HomeMy WebLinkAboutDR Horton San Diego Holding Company Inc; 2001-02-20;i ,
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RECORDING REQUESTED BY
City of Carlsbad
WHEN RECORDED, MAIL TO:
City Clerk
City of Carlsbad
F
1200 Carlsbad Village Drive Carlsbad, California 92008
Please record the document at no fee as it is to the benefit of the City
(Gov. Code [6103].)
83o1 DOC # 2001-0137784
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AGREEMENT FOR REIMBURSEMENT OF COSTS FOR
WATER PIPELINE OVERSIZING AND EXTENSION IMPROVEMENTS
WITHIN RANCH0 CARRILLO VILLAGE “N” - CT 99-09
CMWD PROJECT NO. 97-533
THIS AGREEMENT FOR REIMBURSEMENT OF COSTS FOR WATER PIPELINE
OVERSIZING AND EXTENSION IMPROVEMENTS WITHIN RANCH0 CARRILLO
VILLAGE “N” - CT 99-09, dated as of Feburary 20 2001, (this “Agreement”), is
made at Carlsbad, California, between D. R. Horton, San Diego Holding Company, Inc., a
California corporation (“Developer”) and the CARLSBAD MUNICIPAL WATER DISTRICT, a Public Agency organized under the Municipal Water District Act of 1911, and a Subsidiary
District of the City of Carlsbad (“District”), with reference to the following recitals:
RECITALS
A. Developer is the record owner of certain real property commonly known as
Ranch0 Carrillo Village “N” (Protico) Phase 3, located in the City of Carlsbad, California,
(the “Cityl), more particularly described as Lot 164, Carlsbad Tract 93-04, inclusive, Map
No. 13800, filed in the Office of the County Recorder of San Diego County on June IO,1999 as
File No. 199-407799.
B. The Planning Commission of the City adopted Resolution No. 4682 and 4683 on
February 15, 2000, approving the Ranch0 Carrillo Village “N” tentative tract map, CT 99-09,
condominium permit relating to development of a residential community in Ranch0 Carrillo
(“the Project”).
C. Condition No. 47 of Planning Commission Resolution No. 4682, the Ranch0
Carrillo Village “N” project approvals, require Developer to install a IO-inch diameter potable
water pipeline from Tract CT 99-09 to an existing 700 HGL pressure zone water pipeline in
Carrillo Way and to oversize the potable water pipeline within the tract from 8 inches in
diameter to 10 inches in diameter to meet the needs of the homes to be built within Ranch0
Carrillo Village “N” (the “Project Requirements”). The potable water pipeline improvements are
referred to in this Agreement as the “Water Work” and are more particularly described in Section 2(b), below.
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D. The District and Developer recognize and acknowledge that the Water Work,
more particularly described in Paragraph 2(b) below, exceeds the infrastructure otherwise
required of Developer in connection with its buildout of Ranch0 Carrillo Village “N”. Developer
agrees to install or cause the installation of the Water Work provided that the District agrees to
reimburse Developer as set forth in this Agreement.
E. District and Developer acknowledge that Government Code Section 66485 allows the District to require a sub-divider to construct improvements benefiting property outside
the subdivision; but Section 66486 requires the District to enter into a reimbursement
agreement for such improvements. The parties intend that this Agreement satisfy the
requirements of Government Code Section 66486.
NOW, THEREFORE, the District and Developer agree as follows:
1.
reference.
Recitals. The Recitals are true and correct and incorporated herein by this
2. General - Developer’s Obliaations.
(a) By entering into this Agreement, Developer waives any and all potential
constitutional objection (Nolan/Dolan) relating to the Water Work.
lb) In consideration of the District’s reimbursement and other undertakings
as set forth herein, Developer agrees to install the Water Work. The Water Work shall include
the following improvements, which are more specifically described on Exhibit “A”:
1) Approximately 452 linear feet of lo-inch diameter potable water pipeline beginning at an
existing 12-inch diameter pipeline in Carrillo Way and extending to the northerly boundary of
Lot 165, together with all necessary valves and appurtenances, including those necessary to
connect the Water Work to the District’s main at Carrillo Way; 2) Oversizing approximately 766
linear feet of 8-inch diameter potable water pipeline to lo-inch diameter including valves. The
Water Work is shown on City Drawing No. 386-8, Sheets 3, 4, 8, 9 and 10 prepared by Hunsaker & Associates (the “Plans”).
(cl Developer shall complete the Water Work within five (5) years of signing
this Agreement, provided that the District timely satisfies all of its obligations under this
Agreement.
W Developer shall install the Water Work substantially in compliance with
the District approved plans and specifications, and other design documentation for the Water
Work.
