HomeMy WebLinkAboutNB 4 SALE OF WTR SVC 03-18-85DATE: MARCH 8, ].985
TO:
FROM:
S U BJ ECT:
WILLIAM HUSTON, CITY MANAGER
BOB LEDENDECKER, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER
SALE OF WATER SERVICE FACILITIES TO CITY OF SANTA ANA
(FILE #2950)
RECOMMENDATION:
That the Tustin City Council, at their meeting of March 18, 1985, authorize the
sale of City of Tustin Water System facilities located in the City of Santa Aha
in the amount of $56,645.66 to Santa Aha and authorize the Mayor to execute the
Agreement for said sale.
BACKGROUND:
At the previous direction of the Tustin City Council, staff has pursued the sale
of water service facilities to the City of Santa Ana. These facilities are
located in three parcels of land lying westerly of the Costa Mesa (Newport)
Freeway and outside of the ultimate Tustin City boundaries and are shown on
Exhibit "A" of the attached Agreement. These facilities, offered for sale, are a
par~ of the original system of the privately owned Tustin Water Works which was
purchased by the City in November, 1980.
The City of Santa Ana has offered to purchase eighty seven (87) domestic water
services and facilities within Parcel 1 and four (4) domestic water services and
facilities in Parcel 3. Both Parcel 1 and 3 are currently within the incorporated
limits of Santa Ana. Santa Aha has indicated an interest in the Parcel 2
facilities once the area has been annexed to their city.
The Tustin Water Service Management Program, as prepared by Boyle Engineering
Corporation, recommended the sale of these services and facilities to Santa Ana to
better align the service area boundary with the city's ultimate sphere of
influence and city boundary and will not have a negative impact upon the systems
operation or revenue stream. Revenues derived from these facilities are about
equal to operational costs.
DISCUSSION:
The attached Agreement provides for the sale of eighty seven (87) water services
and facilities in Parcel 1 and four (4) water services and facilities.in Parcel 3
to the City of Santa Ana in the amount of $56,645.66. This sale amount is based
upon the appraised value to the facilities as well as the cost to the City of
Santa Aha to integrate these facilities into their city system.
Bob LedenoecKer
Director of Public Works/City Engineer
BL:jr
Attachment
Ag~ FOR SALE OF
fJlI OF ~ ~ ~ ~
~N ~LTI OF SANTA ANA
THIS AGREEMENT is made and entered into this__ day of
· 1985 by and between the City of Tustin, a
municipal corporation organized and existing pursuant to the laws of
the State of California ("Tustin"), and The City of Santa Ana, a
municipal corporation organized and existing pursuant to the laws of
the State of California ("Santa Aha").
RECITALS:
A. Tustin has acquired, as a part of its purchase of certain
properties of Tustin Water Works Corporation· certain water system
facilities now owned by Tustin in the City of Santa Ana.
B. Such water system facilities are not necessary for sup-
plying water to the inhabitants of Tustin.
C. Santa Ana is ready, willing and able to render water
service to the customers now served by means of such facilities on
terms which are just add reasonable and which do not unreasonably
discriminate against such customers.
D. Tustin is willing to sell and Santa Ana desires to pur-
chase such facilities.
NOW, THEREFORE, pursuant to the promises, covenants and con-
ditions contained herein, the parties hereto agree as follows:
1. Tustin agrees to sell and Santa Ana agrees to purchase the
following personal property and fixtures in an "as is" condition,
free and clear from all liens, claims, encumbrances:
(A) Eighty-seven (87) domestic water services and facili-
ties located in Parcel 1 of Exhibit "A" attached hereto and
incorporated herein by this reference.
(B) Four (4) domestic water services and facilities
located in Parcel 3 of Exhibit "A".
(C) The components of the water services and facilities
described in subsections (A) and (B) above are further
described in Exhibit "B" attached hereto and incorporated
herein by this reference.
2. Tustin will provide Santa Ana with copies of all available
operational (and customer service) records (and maps) for systems in
Parcels 1 and 3.
3. Santa Ana shall pay Tustin for the facilities described in
Section 1 hereof the sum of Fifty-six Thousand Six Hundred Forty-
five Dollars and 66/100 ($56,645.66). Payment of such sum shall be
made on the date of transfer of the facilities to Santa Ana (the
Date of Transfer).
4. All personal property taxes for the fiscal year 1984-1985
shall be pro-rated to the Date of Transfer.
5. Each Party to this Agreement shall pay all costs incurred
by it in the negotiation and preparation of and performance of its
obligations under this Agreement.
6. Santa Ana shall have no liability or responsibility in
connection with the collection of accounts owing to Tustin for water
service rendered prior to the Date of Transfer of the facilities to
Santa Ana. Tustin will pay to Santa Ana all amounts received by
Tustin after the Date of Transfer for water service rendered after
the Date of Transfer. Santa Ana will pay to Tustin all amounts
received by Santa Ana for water service rendered prior to the Date
of Transfer.
7. The amount which Santa Ana shall pay to Tustin shall be
adjusted by an amount equal to the net difference between the cost
to Tustin of capital additions to and retirements from the facili-
ties being sold from and after the date of this Agreement to the
Date of Transfer. Such amount shall be increased if additions
exceed retirements and reduced if retirements exceed additions.
