HomeMy WebLinkAbout1984-06-19; City Council; 7799; Leucadia Sewer Service AgreementCIT. OF CARLSBAD - AGENDk BILL
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rllTG. 6/19/84 CM IEPT.
LEUCADIA SEWER SERVICE AGREEMENT
HUNT PROPERTIES
DEPT. HD.
CITY Ally*
CITY MOR.=
RECOMMENDED ACTION:
That council by minute action receive and file copy of agreement between LCWD and Hunt Properties and direct City Clerk to notify LCWD that city has no
objection to agreement.
BACKGROUND:
Hunt Properties has negotiated an agreement with LCWD which provides that
Leucadia will supply sewer service to property in Green Valley (south of
La Costa Avenue and west of El Camino Real ).
Hunt agrees to pay an annexation fee of $1365 per acre plus sewer connection
fees (currently $1500 per EDU).
sewer service when needed Hunt has the option to request service from Carlsbad. If desired by City, LCWD will lease excess capacity in the
district sewer lines upon detachment.
In the event LCWD is unable to provide
The agreement is conditioned upon the successful annexation to Carlsbad
and approval of development permi ts.
FISCAL IMPACT:
If Carlsbad provided sewer service to Green Valley the sewer connection
charge for 2500 EDU would be $2,500,000.
Under this agreement Hunt will pay LCWD:
Annex Fee $ 400,000 (293 ac)
Connection Fee 3,750,000 (2500 EDU)
Administration Fee 20,000
$4,170,000
Plus interest at 11.15%
Carlsbad incurs no cost as a result of this agreement.
EXHI BITS:
1. Letter of May 11, 1984 from LCWD to Hunt Properties
3. Agreement between LCWD and Hunt Properties, Inc.
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t EXHIBIT A - I
LEUCADIA COUNTY WATER DISTRICT
Enc’I~sed are tm originit7 executed agreements for the anrrexatfon of the 6reen Valley property into the Leucadfa County Mater Dfstriet. Please return one orf- gfnal tmxted by the Hunts. Thls agreement 1s the result af my hwrs of dtscussfon AS you know. The Board of Dtrecturs me satlsfted uith the prwf- s3ons and are conffdent they tmcftt bath Hunt Propertfes and the Dfstrict.
It Is our understanding .~v app’lfcattan for wntxatfon has been formrded to lffa. k further unberstand the Hunts wl’il sign thc agreement U~OH reccfpt and prior ta the LWCO publlc hear7ng. The Board wfT1 not owse the annexatfon of the Green Valley property to the City of GarTsbad for IPunicipal swvfces other than swr ussumfng: I) the documents have been executed by the ttunts; and 2) the Cfty goes on retard tn support of the agreelaent.
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Ye apprectate pur tine and effort and look forward to a pleasant reliltlanshfp In tk parr to cam.
Yaws very truly,
Lafs E. Hurrphteys President, Board Qf Ofrectors
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EXHIBIT B
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AGREEMENT FOR ANNEXATION OF CERTAIN PROPERTY
AND FOR PROVISION OF SEWER SERVICE TEERETO TO THE LEUCADIA COUNTY WATER DISTRICT
WHEREAS, N. B. HUNT and W. H. HUNT, Individuals, are the
owners of that certain real property ("the Property") described on
Exhibit A attached hereto and incorporated herein by this
reference: and
WHEREAS, N. B. HUNT and W. H. HUNT, by and through their
representative HUNT PROPERTIES, INC. dba H.P.I. Development, Co.,
("HUNT") desire to develop the Property, and in conjunction
therewith will require the provision of sewer service to the
Property: and
WHEREAS, the LEUCADIA COUNTY WATER DISTRICT ("LCWD") is
a duly constituted special district operating under the California
Water District law for the purpose of providing sewer service and
is capable of providing service to the Property: and
WHEREAS, the Property presently lies within an
unincorporated area of the County not within any designated sewer
district: and
WHEREAS, HUNT would like to annex the property described
on Exhibit A as "The Initial Annexation Area" to LCWD as soon as
possible and some or all of the remaining property described on
said Exhibit A as "Potential Subsequent Annexation Area" at a
later date;
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NOW, THEREFORE, the parties hereto agree as follows:
1. ANNEXATION
a) Initial Annexation Area. If not already filed
as of the date of execution of this Agreement, HUNT shall file
with the San Diego Local Agency Formation Commission (LAFCO), as
soon as possible, an application to annex "The Initial Annexation
Area," as shown on Exhibit A hereto, to LCWD.
