HomeMy WebLinkAbout1992-05-19; City Council; 11692; PALOMAR AIRPORT ROAD EAST FINANCINGI
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MTG. 5/19/92
DEPT. ENG
PALOMAR AIRPORT ROAD EAST FINANCING
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"W OF CARLSBAD - AGEWA BILL 47 , ._ c
RECOMMENDED ACTION:
That the City Council adopt Resolution No. 92- 13 6 authorizing the City 1
release the funding guarantees from various property owners within Local F
Management Plan Zone 5 for the construction of Palomar Airport Road East.
ITEM EXPLANATION:
On April 24,1900 the Council adopted Resolution No. 90-1 23 approving a forward agreement from various property owners within Local Facilities Management Plan
Zone 5 for the construction of Palomar Airport Road from El Camino Real to the
City limits. The purpose of the funding agreement was to ensure constructi
circulation facility which was determined to operate below the adopted
Management performance standard.
In conformance with the stipulations of this funding agreement, the following f
owners posted the corresponding surety bonds and/or cash deposits:
Upland Industries Corporation $964,375
Carlsbad Airport Centre, Ltd. $681,601
Carlsbad Oaks East $232,199
Morgan/Palomar Industrial I $ 45,602
Kenneth Saterlee (Cash Deposit) $ 6,327
Total $1,930,104
Since that time, the City has been coordinating with SANDAG to secure financit
TRANSNET (Prop A) funds for the purpose of constructing a regional circulation
These funding sources include:
TRANSNET Highway $2,150,000
TRANSNET Local $3,000,000
These funds are currently earmarked for the improvements to Palomar Airport F
help relieve traffic volumes from the Highway 78 corridor. The Transnet highwa\
are specifically designated for Palomar Airport Road. The TRANSNET Local fur
used to improve various roadways within the City in an effort to provide ad
capacity to accommodate traffic impacts from future development.
With this secured funding, staff is recommending that the securities posted by the 1
property owners within Zone 5 be released and replaced with TRANSNET
designated for Palomar Airport Road.
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FISCAL IMPACT:
The TRANSNET Highway funds are specifically targeted for Palomar Airport Road
improvements. However, the TRANSNET Local funds are to be used to improve
circulation links within the City. Since Palomar Airport Road East fronts undevelopec
within the Financing Plans for those zones such that future development will be rec
to reimburse the City for TRANSNET Local funds used to construct a roadway
would normally be required as a condition of approval of future development within
zones.
The bonded amount for Upland Industries Corporation was revised after the apprc
the forward funding agreement, The revised bonding amount is $1,021,293.
adjacent to LFMP Zones 17 and 18, a reimbursement mechanism should be inc
EXHIBITS:
1.
2. Forward Funding Agreement from Various Property Owners within
3.
City Council Resolution No. 90-1 23
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City Council Resolution No. 72 -/3 G. .
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RESOLUTION NO. 9 0 - 12 3
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAR
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CALIFORNIA, APPROVING AND AUTHORIZING THE MAYOR TO EXEC
AGREEMENT WITH CERTAIN OWNERS OF PROPERTY WITHIN l
PROVIDING A GUARANTEE OF FUNDING FOR IMPROVEMEN
PALOMAR AIRPORT ROAD EAST IN COMPLIANCE WITH G
MANAGEMENT REQUIREMENTS,
WHEREAS, Section 21.90.80 of the Carlsbad Municipal Code requ
performance standards be established for specified public facilities; and
WHEREAS, the Citywide Facilities and Improvements Plan of 1986 det
performance standard for Circulation Facilities; and
WHEREAS, Palomar Airport Road from Melrose Avenue to Business Park
been determined to be operating below the adopted performance standard,
Airport Road from El Camino Real to Melrose Avenue is anticipated to fall IC
standard in the near future, and the intersection of Palomar Airport Road and E
Real intermittently operates below the standard; and
WHEREAS, the City Council of the City of Carlsbad desires to provide a I
plan to resolve this facility shortfall; and
WHEREAS, on August 4, 1987, the City Council approved the Local
Management Plan for Zone 5 which identified certain facilities to be the respor
developers within Zone 5 to finance, specifically the road segment of Palom
Road from El Camino Real to Business Park Drive; and
WHEREAS, certain property owners within Zone 5 have submitted a pr
provide the needed funding for the road improvements; and
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satisfies the requirements of the Growth Management Ordinance.
