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Sunset Beach-Surfside Water Company - 1966-05-16
i i C Page #11 - Minutes, May 16, 1966 p CITY PARR DEDICATION PROGRAMS Recreation and Parks Director Norman Worthy addressed the Council and presented details of the park dedication proggrrams scheduled for June 7, 1966, at Col. Jack Greer'Park, Robert B. Wardlow Park, C. Fred Schroeder Park and Earl T. Irby Park. Mr. Worthy requested Council to attend if possible and that one of them present the dedication address. g WALKWAY ENCROACHMENT - MAIN STREET The City Administrator informed Council of an encroachment problem relative to the temporary walkway on the west side of Main Street north of Mansion Avenue, and presanted a letter of agreement between the City and Huntdngton Beach Company for execution. On motion by Gisler, second Bartlett, Council approved the Letter of Agreement between the City and the Huntington Beach Company, and ! authorized the Mayor and City Clerk to execute same on behalf of the City. Motion carried. - AC ACQUISITION ©F SURPLUS COUNTY PROPERTY. FOR PARKS C,c The City Administrator presented a recommendation from the Recreation and Parks Commission that the City acquire approximately six acres of County property that may be declared surplus in the near future, located in the vicinity of .Taylor Avenue between Goldenwest and Edwards Streets, including a portion of Lake Huntington. On motion by Coen, second Kaufman, Council directed the City Administra- tor,to negotiate for the purchase of property for park purposes from the County of Orange, known as Parcels 1 and 3 of Refuse Disposal Site No. 14. Motion carried. PURCHASE RF SUNSET BEACH-SURFSIDE WATER COMPANY APPROVED The City Administrator presented an Agreement of Purchase and Sale of Sunset Beach-Surfside Water Company between the City and Sunset Beach- Surfside Water Company, for approval of the Council. ! On motion by Bartlett, second Coen, Council authorized the purchase of j the Sunset•Beach-Surfside Water Company by the City, and directed the Mayor and City Clerk to execute the Agreement of Purchase and Sale on behalf of the City. Motion carried. I AMBULANCE COMMITTEE REPORT ,i The City Administrator presented a report of a study made on recommenda- tions of the -AmbUlbace Set*ice Comdiittee of the Orange'-County+ League of California CitieA,. And-informed Council that a recommendation would be submitted .in the near future, as the initial study was inconclusive. S STREET LIGHTING - HUNTINGTON.CONTINENTAL The City Attorney presented a .legal opinion regarding payment of the street lighting bills from date of acceptance to °January 1, 1966, for the Huntington Continental Townhouse Units#1 and .#2,. stating that it was his opinion that the City.:mhould not •pay the amount requested as such payment was not stipulated in the agreements reached, and in any event, the City should not pay-utility costs until properties are entered on the tax rolls. No action was taken by the Council on this matter. FINANCIAL OPERATIONS OF CITY, j At Council 's request, the Administrator submitted a report to the Council on steps necessary to comply with -the requirements of the new Charter .in regard to the financial operation of City Departments. I On motion by Coen, second Green, Council accepted the recommendations as presented by the Administrator, and directed the Administrator to work with the City Attorney in drafting an Ordinance effecting the required changes and authorizing the -revision of certain sections of the Ordinance Code to comply with the new Charter requirements. Motion carried. LSD i +:T .: o'._.. �...:.... Y.+:niuY d..'. .rr_.• � .. -...... ,.. .. 'wry CITY OF HUNTINGTON BEACH 1 � ENGINEERING DEPARTMENT Huntington Beach, California C�e•COu� C�� April 27, 1966 Mr. Doyle Miller City kam:.inistrator City of Huntington Beach Subject: Sunset Beach Surfside Water Company Dear Mr. Miller: Attached is a study of the Sunset Beach Surfside Water Company regarding annual estimated revenue and expenses for the system. If this area should be annexed to the city of Huntington Beach in the future the annual revenue would be reduced by 151% to 20% due to the differ- ence in water rates between the City and the Company. The system of the Company could be operated as it is now. The City could make a' con-nection between the two systems on Highway 1, which could be used in case of failure of the water wells located on Sandra Lee and Los Patos . . Streets or the approach line on Warner Avenue. This connection would be made, . with a pressure regulating valve to maintain the present pressure in the Company system of_ 30 to 32 P.S.Z. If the area demanded enough pressure for fire service, booster pumps .would have to be installed at the well site or operation of the wells, .cease and the pressure regulating valve removed-:to maintain a'pressure of,, 60 to 75 P.S.I. If the'Southern Pacific Railroad shoula develop the r ght, of way they ,own- in apartments as. planned the present system would nothave enough. pressure,. to 'serve the development for fire, and domestic service. If the City .should decide to purchase the Company the water department would not have to add additional employees to maintain and operate the system. The 'loan of $32,000.00 should be paid to Union Bank. This would stop interest payments of 6% on balance of loan. The total price as quoted to the City. ". exclusive .of non-operating land would be $172,000.00. With.a. net 'revenue' of ;:` $12,OOO.a year we would be making 9% on our investment. V ry truly .yours, _ r • awes R. WYieeler Director of Public Works - _ A, Study oved appr by . Frank guellon,4 Director of Finance " M. `,�'q JRW x•:7 �,.� � � # `�- '�nss,r,mow:'` + s• ^r " , �a � � :t # z,�'"'�a�°1 ;�;� ;v�w�� ,,�'�� - k-Attach: _ `' �k y y � t � d •{ s d � - ' .���> „ � �, `;• �� pSU:CiSET ��::EiG�i ' SU.�FS1P.