b) Subsequent Annexation. Upon the subsequent
annexation to LCWD of some or all of the Property described on
Exhibit A hereto as "Potential Subsequent Annexation Area," said
areas shall be subject to all of the terms and conditions of this
Agreement. Annexation fees on any such subsequently annexed area
shall be paid to LCWD in an amount per acre as prescribed by the
Ordinances of LCWD in effect at the time of completion of the
subsequent annexation. Payment of such fees may, at the request
of HUNT, be deferred on the same terms and conditions as specified
herein for The Initial Annexation Area except that the provisions
of Paragraph 2(a) and (b) shall be read to apply to the subsequent
annexation area independently of The Initial Annexation Area and
the time for payment as prescribed in Paragraph 2(a) shall run
from the date of completion of the subsequent annexation.
Interest on any subsequent annexation shall accrue from the date
of completion of the subsequent annexation. For the purposes of
this Agreement, completion of an annexation shall be deemed to
have occurred when the filings required by Government Code 556453
are completed.
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2. PAYMENT OF ANNEXATION FEE
a) Amount and Due Date. HUNT agrees that a LAFCO
condition of approval of its annexations to LCWD shall be the
payment of an annexation fee to LCWD as prescribed herein. For
the annexation of the Initial Annexation Area, fees shall be paid
based upon the actual number of acres annexed multiplied by the
current per acre fee of $1,365.00 as prescribed by the Ordinances
of LCWD. Said fee is to be paid in annual payments of principal
and interest over twenty-five (25) years as provided in the
schedule attached hereto and incorporated herein by this reference
as Exhibit C, provided, however, that any remaining principal owed
and such interest as may be due at the time shall be paid within
thirty days of HUNT obtaining "Development Approval" for The
Initial Annexation Area. For the purposes of this Agreement,
"Development Approval" shall be defined as the earlier of:
i) issuance of final discretionary approval
of the first phase of development of The Initial Annexation Area
by State, Federal and local agencies with discretionary
jurisdiction over the property and project, including issuance of
the first Coastal Commission permit and acceptance thereof by
Hunt; or,
ii) issuance of final discretionary approval
of the first phase of development of The Initial Annexation Area
by State, Federal and local agencies with discretionary
jurisdiction over the property and project, acceptance thereof by
HUNT, and exclusion of The Initial Annexation Area from Coastal
Corn i ss ion perm it requirements i or
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iii) the sale or transfer by HUNT of some or
all of the property annexed, except that trust deeds transferred
for the purpose of financing, deeds given in lieu of foreclosure,
foreclosure deeds, or the conveyance of easements shall not be
deemed to be a sale or transfer by HUNT within the terms of this
Subparagraph 2(a)(iii). In the event of a sale or transfer of a
portion of the property which has been annexed, annexation fees
shall be paid on the portion sold or transferred on a per acre
basis in conformance with the per acre annexation fee in effect at
the time the property was annexed. HUNT or its agent shall
provide written notice to LCWD of any sale or transfer within the
meaning of this subparagraph 2(a)(iii) within thirty (30) days
following recording of the sale or transfer.
b) Interest. The total amount due shall bear
interest from the date annexation is complete at the rate of
11.15% per annum until paid in full. Principal and interest shall
be paid annually in arrears as provided on Exhibit C hereto. Any
payment made shall be credited first to interest and then to
principal, except as provided in Paragraph 3 herein. The entire
balance of principal and interest shall be due and payable within
thirty (30) days of the earlier to occur of the conditions of
Subparagraphs 2(a)(i) through (iii); provided, however, that in
the event of a sale or transfer of a portion of the annexed
property principal and interest shall be due and payable on the
portion sold or transferred pursuant to Subparagraph 2(a) (iii)
above. The entire sum may be prepaid at any time by HUNT without
penalty.
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c) Security. Payment of all deferred annexation
fees and interest shall be secured within thirty (30) days of
completion of the annexation by bond, letter of credit, cash
deposit, lien contract, or other security acceptable to LCWD.
HUNT shall have the right to substitute security at any time with
the consent of LCWD and LCWD will give its consent provided that
the substituted security will reasonably protect its security
interest.
