HomeMy WebLinkAboutCC 10 SALE WTR SVC. 04-15-85· ~ CONSENT CALENDAR
TO:
WILLIAM HUSTON, CITY MANAGER
FROM:
BOB LEDENDECKER, DIRECTOR OF PUBLIC WORKS/CITY'ENGINEER
SUBJECT:
SALE OF WATER SERVICE FACILITIES TO CITY OF ORANGE
(FILE #2950)
RECOMMENDATION:
That the Tustin City Council, at their meeting of April 15, 1985, authorize the
sale of City of Tustin Water System facilities located in the City of Orange and
its sphere of influence in the amount of $59,400.00 to Orange 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 Orange. These facilities are located
in three parcels of land lying northerly of Fairhaven Avenue 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 part of the original ~ystem
of the privately owned Tustin Water Works which was purchased by the City in
November, 1980.
The City of Orange has offered to purchase one hundred fifty seven (157) domestic
water services and facilities within Parcel 1, three hundred forty two (342)
domestic water services and faciliti6s in Parcel 2 and one (1) domestic service
and facilities in Parcel 3.
The Tustin Water Service Management Program, as prepared by Boyle Engineering
Corporation, recommended the sale of these services and facilities to Orange 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 one hundred fifty seven (157)
water services and facilities in Parcel 1, three hundred forty two (342) water
services and facilities in Parcel 2 and one (1) water service and facilities in
Parcel 3 to the City'of Orange in the amount of $59,400.00. This sale amount is
based upon the appraised value to the facilities as well as the cost to the City
of Orange to integrate these facilities into their city system.
'Bob Ledendecker
Director of Public Works/City Engineer
BL:jr
Attachment
AGREEMENT FOR SALE OF CERTAIN
CITY OF TUSTIN WATER SYSTEM FACILITIES
TO THE' CITY OF ORANGE
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 Orange, a municipal corporation organized and existing
pursuant to the laws of the State of California ("Orange").
~CITALS:
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
Orange, and in unincorporated territory of the County of Orange
adjacent to the City of Orange.
B. Such water system facilities are not necessary for
supplying water to the inhabitar[ts of Tustin.
C. Orange is ready, willing and able to render water
service to the customers now served by means of such facilities
on terms which are just and reasonable and which do not reasonably
discriminate against such customers.
D. Tustin is willing to sell and Orange desires to
purchase such facilities.
NOW, THEREFORE, pursuant to the promises, covenants and
conditions contained herein, the parties hereto agree as follows:
1. Tustin agrees to sell and Orange agrees to purchase the
following personal property and fixtures in an "as is" condition,
free and clear from all liens, claims, encumbrances:
A. 157 domestic water services and facilities located
in Parcel 1 of Exhibit "A" attached hereto and incorporated
herein by this reference.
B. 342 domestic water services and facilities located
in Parcel 2 of Exhibit "A".
C. One (1) domestic water service and facilities
located in Parcel 3 of Exhibit "A".
D. The components of the water services and
facilities described in subsections (A), (B), and (C) above
are further described in Exhibit "B" attached hereto and
incorporated herein by this reference.
2. Tustin will provide Orange with copies of all
operational and customer service records and maps for systems in
Parcels 1, 2 and 3.
3. Orange shall pay Tustin for the facilities described in
Section 1 hereof the sum of Fifty-nine Thousand Four Hundred
Dollars ($59,400.00). Payment of such sum shall be made on the
date of transfer of the facilities to Orange (the Date of
Transfer).
4. All personal property taxes for the fiscal year 1984-85
shall be pro-rated to the Date of Transfer.
5. Each Party to this Agreement shall pay all costs in-
curred by it in the negotiation and preparation of and perform-
ance of its obligations under this Agreement.
6. Orange 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 Tustin. Orange will pay to Tustin all amounts
received by Orange for water service rendered prior to the Date
of Transfer.
7. The amount set forth in Section 3 hereof which Orange
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 facilities 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. Orange shall reimburse Tustin for all costs incurred in
the replacement of water mains, services and fire hydrants on
Loretta Drive and Rosalind Drive between Fairhaven Avenue and a
point 550~ feet northerly of Fairhaven Avenue. These costs shall
be determined by the amount of actual contract cost and all of
Tustin's labor cost for service conversions. Payment of such sum
shall be made on the Date of Transfer. All facility replacement
on these streets shall be constructed to comply with City of
Orange standards and specifications.