3. General - District Obliaations.
(a) District agrees that this Agreement, together with the City’s Development
Improvement Agreements for Project, will satisfy the requirement of the Reimbursement
Agreement referred to in Condition No. 47 of the Project Approvals.
below. (W District agrees to reimburse Developer as described in Sections 5 and 6
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(cl The Total Oversizing and Pipeline Extension Cost is currently estimated
to be $51,753. An itemized estimate of the Total Oversizing and Pipeline Extension Cost is
attached to this Agreement as Exhibit “B”.
03 District shall reimburse Developer an amount (the “Reimbursement Amount”) equal to: (i) the actual Total Oversizing and Extension Cost (regardless of whether
the actual Total Oversizing and Extension Cost meets or exceed the estimated Total Oversizing
and Extension Cost set forth in Subsection 3(c), above); plus, (ii) an overhead allocation of seven percent (7%) of the actual Total Oversizing and Extension Cost in lieu of other
reimbursement for Developer’s cost incurred for salary and benefits for staff of Developer’s
home offices, supervision above the level of on-site superintendent, general corporate, legal,
and accounting fees, the cost of borrowed funds, insurance and bond premiums, and expenses
for meeting with and presentations to governmental agencies which issue permits or otherwise regulate project approval; plus, construction administration, construction fees, and permit fees
advanced by Developer (collectively, the “Overhead Costs), and (i) and (ii), together, the
“Total Reimbursable Cost”). The actual Total Reimbursable Cost shall include all costs
associated with the installation of the Water Work noted in Exhibit “B”. The Total Reimbursable
Cost is currently estimated to be $55,375, calculated as follows:
4. Reimbursable Water Work.
During the performance of any Reimbursable Water Work, Developer shall retain
detailed payment records for all items of Reimbursable Work, for use by District in auditing
subsequent reimbursement requests by Developer. Developer’s requests for reimbursement
(each a Reimbursement Request) shall include copies of plans, specifications, engineer’s cost
estimates, bids received, contracts, change orders, invoices, payment slips, canceled checks
(front and back), lien releases and other documentation reasonably required by District to
evidence the completion and payment for each item of Reimbursable Water Work.
Reimbursement Requests may be submitted only after District has formerly accepted the Water
Work improvements, in accordance with item 5.(g) below.
5. Audit of Reimbursable Expenses.
(a) Expenses for Reimbursable Work (including without limitation overhead
and the allowance permitted under clause (e) below) are referred to herein collectively as “Reimbursable Expenses.”
(W All Developer’s reimbursement requests will be processed and audited for
District by a Deputy City Engineer selected by the Public Works Director.
03 The Deputy City Engineer shall review all Reimbursement Requests and the payment records submitted in connection therewith and shall within thirty (30) days
thereafter issue to District and Developer a report either accepting Developer’s submittal or
specifying with particularity any reimbursement items or amounts not approved. Any
reimbursement items or amounts not approved by the Deputy City Engineer may be further
pursued by Developer using the dispute resolution provision of Section 7 below.
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03 District’s reimbursement obligations hereunder shall be based upon the
actual costs incurred by Developer in performing Reimbursable Water Work (including overhead
and the allowances specified in (e) below).
@I Notwithstanding anything herein to the contrary, and without limitation and
in addition to the reimbursable Water Work, District specifically agrees that each of the following
shall be deemed Reimbursable Expenses:
An amount fixed at seven percent (7%) of the eligible costs for
Reimbursable Water Work, exclusive of this clause (e), to compensate for overhead expenses
incurred by Developer including for salary and benefits, for staff of Developer’s home office,
purchasing department expenses, project supervision, general corporate legal and accounting
fees and other normal overhead expenses incurred by Developer.
(9 Upon completion of construction of the Water Work, Developer shall forward one copy of each invoice submitted to Developer by Contractor, to the City’s Public
Works Director (Director), together with an invoice for all other components of the Actual Cost
not otherwise reflected on the Contractor’s invoice. The Director shall confirm and approve the
Reimbursement Amount based upon the components of Actual Costs and Overhead Costs set
forth in Sections 4 and 5 of this Agreement. If the Director objects to any items comprising the
Reimbursement Amount, the Director shall notify Developer within ten (10) days of receipt of all
invoices forwarded by Developer. Failure to so notify Developer shall be deemed the Director’s
approval of such invoices. In the event the Director does object, Developer and the Director
shall meet to discuss the disputed amount (at which time Developer shall make available all of
the Work Documentation) and attempt to resolve the matter through good-faith negotiation.
(9) Prior to the submission to the Director of all invoices, Developer shall
obtain necessary or appropriate lien releases from the Contractor(s), and shall obtain from the
City and any and all appropriate governmental agencies, all approvals, certificates, and other
documents necessary to indicate the completion of the Reimbursable Water Work, and the
ability to put the public improvements into use. The date Developer receives all such final lien
releases, approvals, and certificates shall be deemed the date of completion of the Water Work
improvements (the Completion Date).
