percentage
of capacity and capacity rights in the above mentioned sections of
said Magnolia Trunk Sewer and Pumping Plant and Force Main are not
now needed by the Sellers for present use or for any foreseeable
anticipated use, and that it would be to the advantage of the Sell-
ers to sell the capacity rights in said sections of said Magnolia
Trunk Sewer and Pumping Plant and Force main as requested by the
said Buyer, and thus obtain a partial reimbursement of the cost of
construction thereof.
NOW, THEREFORE, BE IT RESOLVED by the City Council
of the City of Anaheim that the sale of the follow-
ing described percentage of capacity and capacity rights in Sections
A, B, 0 and the Force Main and Pumping Plant of the Magnolia Trunk
Sewer and Pumping Plant and Force Main, to -wit:
1. 13.2% of the total capacity of Section A of Magnolia
Trunk Sewer, as above defined and described;
2. 7.41% of the total capacity of Section B of Magnolia
Trunk Sewer, as above defined and described;
-2-
3. 7.25% of the total capacity of Section 0 of Magnolia
Trunk Sewer, as above defined and described;
4. 3.430 of the total capacity of Force Main and Pumping
Plant, as above defined and described.
to the Midway City Sanitary District of Orange County, California
be, and the same is hereby, approved and authorized, for the price
and upon the terms and conditions as set forth in the agreement
hereto attached and made a part hereof.
AND BE IT FURTHER RESOLVED that the City of Anaheim, as
oontracting agent for the Cities and Sanitary Districts hereinabove
mentioned, be and it is hereby, authorized to make and enter into
an agreement, in the form hereto attached, with Midway City Sanitary
District of Orange County, California, for the sale of the percentage
of capacity and capacity rights in said Sections A, B, 0, and Force
Main of the Magnolia Trunk Sewer and Pumping Plant and Force Main
hereinabove described, for the price and upon the terms and condi-
tions as set forth in said agreement hereto attached and made a part
hereof.
6 f? day of
ATTEST:
THE FOREGOING RESOLUTION is signed and approved by me this.
1952.
City of Anaheim
Mayor of the City of Anaheim
STATE 07 C:°,LIFOR :TI A
COUNTY j 1 ui Lzl,.
CITY OF AiTAHEIii
ss.
I, CHARLES E. GRIFFITH, City Clerk of the City of
Anaheim, do hereby certify that the foregoing Resolution
was passed and adopted at a regular meeting of the City
Council of the City of Anaheim held on the 8th day of
April 19_12, by the following vote of the members
thereof:
AYES: 0OUTCILi;.EI?: Pearson, Wisser, Heying, Boney and Van Wagoner.
FOES: COUITCILiiEN: None.
ALSE :?'T': COUNCIL air: None.
AND I FURTHER CERTIFY that the i.iayor of the City
of Anaheim signed and approved said Resolution on the 8th
day of April 19 52,
IN TIT=SS ?THEREOF, I have hereunto set my hand
and affixed the seal of the City of Anaheim this 8th day
of April 195
City-'Clerk of City of Anaheim
AGREEMENT OF SALE AND PURCHASE
THIS AGREEMENT, entered into by and between three (3) cities
hereinafter named, each being a city duly organized and existing under
the laws of the State of California, and of the class designated after
its name; four (4) Sanitary Districts,each being organized and existing
under the laws of the State of California; said cities and Sanitary
Districts being hereinafter designated and called "SELLERS and a
Sanitary District duly organized and existing under and by virtue of
the laws of the State of California,
called
County
RECITALS:
"BUYER", all of said Cities and
of Orange, State of C
CITY OF ANAHEIM
CITY OF FULLERTON
CITY OF ORANGE
BUENA PARK SANITARY
DISTRICT,
GARDEN GROVE SANITARY
DISTRICT,
LA HABRA SANITARY DISTRICT,
PLACENTIA SANITARY
DISTRICT
MIDWAY CITY SANITARY
DISTRICT,
an d
WHEREAS, the Sellers and
undivided fractional interests in
generally described, and commonly
(6th
(6th
(6th
and hereinafter designated and
Districts being situate in the
and named as follows:
Class
Class)
Class)
SELLERS.
