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Home My WebLink About1977-09-06; City Council; 5183; Request to amend sewer moratorium ordinance' CITY OF CARLSBAD AGENDA BILL NO. Xj _ \ _ Initial: Dept.Hd. DATE: September 6, 1977 .- C . Atty DEPARTMENT: _ City Manager _ C. Mgr. Tj Subject:REQUEST TO AMEND SEWER MORATORIUM ORDINANCE Kamar Construction - Jerry Rombotis Statement of the Matter Mr. Jerry Rombotis has submitted a letter dated August 31, 1977, stating various reasons why he feels his subdivision, CT74-6, which has a final map should be excluded from the sewer moratorium. Exhibit Letter from Jerry Rombotis dated August 31, 1977 Recommendation This letter was filed within the proper period time for this' agenda but too late for a full staff report. The staff will be prepared with additional information in an oral report at the Council meeting. Council action "'< 9-13-77 Due to the absence of a representative from Kamar Construction Co Council continued the item to be rescheduled for a future meeting 10-4-77 Tne City Attorney was directed to prepare documents necessary to grant an exception to the Sewer Moratorium Ordinance. wo. 325 Elm Avenue Post Office Box 1155 Carlsbad, California 92008 714/729-7911 Contractor's License No. 143851 September 28, 1977 Mr. Paul Bussey Re: APPEAL OF SEMER MOHITORIUM CT74-6 City Manager City of Carlsbad 1200 Elm Street Carlsbad, Ca. 92008 Dear Paul, Our appeal relating to CT 74-6 was scheduled for discussion at the City Council on September 6, 1977. The Council did not get to this item due to the length of the agenda. It was then rescheduled for the 13th of September, however we were unable to be present at the 13th meeting. Would you please reschedule this item for the 4th of October. We will be present to discuss this matter with the Council. Thank you for your cooperation. Very Truly~~¥ours, .^-g-^t-X •^~" uTL, yliombotis JLR/pk BUILDERS and DEVELOPERS 325 Elm Avenue Post Office Box 1155 Carlsbad, California 92008 Phone 714/729-7911 Contractor's License No. 161995 August 31, 1977 Honorable Mayor and City Council City of Carlsbad 1200 Elm Avenue Carlsbad, California 92008 Re: APPEAL OF SEWER MORITORItM CT74-6 Dear Mayor Frazee and Council Members: We have eagerly followed the evolution of the proposed sewer allocation system since the moritorium went into effect on April 19, 1977. Although we have great empathy for the situation in which the City finds itself in rela- tionship to the sewer capacity of the City of Carlsbad, either to date, or in applying any of the proposed alloc- ationKsystems. I obviously do not know how CT74-6 will fare under the proposed allocation system as none of us on the outside know how many will apply, how many points will be required to be successful or how many connections will be available. We do not object to "playing the game by the rules" when the rules are morally, legally, and fairly applied. We do not feel that the application of the noritorium on CT74-6 was morally, fairly or legally applied. To our knowledge, we are the only project with a final map and an improvement contract that the moritorium was applied to. The present allocation system gives very little consideration to obligations a developer accumulates relying upon City approvals. We now have an improvement agreement with the City dated March 24, 1977 in the amount of $67,800.00. To guarantee this agreement, we have posted a faithful per- formance bond for $67,800.00, a labor and material bond for $33,900.00, and a monumentation bond for $1,000.00. These agreements and bonds insure the City of completion of the approved improvements and call for specific performance on our part to complete these improvements in one years time. We might also point out that the Public Facilities Policy of the City calls for all utilities to be available at the time of approval of the final map. This specific finding was made by the Council upon approval of the tentative map BUILDERS and DEVELOPERS 325 Elm Avenue Post Office Box 1155 Carlsbad, California 92008 Phone 714/729-7911 Contractor's License No. 161995 Page -2- August 31, 1977 Honorable Mayor and City Council Members Re: APPEAL OF SEWER MDRITOKEIM CT74-6 and again on approval of the final map on April 5, 1977. The failure of the City to provide sewer services per these findings leaves us in a very precarious position. (1) We now are bonded to install improvements we cannot use, (2) We are indebted to our lender for $550,000.00 for a construc- tion loan which was placed on this property prior to the moritorium and subsequent to the recording of the map. (3) We have spent $61,215.00 on improvements to date (sewer, water, grading, engineering and storm drains). (4) We have paid City fees for the right to record a unusaMe.'Tmap in the amount of $6,130.00. (5) We are incuring daily costs on this development for holding while the sewer situation is only being talked about. To surimarize - it seems the only right we have is to expend money with little assurance from the City that they will fulfill their legal and moral obligations to furnish this development with utilities. It is inconceivable to us that the staff would recommend furnishing tentative maps with sewer (those that had applied for Building Permits) and ignoring those subdivisions with approved final maps. We might also point out that the City had on file at various Governmental Agencys such as the State of California Division of Real Estate, The Federal Housing Administration and the ^terans Administration a master geographical letter which stated that the City