3. PAYMENT OF ADMINISTRATIVE EXPENSES
As to The Initial Annexation, HUNT will pay any and all
reasonable processing fees, environmental impact report fees or
other similar administrative fees incurred by LCWD incident to The
Initial Annexation and related proceedings not to exceed a total
of $20,000, including administrative expenses incurred prior to
execution of this Agreement. If the annexation of The Initial
Annexation Area is completed by March 1, 1985, then the interest
portion of the first annual payment pursuant to subparagraph 2(b)
herein shall be deemed to .include payment in full of such
administrative expenses, and no separate payment of such
administrative expenses need be made, provided that payment to the
extent of the administrative expenses to LCWD is made on or before
April 1, 1985. If the annexation of The Initial Annexation Area
is not completed by March 1, 1985, then HUNT shall reimburse LCWD
for such administrative expenses by P.pril 1, 1985. HUNT shall
receive a credit against interest due under Paragraph 2( b) hereof
for any administrative expenses paid pursuant to this Paragraph.
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Payment of administrative expenses for subsequent annexations
shall be consistent with the concepts of this Paragraph.
4. SERVICE AVAILABILITY
LCWD to Provide Service; Detachment. Upon
successful completion of the annexation proceedings, provided that
a)
HUNT is in compliance with all procedural requirements of LCWD's
ordinances, has paid all required fees, has properly filed all
necessary applications, and is not in .breach of this Agreement,
LCWD agrees to provide sewer service at a capacity consistent with
Development Approvals.
b) Consent to Detachment If LCWD Unable To Provide
Service. In the event of LCWD's failure or refusal for any
reason to provide sewer service when required by HUNTS at a
capacity consistent with Development Approvals for the property
annexed, LCWD agrees that HUNT shall have the right to detach the
Property or any portion thereof to the extent LCWD is unable or
unwilling to service it from LCWD and seek service elsewhere.
Without limiting other circumstances under which the right to
detach would arise, HUNT shall be entitled to detach in the event
that: 1) LCWD fails for any reason to issue a letter of sewer
availability within 20 days of a timely written request by HUNT;
2) LCWD fails for any reason to isSue a final map letter of
availability within 20 days of a timely written request by HUNT;
or 3) LCWD fails for any reason to issue sewer connection permits
to HUNT upon timely tender of the appropriate connection fees.
LCWD will cooperate in good faith in any such detachment
Proceedings initiated by HUNT, and will not oppose in any forum
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the detachment or the provision of sewer service to the Property
by any other entity.
c) Consent to Detachment If No Development
Approval Within Seven Years. LCWD consents that HUNT shall also
have the right to detach in the event that HUNT has been unable to
obtain Development Approval as defined in Subparagraphs 2( a) ( i) or
(ii) herein by the end of the seventh (7th) year following
completion of the annexation. Said right to detach shall continue
throughout the balance of the twenty five year payment period
established in paragraph 2(a) hereof so long as HUNT is unable to
obtain Development Approval. In the event that Development
Approval is denied or approved but subsequently revoked, or
amended and the amendment is not accepted by HUNT, on a portion of
the annexed property, LCWD consents that HUNT shall have the right
to detach any such portion as provided herein.
d) - LCWD to Lease Facilities If Detachrent
Undertaken. In the event that some or all of the annexed property
is detached from LCWD in accordance with this Agreement and not
re-annexed, LCWD agrees to lease its transmission facilities to
the City of Carlsbad or other sewer provider for the purpose of
transmitting sewage from the Property to appropriate treatment
facilities. The terms of any such lease shall be reasonable and
subject to negotiation and mutual agreement of the parties
thereto, and LCWD agrees that it will negotiate any such agreement
reasonably and in good faith SO as to facilitate the provision of
sewer service to the Property at the time said detachment is
und e r taken .
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e) Consent to Service While Detachment Pendins.
If detachment proceedings as authorized by this Agreement are
initiated by HUNT, LCWD hereby consents to the provision of sewer
service to the detaching property by the City of Carlsbad or other
sewer service provider as of the date such proceedings are
in i ti a ted .
f) Warranty of Authority to Enter into Contract and
to Provide Service. LCWD represents and warrants that it has the
requisite legal authority to enter into the terms and conditions
of this Agreement and that it will have the necessary legal
authority to service the Property upon completion of the
annexation proceedings.
9) HUNT Not to Detach If Service Available.
Provided that LCWD is ready, willing and able to provide sewer
service as specified in Paragraph 4(a) hereof, HUNT agrees that
HUNT will not initiate, cause to be initiated, or support any
attempt to detach any of the Property from LCWD for the purpose of
receiving sewer service from the City of Carlsbad except as
provided in Paragraphs 4(b) and (c).
h) Re-Annexation to LCWD. If some or all of the
Property is detached from LCWD due to HUNT'S inability to obtain
Development Approval as provided in Subparagraph 4( b) or (c)
above, and if HUNT subsequently obtains Development Approval as
defined in Subparagraphs 2(a)(i) or (ii) for the detached
property, then HUNT shall first attempt to re-annex the detached
property to LCWD prior to seeking sewer service from another
entity or entities.