�"6'�`��• Ct) ,.r •, Ps WOO- - 6:c� 5 Total o ratin kevenue l9 " .. ��etered, WHO, .. ' S.2.;,442 00 . Unmetered 4ales; (Flat_ rate) �0e0 Total .0pirating Peve ue $2;7,_7`ri;.0 I�ut 7 fic GE�� ?Y�YIi-Se5 1f City Cif 1�untingC- An Peach purchased the Sunset se each Surf de Water CornPar,Zr. O;uCrati a.i� 50.00 !y4ainter:ance. last .U� 0 Lal f b P 4 !L L.r �sera.�s.or� d{lyC1'�i`.Cii�.GU AM enaT7c E 9,.00 P.�,qha ed ;power .,C�?i`.C.pv nLV tax _ .,2 00.GO Total 81 50-09 Water `r'reatment 350.00 Operations M intenamce G. Other 0-0 Total $ 450.00 TransmissionDistribution Maintenance Other AL 03 Tot _ ,;, ;;� )3 Meter reading 050.CT Customer billing expense 75Q 00 Alministrative Expenses 200. `Liability insurance Other "%)�A Total `Y'2,150.IP0 �M .V r ' Other Expense In Lieu Taxes $ 710.00 Auto Expense 300.00 County Taxes. 960.00 Total $ 1,970.00 Total Operating Expense Source of Supply 150.00 Power and Pumping 5,750.00 Water Treatment 450.00 Transmission and Distribution 3,000.00 Customer Accounting 1,500.00 Administrative Expense 2,150.00 Other Expense 1,970.00 Total Operating Expense$14,970.00 Non-Operating Expense Interest on Union Bank Loan $32,000.00 @ 6% $ 1,920.00 Annual payment on loan 8,250.00 Total non-operating Expense$ 10,170.00 Annual Gross Revenue $ 27,350.00 Less Operating Revenue 14,970.00 Less Non-operating Revenue 10,170.00 Net Revenue 2,210.00 It is recommended that the loan to Union Bank be paid to avoid payment of 6% interest. 16732 Bayview Drive "sunset Beach, California, ?''lay 16, 1966e lluntii7i.--ton Beach City C'ou-,,Icil, 520 Ylag-noi-ia "street, Huntington Beacb., California, Q-1 By Gentlemen; i have been delegated by the Board of I.J-L ec ors of the Sunset Beach Chamber of Coi-timerce to aslk, your council to talke action tonibrht- to sto -,, and nulify any action taken by this council and/or by the '-"',-L*I7,y of tenting ton 33e�.cla in regards to t-�)-e --)urcI ciase of Tne `sunset Beaclrl-S-Lirfside '.later Company. `he reasons behind the Dosition taken by the Board of Directors, Sunset Beach Chamber of Commerce are best stated in aletter dated lyllay 14, 1966 ti-tat was sent. to The 'Ublic Utilities Come-nisson by our organization, ",'ith vo,,-,r permission 1 would like to read it to you. Gentle-,-,ien this letter was sib nekdt i--iot only by the Board of of Director's of The Sunset Beach Chamber of Commerce, but also by the leaders of various community grou-i-)s in Sunset Beach@ to repeat Gentlemen, i impTore you on behalf of the community of Sunset Beach, to take action tonight to stop any and all negotiations on the part of the City of Huntington Beach' s purchase of The Sunset :Beach-Surf side Water Company. T) Le-C n W R 0— - h--,Ys 0 ic Vice /P,,M-P- Board of birectors, Sunset Beach Chamber of Commerce, 14 May 1966 public Utilities Commission 107 So Broadway, Room 5109 Los Angeles 129 California Gentlemen: The "Board of Directors of the Sunset Beach Chamber of Cor=erce protests the plans of the City of Huntington Beach to purchase the Sunset Beach- Surfside Water Company. - The purchase of the water company by Runtin,gton' Beach is an attempt to circumvent the( California State laws which protect unincorporated areas being annexed against their wishes... It is an attempt to put. 13untington. Beach into a position to coerce our area Into annexation. In addition, we would like to point out that if "the City of Huntington Beach Water Department has approximately $140,000.00 of surplus funds which can be used to purchase the Sunset Beach `water Company, these funds should be used for the benefit of the taxpayers of Huntington Beach who pay for the operation of the Huntington Beach City Water Ue- parcment. For instance, Huntington beach is considering a bond issue for fire protection improvements. This '$140,000.009 by an ordinance change, could be used for this purpose. 'If the City of Huntington Beach is ?ruying the Sunset Beach Water Company for speculative profit, they are exceeding the purpose. for which the Huntington Beach water Department was formed, to provide eater to the taxpayers of Huntington Beach, In fast, they are restricted by city ordinance from providing city water services to arras outside the city limits of Huntington Beach, The organized community groups in Sunset 'Beach, such inis The Chamber of. Commerce, Las Mamas, The Federatod women's 41ub, and The Board of Dir- ectors of the Sanitation District, have met and propose to set up a community water district to buy the water company and operate it for the benefit of the community, We have operated our own sanitation district and plant successfully for the paf;t 40 yew and feel that we could, t / T Chamber of Commerce � Sunset Beach, Califoh- va, May 9, 1966 COPIES TO COUNCIL Honorable- Jake R. Stewart, Mayor, and MAY 12 1966 Huntington Beach City Council P. O. Box 190 Huntington Beach, California Gentlemen: We understand that the city of Huntington Beach contemplates .purchasing the Sunset Beach water distribution facilities, which serves an area totally outside the city limits of Huntington Beach. The Sunset Beach Chamber of Commerce requests that you withhold any future action towards .purchase of the water company in order that the residents of this area may set up a water: district and purchase this water. company. We realize that this area may someday annex to Huntington Beach, . which may seem to provide a basis for an expenditure of Huntington Beach taxpayers' funds for the water company. -even though it does not serve Huntington Beach taxpayers. The community- feeling as expressed to the Chamber of Commerce is that this area is not ready for annexation at this time; .purchase of the water company by Huntington Beach would definitely be viewed by the residents of Sunset Beach as an attempt to coerce or force -their annexation. Should the residents decide to annex to Huntington Beach at a future date, this proposed water district could be incorporated into the Huntington Beach water system at that .time. Si, c rely, erald A. Jones President cc: Mr. Doyle Miller, City Administrator Huntington Beach, California Mr. David L. Baker, Supervisor, Second District 515 N. Sycamore Santa Ana, California public Utilities Commission 107 S. _Broadway, Room 5109 Los Angeles 12, California CITY OF HUNTINGTON BEACH ENGINEERING DEPARTMENT Huntington Beach, California / tbuy� c 9-P may 6, 1966 p,PPI OV%.D BY CI i Y COUNCIL ►" MAY 21966 ....._ .._.............................