would not permit a map to record until all financial arrangements for all utilities have been arranged for,including Sewer. This letter was not modified until June 1, 1977. The geographical letter certainly implied sewer availability. Wa have set forth the facts, and quite obviously we think that they give rise to not only a moral obligation, but also a legal one. BUILDERS and DEVELOPERS 325 Elm Avenue Post Office Box 1155 Carlsbad, California 92008" Phone 714/729-7911 Contractor>x License No. 161095 W^^ Page -3- August 31, 1977 Honorable Mayor and City Council Members Re: APPEAL OP SEWER MORITORIUM CT74-6 In light of the above, we are asking that this matter be discussed by the City Council at the earliest possible time so that we may ask for relief from the applicable ordinances. Unfortunately, unless we can persuade you of the inequities involved in this situation, our only alternative would seem to be to litigate an avenue which we do not desire to persue, but one to which we are being driven as a means of avoiding financial disaster. Very truly yours, Jerry L. KAMAR RUCTION CO. JLR/ls cc: Paul D. Bussey City Manager, City of Carlsbad Jim Hagaman Planning Director, City of Carlsbad Attachment, Letter dated April 28, 1977 325 Elm Avenue Post Office Box 1155 Carlsbad. California 92008 714/729-7911 Contractor's License No. 143851 April 28, 1977 Mr. Paul D. Bussey City Manager CITY OF CARLSBAD 1200 Elm Avenue Carlsbad, California 92008 RE: CARLSBAD TRACT 74-6 10 LOTS Dear Paul: . - I am writing this letter to formally request that CT 74-6 be given prime consideration for any remaining sewer capacity which the Council might want to allocate. I will briefly recap the history of this subdivision. We processed the sub- division through the City in 1974 receiving unanimous approvals from both the Planning Commission and City Council. Then applied for a Coastal Commission approval and although receiving unanimous approval at San Diego, vie were appealed to the State and after four hearings, were denied. We then extended our map on June 17, 1975- Shortly thereafter, we had a conversation with the local Commission staff and they suggested that perhaps the State Commission might reconsider and we should reapply after the one year period had expired. We then received a permit after an unanimous vote from the San Diego Regional Commission. This time we were not appealed and received our permit. At this point, we began preparation of improvement and grading plans. After several checks, these plans were approved by your Engineering Department. Early in March, we posted bonds with the City in the amount of $102,700.00. These bonds were as follows: Subdivision Faithful Performance Bond for $67,800.00, Subdivision Performance Bond For Setting Monuments for $1,000.00 and Subdivision Labor and Materials Bond for $33,900.00. On March 24, 1977 we entered into an Improvement Agreement with the City of Carlsbad. The map was then sent to the City Council for approval and on April 51 1977» the City Council approved our final map. After the map was approved, Mr. Paul D. Bussey - - April 28, 197? Page 2 it was subsequently picked up by Safeco Title Insurance Company for recordation. The map was recorded in the normal course of business on April 14, 1977 as Map #S539- Concurrently with the recordation of the map, we recorded a construction loan in the amount of $520,000.00. All of the above steps relating to the filing of this map and the recordation of our loan followed our standard pattern and one used throughout the industry. We obtained a grading permit for this project on April 13, 1977 and as model homes were not necessary for a ten lot subdivision, no attempt was made to secure building permits prior to the recordation of this map. At this point all our efforts were concentrated in getting the final map approved and signed by the City, and securing our loan documents. The cost of processing a subdivision to this point, excluding land but includ- ing preliminary soil work, was $3,250.00 per lot or $32,500.00. These costs consist of Engineering, City fees and loan fees. We had been to the City of Carlsbad the first week in April attempting to secure addresses for the building permit applications. As you know, the depart- ment was extremely busy and some one week later, they informed us that the addresses were available. We then began preparing our package for building permits. We had some minor revisions to make on the plans so as to make them conform to the latest U.B.C. and these were printed Tuesday, the 19th of April. The package was assembled on the 19th but unfortunately was not delivered to the City Hall. The City Council then at their meeting of the 19th, imposed their moratorium. To summarize the above: 1) We now have a recorded map with a' specific finding by the Council and all departments therein that public facilities were available as of April 14, 1977. 2.) We have an Improvement Agreement with the City of Carlsbad calling for completion of the improvements in Park Drive and Calavo Court. 3) We have a valid grading permit dated April 13, 1977* We have relied on this permit and had begun clearing operations prior to April 19, 1977. 4) We have a permit from the Coastal Commission which will expire on August 15, 1977. 