WHEREAS, the City Council finds that issuance or approval of buil
development permits within Zone 5 in the absence of guaranteed finanr
improvement of Palomar Airport Road from Melrose Avenue to Business Park
view of the failure of this facility to conform to the adopted performance standar
be detrimental to the public health, safety, and welfare; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of C
California that:
1)
2)
The above recitations are true and correct.
The Mayor is authorized to sign and execute the attached Agreemc
guarantees funding for improvements to Palomar Airport Road from El Caminc
Business Park Drive.
3) The property owners in Zone 5 who guarantee the finar
improvement of this road segment shall be eligible for reimbursement from
owners in other Local Facility Management zones of the City of Carisbad if
Facilities Management Plans for those zones indicate that traffic from future dev
of those zones would impact this road segment.
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4) Funding assistance for improvement of this road segment may be av
from other sources, and the City will investigate all reasonable and appropriate pc
sources of funds to aid in this effort; however, ultimate responsibility for financii
road segment rests with the Zone 5 property owners,
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PASSED, APPROVED AND ADOPTED at a regular meeting of the Ci
City Council held on the 24th day of April , 1990 by the fc
vote, to wit:
AYES:
NOES: Council Member Pettine
ABSENT: Council Member Mamaux
Council Members Lewis, Kulchin, and Larson
ATTEST:
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(SEAL)
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FORWARD FUNDING, MITIGATION AND REIMBURSEMENT
AND CONSTRUCTION OF PALOMAR AIRPORT ROAD EAST
AGREEMENT FOR THE COST OF ENGINEERING
THIS AGREEMENT is entered into this 1 lth day of S-ePtember -- , 1
by and among those Zone 5 Property Owners described on Exhibit-''A" hereto, he referred to collectively as the "Contributing Ownerst' and the City of Carlsba municipal corporation of the State of California, hereinafter referred to as the "City
RECITALS
WHEREAS, the City has established a Growth Management System, together ordinances and policies implementing same (hereinafter "City's GMS") which inc
public facility performance standards which must be continually satisfied in ordc
allow further development, including issuance of building permits and other develop entitlements, for development to proceed in various development zones throughou City;
WHEREAS, the City has verified that a portion of Palomar Airport Road, ea3
from the intersection of Palomar Airport Road and El Camino Real to the City I
(hereinafter "PAR East"), is not meeting applicable performance standards and
result no development or building permits may be issued within Zone 5 until PAR E
fully improved or acceptable guarantees of financing for its improvement is achiev accordance with the City's GMS;
WHEREAS, the Contributing Owners own developable property within Zone
have been requested by the City to provide financial assurances for a portion of the
necessary to construct PAR East; and
WHEREAS, the Contributing Owners are willing to provide certain fin:
assurances and commitments, in combination with those commitments and assur
from the City, as hereinafter enumerated to provide the necessary assurance
guarantees to fully mitigate and satisfy the City's GMS with respect to PAR East;
NOW, THEREFORE, in consideration of the mutual promises contained herei parties agree as follows:
1. Recitals Incorporated by Reference.
The foregoing Recitals are incorporated herein by this referenc represent a general statement of the intent and scope of this Agreement ret
mutual and reciprocal commitments by the Contributing Owners and the City resp
satisfaction of the City's GMS as it relates to Zone 5 and PAR East.
2. PAR East Improvements.
2.1 The scope of the PAR East improvements (here
grading for full 126 foot right-of-way;
construction of paved travel lanes to a total number
("Improvements") to be designated and constructed by the City shall include:
(a)
(b)
(4), two (2) in each direction;
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eighteen (18) foot AC paved median with curb and gutter;
appurtenant shoulder protection and normal drainage; and
(4 all necessary improvements and grading necessary to accomplish needed roadway construction.
The parties acknowledge and agree that City shall use its best efforts to minimize the design and construction costs consistent with reasonable design standards and engineering specifications and the Improvements shall not include Palomar Airport Road/El Camino Real intersection improvements or any improvements outside the City limits.
Development projects in the City of San Marcos have been sufficiently conditioned to provide the needed facilities outside the Carlsbad city limits.
The Improvements are more speaifiaally described and shown on the Improvement Description attached hereto as Exhibit "B" and incorporated herein by this reference.