__._.._...19 _ Mr. Doyle Miller City Administrator City of Huntington Beach CITY cLxx Dear Mr. Miller: This morning I met with Martin Fenton regarding the acquisition of the Sunset Beach-Surfside Water Company and per Council instructions reached a mutually agreeable purchase price. Since discussing this with the Council I've turned up an additional $15,387 of indebtedness which brings the total price to $147,387 for the acquisition of the property, free and clear of any encumberance. Based on this new cost the estimated return on the investment will be about 8.15 per cent. It still appears to me to be a very sound investment and I will proceed with the acquisition unless, formally or otherwise, directed to stop. Huntington Harbour Corporation, for tax purposes, would like to close by June 30, 1966. While this doesn't appear possible, they will have the burden of pushing this through the State Public Utilities Commission. We can, on the assumption that this transaction will be approved, get a demand processed and the agreements executed so that we can go into escrow at any time. The firtt item to go to Council will be tentatively scheduled for May 16a. This will be the Agreement of Purchase and Sale and must be executed by the City and Huntington Harbour Corporation. It will become a part of their application to Public Utilities Commission for permission to sell the utility. It agrees to bpy and sell, generally describes the Company holdings, and sets forth the conditions of sale. This will be patterned after the document used in the Southern California dater transaction. Additionally Huntington Harbour is interested in disposing of the northerly remnant of the triangular piece of property on Warner Avenue, but not until their next fiscal year. This will ,give us and the Council ample time to consider the merit of this. e James R. Wheeler 101-0 - Director of Public Works JRW:am o PC F o = z City of HLintitl ton lea ch K. DALE BUSH CITY ATTORNEY PAUL C. JONES F�a rr. no P.O. BOX 190 CALIFORNIA 92648 CITY CLERK s-►� �OQ BETTY DIEKOFF N 6 1 1 TREASURER DOYLE MILLER COUNCILMEN ADMINISTRATIVE JAKE R. STEWART, MAYOR OI FICER TED W. BARTLETT BRANDER D. CASTLE ALVIN M. COEN ASSISTANT ERNEST H. GISLER ADMINISTRATOR N. JOHN V.V. GREEN DR. HENRY S. KAUFMAN DR. DONALD D. SHIPLEY January 9, 1967 y 3 i d Local Agency Formation Commission P.O. Box 838 f Santa Ana, California Re: Formation of Sunset Beach Water District Gentlemen: On your agenda for January 11, 1967 the above referenced matter appears. The City of Huntington Beach acquired the assets of the Sunset Beach-Surfside Water Company fr an the Huntington Harbour Corp. in a condemnation action in June, 1966, and the proponents of the foundation of the above mentioned water district have challenged the authority of Huntington Beach to so acquire the assets . The City of Huntington Beach and the opposing interests have tentatively negotiated a settlement in this matter by which the City will turn over the operating assets' to the proposed district if the district is, in fact, formed and funded . By reason of the negotiations and the pending litigation the City does not desire to express an opinion or to give evidence either for or against the proposed district. We will, however, be in attendance and will attempt to provide any requested information to allow your agency to reach a proper decision. JAMES R. WHEELER DELBERT G. HIGGINS DIRECTOR OF PUBLIC WORKS FIRE CHIEF KENNETH A. REYNOLDS FRANK S. ARGUELLO PLANNING DIRECTOR VINCENT G MOORHOUSE FINANCE DIRECTOR LIFEGUARD CHIEF JOHN SELTZER NORM WORTHY RECREATION B OLLIN C CLEVELAND POLICE CHIEF PARKS DIRECTOR BUILDING DIRECTOR Local Agency Formation Commission January 9, 1967 • Page 2 i r f 1 We do wish to stress that our failure to support or oppose the contemplated district should not be interpreted to mean that the City is in favor of or opposed to its formation, and should be interpreted to mean that the City feels that because of the current proposals of settlement, it is honor bound to remain neutral in this matter. We thank you for your consideration in this matter . Very truly yours, CITY OF HUNTINGTON BEACH i 4oyle" Miller City Administrator DM: bwo CC: LAFC Members Mr . George G. Logan e r LOCAL AGENCY FORMATION COMMISSION December 5, 1966 Local Agency Orange County AdWinistration Building Santa Ana, California Cn Re t Proposed or etio of Sunset Beach Water District Gentlemen.- The aroponent has requested this matter be continued to January 11,, 1967 to allow time to settle pending liti.- etion Involving the existing eater facilities 1n the Sunset t each area CMIZ1 Continuance to January 11, 1967 as requested Respectfully submitted, Richard T. Burner Executive Officer RTT/ih cc : George 0. Logan H. Rodger Howell City of Huntington Beach I ' I I �V ORANGE COUNTY V NTY 0 F ADMINISTRATION BUILDING P. O. BOX 838 ® O SANTA ANA, CALIFORNIA i C TELEPHONE: 834-2239 G AREA CODE 714 LOCAL AGENCY FORMATION COMMISSION November 29, 1966 City of .Huntington Beach P. 0. Box 190 Huntington Beach, California Chairman C. M. FEATHERLY Attention: Paul C. Jones CityClerk Supervisor First District WILLIAM D. MARTIN Mayor Laguna Beach Gentlemen: INotice is hereby given that a public hearing will be CHARLES E. tive of N held b the Local Agency Formation Commission of Representative of y g y General Public Orange County on December 14, 1966 at 2:00 P.M. in Room 503, Orange County Administration Building, 515 North Sycamore Street, Santa Ana, California on DAVID L. BAKER the proposed formation of Sunset Beach Water District. Supervisor Second District Very truly yours, GEORGE B.HONOLD Mayor LOCA AGENCY FORMATION COMMISSION Garden Grove � �`� I Al1efnofe Richard T. Turner WILLIAM HIRSTEIN Supervisor Executive Officer Fourth District I Alternate GLENN G. WALTERS Mayor Fullerton RICHARD T. TURNER Executive Officer 12,11 114.E &J. �-�- G�,�.