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HomeMy WebLinkAbout1978-10-03; City Council; 5601; Request for commitment of sewer capacityA- - CITY OF CARLSBAD 1 P Initial: Dept. Hd. DATE : October 3, I978 C. Atty. AGENDA BILL NO. Sb 0 / DEPARTMENT : Pub I ic Works -4- C. Mgr. J Subject :. REQUEST FOR COMMITMENT OF SEWER CAPACITY Statement of the Matter Covington Brothers, developers of CT 73-24 (Tract #7996), have requested that City Council allocate to them capacity at the Encina Water Pollution Control Facility on a priority basis as it becomes available. The basis for their claims is that 'they are in a "unique" situation involving, per their claim, a "contractual obligation" between the developer and the City. The attsched staff report discusse's the issues and their claims in more detai I. Exhi bits 1. Letter from Covington Broth3r.s dated September 7, 1978 2. Staff report from Public Works Administrator dated September 25, 1978 Recommendat - ion 1. That Council deny the request for special consideration. 2. That Council refer the question of finalled maps with uncompleted con- .struction to +he Sewer Committee for consideration in developing al lo- c3t i on procedures. Council Action: , :10-3-78 Council continued the matter to the Adjourned Regular Meeting 10-10-78 Council concurred with the app1icant"s request and continued .the to be held October 10, 1978, a.t 7:OO P.,M. matter to the meeting ofaNovember 7, 1978. Agenda Bill No. 5601 Page 2 Council Action (Cont'd.) 12-5-78 Council denied the request of Covington Brothers for special consideration with regard to sewer capacity. Council then directed staff to return to Council with a report to include information as to the steps necessary and the costs involved in order to refine the Lowry Report re satellite treatment plants in the City. Mbiling Address: P.O. BOX 3128 FULLERTON, CALIFORNIA 92634 CALIFORNIA CONTRACTORS' LICENSE NO. B-1 217304 ' hold the kry lo your future housing needs 245 1 E. Orangethorpe Fullerton, California Telephone (714) 879-01 11 RECEIVED September 7, 1978 SEP 8 7978 City of Carlsbad 1200 Elm Carlsbad, Ca 92088 Attention: Mr. Paul Bussey City Manager Subject: Request for an agenda item to appear before City Council relative to sanitary sewer service Tract 7 9 9 6 Covington Dear Mr. Bussey: In accordance with our previous discussion with you and Mr. Ron Beckman, we by this letter, request an opportunity to appear before the City Council at its meeting September 19, 1978 to submit a request for special consideration €or sewer service to our development Tract No. 7996. Attached is a copy of our psoposed statement. Thank you €or your courtesy in this matter. Very truly yours, VBarrfi/merman Vice Pr sident BDZ : dh J. ANDREW SCHLANGE AND ASSOCIATES CONSULTANTS P. 0. BOX 561 CHINO, CALIFORNIA 91710 (714) 627-8169 (714) 628-1538 J. ANDREW SCHLANGE PRESIDENT September 5, 1978 Honorable City Council CITY OF CARLSBAD 1200 Elm Avenue Carlsbad, California 92008 Gentlemen: Covington Brothers owns approximately 60 acres of land located in the City of Carlsbad situated at the southeast corner of the 1-15 Freeway and Poinsettia Avenue, on which they propose to construct three hundred townhouse units in accordance with the city approved Specific Plan 122-A. This project,initiated in 1973, had received all City Planning Department and Coastal Commission approvals. The Tract Map (7996) was recorded; necessary bonds posted; conditions of City Ordinance 9434 were being complied with; development plans were submitted to the City Building Department and the developer was rapidly progressing to construction, when in February 1976, the Coastal Commission reconsidered its previously approved Development Permit No. F0859 and filed suit against Covington Brothers in San Diego Superior Court. After extensive litigation, Covington Brothers, on December 22, 1976, obtained a Superior Court ruling, which found that Covington Brothers had complied with the Coastal Commission requirements and that Covington Brothers was entitled to proceed with this project without further interference from or approvals of the Coastal Commission or any successor in interest thereto. However, the Coastal Commission appealed the Superior Court ruling to the Fourth Appellate Court of Appeal, where on November 3, 1977, "Upon request by counsel for appealant,the appeal was dismissed with prejudice." Upon notification of the dismissal in November 1977, Covington Brothers, again proceeded with this project only to be informed that the City of Carlsbad had, on April 19, 1977, adopted a A Honorable City Council Page 2 September 5, 1978 building moratorium, because of a lack of sewer treatment capacity, except for certain capacities required for building permits in process, governmental projects, and certain city contractual obligations. It should be understood that Covington Brothers in initiating this development complied with each requirement outlined by government and only proceeded to subsequent phases of the development based upon reliance of such approvals. This fact is obvious when the procedures used by the developer are reviewed. As a result of