HomeMy WebLinkAbout1991-07-02; City Council; 11222; North Batiquitos Lift Station & Force MainClr”OF CARLSBAD
REIMBURSEMENT AGREEMENT FO
NORTH BATIQUITOS LIFT STATION
AND FORCE MAIN
RECOMMENDED ACTION:
ADOPT Resolution No. $!/ti;tAPPROVlNG a reimbursement agreement with
Hillman Properties regarding construction of the North Batiquitos Lift Station and
Force Main and authorizing the mayor to execute said agreement.
ITEM EXPLANATION:
On December 8,1987 the City Council adopted Local Facilities Management Plan
(LFMP) Zone 19 which analyzed the sewer impacts of future development in the
North Batiquitos Sewer Basin on the existing sewer facilities. As a result of that
analysis, the capacity of the existing North Batiquitos Lift Station and Force Main
was evaluated and determined to be inadequate to accommodate the projected
build out sewer flows for the tributary basin. The North Batiquitos Sewer Basin
encompasses areas in LFMP Zones 4, 6, 19, 20 and 21. Consequently, future
developers in these Zones are required to provide appropriate mitigation in order
to ensure compliance with the Growth Management Performance Standard for
Sewer Collection Systems.
Hillman Properties, in conjunction with the development of the Aviara Project, has
completed the design plans and specifications for the construction of the build out
improvements. The improvements being built are sized to accommodate future
development in the entire North Batiquitos Sewer Basin.
Due to the requirement to construct an oversized facility to provide sewer service
outside of the development boundaries, an agreement between the City and
Hillman Properties can be approved which will reimburse the cost of the
oversizing. According to Section 13.08.050 of the Carlsbad Municipal Code, if an
approved project is required to provide additional sewer capacity to accommodate
upstream development, the developer and the City may enter into an agreement
to reimburse the developer for that portion of the cost of such sewer
improvements which are a result of providing additional capacity for future
development.
The highlights of this agreement are as follows:
1. Aviara agrees to advance all costs associated with the demolition of the
existing North Batiquitos Lift Station and construct the ultimate facility
adjacent to the existing site.
2. Aviara agrees to make the appropriate repairs to the Ayres Trunk Line
(along the north shore of the Batiquitos Lagoon) and the existing force
main.
3. Accounting of the construction costs will be audited by an accounting firm
specified by the city.
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4. The reimbursement schedule will be directly tied to the Sewer Benefit Area
Fees collected in Areas J, K and L. These fees are currently being
collected upon issuance of building permits in each individual basin and
will be distributed in accordance with the percentage of impact as outlined
in the attached agreement document. The reason for reimbursing only a
percentage of the fees collected in certain Benefit Areas is because those
areas impact other sewer facilities which are not impacted by future
development in LFMP Zone 19.
Completion of the required lift station improvements will provide adequate sewer capacity
for future development in the North Batiquitos Basin. This reimbursement agreement
provides an equitable program for reimbursing those cost associated with the upsizing
of the lift station.
Environmental Review
The Planning Director has determined that this project has already been considered in
conjunction with a certified Prior Environmental Compliance noticed on June 20, 1991.
FISCAL IMPACT
The only fiscal impact is the staff time to process the reimbursement payments to Hillman
Properties twice each year.
EXHIBITS
1. Resolution No. w- dzf9A approving a Reimbursement Agreement and
authorizing the Mayor to execute said Agreement.
2. Reimbursement Agreement
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RESOLUTION NO. “-*O*
A RESOLUTION OF THE ClTY COUNCIL OF CARLSBAD, CALIFORNIA
AUTHORIZING THE MAYOR TO EXECUTE A REIMBURSEMENT
AGREEMENT BETWEEN THE CR-Y OF CARLSBAD AND HILLMAN
PROPERTIES REGARDING THE CONSTRUCTION OF THE NORTH
BATIQUITOS LIFT STATION AND FORCE MAIN
WHEREAS, the Local Facilities Management Plan for Zone 19 was approved by
the Planning Commission and Cii Council identifying the need to upgrade the existing
North Batiquitos Lift Station and Force Main; and
WHEREAS, the required improvements are necessary to provide adequate sewer
service to future development in the North Batiquitos Basin in order to comply with the
Growth Management Performance Standard for Sewer Collection Systems; and
WHEREAS, the improvements are required to be oversized to accommodate future
sewer flows from development outside of the Zone 19 boundary; and
WHEREAS, Hillman Properties has desirous to enter into a reimbursement
agreement with the City of Carlsbad in order to collect a fair share reimbursement from
future development which would benefit from the upgrading of this sewer facility; and
WHEREAS, the City Council determines that it is in the best interest of the City to
enter into said agreement; and
NOW, THEREFORE, BE lT RESOLVED by the City Council of the City of Carlsbad,
California that:
1. That the above recitations are true and correct.
2. That it is in the best interest of the City to enter into said reimbursement
agreement with Hillman Properties for the construction of the North Batiquitos Lift Station
and Force Main.
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3. Authorizing the Mayor of the City of Carlsbad to execute said agreement.
PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad City
3 Council held on the 2nd day of Julv , 1991 by the following vote, to wit:
AYES: Council Members Lewis, Kulchin, Larson, Stanton and Nygaard
NOES: None
ABSENT: None
AlTEST:
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ALETHA L. RAUTENKRANZ, City Clerk
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REIMBURSEMENT AGREEMENT
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THIS REIMBURSEMENT AGREEMENT (the "Agreement") is
entered into as of Qulxk /f, /49/ 1991, by and between AVIARA LAND ASSOCIATES LIMITED PARTNERSHIP, a Delaware limited partnership ("Aviara"), and THE CITY OF CARLSBAD, a municipal corporation of the State of California ("City"), with reference to the following facts:
A. The City Council of City adopted Resolution No. 2595 on December 8, 1987, approving a tentative subdivision map for Carlsbad Tract No. 85-35 relating to Aviara's development of a mixed-use, master-planned community within the City of Carlsbad (the "Project"). Condition No. 39 of Resolution No. 2595 provides as follows: ,
"The project applicant shall be required to comply with all general and specific public facilities conditions identified within the Zone 19 Local Facilities Management Plan and to execute an agreement or agreements
satisfactory to the City Manager and City Attorney guaranteeing their availability."
B. On June 27, 1989, City approved the recordation of the final subdivision maps for Carlsbad Tract No. 85-35.
C. Aviara has advanced or is willing to advance on behalf of City the cost of constructing a new sewer pump station and certain sewer trunk line facilities as required by the Zone 19 Local Facilities Management Plan to replace the existing North Batiquitos Sewer Pump Station, as well as to advance the cost of other related improvements.
D. Pursuant to Resolution No. 91-21, adopted by the Carlsbgd,City Council on January 22, 1991, City has implemented a plan for levying and collecting sewer benefit area fees in order to fund improvements in various sewer benefit areas within the City of Carlsbad. Said plan is set forth in the December 1990 Update to the December, 1987 Master Plan of Sewerage, prepared by Wilson Engineering (the "Wilson Report"), and is subject to further review and modification by City. The sewer benefit area fees, in addition to sewer connection fees, will be collected by City from builders upon City's issuance of building permits.
E. City will utilize funds collected from such sewer
benefit area fees to reimburse the costs advanced hereunder by Aviara.
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NOW, THEREFORE, the parties hereto agree as follows:
1. Costs to be Reimbursed bv City.
a. Sewer Pump Station Construction. Aviara
agrees to advance all costs necessary to demolish the existing North Batiquitos Sewer Pump Station and to construct a sewer pump station adjacent to said existing station. The new sewer
pump station will be located on the northwest shore of
Batiquitos Lagoon in the area identified in the attached Exhibit "A". The work necessary for said demolition and construction is shown on City of Carlsbad Public Improvement Plan 306-6.
b. Ayres Trunk Sewer Repairs. In addition,
Aviara will advance the costs necessary to upgrade and improve the Ayres Trunk Sewer as shown on City of Carlsbad Public Improvement Plan 302-7. I
C. Batiquitos Force Main Renairs. Aviara will
also advance the costs necessary to repair the Batiquitos Force Main as shown on City of Carlsbad Public Improvement Plan 306-5.
d. Ambrosia Trunk Sewer Construction. Aviara
will also advance the costs necessary to construct the Ambrosia Trunk Sewer upon Phase I of the Project as shown on City of Carlsbad Public Improvement Plan 292-2 (referenced as "Reach NBT2" in the Wilson Report), and the extension thereof onto property located adjacent to the Project owned by Howard F. Murphy.
e. Credit for Cost to Construct Ayres Trunk Sewer. As successor in interest to the property owner that constructed the original Ayres Trunk Sewer, Aviara shall alSO be reimbursed for said construction cost in the amount of One Million Sixty Thousand Seventy Dollars ($1,060,070.00). Aviara will submit proof that it is successor in interest to the original Ayres Trunk Sewer. Aviara further agrees to indemnify and hold,City harmless from and against any cost or expense, includiiig attorneys' fees, settlements or judgments, that City might incur in the event that, following City's reimbursement of Aviara pursuant to this Agreement, a prior owner of the Project is found to have a right to or interest in the sums paid to Aviara pursuant to this Section l(e).
f. Definition of "Work". The various IteRIS of
construction, improvement and repair described in subsections (a) through (e) above are hereinafter collectively referred to as the "Work".
9* Reimbursement for Costs of Work. city
shall reimburse Aviara in the manner described in Section 2
below for the total costs advanced by Aviara for the Work. The
total cost of the Work is currently estimated to be
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approximately Three Million Five Hundred Seven Thousand Six Hundred Forty-Four Dollars ($3,507,644.00). City may reduce the total cost to be reimbursed by the sum of One Hundred Thirty-Seven Thousand Six Hundred Seventy-Four Dollars ($137,674.00), which amount is acknowledged to be Aviara's share,of the cost owed by Aviara for the Occidental/Ponto Trunk Sewer Line reimbursement. City and Aviara acknowledge that the net reimbursement amount is therefore currently estimated to be Three Million Three Hundred Sixty-Nine Thousand Nine Hundred
Seventy Dollars ($3,369,970.00). Aviara will obtain all property interests necessary for the construction, operation
and maintenance of the improvements herein described.
h. Accountinq of Costs. When an item of the
Work has been completed (as described in Section 2(a) below), Aviara shall present City with a complete and detailed
accounting of the costs and expenses advanced by Aviara in connection with the Work. Upon its receipt of a written request therefor from City, Aviara will allow an audit of such costs and expenses to be prepared at Aviara's expense by an accounting firm specified by City.