� ,ram-<.. a•c-�- �-- . --� September 21, 1966 Department of the Navy Southwest Division Naval Facilities Engineering Command San Diego, California 92132 Attention: W. B. Ross, Director Utilities Division . Re: NBy (U) 40925 Gentlemen: Sunset Beach-Surfside Enclosed herewith is a certified copy of the minute action of the City Council of the City of Huntington Beach relative to the acquisition of the Sunset Beach- Surfside Water Company by the City. If further information is required, please feel free to contact us. Sincerely yours, Paul C. Jones Gift Clerk PCJ:aw Enc. Q O DEPARTMENT OF THE NAVY SOUTHWEST DIVISION NAVAL FACILITIES ENGINEERING COMMAND SAN DIEGO, CALIFORNIA 92132 SIN-REPLY REFER TO: Ser 8534/1123 SEP 14 1966 City of Huntington Beach Engineering Department Huntington Beach, California 92647 Subj : Contract NBy (U) 40925 - Sunset Beach-Surf side Water Company Gentlemen: Receipt is acknowledged of your letter of August 11, 1966 advising of acquisition of the Sunset Beach-Surfside Water Company by your City. In order that subject contract may be cancelled and replaced by an agreement with your City, it is requested . that a copy of your Ordinance be forwarded at the earliest possible date. Such Ordinance shall apply to one two-inch water connection located at Building W-8, Naval Weapons Station, Seal . Beach, California. The estimated annual consumption is less than 500 CCF. Upon receipt of this information, contractual documents will be forwarded for your signature. Sincerely yours,- G W."B: Hoes Direptor utilities Piv161CW low r%J VVd'r r INGTpN O RgrFaBt9� CITY OF all -�.- -- ---------- ---- --- —--- ---------- - CALIFORNIA yc e �•1909P•\�° "NTY CPS July 14, 1966 Jones-Gillespie Insurance Co. P�.O'. Box 271 Huntington Beach, California ASV: Mr. Arthur C. Gillespie Dear Sirs Per our telephone conversation of July 14, 1966 this is to put you on notice, as insurance car- rier for the City of Huntington Beach, that on July 1, 1966, the City of Huntington Beach ac- quired through purchase the Sunset Beach.,Surf- side Water Co. The actual purchase price of this entity includ- ing tanks, pipelines, buildings, and rights-of- way amounted to $147,000. 1 am including herewith. a schedule of approximate values of buildings and equipment which were acquired in said purchase. If we can supply you with any further information, please feel free to contact this office. Sincerely yours, Paul C. Jones City Clerk Enc;cc Pacific Indemnity Edward R. Stang, Water Superintendent Doyle Miller, City Administrator James R. Wheeler, Director of Public Works r i CITY OF' HUNT IHGtON BEACH Schedule of approximate values of buildings and equipment acquired in the purchase of the Sunset Beach- Surfside Waster Company. Office Building: (Located on Anderson St. , Sunset Beach) Frame construction - composition shingle roof - one floor - two room - approximate value . . . . .$ 2,500 House: (Located on Anderson St. , Sunset Beach) Frame construction - composition shingle roof - two floors - living quarters on 2nd floor - garage space and storage on 1st floor approximate value . . . . . $10,000 Waster Tank: (Located on Anderson St. , Sunset Beach) Redwood construction - elevated approximate value . . . . . $10,000 Water Tank: (Located near corner Algonquin St. & Los Paatos) Redwood construction - elevated approximate value . . . . . $12,500 Water Tank: (Located near corner Algonquin St. & Lajas- Pats) Redwood construction - ground level approximate value . . . . . $ 7,500 Pump House: (Located near corner Algonquin St. & Los Paatos) Sheet motel construction - one floor - 10 x 20' approximate value . . . . . $ 2 ,000 PWAP House: (Logated near corner Algonquin St.' & Los Paatos) Sheet metal construction - one floor - 10 x 10, approximate value . . . . .$ 1,000 glectrical ppumps and equipment - located in pump houses apt corner Algonquin St. Los Pat®as approximate value $ 20000 WALTER L.NOSSAMAN 1886-1964 LAW OFFICES R055 G.THARP(SAN DIEGO) LAUGHLIN E.WATERS OF COUNSEL WILLIAM L.SCOTT NOSSAMAN,WATERS, SCOTT, KRUEGER & RIORDAN ROBERT B.KRUEGER SAN DIEGO OFFICE RICHARD J.RIORDAN SUITE 1300 U.S.NATIONAL BANK BUILDING THOMAS L.CAPS SAN DIEGO,CALIFORNIA 92101 RAUL THOMAS GUINN 611 WILSHIRE BOU LEVWARD TELEPHONE 239-7917 WILLIAM E.GUTHNER,JR, LOS ANGELES, CALIFORNIA 90017 VENTURA OFFICE ALVIN S.KAUFER LACHLAN FOSTER TELEPHONE 628-5221 60 CALIFORNIA STREET RODNEY C.HILL VENTURA,CALIFORNIA 93001 ALAN J.BARTON - TELEPHONE 648-2861 RICHARD R.MAINLAND H.GARY KNIGHT y 24, 191 BOYD S.LEMON E.PAUL TONKOVICH JAMES M.RUDDICK FILE: -31 SUBJECT: Ron. K. Dole sush City Attorney $20 Main Street Huntington Beach,, California 92646 Door Mr. Bush; we #i too harevith ase copy of apt lottor dated May 2,3, 1966 fire* this offiee to the tia Utilities sii0 a of the tat* of Californiat together with copy of the App1iestion thavoin roforio3 to. Pursuant to the algal. " —4W bot*aaea4en Mr. 0. A. of t Beach-w5urts144 Water map city officials* *airy Application reflects the i lrwt r 1. p'a rapae>eph I threwoo now ars4*d-r'*# notioes to be gibe to th Mayor and the City CoLincil in Uou of . James R. wheelers, Water Superiaten4out of that City. 2. Thorn has bao* a4ded to said Application n aaeaparapaph 13 a roquest for on IX.., ggxtg healer,, whiah grant ad u,14 obviato the necessity for holdL4 a pub- lie boarins OVA the subject A"Iil etiea. it you have aw questions concerning than fore- $ois please beet us know. very truly your's*. NOSSAMANt "WATUSt , aw,Bob & nolm y Original signed by Rodney C. Hi0 Ro&o ' 0. Hill RCH/Lb F► . ay ,,y, V . 