HomeMy WebLinkAbout83-30 - Establishing a Trust Account as a Depository for Royalty Payments Made as Just Compensation for Property Acquired Through Eminent Domain Proceedings (Tidelands Trust)•
ORDINANCE NO. 83 -30
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF NEWPORT BEACH ESTABLISHING A
TRUST ACCOUNT AS A DEPOSITORY FOR ROYALTY
PAYMENTS MADE AS JUST COMPENSATION FOR
PROPERTY ACQUIRED THROUGH EMINENT DOMAIN
PROCEEDINGS (TIDELANDS TRUST).
WHEREAS, in December of 1980, the City of Newport Beach
adopted Resolution No. 9932 authorizing and directing the condem-
nation of certain real properties for oil- drilling, pass- through
and production purposes; and
WHEREAS, the majority of the owners of parcels through
which subsurface pass- through easements were required have grant-
ed said easements to the City; and
WHEREAS, there remain certain parcels on which the City
• of Newport Beach must proceed to judgment in the Superior Court
of Orange County; and
WHEREAS, in accordance with the laws of the State of
California, just compensation for the taking of the property must
be paid to the Court and subsequently deposited, by the Court,
into a trust fund maintained for the benefit of the property
owners; and
WHEREAS, the City of Newport Beach, in accordance with
Chapter 74 of the Statutes of 1978, holds the Tidelands in trust
for the People of the State of California; and
WHEREAS, in accordance with the Joint Powers Agreement
dated May 8, 1981, between the City of Newport Beach and the
State Lands Commmission, for Acquisition and Construction of
Tidelands Oil pumping and Storage Facilities, the City has been
• ,designated to perform all powers of the City and Commission to
accomplish acquisition, construction and operation of the
facilities, including the designation of the City Treasurer to
handle all receipts and disbursements required for the
administration of the Agreement; and
WHEREAS, the City is strictly accountable for all
• receipts and disbursements made in the administration of the
Agreement; and
WHEREAS, the eminent domain proceedings instituted for
subsurface, pass- through easements are an integral aspect of
successful administration of the Agreement, and the City bears
the responsibility to account for funds received and disbursed in
connection therewith; and
WHEREAS, these factors warrant the establishment within
the City Tidelands Trust Account, of a Special Trust Fund into
which just compensation in the form of royalty payments will be
deposited to accrue at the legal rate of interest, with the City
Finance Director holding said funds, in trust, for the Judgment
Condemnees until such time as the Judgment Condemnees shall make
application for disbursement.
• NOW THEREFORE, the City Council of the City of Newport
Beach DOES ORDAIN:
Section 1•
The City Finance Director of the City of Newport Beach
is directed to establish a trust account into which just
compensation in the form of royalty payments on certain parcels
shall be deposited, as directed by the Court in connection with
Judgments in condemnation entered on these parcels. This account
shall be referred to as the "Tidelands Trust Account
(Condemnation)" and shall be used for no other purpose connected
with the Tidelands, or otherwise.
Section 2:
The royalty payments so deposited into said trust
account shall accrue at the legal rate of interest.
•
Section 3•
Upon application therefor, by the condemnees of the
subsurface, pass- through rights, made to the City Finance
Director of the City of Newport Beach, disbursement of royalty
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payments, including interest accrued to that time, shall be made
• to the condemnees. Thereafter, royalty payments, as they accrue,
shall be paid directly to the condemnees by the City of Newport
Beach.
Section 4•
A status report of the Tidelands Trust Account
(Condemnation) shall be included as part of the accounting made
to the State Lands Commission by the City of Newport Beach.
Section 5:
At such time as all condemnees have made application
for and received royalty accruals from the City Finance Director
and have arranged for future royalty payments to be made directly
to the condemnees rather than to the Tidelands Trust Fund
(Condemnation), the said Fund shall be terminated.
Section 6•
• The royalty payment accruals on those parcels on which
no application is made for disbursement of the Tidelands Trust
Fund (Condemnation) royalty accruals, shall be subject to the
operation of applicable Government or other Code sections dealing
with unclaimed funds, held in the Tidelands Trust Fund
(Condemnation) or in the official custody of City's officers for
such time as prescribed by law; provided, however, that such
unclaimed funds shall only be used for Tideland Trust purposes.
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This Ordinance was introduced at a regular meeting of
• the City Council of the City of Newport Beach held on
the 12th day of December , 1983, and was adopted
on the 9th day of January , 1984 by the following
vote, to wit:
0
AYES, COUNCILMEMBERS Hart, Maurer,
Heather, Strauss, Plummer, Cox, Aqee
NOES, COUNCILMEMBERS None
ABSENT COUNCILMEMBERS None
RDG /dt
ORP /Royalty
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