I. Nature of Reimbursable Costs. In addition
to "hard" construction costs such as materials, equipment and
labor, the costs to be reimbursed hereunder shall include right of way acquisition costs and costs of obtaining property interests as described in Section l(g) above, engineering design and construction fees and permit fees advanced by Aviara. City shall not be required to pay to Aviara interest upon costs or expenses advanced by Aviara hereunder. The City
Engineer shall have the authority to establish reimbursable costs based upon information obtained pursuant to Sections l(h) and l(i) of this Agreement. Notwithstanding the foregoing, if
Aviara disputes the City Engineer's determination of reimbursable costs or believes that the sum established by the
City Engineer is not consistent with the specific provisions of
this Agreement, then Aviara may elect to (I) appeal the City
Engineer's decision to the City Council (and thereafter, at
Aviara's,option, to a Court of proper jurisdiction) for final
determi-Gation, or (ii) submit the dispute for the review and recommendation of a neutral and independent civil engineer qualified in engineering, design and construction and mutually
approved by City and Aviara; provided, however, said engineer's recommendation shall be non-binding and shall not preclude
Aviara from thereafter appealing the City Engineer's decision
as described in item (I) above.
2. Manner of Pavment.
a. City's Collection and Reimbursement. city
shall collect sewer benefit area fees upon its issuance of all building permits in Sewer Benefit Areas J, K, L, described in detail in the Wilson Report and depicted in the attached Exhibit "B" (the "Benefit Areas"). As each item of the Work is
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completed and accepted by City, as manifested by City's approval of a notice of completion for said item, then the City's reimbursement payment for said item is due and payable. Thereafter, City shall pay to Aviara in semiannual installments on each June 30 (for sewer benefit area fees collected by City through the preceding May 31) and on each December 31 (for sewer benefit area fees collected by City through the preceding November 30) any such fees collected by City for building permits issued within the Benefit Areas, until Aviara is fully reimbursed for the costs and expenses of the item of the Work as described above.
b. City's Payment of Sewer Benefit Area Fees to Third Parties. No sewer benefit area fees collected by City from within Sewer Benefit Area L shall be paid to any other party or utilized for any other purpose by City until Aviara has been fully reimbursed for all costs for which it is entitled to reimbursement from the City hereunder. Sewer
benefit area fees collected by City from within Benefit Area K may be utilized by City for other purposes provided that at least 26.35% of all such fees collected are paid to Aviara as reimbursement for the costs advanced hereunder. Sewer benefit
area fees collected by City from within Benefit Area J may be utilized by City for other purposes provided that at least 93.5% of all such fees collected are paid to Aviara as reimbursement for the costs advanced hereunder.
3. Term of Aureement. The term of this Agreement
shall commence on the date upon which it is executed by City and shall terminate on January 1, 2020.
4. Successors and Assians. This Agreement shall inure to the benefit of, and shall be binding upon, the assigns, successors in interest, personal representatives, heirs and legatees of the parties hereto.
5. Entire Aareement. This Agreement shall
constitute the entire agreement between the parties hereto with respect tclthe subject matter hereof, superseding all negotiXions, prior discussions, preliminary agreements or understandings, written or oral.
6. Attorneys' Fees. In the event of any litigation
to enforce the provisions of this Agreement, the prevailing party in such litigation shall be entitled to recover from the losing party its expenses, attorneys' fees and costs incurred therein or in the enforcement or collection of any judgment or award rendered therein.
7. Payments to Aviara. Any payments by City to Aviara hereunder shall be made payable to Aviara Land Associates Limited Partnership and shall be forwarded to the following address, or to such other address as Aviara specifies in writing to the City Manager of City: c/o Hillman Properties
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West, Inc., 2011 Palomar Airport Road, Suite 206, Carlsbad, California 92009, Attention: Mr. D.L. Clemens. Aviara may
assign its rights to receive payments hereunder to another
entity, provided Aviara delivers to City a written notice designating the name and address of its assignee and the effective date of such assignment.
IN WITNESS WHEREOF, the parties hereto have executed
this Agreement as of the date first set forth above.
ATTEST: CITY OF CARLSBAD. a Municipal Corporation of the
Aletha L. Rautenkranz AVIARA LAND ASSOCIATES LIMITED PARTNERSHIP, a Delaware limited partnership
By: Aviara Land Company, a Delaware car General
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By: Republic Development Company, a orporation \ Partner
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LOCATION MAP
NOT TO SCALE
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