6. Pavment of Reimbursable Expenses.
(a) Payment of Reimbursable Expenses shall be made, in cash (check or
money order), within sixty (60) days after the Auditing Engineer’s determination on any such
Reimbursement Request (or determination pursuant to Section 7 if applicable).
(b) Payment of any Reimbursable Expenses under this Agreement shall not
be reduced for fees or charges that may be payable as a condition of obtaining permits for the
development. District shall not offset Developer’s entitlement to reimbursement under this
Agreement against any other obligation of any person.
w The District shall not unreasonably withhold acceptance of the Water
Work improvements.
(d) Developer and District agree that the only source of reimbursement funds
available to Developer are from the District’s Water Connection Fee.
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7. Disputes/Claims. If a dispute should arise regarding the performance or
interpretation of this Agreement, the following procedure shall be used to resolve any question or fact or interpretation not informally resolved by the parties. Such questions, if they become
identified as a part of a dispute among persons operating under the provisions of this Agreement shall be reduced to writing by the principal of Developer or the Director. A copy of
such documented dispute shall be forwarded to both parties involved along with recommended methods of resolution which would be of benefit to both parties. The Director, or principal, upon
receipt, shall reply to the letter, including a recommended method of resolution within ten (10)
days. If the resolution thus obtained is unsatisfactory to the aggrieved party, a letter outlining
the dispute shall be forwarded to the Board of Directors for their resolution through the office of
the Executive Manager of District. The Board of Directors may, but are not obligated to resolve
the dispute. If the Board of Directors considers the dispute, and directs a solution, the action of
the Board of Directors shall be binding upon the parties involved, although nothing in this
procedure shall prohibit the parties from seeking remedies available to them at law.
8. Successors: Covenant to Run with Real Propertv. This Agreement and the
covenants contained herein shall be binding upon and inure to the benefit of the Developer and District and shall run with the real property and create an equitable servitude upon the real
property. After District reimbursement to Developer, the provisions of this Agreement shall no
longer apply to, and the same shall no longer be or constitute an equitable servitude against or
run with the land and the equitable servitude hereby created shall automatically terminate.
Upon the request of Developer, District shall execute and deliver to Developer, in recordable
form, any further documents and/or instruments reasonably necessary to evidence that Project
is thereafter fully released and free from the provisions of this Agreement, provided that the cost of preparing and recording such documents and/or instruments shall be paid by Developer.
9. Assiqnment of Aareement. Developer shall not assign this Agreement or any
part thereof or any monies due there under without the prior written consent of the District.
10. Notices. Unless otherwise specifically provided herein, all notices, demands or
other communications given hereunder shall be in writing and shall be deemed to have been
duly delivered upon personal delivery, or by Federal Express (or similar reputable express
delivery service), or by facsimile transmission with back-up copy mailed the same day, or as of
the second business day after mailing by United States Certified Mail, return receipt requested,
postage prepaid, address as specified herein. Notices required to be given to Developer shall
be addressed as follows:
Developer: D. R. Horton, San Diego Holding Company, Inc.
Stefan La Casse, Vice President
1010 South Coast Highway, Suite 101
Encinitas, CA 92024
Telephone: (760) 6346700 FAX: (760) 634-6770
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Notices to District shall be delivered to the following:
Carlsbad Municipal Water District
Attention: Lloyd Hubbs, Public Works Director
1635 Faraday Avenue
Carlsbad, CA 92008
Telephone: (760) 602-2730
FAX: (760) 602-8562
Each party shall notify the other immediately of any changes of address that
would require any notice delivered hereunder to be directed to another address.
11. Counterparts. This Agreement may be executed in any number of counterparts,
each of which when so executed and delivered shall be deemed to be an original and all of
which counterparts taken together shall constitute one and the same instrument.
12. Governino Law and Venue. This Agreement shall be interpreted and enforced
under the laws of the State of California, and venue shall reside in San Diego County,
California.
13. Complete Aqreement. This Agreement contains the entire agreement between
the parties with respect to the subject matter contained herein, and supersedes all negotiations,
discussions, and prior drafts with respect to this subject matter.
14. Amendment. This Agreement may be amended by a written instrument
executed by District and Developer.
15. This Agreement shall be effective as of the date first above written, and Term. shall terminate on the earlier of (i) the date the District fully reimburses Developer the
Reimbursement Amount, or (ii) January 1, 2015.
16. Third Partv Beneficiaries. This Agreement shall be deemed to confer rights upon
any individual or entity which is a party hereto, and the parties hereto expressly agree to any
such third-party benefit.
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17. Severabilitv. The invalidity or unenforceability of any provision of this Agreement, as determined by a court of competent jurisdiction, shall in no way affect the validity
or enforceability of any other provision hereof.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
date first set forth above.