0. A• nnAhoor Son'. J"aete R. Stewart Sayero the City of tivo- Deer City Cot=il of the City of Huntington Beach COPIES TO COUNCIL 14AY 2 5 19RO i WALTER L.NOSSAMAN 18E6-1964 LAW OFFICES ROSS G.THARP(SAN DIEGO) LAUGHLIN E.WATERS OF COUNSEL WILLAM L-SCOTT NOSSAMAN,WATERS, SCOTT, KRUEGER & RIORDAN ROBERT B.KRUEGER SAN DIEGO OFFICE 1 RICHARD J.RIORDAN SUITE 1300 U.S.NATIONAL BANK BUILDING THOMAS L.CAPS SAN DIEGO,CALIFORNIA 92101 PAUL THOMAS GUINN - 611 WILSHIRE BOU LEV!A�RD TELEPHONE 239-7917 WILLIAM E.GUTHNER,JR. LOS ANGELES, CALIFORNIA 90017 ALVIN S.KAUFER VENTURA OFFICE LACH LAN FOSTER TELEPHONE 628-5221 60 CALIFORNIA STREET RODNEY C.HILL VENTURA,CALIFORNIA 93001 ALAN J.BARTON TELEPHONE 646-2861 RICHARD LAND y 9 1966 H.GARY KNIGHT HT BOYD S.LEMON E.PAUL 70NKOVICH q� JAMES M.RODDICK FILE: 0-i 5,l Joint . SUBJECT: J'ri int Application Via Air l Certified of Sunset Ap cb-: fside Water- Return, Receipt .equested pany grad. t e . of Hunting- ton c o . fer publ c Public utilitlas Commi,ssion Fifth Floor. California State Building Civic. Center.: Sea .Francisco 2, California t.tentioa .. Willi Williao Dunlop,. ecxe t MIT-y Gear l.em n: On Reba f of Sunset Beach-Surfside eater Company,, 4 California corporlation: .and the. City of Runtington Beach, chartered cit we hand you herewith an original and tvelvO conformed cop4s of, the joint Application by said company and sa4 d City to an order author.:ink Sunset Beacb� or: side area Company to sell Oubst,an i llly all of its asset$ to the City of Huntington Beach and to be. elieved of its obligations ad a p lane Utility. eater company. 14e..are sexy .n the enclosed Applicationsi directly no your n Pr ncisco office in order to expedite your considera.: tion of the same.. A c+ py cif this lette ' and of the Application Ito, being sent to your-, pep Angeles office. e Waqld a ecl, to receiving wba:tevar a editlon c;an given to e s ec Application since i wou be desir isle to permit, the transfer to take place prior to the end of the current account rig period, which is June 30'L i966. It is requested that the issicn act a 'ar1te n the subject Appl ication in carder to eliminate the de y which would be occasioned by .a public fearing. Both applicants bellevo. that a public hearing s unnecessary and that the _ sion may obtain all information needed by it to make e decision with respect to the subject Application Ix kgpt:e. 'In I' r r� Fublic Utilities Cotmtssion May 3, 16 Page i o this connection, we wish to advise you that a pubis.c wearing a held 'by the City Council of the City oaf ti ton Beach with respect the acq i ition *9 the assets described in the subject pplicatien., and, at said heearin the V »cd Prot" d t of, the Sunset Beach dhamber of Comogdet, klr. V., R4 teven.to :a stated his opposition to the putthAse of s by the City of Huntington Bee r. $tev,t eq appa ent ly �iow tie. Proposed purchase a a step y the, City of tington Beach tgimr a ne a,to of the Sunset Be c �Suxr �.de area wh to pre ent .y� are i . the � i���p� _Ated portions of the �=t y of e : W, wi t� port ti t the *e is 'no nea- eSiary connection, between, the ` iie ship of tree �xb ct water . t ibut16 system and whether or t the dreg in which it ,operates is a,, Oottidn- of the nincorpo ated atee of Orange au ty, t a portion of n incorporate City � �e�ulisition of e to1. f course Intel t d to the statutory ptopedure. for the a atio a of unino rp ted totr tc��°�es.e. Ue do not btlio a that t ,. Stevenson opposition i based pa to o to the + it id,ratLo e�f the suibo ct Application by the i.;;;Lo Ms but wish to apprise, ,you of, its e". teoe; Also wish to. direct your attention to the fact that the. Agtdement df ,.Purehase and Sale of the subject water sy t v*,icy hay been exec t d p t ppl :o t i pp ded to .the Application as ib�t R is sobstantially, the. same, a trect which was sub subm t tted to the Co .ss o .in ohnec« t3: s n. vfth, Applidation No0 r, 7 dated fttober ,1963 anO e iolo �. In the: att o . t o pp idat;Wo of SoUthOrd Calift Ul tot p -eta tho . t Of, Huntington Beach �'ar a Ok r thoc - �i the Sole of Certain Plop tti ok �c� t sr. California Water pOny.;:�o. ► + c �:cas utho�eked b the , i i i inits rte sec ion o, 66403 dated: . Doce b r, 3;. . Tie res eetfdlly. request th. t You accept the 'enclosed pplicatio, for film,. e also enclose the c��c�� of -this in the cunt of . 0. 0. in-payment of, the requisite : . fee t er'e ov. If a4y additional fees are requirod irl ub�is Vttlit es i i YjAy 3j. 196 Page Throe ponnoctton with the sabjeot Appi.1cation we woulo appreciate being billed thOr,00T. NOSWIANO WAT I IMUEOSR ATOM �rigi.a ^.dney G, HE By Yae 0* Hill. C. / b ."Suits,6t oach6-5a f side eater C mpaxty �� � Rumt toh Beach; a £azn a ce Not. �Iako ti, .Stewart Xdyot Of the City of Huntin -on Beach ivio C ant,er Huot in GO al c Honorable City Gcoocil of the City of Huattdgton Bt4r vtc, Contov. V.witington, Besoh, California A0,0 1 m 5209 10,7 Stagy Los ell a1 �'o �, Mt. Lavender. i i �C �J W '`- - / C, i 34 v LDS PATQ=..) A,1 q SuhSe-T Oeac,�- �c��-�s d/e �-31-L7 3FC' 2' . with the present water company personnel, operate the (,cater district efficiently and effectively, _ We ask you to withhold approval of the purchase of tho water company by the City of Huntington Beach. we. in turn, have contacted Huntington Harbour Corporation on May 81.. 1966s to start negotiations with thom to . set up a satisfactory purchase 4greei:ent on a local community basis. Enclosed are several articles which ran in the Manta Ana Register sub- stantiating our batter, and a copy of a latter mailed to the Huntington Beach City Council on May 9th on this subject. r C[ER�„ AGREEMENT OF PURCHASE AND SALE OF coy SUNSET BEACH-SURFSIDE WATER COMPANY THIS AGREEMENT, made and entered into this day of , 1966, by and between the CITY OF HUNTINGTON BEACH, a municipal corpor ion and political subdivision of the State of California (hereinafter referred to as the "City") and SUNSET BEACH-SURFSIDE WATER COMPANY, a California corporation (hereinafter referred to as the "Company"). W ITN E -S SET H: WHEREAS, the City desires to acquire and operate a water system to serve the Sunset Beach-Surfside and its inhabitants and to that end wishes to purchase the properties and facilities of the Company in Orange County; and NOW, THEREFORE, for and in consideration of the mutual agreements herein contained, it is hereby agreed between the City and the Company