the developers reliance on such approvals, including the issuance of the Development Permit No. F0859 by the Coastal Commission, and approval of City Ordinance No. 9434 by the City Council (in effect a unilateral contract) Covington Brothers proceeded to finalize purchase of the lands to be developed and to expend con- siderable sums of money for engineering and development plans. Council approval of the Specific Plan as outlined in City Ordinance 9434 leads one to believe that upon approval of the Specific Plan, the City has adequate capacity in its public facilities to serve the needs of the approved develop- ment, and that such capacity is reserved for a given period of time as stated in the conditions of the approved Specific Plan. This concept is clearly defined when considering the following information excerpted from City Ordinance and Policy: A. City Ordinance No. 9434 - Section 2 Findings "The approval of amended Specific Plan 122A is justified by the following finding: 1. The project meets the requirements of the General Plan Land Use Housing Element for Density and Clustering of Units. 2. The project meets with City's Public Facilities Policy 3. The project complies with all standards of the P-C Zone. " In this regard we specifically make reference to Section 2 sub-paragraph 2, as stated therein. (The project meets the City's Public Facilities Policy) Honorable City Council Page 3 September 5, 1978 B. Public Facilities Policy City of Carlsbad The Public Facilities Element further sets forth as a policy statement that "Before giving approval to zoning, rezoning, development or redevelopment proposals, the public health and safety and the general welfare of the community and all its citizens require that the proponent of any such action shall present evidence satisfactory to the City Council that all necessary services and facilities will be available concurrent with need." The acceptance and satisfaction of the conditions set forth in Ordinance No. 9434 by Covington Brothers, in effect creates a bilateral contract to perform on the part of Covington Brothers and the City of Carlsbad. In this regard, Covington Brothers did record the Tract Map 7996 on August 5, 1974, and posted the following Non Revokable Performance Bonds: I. City of Carlsbad a. $40,000 - Traffic signal light at the intersection of Poinsettia Lane and Paseo Del Norte b. $230,000 - Subdivision improvements including street paving, etc. c. $6,500 - Subdivision monuments 11. Carlsbad Municipal Water District a. $114,000 - Water supply system b. $30,000 - Pressure reducing station c. $65,000 - Relocation of portions of existing water system Covington Brothers has entered into an agreement with Carlsbad Unifed School District which obligates the developer to submit certain payments to offset impacts on the local school building program, and has dedicated a 15 ft. sanitary sewer easement across a portion of their property. In addition to the approximately $500,000, the developer is obligated to, as shown hereinabove, Covington Brothers has expended an additional $500,000 because of the delays caused by the Coastal Commission litigation. Honorable City Council Page 4 September 5, 1978 The governmental approvals, allowing the Tract Map to be filed by the developer and Covingtons reliance on the City's ability to perform in accordance with the stated Public Facilities Policy, allowed unsubdivided lands to be subdivided resulting in new appraisals and a 200% increase in taxes paid, The City of Carlsbad portion of Tract 7996 tax bill has amounted to approximately $6,000/ year since 1975. The magnitude of the hardship is only heightened when one realizes that all that is pending for this development to proceed is the final plan check for correction of changes as required by the City and the issuance of the necessary building permits. Sewage treatment capacity requirements for this development are expected to amount to a maximum 72,000 gpd based on a three-year construction schedule as shown on Table I. On the basis of a twenty-four hour period, the average flow would amount to only 50 gpm or the equivalent of the maximum flow rate of a one inch domestic water service connection. A review of the wastewater treatment plant capacity with staff of the Joint Powers Authority seems to indicate that of Carlsbads' 3.43 mgd plant entitlement at the Encina facility there exists approximately 500,000 gpd of available capacity. These figures are based on the following infor- mation: Carlsbad entitlement of Encina Plant 3.43 mgd Current Carlsbad flow (June 1978) 2.70 mgd (Flows for period July 1977 to June 1978 See Table 11) Carlsbad allocation of 850 EDU .23 mgd Available capacity 0.5 mgd On the basis of this information and considering the unique circumstance surrounding this project, we would request that the City assign the necessary capacity to serve this develop- ment at the earliest possible time. Such consideration is justified to correct the inequities and financial hardship which has been placed on this developer through no fault of his own. While it is recognized that a moratorium on new sewer connect- ions may be necessary