BUYER.
each of them are owners of certain
certain parts of property hereinafter
known as "Section A "Section B
"Section C" of Magnolia Trunk Sewer, and Force Main and Pumping Station,
all of which said property is located within the County of Orange,
State of California, and more particularly defined and described as
follows:
Section. A: The 78" sewer main on Bushard Street from the
pumping plant at Ellis Avenue to and including
the manhole at Talbert Avenue
Section B: The 48" sewer main on Bushard Street from the
manhole at Talbert Avenue to and including
manhole at Slater Avenue.
1
an d
Section 0:
The 48" sewer main on Bushard Street from the
manhole at Slater Avenue to Smeltzer Avenue,
thence on Smeltzer Avenue to Cannery Street,
thence on Cannery Street to and including the
manhole on Bolsa Avenue.
Force Main and Pumping Station: The pumping plant at
Ellis and Bushard Streets and the 18" sewer
force main on Ellis Avenue and Bushard Street
to the existing grit chamber southerly of Ellis
Avenue at the existing treatment plant;
WHEREAS, said Sellers at the present time are operating the
said above defined and described property, and are carrying away
therein sewage arising within their respective areas; and
WHEREAS, Sellers are willing to sell to Buyer, capacity and
capacity rights in the percentages hereinafter set forth in the said
property hereinabove described, so as to enable Buyer to discharge
into said property sewage collected within the boundaries of Buyer at
the price, and at the time, and upon the terms herein stated, and
Buyer desires to purchase said capacity and capacity rights in all of
said property at the price and upon the terms herein stated; and
WHEREAS, bonds of Buyer were voted on 'September 25, 1951, for
the acquisition and construction of a system of trunk and lateral
sewer, and appurtenances thereto, including the acquisition of all
easements and other property necessary therefor, and for the acquisi—
tion of capacity (including rights of use) in the Magnolia Trunk Sewer
located in Magnolia, Cannery and Bushard Streets; and
WHEREAS, the sale of the bonds of Buyer cannot be made until
this contract is entered into and rapidly rising prices make it desir-
able that the bonds be sold and construction work done before the
prices become so high that the bond funds are insufficient to meet
the conditions, and the parties desire to expedite the proceedings
as rapidly as possible but with all safeguards necessary for each of
the parties hereto; and
WHEREAS, Sellers have not to this date finally determined
between themselves their respective percentages of ownership in the
property above described.
NOW, THEREFORE, the parties hereto do hereby covenant,
2
promise and agree as follows;
(1) SALE: Said Sellers promise and agree to sell, and said
Buyer promises and agrees to buy the following described percentage
capacity and capacity rights in the above described
property for the consideration and upon the terms and conditions
hereinafter set forth:
1. 13.20% of the total capacity of Section A of Magnolia
Trunk Sewer, as above defined and described;
2. 7.41% of the total capacity of Section B of Magnolia
Trunk Sewer, as above defined and described;
3. 7.25% of the total capacity of Section C of Magnolia
Trunk Sewer, as above defined and described;
4. 3.43% of the total capacity of Force Main and Pumping
Plant, as above defined and described.
(2) PURCHASE PRICE: The total purchase price which Sellers
agree to accept for the capacity and capacity rights herein being
sold to Buyer, and which Buyer agrees to pay to Sellers for said
capacity and capacity rights, is hereby fixed and determined as
follows:
13.20% of the total cost incurred, and to be incurred
by Sellers in the completed construction of Section A,
of the Magnolia Trunk Sewer, as hereinabove defined
and described;
7.41% of the total cost incurred, and to be incurred,
by Sellers in the completed construction of Section B,
of Magnolia Trunk Sewer, as hereinabove defined and
described;
7.25% of the total cost incurred and to be incurred,
by Sellers in the completed construction of Section C,
of the Magnolia Trunk Sewer, as hereinabove defined
and described;
3.43% of the total cost incurred, and to be incurred,
by Sellers in the completed construction of Force Main
and Pumping Plant.