2.3 The cost of design and construction of the Improvements, as hereinafter defined (the "Improvement Costs") is presently estimated to be Three Million
Eight Hundred Forty-Seven Thousand Five Hundred Fif ty-Four Dollars ($3,847,554) Estimate is subject to change based on result of design effort.
Contributing Owners agree to deposit additional funds or increast bonds if the estimate is increased. This shall be done upon 30 days notice to tht Contributing Owners by the City.
2.2
2.4
3. Improvement Funding Sources.
3.1 City will make available all San Diego Regional TransNet Fund (Prop. A) allocated to this project. City agrees to use its best efforts to attempt tc
estimated to be fifty percent (50%) of the total project cost, and is subject to change and is under the control of San Diego Association of Governments (SANDAG).
Contributing Owners will pay for the project by depositing cash wit
the City in the aggregate amount of the actual cost minus the TransNet allocatior
current estimate is One Million Nine Hundred Twenty-Three Thousand Seven Hundre Seventy-Seven Dollars ($1,923,777) [Note: Subject to adjustment based on Sections 2.
and 3.11 for the purpose of assuring each Contributing Owners' advance funding of th Improvements. The money will be deposited with City within thirty (30) days of writte
notice that the City Council has approved the plans and specifications and authorized th advertisement of bids for the project.
Contributing Owners shall deliver to City by May 24, 1990, one (
more surety bonds substantially in the form attached hereto as Exhibit "C", (hereinaft6
the "Surety Bondst1) in the aggregate amount of One Million Nine Hundred Twenty-Thrc Thousand Seven Hundred Seventy-Seven Dollars ($1,923,777). The Surety Bonds shall 1
issued for the benefit of the City to guarantee Contributing Owners payment obligatic
under Seation 3.2, unless the Surety Bonds are earlier released pW!Uant to Section 3
below.
secure the maximum amount of such funds. The current programmed allocation il
3.2
3.3
3.4 Each Contributing Owner shall be individually responsible for i
payment, Surety Bond and contribution in the amount set forth opposite its name 1
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Exhibit "A" hereto and shall have no liability for the failure of any other individua
Contributing Owner to make its payment provide its Surety Bond or any other obiigatioi
hereunder.
No award of a construction contract for the improvements will bl made until such time as all funds are on deposit with the City. If funds have not bee deposited as required by this agreement, no further development or building permits wi be issued.
3.5
3.6 The Surety Bonds shall have an expiration date no sooner than on
(1) year following completion and City acceptance of the Improvements. The Cit presently anticipates completing the design and commencing construction during tl- 5 %id( quarter of 1991 and completing construction during the 5' *. F quartc
3.7 Notwithstanding Section 3.4 above, the Surety Bonds shall be earlic
(a) Substitution of another form of financial guaranti reasonably acceptable to the City; including but not limited to; Communi Facilities District, hereinafter "CFD," 1913/15 Act Assessment District.
Deposit of cash required for improvement and completion
(c) Contributing Owners may substitute a cash deposit to '
released by the City and canceled upon the earlier to occur of the following:
(b) project.
individual Surety Bond,
3.8 Provided the Surety Bonds have not been earlier released pursuant Section 3.7 above, the City may call the Surety Bonds to the extent funds are necessi
to finance the Contributing Owners' share of the Improvement Costs which have not be
deposited as required by Section 3.2 or otherwise provide to City's satisfaction. C shall first give each Contributing Owner and its Surety thirty (30) days prior writ1
notice of its intention to call the Surety Bonds.
4. Alternate Financing Sources.
City and Contributing Owners agree to use their best efforts to consi alternate financing sources which will finance the Contributing Owners' share of Improvements. Such alternate sources may include alternatives such as a City-Wide C program, a Zone 5 CFD program or other financing alternatives. City and Contribul
Owners will also investigate the feasibility of financing the Zone 5 park fee obligal
referenced in the existing Zone 5 Facilities Plan and equitably spread all Park related costs to all Zone 5 properties remaining to be developed. The purpose and int
the Improvements, for the Surety Bonds and the financial assurances of Contribul Owners herein.
is to attempt to substitute the alternate financing sources, BS it relates to financing
5. Reimbursement Program.
5.1 The parties hereto acknowledge the need for an equit
reimbursement program to reimburse the Contributing Owners who actually contril
funds to the construction of the Improvements, or to proportionately reduce the am( of the Surety Bonds. The reimbursement program involves implementation by the '
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through its ordinances, policies and state law, and may include, but is not necessarily limited to growth management and zone fees, subdivision exaction fees, benefit area fees
or other programs intended to reimburse Contributing Owners for any advances made
that should be equitably spread on other undeveloped property.