9. The Parties contemplate a twelve (12) month period
between the date of this Agreement and the Date of Transfer.
During this period of time, Orange 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 Orange to accept the facilities 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 10 hereof and the payment contemplated by Section 3
hereof are to be made, provided that such date shall be no later
than three hundred sixty five (365) 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.
10. Tustin shall, on the Date of Transfer, provide to
Orange a Bill of Sale in the form attached hereto as Exhibit "C"
and by this reference made a part hereof.
CITY OF TUSTIN
By.
Mayor
ATTEST:
City Clerk
ATTEST:
CITY OF ORANGE
By.
Mayor
City Clerk
(39)
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EXHIBIT A
-----.- Parcel Boundary
~te~ No.
OESCR][PTXON OF" FACILiTiES
PARCEL I
Description Qty. Unit.
1 8" AC Main 322
2 6"'AC Main 5904
3 4" AC Main 423
4 1" Plastic Services* 117
5 1" Galvanized Services* 40
6 5/8" X 3/4" Meters 152
7 1" Meters 5
8 6" Fime Hydrants 16
LF
LF
LF
EA
EA
EA
EA
EA
*Services include corp stop, pipe, angle meter stop and meter box.
£XHXBIT "B"
Page I of 3
Item No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
2O
21
22
23
DESCRIPTION OF FACILITIES
PARCEL 2
Description Oty. Unit
8" AC Main 507 LF
8" Steel Main 1405 LF
6" AC Main 6151 LF
6" Steel Main 4313 LF
4" AC Main 1463 LF
4" Steel Main 2519 LF
3" St'd Screw Main 3620 LF
1" Plastic Services* 118 EA
1" Galvanized Services* 180 EA
1 1/2" Plastic Services* 3 EA
1 1/2" Galvanized Services* 2 EA
3/4" Plastic Services* 1 EA
4" AC Services 1 EA
5/8" x 3/4" Meter 261 EA
1" Meters 76 EA
1 1/2" Meters 2 EA
2" Meters 3 EA
6" Fire Hydrants 20 EA
4" Fire Hydrants 5 EA
3" Fire Hydrants 3 EA
6" Ductile Iron Main 1007 LF
1" Copper Services* 36 EA
6" Fire Hydrants 4 EA
Services include corp stop, pipe, angle meter stop and meter box
Replacement of Main, Services and Hydrants installed on Rosalind
and Loretta (Job 9020) during months of January and February, 1985
are not included above.
Exhibit B - Page 2 of 3
PARCEL 3
~tem No. Description, ~t~. Untt
1 1" Galvanized Service 1 EA
2 1" Meter 1 EA
(Shell Service Station located at Northeast corner of Tustin Ave..
and Fairhaven)
*Service tncludescorp stop, pipe, angle meter stop and meter box.
EXHXB]T "B"
Page 3 of 3
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 Orange ("Buyer"), a municipal corporation organized 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
Seller 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 title, all of the following properties:
A. 157 domestic water services and facilities located
in Parcel 1 of Exhibit "A" to the Agreement.
B. 342 domestic water services and facilities located
in Parcel 2 of Exhibit "A" to the Agreement.
C. One (1) domestic water service and facilities
located in Parcel 3 of Exhibit "A".
D. The components of the water services and
facilities described in (A), (B) and (C) above as shown in
Exhibit "B" to the Agreement.
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 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 lien, 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 assignment of the properties from Seller to Buyer.
WITNESS the due execution hereto this day of
, 1985.
ATTEST:
CITY OF TUSTIN
By.
Mayor
City Clerk
DATE:
TO:
FROM:
SUBJECT:
APRIL 12, 1985 ~~~
WILLIAM HUSTON, CITY MANAGER ClTYMANA. GER
BOB LEDENDECKER, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER
SALE OF WATER SERVICE FACILITIES TO CITY OF ORANGE
As a clarification to the previous staff report dated April 9, 1985 regarding the
sale of water facilities to the City of Orange, the following is a recap of the
proposed financial transactions:
Appraised value of facilities
Less changeover cost to Orange system
Acquisition Cost
$229,397.00
170,000.00
$ 59,397.00
$ 59,400.00
Add actual cost for Rosalind/Loretta
mainline and service replacements
(estimate)
Net Revenue to City
$ 61,700.00
$i21,100.00
Bob Ledendecker
Director of Public Works/City Engineer
BL:jr