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RESOLUTION No, 1436
A RESOLUTION OF THE CITY COUNCIL CF
THE CITY OF HUNT INGT ON BEACH AUTHORIZ-
ING THE EXECUTION OF AN AGREEMENT WITH
THE PACIFIC ELECTRIC RAILWAY COMPANY
WHEREAS, the City of Huntington Beach has been named as
a defendant in a condemnation action entitled "PEOPLE v.
PACIFIC ELECTRIC RAILWAY COMPANY, et al, No. 55933", which ac-
tion was originally filed on or about April 17, 1951, to con-
demn certain right-of-way for street and highway purposes, a
portion of the property to be condemned lies between the
Present Highway 101 and Huntington
ton Beach Municipal Trailer r
Park; and
WHEREAS, said original action was dismissed and a new
action filed, entitled "PEOPLE v. PACIFIC ELECTRIC RAILWAY"
COMPANY et al, No. 68603", and which action is now pending
in Superior Court of Orange County, California; and
WHEREAS, it has been the contention of the City that the
city owned that portion of the land sought to be condemned
which lies between Highway 101 and the Huntington Beach Trail-
er Park, subject to the easement of the Pacific Electric
Railway Company for railway purposes; and
WHEREAS, the Pacific Electric Railway Company has main-
tained that they own the fee of said portion of the property
above sought to be condemned; and
WHEREAS, this matter has been in litigation for over nine
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Res. No. 1436
years and efforts to resolve the matter of the ownership and
title to that portion of the property sought to be condemned
above referred to has not been determined; and
WHEREAS, the City of Huntington Beach has been informed
by Pacific Electric Railway Company that in the event the
City and the railroad could effect an agreement relative to
the ownership of this land that the railroad would take im-
mediate steps to secure permission from the applicable Feder-
al authority to abandon the use of said land for railroad
purposes; and
WHEREAS, the City of Huntington Beach, if it continued
with the litigation as to the title of said portion of the
property sought to be condemned, could reasonably anticipate
an additional period of time. and cost to the City and the
possibility that the City might lose in said action; and
WHEREAS, in the event an agreement is now effected with
the Pacific Electric Railway Company, the railway company
could proceed with its request for permission to abandon
said railway over the property above referred to; and
WHEREAS, the Council has considered this matter and has
concluded that it is to the best advantage of the City and
for the general welfare of the inhabitants that the rail-
road tracks between the present Highway 101 and the City's
trailer park be abandoned, and to that end, that it would be
to the benefit of the City that an agreement be effected in
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Res. No. 1436
said litigation as to the ownership of the property in ques-
tion;tion• and
WHEREAS, Pacific Electric Railway has offered to compro-
mise said litigation to the effect that both the City and
Pacific Electric Railway would have an equal ownership of the
fee of said property, subject, however, to the railroad ease-
ment on the portion of the surface thereof.
NOW THEREFORE, BE IT RESOLVED by the City Council of
the City of Huntington Beach, as follows:
1. That it is the consensus of opinion of this Council
that it is for the best interests of the City that an agree-
ment be effected with the Pacific Electric Railway Company
insofar as the title to the property in the present condemna-
tion action "PEOPLE v. PACIFIC ELECTRIC WAILWAY COMPANY et
al,"Case No. 68603, is concerned.
2. It is further found by the City Council that a fair
and equitable agreement is that the Pacific Electric Railway
and the City of Huntington Beach be equal owners of the fee,
subject to the right of the railway to use the surface of a
portion thereof for railroad purposes.
3. The City Council finds that the agreement proposed
and submitted by Pacific Electric Railway, a copy of which
is attached hereto and made a part of this resolution is
equitable and is to the best interests of the City of Hunt-
ington Beach.
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Res. No, 1436
h. It is further resolved that for the best interests of
the City of Huntington Beach the Mayor and City Clerk be
authorized to execute the agreement between the City and
Pacific Electric Railway Company,
PASSED AND ADOPTED by the City Council of the City of
Huntington Beach, California$ at a regular meeting thereof
held on the 19th day of September, 1960.
Mayor
ATTEST-
City C
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Res. No. 1436
STATE C1F CALIFORNIA
County of Orange ss
City of
Huntington Beach
I, PAUL C. .JONES, the duly elected, qualified and acting
City Clerk of the City of Huntington Beach and ex-officio
Clerk of the City Council of said City, do hereby certify that
the whole number of members of the City Council of the City of
Huntington Beach is five; that the foregoing resolution was
passed and adopted by the affirmative vote of more than a major-
ity of all the members of said City Council at a regular meet-
ing thereof held on the 19th day of September, 1960, by the
following roll call vote:
AYES: Councilmen:
Gisler: Lambert,, Waite, Stewart; Wells
NOES: Councilmen:
None
ABSENT: Councilmen:
None
City Clerk an x-officio Clerk of
the City Council of the City of
Huntington Beach, California
AGREEMENT
THIS AGREEMENT, entered into this day of Septem-
ber, 1960, by and between the CITY OF HUNTINGTON BEACH, a
Municipal Corporation, hereinafter referred to as "City", and
PACIFIC ELECTRIC RAILWAY COMPANY, a corporation, hereinafter
referred to as "Railway".
W I T N E S S E T Hs
RECITALS.