as follows: 1. Upon and subject to the terms and conditions hereinafter set forth, the Company agrees to sell and the City agrees to purchase all of the water production and distribution properties and facilities and all properties, franchises, water rights, operative rights and assets of every kind (except accounts receivable and cash and the real -property hereinafter specifically excluded) comprising the water system of the Company, located partially within the territorial limits of the City of Huntington Beach, County of Orange, State of California, owned and operated by the Company as its so-called Sunset Beach- Surfside Water Company, including, without limiting the generality of the foregoing, all operating and customer account records, maps and drawings, equipment, supplies and materials, specifically described in Exhibit A attached hereto and hereby made a part hereof, all lands, easements and rights of way, and all physical properties and appurtenances thereto comprising said Sunset Beach-Surfside Water Company System and including, without limiting the generality of the foregoing, the real property specifically described in Exhibit B, which is attached hereto and hereby made a part hereof, but exclud- ing the real property described in Exhibit C, which is attached hereto and made a part hereof. 2. The base purchase price shall be the sum of One Hundred Forty-Seven Thousand Three Hundred Eighty-Seven Dollars ($147,387) representing the agreed valuation of said Sunset Beach-Surfside Water Company System as of June 30, 1966. The purchase price shall be paid by the City to the Company in cash upon the Closing Date on delivery to the City of a conveyance of the purchased properties. f- Real and personal property taxes, charges for power, payments for water service by flat rate customers and unbilled charges for metered water service shall be adjusted as hereinafter provided in paragraphs 3, 6 and 7 thereof. 3. The purchased properties shall be conveyed to the City upon the Closing Date free and clear of all liens, encumbrances and liabilities, ex- cepting only (a) the lien of property taxes for the then current fiscal year; (b) the obligations of the Company under all main extension agreements relating to the system to which the Company is a party; and (c) such other liens and encumbrances as, in the reasonable opinion of the City Attorney, shall not impair the usefulness or value of the purchased properties in utility operations. The Company shall deliver to the City on the Closing Date all deeds, bills of sale, assignments and other documents required to effectuate transfer of title to the City. The Company at its expense shall procure and affix to the appro- priate instrument of conveyance anystamps representing stamp taxes imposed upon the transfer. The Company shall cause to be issued to the City, at the Company's expense, a policy of title insurance in the standard CLTA land owners policy form by a title insurance company satisfactory to the City insuring title in the City to each parcel of real estate, other than easements described in Exhibit B, free and clear of all liens, encumbrances and liabilities except said above mentioned liens, encumbrances and liabilities, such policy to be in the face amount of One Hundred Thousand Dollars ($100,000). The Company shall also furnish the City with a report of a title insurance company as to any chattel mortgages or other liens of record against the purchased properties. Real and personal property taxes relating to the purchased properties shall be prorated as of the Closing Date. If the City Attorney is of the reasonable opinion that the purchased properties are subject to liens and incumbrances which impair the value or usefulness thereof in utility operations, he shall so notify the Company in writing within ten (10) days after being furnished with a preliminary report of title specifying with particularity such liens and incumbrances and the Company shall thereafter have the following options: (a) To terminate this agreement without liability; (b) To remove the liens or incumbrances specified in said notice within a reasonable time; (c) To agree to an equitable adjustment of the purchase price. The Company shall notify the City in writing of its election as aforesaid within twenty (20) days after receipt of such notice of the City Attorney. In the event the City Attorney fails to give said notice to the Company within said ten (10) day period, title to the purchased properties shall be deemed acceptable to the City. -2- I 4. It is believed by the parties that this transaction is not subject to California sales or use tax, but if any such tax is claimed or imposed by the State of California, the City agrees to assume all responsibility and expense in defending any such claim and to pay any tax found to be due. 5. The Company shall pay over to the City upon the Closing Date the amount of any refundable deposits, including accrued interest if any, made by consumers- to guarantee payment of bills!. The City hereby agrees to assume all obligations of the Company to consumers in respect of said deposits. 6. Charges for power purchased from .Southern California Edison for use in connection with the Sunset Beach-Surfside Water Company System shall be prorated as of the Closing Date. If appropriate arrangements can be made, such proration shall be made on the basis of meter readings taken on the Closing Date jointly by the City and the Company and, otherwise, in such equitable- manner as may be agreed upon by the parties. 