5.2 City will use its best efforts to impose as a condition of approval 0' all future development, including but not limited to zone plans and subdivision maps, tc the extent lawful and within its municipal powers, on each property, (other than thc property of Contributing Owners hereof), which impacts PAR East a fee or othe exaction representing each property's proportionate share of the "Improvement Coststt a:
hereinafter defined. These fees shall be collected by City and when so collected shall bc distributed to repay to the Contributing Owners their proportionate share o Improvement Costs or to proportionately reduce the Surety Bonds, as the case may be
The City agrees to pay Contributing Owners or otherwise credit the Surety Bonds SUC' amounts collected within thirty (30) days of their receipt. This reimbursement prograi shall remain in effect until the earlier of (a) the remaining reimbursement amount ha
been fully satisfied or (b) twenty (20) years from the execution of this Agreement.
6. Improvement Costs and Annual Adjustment.
6.1 Wnprovement Costs" as used herein shall include, but are nc limited to, costs for design, administration of construction contracts, and actui
construction Of the Improvements, less the City provided funds referred to in Section 3 above.
6.2 "Improvement Costs" shall be documented by copies of all invoic
and payments and shall be based upon actual quantities of contract items constructed accordance with the plans and specifications and contract unit prices.
6.3 City, as soon as practicable following completion of ti Improvements, will submit to the Contributing Owners an accounting of all Improveme Costs incurred for the Improvements. Said Costs shall be for any reimbursements ma during the calendar year of completion and acceptance. Provided, however, com menci
each January 1 thereafter, the Improvement Costs shall be increased based on a
increases in the Construction Cost Index for the Los Angeles/San Diego area (1913 eqi loo), published by the Engineering News Record ("CCI") using the monthly ind
published immediately prior to each subsequent calendar year as the %omparis index." In no event shall the Improvement Costs as adjusted annually be less than tl calculated for the preceding calendar year. The parties agree and acknowledge that t method of indexing Improvement Costs of construction using the CCI 1s fair a equitable to the other contributing parties as it most nearly reflects the actual cost construction as may exist from time to time. In the event the CCI is discontinued, tl the City and Contributing Owners shall reasonably agree on a substitute index or met:
of indexing for delayed future reimbursement payments.
7. Personal to Contributing Owners.
The parties acknowledge and agree that the obligations, reirnbursem
rights and entitlements provided for herein shall be personal to the Contributing Owr and such rights shall not, unless expressly assigned in writing by the Contributing Own,
and such assignment is approved by the City, inure to the benefit of future owner
transferees of all or any part of their respective properties. Liability under Agreement shall not be joint and several among the Contributing Owners, and e
participant shall be liable for its contributive share only as outlined on Exhibit here to.
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8. Miscellaneous.
8.1 A demand upon payment or notice required or permitted to be given by one party to the other shall be in writing and shall be deemed effective (a) on personal
delivery (b) on the third business day after mailing by certified or registered United States mail, postage pre-paid, return receipt requested or (c) on the succeeding business day after mailing by Express Mail or after deposit with a commercial delivery service oi general use, all postage or fees pre-paid and addressed to the parties at the addresse: below:
If given to Contributing Owners: At the addresses set forth on Exhibit "A" hereto.
Luce, Forward, Hamilton & ScrippI
La Jolla Golden Triangle
4250 Executive Square Suite 700 La Jolla, CA 92037
Ronald W. Rouse, Esq.
City Manager City of Carlsbad
1200 Carlsbad Village Drive Carlsbad, California 92008
With a copy to:
If given to City:
Notice of change of address shall be given by written notice in the manner set forth i this paragraph only.
This Agreement constitutes the entire agreement among the partil
hereto pertaining to subject matter hereof, and all prior and contemporaneol agreements, representations and understandings of the parties hereto or the written 81
hereby superseded and merged herein. No supplement, modification or amendment (
this Agreement shall be binding unless in writing and executed by the parties hereto.
