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HomeMy WebLinkAboutCC Res 2037 1971-10-26 I I I ..... ... ~ RESOLUTION NUMBER 2Q37 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH, CALIFORNIA, AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT BETWEEN THE CITY AND S & S CONSTRUCTION COMPANY FOR THE ACQUISITION OF AN ON-SITE WATER SYSTEM AND CERTAIN LAND FOR PARK PURPOSES. WHEREAS, The City of Seal Beach and S & S Construction Company desire to enter into an agreement for acquisition of the on-site water system in College Park East and College Park West~ and WHEREAS, The City of Seal Beach desires to acquire land for park purposes in College Park East: and WHEREAS, S & S Construction company now owns said land~ NOW, THEREFORE, be it resolved by the City Council of the City of Seal Beach: Section 1. That the city of Seal Beach and S & S Construction Company shall enter into an agreement for the acquisition of said water system and said park land. Section 2. That the Mayor of the city of Seal Beach is hereby authorized to execute said agreement, attached hereto as Exhibit "A", with S & S Construction Company. PASSED, APPROVED, AND ADOPTED by the city Council of the Ci~~ of Seal Beach California, at a meeting thereof held on the ~~ day of , 1971, by the following vote: AYES: " Councilme NOES: Councilmen ~~1 g/>.--, _ J ABSENT: Councilmen jy/J~~ Mayor ' ATTEST: , ,:. . r. , ....---:.-... ~' . ';-........ ".. ... .1).......~ ~~ ,', City Clerk , . . . -:: ~..-. " ':100". ......- '- . . '. , --- ,""" - ......... .. """- . -.... ... ",:0-' , , - -:- -- . '", -. --. AGENDA ITEM V E I I I -' .. ,.' , ~esolution Number . AGREEMENT ~ ~~S~GREEMENT is made and entered into this~~1~ay of ~ RAJ , 1971, by and between the city of Seal Beach, Cal1 ornia, a municipal corporation ("city" herein), and S & S Construction Company, a California corporation ("S & S" herein). RECITALS A. Pursuant to an agreement between City and S & S dated January l8, 1965, S & S has completed construction of an on-site water distribution system in that area annexed by City through Annexation 64-l, and commonly known as COllege Park East and West. B. S & S holds clear and marketable title of certain real property referred to as Bluebell Park and described more fully herein. C. City wishes to purchase, and S & S wishes to sell to City Bluebell Park, and the on-site water distribution system in COllege Park East and College Park West. D. On January 2l, 1971, Ordinance Number 827 of city became effective. Said ordinance established a tax, designated as "The Environmental Reserve Tax" with respect to all new residential construction in the city. E. S & S had sold numerous new residences in College Park East prior to the effective date of Ordinance Number 827 that were not occupied until after such effective date. city and S & S wish to resolve by agreement and compromise the existing dispute as to the application of Ordinance Number 827 to such new residences. NOW, THEREFORE, for good and valuable mutual consideration, the parties do hereby agree as follows: 1. The "actual total cost" of the on-site water distribu- tion system, as that term is used and intended in Section 2 of the prior agreement between the parties dated January 18, 1965, is agreed to be $63l,455.03. City shall pay said amount to S & S in accordance with the terms of Section 3 herein. S & S shall transfer and assign said on-site water distribution system to city as herein provided. 2. S & S agrees to sell to city and City agrees to pur- chase that real property consisting of fully improved subdivided lots known as Bluebell Park, for a total purchase price of $90,000. City agrees to pay said $90,000 to S & S in accordance with the terms of Section 3 herein. Said real property is more specifi- cally described as follows: Lots numbered ll6 through l25, inclusive, of Tract NO. 6177. I I 1 .,- ,-- ,'- .. Resolution Nqmber 3. The combined purchase price for said on-site water distribution system and Bluebell Park is $72l,455.03. The sum of $69,788.38 has heretofore been paid by city to S & S under Section 3 of said prior agreement dated January 18, 1965, and said sum shall be credited against said combined purchase price. city shall pay the remaining balance of such said combined purchase price in the sum of $651,666.65 entirely and solely from revenues received by City for water service to users whose lines are directly con- nected to the aforementioned on-site water distribution system, in increments in the following manner: (al At the end of each two-month period after City first receives income from water service from said water distribution system, City shall pay to S & S ewe~ty-five per cent (25%l of the total revenue received by City from users of water from said water distribution system during such two-month period. No interest shall accrue on the unpaid balance