DEVELOPER:
D. R. HORTON, a California corporation
,,a3 l G k,
(sign here)
CITY OF CARLSBAD, a municipal
&uwD. Kew -bG \iB
(print name/title)
Date:
ATTEST:
By:
(sign here)
(print name/title)
+ %% i/
i i.. 4OR M. WOOD, Secretary
Architect/License Number
(Proper notarial acknowledgment of execution by Developer must be attached.
(President or vice-president and secretary or assistant secretary must sign for corporations. If
only one officer signs, the corporation must attach a resolution certified by the secretary or
assistant secretary under corporate seal empowering that officer to bind the corporation.)
(If signed by an individual partner, the partnership must attach a statement of partnership
authorizing the partner to execute this instrument.)
APPROVE AS TO FORM: b
8308
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
On \-2.-O I before Me, Stacie Donahue, Notarv Public I
personally appeared John D. Kerr, Jr., Vice President.
DR Horton San Dieao Holdina Companv, Inc. ,
personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose
name(s) are/is subscribed to the within instrument and acknowledged to me that he/she/they executed
the same in his/her/their authorized capacity, and that by his/her/their signature(s) on the instrument
the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
WITNESS my hand and official seal.
(SEAL)
EXHIBIT “A”
WATER PIPELINE LOCATION MAP
”
LOCATliii MAP 93i~
VIA MAXIM0
BOUNDARY OF CT99-09
PROJECT NAME RANCH0 CARRILLO VILLAGE “N” PROJECT EXHIBIT
NUMBER WA TERMVE REIMBURSEMEIVT A GREEMEIVT CTgg-og A
I..““”
8311
EXHIBIT “B”
PRELIMINARY COST ESTIMATE FOR WATER LINE REIMBURSEMENT
RANCH0 CARRILLO VILLAGE “N”
CARLSBAD TRACT NO. 99-09
DRAWING NO. 386-8
CITY OF CARLSBAD
8312
CERTIFICATE OF ASSISTANT SECRETARY
The undersigned hereby certifies as follows:
1. He is a duly elected, qualified and acting Assistant Secretary of D.R. Horton San
Diego Holding Company, Inc., a California corporation (the “Company”), is familiar with the facts
herein certified and is duly authorized to certify the same.
2. The following is a true, correct and complete copy ofresolutions related to the subject
matter as adopted by the Consent of Sole Director of the Company dated October 16,200O (the
“Resolutions”). The Resolutions have not been amended, rescinded or modified and remain in full
force and effect as of the date hereof.
Authoritv of Vice President and Division President
WHEREAS, effective May 27, 1999, John D. Kerr, Jr.,was elected to the
office of Vice President of the Company and Division President (the ‘Division
President”) of the Company’s San Diego Division (the “Division”), to serve until the
next annual meeting of the directors of the Company and until his successor is duly
elected and qualified or until his earlier death, resignation or removal;
NOW, THEREFORE, BE IT RESOLVED, that the Division President is
hereby authorized and empowered, in the name and on behalf of the Company in the
Division, (i) subject to written corporate approval by any one of the following
officers of the Company: a) Chairman of the Board, b) Vice Chairman, President and
Chief Executive Officer, c) Executive Vice President, Treasurer and Chief Financial
Officer, or (d) the Region President of the Division (the “Approving Officers”), to
execute and deliver contracts, agreements and other documents and instruments for
the purchase of real property, and any improvements or appurtenances constructed
thereon or affixed thereto, or any interest therein, including without limitation any
right-of-way, easement, leasehold or other tangible or intangible property, right or
interest, and any personal property relating or incident thereto, (ii) subject to the
written corporate approval of any one of the Approving Officers, to execute and
deliver contracts, agreements, deeds, conveyances or other obligations of the
Company, closing statements and other documents and instruments for the sale of
improved or unimproved real property, or any interest or right therein, owned, leased
or otherwise controlled by the Company, and (iii) to execute and deliver office and
model home leases and such other agreements, instruments or documents as the
Approving Officers shall direct;
RESOLVED FURTHER, that in connection with the management of the
Company’s business, the Division President is hereby authorized and empowered,
in the name and on behalf of the Company in the Division, to execute and deliver
(i) contracts, agreements and other documents and instruments for the subdivision,
development and/or improvement of real property, (ii) home sales contracts, sales
8323
person employment agreements and similar or equivalent agreements, documents or
instruments and (iii) personal property leases for, among other things, office
equipment and construction trailers; and
RESOLVED FURTHER, that in connection with the management of the
Company’s business in the Division, the Division President shall be authorized and
empowered, in the name and on behalf of the Company in the Division,>o execute
and deliver any and all documents and instruments necessary to sell and convey title
to single-family homes.
IN WITNESS WHEREOF, the undersigned has signed on the 15th day of October, 2000.
Paul W. Buchschacher,
Assistant Secretary