8.2
0.3 This Agreement shall be construed In accordance with and governc
by the laws of the State of California. This Agreement shall be deemed made a1
entered into in San Diego County, which shall also be deemed to be the sole proper venl for any action or proceeding relating to the Agreement.
In the event any action shall be instituted in connection with ti
Agreement, the party prevailing in such action shall be entitled to recover from t
other party of all Its costs of action including reasonable attorneys' fees as determin
by the court, In addition to any other damages or remedies as to which said party entitled.
Contributing Owners and City acknowledge that it may be necessi
to execute additional documents or other writings in order to perform this Agreemc and in connection with determining the final Improvement Costs and/or the perioi adjustments thereto. CIty and Contributing Owners hereby agree to cooperate with e€
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other by executing such other documents or taking such other action BS may
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reasonably necessary to provide for reimbursement of the Improvement Costs and fa
completion of the construction of the Improvements.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on th
day and year first written above in counterpart signature pages.
CITY OF CARLSBAD, A Municipal Corporation of the State of California
By:
CLAUDE A. LEWIS, Mayor City
of Carlsbad
CONTRIBUTING OWNERS
See Exhibit "A" signatures
APPROVED AS TO FORM:
VINCENT F. EIONDO, JR., City Attorney
ATTEST:
ALETHA L. RAUTENKRANZ, City Clerk
/o/AGlllTAM/4-24-90
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Exhibit B
Palomar Airport Road East Scope of Work
The design and construction of Palomar Airport Road from the intersection of Palomar Airport Road and El Camino Real to the Easterly City limits must include the
following improve ments:
1.
2.
3.
4.
5.
6.
Necessary environmental assessment and mitigation
Right-of-way acquisition to accommodate construction
Grading to full prime arterial standards (126 feet ROW)
Construction of four (4) paved travel lanes, two (2) in each direction
Eighteen (18) foot AC paved median with curb and gutter
Necessary intersection improvements including signal modifications at Palomar Airport Road and El Fuerte
Sufficient roadway transitions to accommodate widening on El Camho Real to Palomar Airport Road
Construction of required drainage structures and shoulder protection
Any earthwork and grading necessary to accomplish needed roadway construct ion
7.
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EXHIBIT C
Surety Bond
See City o€ Carlsbad standard Faithful Performance Bond
Attached hereto
ACCOUNT NO. DESCRIPTION
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RECEIPT NO. 9 9 2 5 2 TOTAL
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RESOLUTION NO. 9 2 - 13 6
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CARLSBAD, CALIFORNIA AUTHORIZING THE CITY CLERK
TO RELEASE THE GUARANTEE OF FUNDING FROM CERTAIN
PROPERTY OWNERS WITHIN ZONE 5 FOR THE IMPROVEMENTS
TO PALOMAR AIRPORT ROAD EAST
WHEREAS, On April 24, 1990 the City Council of the City of Carlsbad ad(
Resolution No. 90-123 approving and authorizing the Mayor to execute and agreemen
certain owners of property within Zone 5 providing a guarantee of funding for improver
to Palomar Airport Road East in compliance with Growth Management Requirements;
WHEREAS, the City of Carlsbad has secured an alternative for of funding in the
of TRANSNET (Prop A) funds for the improvements to Palomar Airport Road East; and
WHEREAS, the funding guarantee supplied by the various property owners within
5 are no longer necessary in light of the secured funding from TRANSNET fc
improvement to Palomar Airport Road.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carl
California that:
1)
2)
The above recitations are true and correct.
The City Clerk is authorized to release the performance bonds post
following property owners within Zone 5:
Upland Industries Corporation $1,012,293
Carlsbad Airport Centre, Ltd. $681,601
Carlsbad Oaks East $232,199
MorganIPalomar Industrial I $ 45,602
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3) The Finance Director is authorized to reimburse the cash deposit submitt
Mr. Kenneth Saterlee in the amount of $6,327.
PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad City C
held on the 19th day of MAY , 1992 by the following vote, to wit:
AYES: Council Members Lewis, Larson, Stanton, Nygaard
NOES: None
ABSENT: Council Member Kulchi
NTEST:
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FtANZ, City Clerk
(SEAL) KAREN R. KUNDTZ, Assistant City Clerk
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