(a) City and Railway each claim to own the fee title to
the certain property in the County of Orange, California,
shown in red and yellow on Map CEH 22459 attached hereto.
(b) There is pending a condemnation suit in the Superior
Court of Orange County, being Case No. 68603 , entitled "THE
PEOPLE OF THE STATE OF CALIFORNIA vs. PACIFIC ELECTRIC RAILWAY
COY1PANY, et al", in which a portion of said property is being
condemned by the State of California.
(c) City desires to secure the abandonment of the rail
facilities of Railway on the property in question.
(d) It is the desire of the parties hereto to effect a
settlement of the rights in the property referred to from and
after the date of this agreement.
NOW THEREFORE, IT IS AGREEDs
1. Railway shall own as tenants in common with City said
1.
land shown in red and yellow on Map CEH 221+59 attached here-
to, Railway to own a one-half (1/2) interest therein and the
City to own a one-half (1/2) interest therein, subject to
the other provisions contained in this agreement.
2. Railway retains a railroad easement over the sixty
(60) foot width of said land shown in Yellow on Map CEH
221+59 attached hereto, which is included by amendment in the
condemnation action filed by The People of the State of Calif-
ornia vs. Pacific Electric Railway Company, et al. , being
Orange County Superior Court No, 68603 .
3. The parties hereto will divide equally all income
received from said property shown in red and yellow on Map
CEH 221+59 attached hereto after deducting therefrom the nec-
essary costs incurred for the production of such income and
excluding therefrom income from railroad operations. The
term "income" as contemplated by this agreement shall be de-
fined as constituting all moneys, rents, issues or profits
derived in any way or manner whatsoever, from said property,
from and after the date of this agreement, whether by or as
a result of oil or other lease or development , sale, or
decree of court in any condemnation action, save only revenue
Urived from or in connection with railroad operation upon
said property, or moneys paid incident to award which may
be made in any condemnation action for reconstruction or re-
location of railroad facilities, which revenue derived from
2.
said railroad operation and moneys paid incident to such
award for reconstruction or relocation of railroad facili-
ties shall vest in Railway. Without limiting the foregoing
definition, the term "income" as used in this agreement
shall specifically include revenue from said property from
oil production directly from the property, slant hole
drilling through or under it, and drilling for production
under the ocean opposite said property, and awards in said
condemnation suit, including severance damages. Said prop-
erty is subject to the following outstanding agreements:
(a) Oil and Gas Lease dated March 1,1952,be-
`r tween Railway as Lessor and Seaboard Oil Company
as Lessee covering the right of way between En-
gineer' s Station 1770#00 and Engineer's Station
1853*43.4, an undivided one-half interest in that
portion between Engineer's Station 1770+00 and
the center line of Newland Street which was assign-
ed to Bandini Petroleum Company July 8, 1955•
(b) Slant Well Agreement dated March 1 19521
between Railway as Permittor and Seaboard Oil
. Company as Permittoe , covering the right of way
between Engineer' s Station 1770*00 and Engineer's
Station 1853*43.4 an undivided one-half interest
in that portion of the right, of way between En-
gineer' s Station 1770+00 and the center line of
Newland Street which was assigned to Bandini
Petroleum Company July 8, 1955.
(c) Partial Termination, Partial Assignment
and First Amendment to the Slant Well Agreement
referred to in (b) above dated September 1, 1955,
whereby said agreement is terminated insofar as
the right of way between Engineer' s Station
1853*43.4 and Engineer' s Station 1807449.8 is
concerned, assigned insofar as the right of way
between Engineer's Station 1770+00 and Engineer' s
Station 1807+49.8 is concerned to Monterey Oil
Company as to one-third of a one-half interest and
to Humble Oil & Refining Company as to one-third of
a one-half interest, and amended to change the
rental provision.
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I+. The parties agree to make no claim for income
which either has received from said land shown in red and
yellow on Map CEH 221+59 attached hereto prior to the date
of this agreement.
5. Upon the execution of this agreement, Railway shall
file with the requisite public bodies having jurisdiction,
at its sole cost and expense , an application for the aban-
donment of Railway's Newport Line between Second Street in
the City of Huntington Beach and the end of the line at
Newport Beach, and to diligently prosecute the same to con-
clusion.
6. Railway and City will each bear one-half of the
cost of defending any condemnation suit with respect to the
property herein referred to, it being understood that these
costs exclude appearance fees and attorney' s fees of the
respective parties, provided that no substantial expense
shall be incurred without concurrence of the other party.
Railway has advanced heretofore certain costs of defending
such condemnation suit with respect to the property herein
referred to, other than appearance fees and attorney' s fees
on behalf of City, and Railway will continue to advance
such costs as may to the respective parties seem necessary
and advisable in the defense of any condemnation. actionss
and, as to the one-half thereof for which City is responsible,
there shall be deducted from the share of City in any award
in said condemnation suit, or from the share of City in any,
other revenue hereunder, an amount equal to one-half of said
costs payable by City to Railway hereunder, such amount or
amounts so deducted to be paid to Railway in satisfaction of
liability of City for one-half of said costs as aforesaid.
IN WITNESS WHEREOF , the parties hereto have signed this
Agreement as of the day and year first hereinabove written.
CITY OF HUNT INGT ON BEACH�
By.
Ma or
ATTE •
Ci y erk
PACIFIC ELECTRIC RAILWAY COMPANY
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