5) We have a construction loan covering ten lots in the amount of $520,000.00. The normal means by which a builder would repay this loan would be out of the sale proceeds of the'sales. Unfortunately, since we cannot get building permits, we cannot build houses and sub- sequently, cannot conclude any sales. This leaves us with no methods of repaying the $520,000.00. Mr. Paul D. Bussey April 28, 1977 Page 3 6) We have accumulated liabilities of $622,700.00 ($520,000.00 construction loan and $102,700.00 obligation to bonding company). I should like also to point out that this property participated in the Park Drive 1911 Act Sewer District and in my opinion is entitled to sewer hookups as I believe the City has in effect promised sewer hookups based upon this assessment. If the participants in the 1911 Act had any idea that they would merely pay for the privilege of having an eight inch line run down the center of Park Drive which could not be used, I doubt if any would have participated in this district. - * . This development is located within the urbanized area of Carlsbad and has, as previously pointed out, an existing sewer line, an existing twelve inch water line and all gas and electric facilities adjacent thereto. It is within walking distance of Magnolia Grammar School, Valley Junior High School and Carlsbad High School. As you know, our company has been building in Carlsbad for some fifteen plus years. During this time, we have constructed nine hundred and nine single family units and two hundred and twenty-two apartment dwellings. In this period, I cannot recall applying for building permits prior to approval of the final map. It seems to me that the allocation of sewer permits on the basis of applications rather then final map is not entirely fair. We believe a developer with a recorded map containing all City and Governmental Agency approvals should have more right to sewer capacity then developers who are only in the tentative map process. During the history of this subdivision we always processed in our normal business manner and were deligently proceeding with this development. We do not question the need for the Council to impose a moratorium but I certainly would feel that this project should be entitled to capacity based upon the above stated facts. Our reliance on Council approval of final map and all conditions of Staff, resulted in us paying considerable monies to you the City for fees and to other agencies, Title Company, construction lender, bonding agents, insurance carriers to name a few. I? you have any questions relative to the above, I would be more than happy to discuss these with either you or your staff. Very truly yours, KAMAR CONSTRUCTION CO. JLR/pj cc: file MEMORANDUM - October 13, 1977 TO: City Manager FROM: City Engineer SUBJECT: Sewer Moratorium Exemptions - Financial Hardships Based on discussion at the City Council Meeting of October 4, 1977, concerning Agenda Bill No. 5183, "Request to Amend Sewer Moratorium Ordinance - Kamar Construction" (Jerry Rombotis) you have asked me to review City files to estimate how many other potential projects may be in a similar "financial hardship" category.\ Because the City does not have access to data such as construction loans, options, engineering and architect fees, etc., my review will be limited to the following categories: I. Recorded subdivisions with bonded public improvements that are not fully constructed or accepted by the City for maintenance and building permits have not been obtained for all buildable lots within the subdivision. II. Projects (subdivisions or other) with tentative map approval, or CUP, etc., and plans have been submitted for plan checking on public and/or private improvements. III. Other projects indicating financial hardship in written corre- spondence to the City since April 19, 1977. No attempt has been made to verify these potential or incurred financial hardships. Attached are exhibits of the various categories. The projects listed may not be all-inclusive, and some additions may be in order as they are discovered. Tim Flanagan City Engineer TCF:ms c: PWA City Attorney attachment CJUJ aLU cao a:oCD LU B l— l LU CQ CO O I—z: oo z:ca LU •— < n: COco (—z: i— io 2:1-1 CC CO LU I— l Ou K-I CDQ z: CQ l— «ra QCO _lI— I Q IDLU CQcao: _jo _jCJ <CLUct: Q •o TD CU COo. —CL. 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T- cu CJf oE tocuoo ** CATEGORY II PROJECTS WITH TENTATIVE MAP APPROVALS OR CUP, ETC., AND PLANS HAVE BEEN SUBMITTED FOR PLAN CHECKING ON PUBLIC/PRIVATE IMPROVEMENTS Tract No. or CUP CT 76-15 CT 74-4 CT 74-25 CT 73-29 CT 74-14A CUP 140 (not Name Carlsbad Palisades Quail Ridge Tanglewood #2 Carrillo Estates #2 Tempi in Heights, Units San Diego County Solid Total # of EDU 136 234 203 114 2-4 108 14-15 Type of Plans Submitted Full Public Improvements (Grading, Final Map, Streets, etc. Public Improvement Plans Public Improvement Plans Building Plans Public Improvement Plans submitte Rough Grading 90% Complete Grading Only Full Public Improvement Plans yet approved) Waste Transfer Station BP #77-580 Car Country PS 292 James Guisto CT 75-8 Tony Regan CT 76-11 Tamarack Shores #2 & #3 BP #77-352 Bill Ryburn CUP 141 Growing Grounds Nursery CT 76-18 May Stores 5-6 21 54 3 ± 3± 400 - BP #77-8027 Colonial Mall (previously reserved) 2-3 Building Plans - Porsche-Audi without restrooms Building Plans - 2 Lots 1574 & 1578 Basswood Full Public Improvement Plans Public Improvement Plans Building Plans Building Plans/without toilets Building Plans/septic Full Public Improvement Plans Remodeling (Dentist's Office) CATEGORY III PROJECTS OTHER THAN CATEGORY I OR II INDICATING FINANCIAL HARDSHIP THROUGH CORRESPONDENCE In addition to Category I and II, the City has received approximately 45 - 50 written inquiries on various properties in the City's service area representing a "demand" of 550 - 600 EDU.