HomeMy WebLinkAbout1973-02-14; City Council; 1046; Sump Property - Fether Matter~ -1 * b
.T H E CITY OF' c A R L s B A D, 0. A L Y'F o R h
/A A! P Agenda Bill No. +'&' J*2 Date: Feb. 14, 197: J
Referred To:
Subject: Submitted B5
Sump Property (Fether ;#latter) City Attorney
Statement of the !latter
This office has completed the steps necessary to clear the City's i
to the Sump property. Ily Hemorandum to the City Manager dated
February 14, 1973, summarizes the history of this matter and detai' procedure used to finally reach a resolution. A copy is attached i for your information. If you approve your action .is to adopt the attached Resolution authorizing the I4ayor to execute the quitclaim
Exhi bi t
1. City Attorney's Memorandum to City Xanager of February 14, 197
2. Resolution ~o..,z,qLQ
Staff Recomrnenda tions
Adoption of Resolution No.JdL9 authorizing the Mayor to execute quitclaim deed on behalf ofthe'City of Carlsbad.
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AB No. Date: Feb. 14, 1973
Ci t y Mana ger ' s Re commen d a ti on
Concur with the Staff recommendation,
Counci 1 Action
2-20-73 Resolution #3069 was adopted, accepting a quitclaim deed f First American Title Insurance Company for certain proper1 located in the City of Oceanside, and authorizing the Mayc to execute a quitclaim deed relinquishing certain rights 1 said company on property immediately adjacent thereto.
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M E140 RA1.I DU I4
TO: City Manager
FROM: City Attorney
9ATE: February' 14, 1973
SUBJECT: Fether Matter - Sump Property
This office has completed the actions necessary to obtain clear t to the so-called "Sump Property" on behalf of the City of Carlsba
The origin of the galaxy of complex legal problems which exist ar
this property lie, insofar as I am able to determine, in the unre nistory of our City and the Carlsbad riiutual Mater Company. A cha description of the City's files in the matter would be that they
incomplete. The file begins with a Declaratory Relief Action bro
by tne Carlsbad Mutual Water Company against the City of Oceansid 1941. The next item in the file is a letter from First American Company to a former City Attorney, dated early in 1963, which pic the problem somehwere in mid-stream. The matter has continued th the hands of several City Attorneys, special counsel, consultants so forth, up to and including the date of this Memorandum.
1 nave no doubt that a large part of the reason for the protracte nature of this problem is that so many persons have been involved it was not possible to ootain with any certainty a true picture o City's position, Inaction, dhich had been the rule for so long, have seemed preferable to an uninformed or erroneous action. Abs City's need to resolve tnis matter in order to sell the "Sump Pro
the inaction would have probably continued. However, since you h advised me that tne City's interest requires a resolution of the I have attempted to make a judgment regarding our position.
Apparently First American Title Insurance Company issue
Policy of Title Insurance on the property in 1963. The Policy di reflect the existence of the City's water rights to the property. a result of tnat error, tne Company ended up buying the property rerains in their ownership. The Company then sought to clear the to the property. A series of negotiations then took place betwee Company and a series of attorneys for the City, both in house and special outside counsel. At least a portion of the files were lo agreement was reacnea between the City, the Company and some othe property owners in the area regarding the City's rights in this p of the San Luis Rey Valley basin, The agreement was signed in i4
of 1964. The City was to relinquish its rishts on the 13-plus-ac parcel in return for clear title to a 2.75-acre parcel. Me retai rights to the ground water on the total property as well as the r
draw the water on the smaller parcel from the larger. Subsequent
1964 what little activity that has occurred in this matter has ir
tne efforts of the Company to effect the agreement.
b 1 e e
City Manager
February 14, 1973 Page 2
During the interim period the Company stopped paying taxes on the property. Apparently it was their view that the property was go' to Delong to the City when tlie agreement was completed and that ii unreasonable to expect them to carry it for us until we were read to make some disposition of the property. It became necessary to deem the property to prevent a sale for back taxes which was done City reimbursed the Company for the taxes and accrued penalties o interest in early 1972 in an amount of approximately $5,000.00. taxes are again delinquent.
A number of people were contacted by this office in an effort to mine its present status and determine a proper resolution. The P Works Director had cognizance of the water rights aspect of the p
The various legal descriptions in the deed and in the agreement w plotted by his department. In addition the Water Department and Anson did a consideraDle amount of work in assisting this office.
counsel was consulted to insure that the transaction did not affe the City's rights to the water. My two predecessors provided sorr ground information. Finally, the Personnel Officer also had sign input. As a result it is possible to make the following conclusi
1. The City, advised by special counsel, obligated its in 1964 to exchange certain of its water rights for some property
2. The agreement is valid.
3. As a condition precedent to tiie exchange the Compai
first record a subdivision txap on the property.
4. ine purpose of this requirement does not appear in record . Apparently it was included in the record to give the :!I aepartment a chance to have the streets across the property fixe1 before giving up the rights in order to try and get the City of ( side to allow us to locate facilities for drawing on the groundwl
in the streets.