"Total Costs of Completed Construction as said term is
used in this numbered paragraph of this agreement, shall mean and
include all costs of construction, including engineering, legal, and
incidental costs, together with interest thereon at the rate of two
per cent (2 per annum from November 15, 1950 to date of payment of
purchase price.
(3) PAYMENT OF PURCHASE PRICE: The total amount of said
purchase price shall be paid by Buyer to Sellers on or before sixty
(60) days after the date when Buyer's bonds, hereinabove mentioned, are
sold and delivered to the Purchasers, or the date when said total
purchase price has been finally calculated and determined, whichever
event last occurs.
That said total purchase price shall be paid to CITY OF
ANAHEIM, one of the Sellers herein, who is hereby designated as Agent
for all the Sellers, to receive and accept payment of said purchase
price, and to hold the same in trust for all the Sellers, and to dis-
burse and distribute the same between the Sellers when their percen-
tage interests in the above described property, and in the purchase
price money has finally been determined and agreed upon between them.
(4) COST OF MAINTENANCE AND OPERATION: Buyer shall be
liable for, and does hereby agree to pay, its proportionate share of
all costs of maintenance and operation of the above described property
incurred from and after the time when Buyer commences use thereof,
upon the following basis:
Buyer's proportionate share of, and liability for, costs of
maintenance and operation shall be determined, and shall be based upon
the proportion which the flow of sewage placed in the above described
property by Buyer bears to the total flow of sewage placed in said
property by all the users thereof, and upon the same basis and formula
as is used in determining the shares of costs of maintenance and
operation to be paid by all other users thereof.
(5) MAINTENANCE DEFINED: Maintenance of the above describ-
ed property is defined, and shall be construed to mean, the repair and
upkeep of the same, whether it requires installation of, or replace-
ment of new materials or not, if the repair and upkeep be occasioned
or made necessary solely through the use thereof, together with the
reasonable and necessary costs of the removal of obstructions there-
from.
(6) DATE FOR COMMENCEMENT OF USE: Buyer shall have the
absolute right to connect its proposed trunk and lateral sewer system
and lines into the above described property at any time after the
purchase price has been paid in full in the manner hereinabove pro-
vided, but shall not have any right to use said capacity or to
discharge sewage into said above described property until facilities
4
are made available by the Sanitation Districts, or otherwise, to accept,
treat and dispose of said sewage.
(7) It is understood and agreed that this agreement gives
the Buyer no rights, nor voice in the control or management of the
above described property, and that this agreement contains no pro-
visions relative to reconstruction, or the construction of additional
facilities, all of which matters are left for future negotiations and
agreement between the parties.
IN WITNESS WHEREOF, each of the parties hereto have caused
this contract to be executed by its duly authorized officers this
day of 1952.
Executed this
OF
Executed this day
of
Executed this day
day CITY 9 �1 F ,ANAHEIM
1952 By(--
(SEAL) ATTEST:
1952 By
(SEAL) ATTEST:
of 1952 By
Executed this
of
OF
(SEAL) ATTEST:
CITY OF FULLERTON
CITY OF ORANGE
Mayor
day BUENA PARK SANITARY DISTRICT
1952 By
(SEAL) And
1952 By
President of its Board of
Directors
President of its Board of
Directors
ei
City Clerk
Mayor
City Clerk
Mayor
City Clerk
Secretary
Executed this day GARDEN GROVE SANITARY DISTRICT
(SEAL) And
5., Secretary
Executed this day LA HABRA SANITARY DISTRICT
of 1952 By
(SEAL) And
(SEAL) And
(SEAL) And
6
President of its Board of
Directors
Executed this day PLACENTIA SANITARY DISTRICT
of 1952 By
Directors
President of its Board of
Directors
Secretary
Secretary
SELLERS.
Executed this day MIDWAY CITY SANITARY DISTRICT
of 1952 By
President of its Board of
Secretary
BUYER