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5. REFUND
In the event that detachment of all or a portion of the
property is completed in accordance with Paragraphs 4(b) or (c)
above, LCWD shall refund the principal portion of any annexation
fees paid in the same proportion as the number of acres detached
bears to the total number of acres annexed. LCWD shall retain all
interest paid or due and unpaid at the time of such refund. In
addition, LCWD shall retain so much of principal as is necessary
to offset the actual cost of any facilities installed exclusively
to service the Property, as described in Exhibit B attached hereto
and incorporated herein by reference: provided, however, LCWD
shall not retain principal to offset the actual cost of the
facilities described on Exhibit B if detachment is completed due
to the failure or refusal of LCWD for any reason to provide sewer
service as provided in Subparagraph 4(b) above.
6. ASSIGNMENT
This agreement and the rights and obligations of the
parties may not be assigned without the prior written consent of
the other party, except a5 to successors in title to HUNT through
foreclosure. In such event, HUNT shall disclose this Agreement to
the successor and the provisions of this Agreement shall be
binding on any such successor.
7. AGREEMENT CONDXTIONED UPON LAFCO APPROVAL OF
ANNEXATION
The rights, duties and obligations of the parties under
this Agreement are exprzssly conditioned upon completion of the
annexation of The Initial Annexation Area to LCWD for sewer
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service and to the City of Carlsbad for other municipal services
and upon Carlsbad's concurrence in the City annexation, except
that HUNT'S obligation to reimburse LCWD for administrative
expenses as provided in Paragraph 3 hereof shall remain in force
in any event.
8. ENTIRE AGREEMENT
This Agreement represents the entire agreement of the
parties with respect to the subject matter hereof and supersedes
any and all prior negotiations, agreements, or representations
regarding the subject matter hereof. No amendment to this
Agreement shall be effective unless executed in writing by the
parties.
9. ENFORCEMENT; ATTORNEYS' FEES
In the event that administrative or Court proceedings
are necessary to enforce the terms of this Agreement, the
prevailing party shall be entitled to recover its reasonable
attorneys' fees, administrative expenses, and investigative fees
in addition to costs.
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10. INTERPRETATION
The language in all parts of this Agreement shall be
construed in accordance with the laws of the State of California.
LEUCADIA COUNTY WATER DISTRICT
By : Lois Humphreys President
By : Joan Geiselhart Se c r e tar y/Ma nag e r
I Execution of this Agreement was authorized by Resolution No. - duly adopted by the Board of Directors of LCWD on
N. B. Hunt
W. H. Hunt
STATE OF TEXAS
COUNTY OF
On , before me, the undersigned, a
Notary Public in and for said State, personally appeared N. B.
Hunt, known to me to be the person whose name is subscribed to the within instrument and acknowledged that he executed the same.
WITNESS my hand and official seal.
Notary Public
STATE OF TEXAS
COUNTY OF
On , before me, the undersigned, a
Notary Public in and for Said State, personally appeared W. H. Hunt, known to me to be the person whose name is subscribed to the
within instrument and acknowledged that he executed the same.
WITNESS my hand and official seal.
Notary Public
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EXHIBIT B
A. Flow up to .809 mgd. Parallel sewer shown on the attached diagram labelled "Future Parallel Sewer." HUNT is responsible for the actual cost of the new line.
B. Flow qreater than .809 mqd. It is the understanding of the parties that the facility listed on this Exhibit B under
the preceding Paragraph A is the only additional off-site facility required to service the Property at a development level up to ,809 million gallons per day (mgd) of flow. In the event that
Development Approvals for a greater flow are obtained, HUNT shall
pay its proportionate share of the cost of any additional or upgraded facilities, if any, required to service the Property.
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EXHIBIT B
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1200 ELM AVENUE
CARLSBAD, CA 920081988
OWce of the Clry cjerk
June 20, 1984
Lois Humphreys, President
Board of Directors
Leucadia County Water District
P.O. Box 2397 Leucadia, CA 92024
Re: Leucadia Sewer Service Agreement - Hunt Properties
The agreement between the Leucadia County Water District
and Hunt Properties was considered by the Carlsbad City Council at their meeting of June 19, 1984.
Per your request, this letter is to inform you that
the City has no objection to the agreement.
ALETHA L2hf7k44- L. RAUTENKRANZ
City Clerk
ALR:krk
TELEPHONE
@le) 438-5535
cc: Robert Inlow, Hunt Properties