5. The Company is not in a position to record a map t
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selves. They must first sell the property to a developer which
be accomplished until the rights are released.
6. The Citj' is not now drawing on the water and does seem likely to do so in the future,
7. In tne event tile City desires to use the water aga would be a simple matter to do so from facilities located on the
property which de wi 17 receive in the transfer.
8. The groundwater availaole froin the larger parcel i
9. The City has no other reason to delay effecting ti-
equally available to us froin the sump property.
transfer.
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City Manager February 14, 1973 Page 3
10. Steps have already been taken to have the sump prop
appraised and to secure a rezoning from the City of Oceanside.
11. The deed giving up certain of the City's rights ret all rights to the underground water and does not give the Company rights thereto.
12. The rights to be relinquished involve entry on the property, well drilling, erection of pumping plants, laying pipe, the 1-ike.
13. It is unlikely the City will ever need such rights
14. The sump property has increased substantially in Vi since the agreement was signed.
15, The Company desires to effect the transfer at this They have agreed to all suggested changes in the deedsand to prov'
the City with a Policy of Title Insurance at no cost to the City.
to allow the transaction to take place notwithstanding the subdiv, map precondi ti on.
The situation then seems to be that the simple expedient of excha the deeds will vest clear title to the sump property in the City finally resolve the matter. I was concerned why such a seemingly simple process was not followed at sometime during the last few y Wowever, none of the people contacted by this office, both inside outside City Hal1,have suggested any reason why it should not be
There may be some such reason hidden in the mysteries of water la in the tangled history of the San Luis Rey Valley, or in one of t lest portions of the file, but if so, it escapes me. in any case City has resolved to offer the property for sale and it is necess to first obtain title in order to do so. With that in mind, I ha
prepared a Resolution accepting the deed to the sump property and authorizing the Mayor to quitclairr; our rights in the area for pre
atioti to the Council at their next meeting. If you concur, the Agenda Bill will be forwarded to the City Clerk.
We already have in hand tne deed from the Company. It will be re upon receipt of Council approval of the transaction. As soon as Title Insurance Policy is received I will forward our Quitclaim [ to the Company. It will then be necessary to immediately clear 1 taxes on the property whicn should finally conclude this matter.
16. It is possible to modify the agreement by mutual ci
VINCENT F. BIONDO, JF.. City Attorney
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RtSOLUTI9i\i ?IO. 3069
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A RESOLUTION OF THE CITY COU?ICIL Of
THE CITY OF CARLSBAD, CALIFORNIA, ACCEPTIiYG A QUITCLAIM DEED FROrFIl FIRST AFlERICAN TITLE INSURANCE COlclPANY FOR CERTAIN PROPERTY LOCATED IN THE CITY OF
0 C EAN S I DE, CA L I FO RN I A A FI D AUTHOR I Z I NG
THE MAYOR TO EXECUTE A QUITCLAIM DEED
RELINQUISHIl4G CERTAIN RIGHTS TO SAID
COMPANY ON PROPERTY IP4i4EDIATELY ADJACENT THERETO.
WHEREAS, in March of 1964 the City of Carlsbad entered
an agreement with several parties including First American
Insurance Company. Said agreement is on file in the Clerk'
office and is incorporated by reference hrein; and
MHEREAS, pursuant to a part of said agreemznt the City
obligated under certain conditions to relinquish general sui
water rights on a 13.22-acre parcel of land located south 0'
Highway 76 and east of Foussat Road in the City of Oceansidt
more particularly described in Exhibit "E" of said agreemen
MAEREAS, First American Title Insurance Company is obl.
~j/ said agreement to deed to the City clear title to a 2.75-
parcel which is a part of the larger parcel described hereii
and,
YHEREAS, the conditions upon which the transfer of rigt-
land depends do not no:./ appear to be material and both the C
and First American Title Insurance Company desire to modify
agreewent by wai,ving said conditions; and
WHEREAS, the City retains all rights to draw on the grc
water aquifer of the subject larger parcel and First Americi
Title Insurance Company ;Jill not acquire any water rights ti
and
XHEFIEAS, it is in the best interests of the City to COR
the transfer by effectuating said agreenent at this time;
TiO',J, THEREFORE, BE IT RESOLVED by the City Council of t
City of Carlsbad, as follows:
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1. Ti12 City of Carlsbad hereby accepts a Corporation
clairr, Deed from First American Title Insurance Company date
December 5, 1972 conveying title in a 2.75-acre parcel of I
described as Parcel 4 of Exhibit "E" to the Agreement betwe
parties of March 1964.
2. The City accepts the offer of First American Title
Insurance Company to furnish at no cost to the City a Polic
Title Insurance on the subject property.
3. The City agrees to modify said agreement to waive
requirement that the owners of subject property file a subd
map for the subject property before the exchange takes plac
4. The Playor is hereby authorized to execute on behal
the City a quitclaim deed in favor of First American Title
ance Company relinquishing certain general water rights to
13.22-acre parcel of land described as Parcel 3 of Exhibit
said agreement.