at any time, and the full amount of each payment by City shall be applied against principal. (b) If the aforesaid unpaid balance of $651,666,65 has not been fully paid by city by August l5, 1991, under the provisions of paragraph (al above, such unpaid balance shall be apid within five additional years, to wit, by August l5, 1996. If necessary to fully pay the then unpaid balance during such additional five-year period, city shall increase the percentage of the total revenue received by City from users of water from said water distribu- tion system to be paid to S & S at the end of each two-month period, and/or adjust the amount charged for water service within the area served by said water distribution system. (cl The provisions of this Section 3 super- sede the provisions of Section 3 of the prior agreement between the parties dated January l8, 1965, and said provisions of said Section 3 of said agree- ment dated January l8, 1965, shall have no further force or effect. 4. City agrees that Ordinance Number 827, establishing the Environmental Reserve Tax in city, shall not apply to new resi- dences sold by S & S in COllege Park East prior to January 21, 1971, the effective date of said ordinance, but not occupied until there- after. S & S agrees that said ordinance, as so applied and construed, is valid and enforceable, and that S & S shall not contest the constitutionality or validity of said Ordinance Number 827, or attempt to enjoin or restrain its enforcement in any manner. Any sum heretofore paid by S & S to City pursuant to Ordinance Number 827 for new residences sold prior to January 2l, 1971, and occupied thereafter shall be credited against tax liability incurred by S & S after the effective date of this agreement by virtue of the provisions of Ordinance Number 827. -2- 'I I I ........ .~-.... " Resolution' Number r-. ~ , 4. (continued) . S & S shall provide proof satisfactory to City that sales were made prior to January 21, 1971, and therefore are not subject to the provisions of Ordinance Number 827. 5. S & S agrees to transfer full and unencumbered owner- ship and fee title to the aforementioned water distribution system and Bluebell Park to City within thirty (30) days after date of this Agreement. 6. If City shall fail to pay any sum herein provided to be paid to S & S at the time and in the amounts herein specified or shall fail to keep or perform any other of its obligations hereunder and such failure either to pay money or to keep or per- form any other of its obligations hereunder shall continue for thirty (30) days after S & S shall have given the City written notice specifying such default, then and in such event this Agrement shall be deemed to have been breached by the City, and S & S may exercise all rights and remedies provided by law. If S & S shall fail to convey said water distribution system and Bluebell Park to City as herein provided, city may, in addition to such other remedies as city may have by law, bring an action or actions in eminent domain to acquire the same, and S & S and City hereby agree that in such case just compensation therefore shall be payment of the amount and on the terms herein provided. This Agreement shall constitute a stipulation in any such eminent domain action, binding upon both parties hereto. 7. Whenever under this Agrement either party shall desire to serve notice upon the other, such notice may be served per- sonally upon any officer of S & S or the Mayor, city Clerk, or City Manager of city, or may be served by registered mail, postage prepaid, addressed as follows: If to City of Seal Beach: Attention of City Council city Hall Seal Beach, California If to S & S: S & S Construction Company 8857 West Olympic Boulevard Beverly Hills, California. Either party may designate in writing given to the other any other address for the receipt of notices hereunder. 8. No acquiescence, failure or neglect of either party to insist upon strict performance of any or all of the terms hereof shall be considered or constitute a waiver of any term or condition hereof or of any performance required hereunder. -3- " I I I ...... .'"'7' " Resolution ~umber , ." 9. This Agreement does not create a general liability on the part of city. In the event that, for any reason, revenues from the operation of the on-site water distribution are insufficient to pay the ,unpaid balance of the combined purchase price specified herein within the times herein provided, the unpaid balance may not be paid from city's general funds, or any other city fund or assets. City shall, in good faith use diligence to operate and maintain said water service therefrom, in a manner calculated to enable payment of the unpaid balance of said combined purchase price to S & S in accordance with the terms of this Agreement. THE CITY OF SEAL BEACH Date t~,~;;;1.. /97/ xh~;t e~J~ Mayor ' -- By -4- -