7. It is understood that all accounts receivable and unbilled revenues for water supplied to and including the Closing Date are excluded from the properties to be conveyed to the City. The City agrees that, without charge to the Company, it shall attempt to collect for the account of the Company all .bills for water service transmitted by the Company prior to the Closing Date and to use such methods as are legally available to the City to enforce collection of such bills, other than the institution of litigation, provided the City shall not be responsible to the Company for the non-payment of such bills, or the amount thereof, if such collection attempts are unsuccessful. The City shall be entitled to receive all amounts paid by flat rate customers which are allocable to water service furnished after the Closing Date. The Company shall pay to the City within fifteen (15) days after the Closing Date and from time to time thereafter as received such portion of any amounts collected by the Company from flat rate customers billed by the Company prior to the Closing Bate as is allocable to water service furnished after the Closing Date. As and when the City collects any bills from flat rate customers, the City shall be entitled to retain such portion as is allocable to service furnished after the Closing Date and shall pay over the balance to the Company. All unbilled revenues for water service to metered customers shall be prorated as of the Closing Date upon the basis of such portion of a thirty (30) day month as shall have elapsed between the last meter reading date for which a bill has been transmitted and the Closing Date. Remittances shall be made to the Company by the City as collections are made. 8. All risk of loss or injury or destruction to any and all of the properties covered by this agreement shall be upon the Company at all times until the Closing Date and in the event of any such loss, injury or destruction, the purchase price shall be appropriately adjusted, but the Company shall be entitled to retain any insurance proceeds or claims against any insurance carrier relating to any such loss, injury or destruction. -3- 9. At all times prior to the Closing Date, the Company shall continue such usual upkeep, maintenance and repair of the properties covered by this agreement as it would if it were to continue in ownership and operation of the same 'and any and all expense incurred by the Company in so doing, together with any and all operational expenses incurred in connection with said properties prior to the Closing Date, shall be borne by the Company. 10. Between the date of this agreement and the Closing Date, the Company shall submit to the City for approval any expenditures in excess of Five Hundred Dollars ($500) before incurring the same or incurring obligations therefor, for any proposed addition, betterment or extension to said Huntington Beach Water System but no such approval shall be required for expenditures for ordinary repairs and maintenance or expenditures that may be required to comply with the Company's regularly filed utility rules and regulations or any expenditures of Five Hundred Dollars ($500) or less for any addition, better- ment or extension. 11. If between the date of this agreement and the Closing Date, the City shall make any street improvement or construct any public projects which require the Company to reconstruct or relocate any part of its water system, the City shall reimburse the Company for the entire cost of such reconstruction or relocation by adding such cost to the purchase price. 12. The City agrees upon the Closing Date to undertake the distribution of water to all consumers then served by the Company's Sunset Beach-Surfside Water Company System and the City shall assume as of that date any and all public service obligations, to which the Company is then subject with respect to the purchased properties, subject, however, to the right of the City to fix rates and determine conditions of service as a municipal corporation engaged in the public supply of water. 13. This agreement is hereby expressly made subject to the condition that the sale and transfer of the properties comprising the said Sunset Beach- Surfside Water Company System, upon the terms and conditions herein provided, shall be approved and authorized by the Public Utilities Commission of the State of California and this agreement shall not become effective until such approval and authorization shall have been obtained. If said approval and authorization has not been obtained on or before September 1, 1966 either party may terminate this agreement. The City agrees to join in any reasonable application to the Public Utilities Commission for said approval and authorization. 14. The Closing Date shall be such date as may be agreed upon in writing between the City and the Company at any time subsequent to the date upon which appropriate authorization of the Public Utilities Commission is obtained. 15. The Company agrees that while this agreement is in effect, the Company will not initiate any proceedings to change the rates applicable in the Huntington Beach District Water System and will not sell or otherwise dis- pose of any of the properties which it has hereby .contracted to sell to the City. -4- 16. All notices, demands or other writings in this agreement provided to be given or made or sent or which may be given or made or sent by the parties hereto shall be deemed to have been fully given or made or sent when made in writing and deposited in the United States mail addressed as follows: To Company: 16542 Chatham Place Huntington Beach, California To City: City Council City of Huntington Beach City Hall Huntington Beach, California The address to which any notice, demand or other writing may be given or made or sent to any party may lie changed upon written notice given by such party as above provided. IN WITNESS WHEREOF, the parties hereto have caused this agreerrentto be executed by persons thereunto duly authorized, the day and year first above written. CITY OF HUNTINGTON BEACH By (��, /�. fj"� yor ATTEST: City Clerk of the City,/ Huntington Beach By• SUNSET BEACH-SURFSIDE WATER COMPANY Deputy By GLA. President By Secretary ,ATTEST: APPROVED AS TO FORM: Cd*M Attorney -5- EXHIBIT "A" A. Equipment (Office) 1 Typewriter - Royal 1 Adding machine - Underwood electric 1 Addressograph 1 Desk chair 1 Filing cabinet 5 Rand index files 1 Neptune meter tester 6 Chairs straight B. Tools Mueller tapping machine E 2 Ditch pumps Wrenches - dies 1 Goldak pipe locator C. Supplies 1. Miscellaneous 540 feet �411-copper pipe 360 feet 111-copper pipe 6 Smith-Blair clamps Dayton coupling (assorted) Assorted �4" and 1" fittings Assorted service clamps 55 No. 3 Brooks meter boxes 57 No. 3 Brooks meter box extensions 5 No. 4 T.T. valve boxes complete 2. Pipe 34 - 6" x 3' x 3" M.O.A. R.T. Transite g - 6" x 3' x 3" M.O.A. Simplex Transite 3 - 3" x 13' Simplex Transite 13 - 3" x 13' R.T. Transite 23 - 4" x 13' R.T. Transite 1 - 6" x 6'6" Simplex Transite 57 - 6" x 13' R.T. Transite 2 - 6" x 6" R.T. Transite 3. Well Pumps Layne & Bowler with U.S. Motor 20 h.p. Layne & Bowler with U.S. Motor 20 h.p. 4. Three wood tanks, total capacity 161,000 gallons EXHIBIT "B" Legal description and plats of areas to be acquired by the City of Huntington Beach from Sunset Beach-Surfside Water Company. LEGAL DESCRIPTION B-1: That portion of the northeast quarter of the northwest quarter of fractional section 29, Township 5 South, Range 11 West, San Bernardino Base and Meridian, in the City of Huntington Beach, as per map recorded in Book 51, page 13 of Miscellaneous Maps, records of Orange County, described as follows: Beginning at the Southeast corner of the Northeast one-quarter of the Northwest one-quarter of said fractional Section 29, thence South 89° 51'53" West 50.22 feet along the South line of the Northeast quarter of the Northwest quarter of said fractional Section 29 to a point, said line also being the Easterly . prolongation of the centerline of Warner Avenue, thence North 01 051" 07" West 30.00 feet to the true point of beginning, said point lies on a line 30.00 feet, measured at right angles, North of the Easterly centerline prolongation of Warner Avenue, thence South 890 51' 53" West 253.79 feet along said line to a point said point also lying on a curve .concave to the Northwest and having a radius of 645.00 feet, a radial line through said point bears South 28' 02' 27" East; thence Northeasterly along said curve 110.84 feet through a central angle of 9° 50' 38" to a point, said point also lying .on a line 90.00 feet, measured at right angles North of the Easterly prolongation of Warner Avenue, thence North 890 51' 53" East 180.38 feet along said line to a point, said point also lying on a line 30.00 feet, measured .at right angles West of the East line of the Northeast one-quarter of the Northwest one-quarter of said fractional Section 29, thence South 0° 43' 22" 39.79 feet along said line to a point said point also lying on a tangent curve concave to the Northwest and having a radius of 20.00 feet, thence Southwesterly 31.62 feet along said curve through a central angle of 90' 35' 15" to the true point of beginning. A plat of above described parcel is hereinafter attached entitled "Plat B-111. LEGAL DESCRIPTION B-2: That portion of Fractional Section 24, Township 5 South, Range 12 West, as shown on a Map of Government Survey approved April 7, 1914 by Frank C. Gould, United States Surveyor General for California, being a portion of the parcel of land described in the Patent to John C. Ord recorded July 13, 1916 in Book 1, page 303 of Patents, records of Orange County, California, described as follows: Beginning at a point on the Northeasterly line of the 50 foot right of way described in the deed to Pacific Electric Railway Company, recorded June 15, 1917 in Book 302, page 106 of Deeds, distant 40 feet Northwesterly from the North- westerly line and/or the Southwesterly extension thereof, of the Rancho La Bolsa Chica, as .shown on a Map recorded in Book 1, page 431 of Patents, records of Los Angeles County, California; thence Northwesterly along said Northeasterly line of the Pacific Electric Railway Company, 100 feet; thence Northeasterly parallel to the Northwesterly line of Rancho La Bolsa Chica, 60 feet; thence Southeasterly parallel to said Northeasterly line of the Pacific Electric Rail- way Company, 100 feet; thence Southwesterly parallel with the Northwesterly line of said Rancho La Bolsa Chica, 60 feet to the point of beginning. A plat of above described parcel is hereinafter attached entitled "Plat B-211. I S i 4 / / 36LLJ �. ILJ Q f•/` ,• � / ',,// N cam► 7 •,;%' •`', �' •'��,, ,�'• , �s � °N :9�., ..,�t u,.l of L .! ~ l'�J`,I• �,.� b`'�*gib 'n'P +.. ,e �'.4"}�t'uj +z,ra.i'...�"''',� •� !� LE .-ar:..'_J T ....� .— -� ^`r� _\;ti`.�t_� _.... .�.C� r, yr�V�w3���;;j�I��..�N��� �J'':�..� 1 �� •� �TU�OttiC�Gl'�lon . _ - -, - t•�*• '._a � .+r .�'iri"" Wr-.�.. -Kw.. '+m.� ics'."R„wy'. �".i^"_'•-._, .+�A'`*!""fa t-' :•i '� .. • � :ti � � � l��ge1 t f . - .4 �. tiu6 � cs'1 H' J'K "'}' M, ... ...,..�+..^+'� •V.-h�.{. 0 EXHIBIT nC" Legal description and plat of area to be retained by Sunset Beach Surfaide Water Company. LEGAL DESCRIPTION C-1 That portion of the Northeast quarter of the Northwest quarter of fractional Section 29, Township 5 South range 11 West, San Bernardino Base and Meridian, in the City of Huntington Beach, as per map recorded in Book 51 page 13 of miscellaneous maps records of Orange County, described as followst Beginning at the Southeast corner of the Northeast quarter of the Northwest .quarter of said fractional section 29; thence N 00 43' 22" W 90.92 feet along the East line of the Northeast quarter of the Northwest quarter of said frac— tional 29. to a point; thence S 890 161 38" 730.00 feet to thetrue point of beginning, said point lies on a line 30.00 feet, measured at right angles, West of the East line of the Northeast quarter of the Northwest quarter of said fractional Section 29, thence N 00 43' 22" W 214.00 feet along said line to a point, said point also lying on a curve concave to the Northwest and having a radius of 645.00 feet. A radial line through said point bears S 620 491 02" E; thence Southwesterly 280.67 feet along said curve through a central angle of 240 55' 56" to a point; thence N 890 51? 53" E 180.38 feet to the true-point of beginning, A plat of above described parcel is hereinafter attached entitled "Plat C-1" it 1 ` ,✓' ✓• ? i 177 r17 in l P*71 t ) 1 f