8. The Parties contemplate a six (6) month period between the
date of this Agreement and the Date of Transfer. During this period
of time Santa Ana will notify customers of the pending sale of the
water services and facilities, arrange for new billing procedures
and perform any other acts necessary to enable Santa Ana to accept
the faciliities on the Date of Transfer. The Date of Transfer as
used herein is that date agreed upon by the Parties hereto, upon
which the transfers contemplated by Section 9 hereof and the payment
contemplated by Section 3 hereof are to be made, provided that such
date shall be no later than one hundred eighty (180) days after the
date of this Agreement. Notwithstanding the foregoing, the Parties
may at any time agree in writing to a different Date of Transfer.
9. Tustin shall on the Date of Transfer provide to Santa Ana
a Bill of Sale in the form attached hereto as Exhibit "C" and by
this
ATTEST:
reference made a part
hereof.
CITY OF TUSTIN
By
Mayor
City Clerk
ATTEST:
CITY OF SANTA ANA
By;
Mayor
City Clerk
ARW:cjs:R:2/21/85(20.CJP)
CITY OF SANTA ANA/CITY OF TUSTIN
POTENTIAL WATER SERVICE BOUNDARY REVISION
PARCEL I
~ ~ Fairhaven Ave
· Well
~' I Santa Clara Ave
~ , ~ Proep'ect St Well
Tuetln Ave Well
· 17th St
1
=, i.,~-.- RETAIL AGENCY BDRY
PARCEL $ ' '
"~ PARCEL ~__ ! 4thOr
I ~ PARCELS SERVED BY TUSTIN
WITHIN SANTA ANA SPHERE
==---~-~ -~,~--,-,-,=,~--=~- WATER MANAGEMENT PLAN 2
DESCRIPTION'. OF FACILITIES
PARCEL I
Item
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
Description
6" AC Main
4" AC Main
3" Stl. Main
1" Plastic Services*
1" Plastic Serv ces*
1" Plastic Services*
1" Plastic Services*
1" Plastic Services*
1" Plastic Services*
2" Plastic Services*
2" Plastic Services*
6" Gate Valve
6" Gate Valve
3" Gate Valve
Fire Hydrants
Fire Hydrants
Fi re Hydrants
5/8" Meter
1" Meter
1" Meter
2" Meter
2" Meter
Otv. Unit
3515 LF
157 LF
750 LF
79 EA
1 EA
2 EA
1 EA
1 EA
1 EA
1 EA
1 EA
7 EA
1 EA
1 EA
7 EA
1 EA
1 EA
83 EA
1 EA
1 EA
1 EA
1 EA
*Services include corp stop, pipe, angle meter stop and meter box.
EXHIBIT "B"
Page 1 of 2
PARCEL 3
1
2
3
4
5
6
1" Galv. Services* 2 EA
1-1/2" Plastic Services* 1 EA
2" Plastic Services*~ 1 EA
1" Meter 2 EA
1-1/2" Meter 1 EA
2" Meter 1 EA
*Services include corp stop, pipe, angle meter stop and meter box.
EXHIBIT "B"
Page 2 of 2
THIS BILL OF SALE is made and delivered as of the ~ day of
...... , 1985, by the City of Tustin, ("Seller"),
a municipal corporation organized and existing pursuant to the laws
of the State of California in favor of the City of Santa Ana
("Buyer"), a municipal corporation o. rganized and existing pursuant
to the laws of the State of California.
Pursuant to and in accordance with that certain Agreement dated
, 1985, (the "Agreement"), between Sel-
ler and Buyer, and for good and valuable consideration, receipt of
which is hereby acknowledged, Seller does hereby sell, assign,
transfer, set over, grant and convey to Buyer, its successors and
assigns, free and clear of any lien, claim, encumbrance or defect of
ti.tle, all of the following properties:
(A) Eighty-seven (87) domestic water services and facilities
located in Parcel 1 of Exhibit "A" to the Agreement.
(B) Four (4) domestic water services and facilities located in
Parcel 3 of Exhibit "A" to the Agreement.
(C) The components of the water services and facilities de-
scribed in (A) and (B) above as shown in Exhibit "B" to the Agree-
ment.
Seller warrants that it is the true and lawful owner of all of
the properties and assets hereby sold and assigned, and that title
of and to the same is free and clear of any lien, claim, encumbrance
EXHIBIT
Page 1 of 2
or defect of title. Seller further warrants that by virtue of the
sale and assignment effected hereby, Buyer shall obtain good title
to the above-described assets, free and clear of any line, claim,
encumbrance or defect of title.
Seller covenants and agrees with Buyer, its successors and
assigns, that Seller will do such things and execute and deliver
such further instruments, papers and documents as Buyer may from
time to time hereafter reasonably request further to evidence the
sale and assignments of the properties from Seller to Buyer.
WITNESS the due execution hereto this __ day of
, 1985.
CITY OF TUSTIN
By.
Mayor
ATTEST:
City Clerk
EXHIBIT "C"
Page 2 of 2