within the City and that Carlsbad will - Honorable City Council 4 Page 5 September 5, 1978 be required to stipulate to the conditions of Vista Permit A-15-76 (Coastal Commission), it is our opinion that such conditions do not and should not apply to this development, Regarding Vista Permit No. A-15-76 wherein the Coastal Commission conditioned its approval for expansion of the Encina Waste Water Treatment Plant to the acceptance by all parties not to serve the steep slope agricultural areas we by reference to our letter dated April 3, 1978, assure you that our project is excluded from such restriction as Covington Brothers has a valid Coastal Commission Development Permit. In summary therefore, it is our request that due to the unique circumstances surrounding this development and in recognition of the contractual commitments on behalf of the developer and the City, special consideration by the Council is necessary to alleviate the hardship endured by this developer. If the City has existing unallocated capacity in the Encina Waste Water Treatment Plant, such capacity as is necessary to serve Tract 7996 should be assigned to this development. The continued delay in providing service to this development places excessive hardship and injustice on this developer not endured by any other developer in the City of Carlsbad. Your assistance in setting forth a satisfactory solution to this matter is greatly appreciated. Respectfully, c. President JAS:djb PHASE I I1 I11 IV V VI TABLE I PROPOSED CONSTRUCTION SCHEDULE NO, OF UNITS ESTIMATED FISCAL YEAR WASTE WATER CONSTRUCTED FLOW gpd 53 10, 600 1978/79 54 10,800 1978/79 49 9,800 1979/80 43 6,600 1979/80 49 9,800 1980/81 45 9,000 1980/81 293 56,600 In addition, seven models to be constructed in 1978-79 with an additional flow of 1,400 gpd. TABLE I1 AVERAGE DAILY FLOW CARLSBAD TO ENCINA WASTE WATER TREATMENT PLANT Date July 1977 August 197 7 September 1977 October 197 7 November 1977 December 1977 January 1978 February 1978 March 1978 April 1978 May 1978 June 1978 Average Daily Flow/Remarks 2.60 mgd. 2.63 mgd. 2.22 mgd. 2.40 mgd. 2.10 mgd. 2.90 mgd. 3.60 mgd./Wet weather period 3.50 mgd./Wet weather period 3.30 mgd./Wet weather period 2.40 mgd. 2.70 mgd. 2.70 mgd. . A MEMORANDUM TO : City Manager FROM : Pub I i c Works Admi n i strator DATE : September 25, 1978 SUBJECT: COVINGTON BROTHER'S REQUEST FOR SEWER ALLOCATION The request from the Covington Brothers is to be, in essence, first in I ine if any capacity is determined to exist at the Encina Water Pollution Control Facility. This request is based on the supposition that a "contractual obligation" exists be- tween the City and the developer. This obligation, according to their logic, is based on their compliance with the Public Facilities Element at the time of approval, the recordation of the tract map and the deposit of nonrevocable bonds guaranteeing the development. Their position is also based on the assumption there is plant ca- pacity at the Encina Water Pollution Control Facility. This latter assumption will be discussed in greater detail in a report due to be presented to Council on Octo- ber 17, 1978. With regard to their claim of "unique circumstances," that claim is based on the contractual commitments entered into by the developer and his contention that City approvals are, in fact, a form of "contractual obligation." The developer im- plies these obligations have been impeded from being fulfilled because of the City's sewer moratorium, which went into effect well after the project was approved, but prior to final adjudication of their disagreement with the California Coastal Com- mission. A fact that should not be ignored here is the delay in implementation on the part of the developer. The map was recorded in August, 1974, whereas, the Coastal Commission's reconsideration occurred in February, 1976. If the developer had conformed to the schedule of completion within the first year, he would not have been subject to the Coastal Commission action. His delay and the subsequent Coastal Commission action put him in a position not unlike several others in the City (CT 72-21, Tanglewood; CT 73-23, Hester; CT 73-49, Unit 2, Palomar Airport Business Park; CT 74-22, Papagayo, Units 2 - 5) who have recorded subdivisions, but cannot proceed with construction until sewer capacity is available. As a point of infor- mation, there has been discussion with the developer's representative concerning the possibility of constructing a package treatment plant in conjunction with the project. Staff has discouraged this approach as not being in conformance with Council's indicated wishes of having an approved basin plan and an acceptable pro- gram of development prior to allowing specially designed systems. RECOMMENDAT I ON It is recommended that the request for preferential treatment be denied and that staff be instructed to report to the Sewer Allocation Committee the number of final maps without sewer capacity so that the committee may consider that issue when preparing its recommendations to Council regarding future sewer allocations. Ronald A. Beckman, P.E. Pub1 ic Works Administrator RAB: VEB