PASSED, APPROVED AriD ADOPTED at a regular meeting of t
City Council of the City of Carlsbad, California held on Fe
20, 1973, by the following vote, to wit:
AYES : Councilmen Dunne, McCornas, Lewis, Chase and Fr
NOES: None.
ABSENT: None -
DAVID M. DUNNE, blayor of 1 City of Carlsbad, Califori
ATTEST:
i/lAfi GAR't 1'. -E' q ' ' ADAMS, City Clerk
(SEAL)
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CO~OFLATIOX QUITCLAIM DEED
FOR VALUABLE CONSIDEXATION, RECEIPT of which is her&y acknowledged,
L
TEE CITY GF CAKL,SBAD, a municipal corporation
does hereby REMISE, RELEASE MD QUITCL4IM to tho, record owners of the property
hereinafter described in severa:Lty and upon the same tenure as their respective
interest appear of record, any and all rights to enter upon said property for the
purpose of drilling wells and developing waters thereon and €or the purpose of
erecting a pumping plant or plans, laying and construction pipelines and conduits
and for the purpose of doing any and all things necessary or convenient for the
naifrtenance, operation and repa:tr thereof, and all lands, rights of way and right,
of ingress and egress necessary or convenient for the above purposes.
The record owners shall not acquire any right to produce groundwater from the
subject property by virtue of this quitclaim deed.
The property upon which said rights are relinquished is described as follows:
That portion of Section 18, Township 11 South, Range 4 West, San Bernardino, Base
and Meridian, in the County of $:an Diego, State of California, according to Unitec
States Government Survey approved December 27, 1870, described as follows:
Beginning at the point of intersection of the North and South center line of said
Section 18 with the Southeasterly line of the California State Highway XI-SD-195-1
as described in easement deed ts the State of California recorded in Book 995, pal
of Official Records; thence Southerly along the Easterly line of the Northeast Qu:
of the Southwest Quarter South 0" 27' 17" West, 1143.40 feet to the Southeast corr
thereof, thence F?esterly along the South line of said Northeast Quarter of the Sou
west Quarter South 89" 41' 43lc West, 759.77 feet to the Northeasterly line of the
foot strip of land as excepted in deed to Rex KcDaniel, et ux, recorded in Book 46
page 358, of Official Records, thence Northwesterly along said Mortheasterly line
39" 47' 28" I"est 390.46 feet to the Southeasterly line of said California State Hi
XI-SD-195-A; thence North 50" 14' 46" East along said Southeasterly line 1325.09 f
the point of beginning.
EXCEPTING therefrom that portior! described as follows:
That portion of Section 18, Township 11 South, Range 4 West, San Bernardino Base a
Meridian, in the County of San Ciego, State of California, according to United Sts
Government Survey approved Decerrber 27, 1870, described as follows:
Beginning at the point of intersecticn of the North and South center line of said
18, with the Southeasterly line of the California State Highway XI-SD-195-AY as de
in easement deed to the State of California, recorded in Book 995, page 370 of Off
Records; thence Southwesterly along the Southeasterly line of said State Highway S
50" 14' 46" West, a distance of 972.16 feet to the true point of beginning; thence
easterly, at right angles to the Southeasterly line of said State Highway, South 3
East, a distance of 340.00 feet; thence Southwesterly parallel with said Southeast
South 50" 14' 46" West, a distance of 352.71 feet to the Northeasterly line of the
foot strip of land as excepted in deed to Rex McDaniel, et ux, recorded in Book 46
358 of Official Records; thence Northwesterly along said Northeasterly line North
West a distance of 340.00 feet, to the Southeasterly line of said State Highway; t
Eortheasterly along said Southeasterly line North 50" 14' 46" East a distance of 3
feet to the tru2 point of beginning.
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ALSO EXCEPTIX‘S therefroo rights to draw upor, the groundwater aquifer of the sllbje
property, cpon property other than that described herein.
such rig5t to be exercised by noans located upon the excepted Property
DATED: February 21, 1973 CITY OF CAIILSBA?I <---. <, // Lfi.r “, bfi --7&///&[/, Lg
gy: 1 -7fl-,, // ,4&f34&44 y{’q,G,, 5
DAVID I+ t, Nayor (1. DUNN .<- - - -_ BY:, ,’5’-;5
MARGA8ET E. ADAMS, City
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COLWTY OF San Dieqo } ss. I
(Corpuration)
i 4 ITITE OF CALIFORNIA ! ’’ -1973 before me, the undersigned, a Notary Public in and for said
hnoivn to me to be the~du 0 r Wua;eXt, and MARGAR F T F - A DAMS ;
hnn’\n to me to be the persons who executed the within In-[-iment on behalf of the corporation therejn named, and ack7wledgred to me that such corporation executed the within
IF.[[ ument pursuagt toXtX X$QXI% $r a reaolutlon of its ;~bhm
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I ! St ite, personally appeared
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e “Own to me to be ak%%’&%y of the corporation that executed the within Instrument, t 2 2 L
i EITyESS my han
DAVID M. DUNNE
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d official seal. I
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I/./; 7 v /2L4 4- - Gnattire 1 -&?5EfrB Name (Typed ALLS?;~ or Printed) I I
i (This area for officml notanal seal)