HomeMy WebLinkAbout1998-02-03; City Council; 14543; 3184 APN 205-060-04 CANNON RD Cannon Rd. west mitigation credits CREDIT HIGHLAND DR Manchester Ave. Mitigation Bank MITIGATION Mitigation credits 6.2 acres purchase NUISANCE PROJ Res 98-27 WMTG. 2/03/98 CANNON ROAD WEST
Adopt Resolution No. q8 -97
Cannon Road West, Project No. 3184, from the Manchester Avenue Mitigation Bank.
authorizing the purchase of 6.2 acres of mitigation (
ITEM EXPLANATION:
With the construction of the Cannon Road West Improvement Project, the U. S. Fish ar
Service and California Department of Fish and Game are requiring the City to purchase 6.: southern maritime chaparral mitigation credits as required by the section 4d Interim Hal
Permit. These credits are available from the Manchester Avenue Mitigation Bank at
$215,964.60. Funds to purchase the credits are available in the Cannon Road West project ac
This is not a purchase of land in fee title so there is no property appraisal. The price of $34,(
acre credit ($21 5,964.60 for 6.2 acre credits) is consistent with what other entities have paid
mitigation credits. The per acre credit cost includes a $1,566.00 endowment deposit which
the State of California Center for Natural Lands Management. The mitigation credits that art from the Manchester Avenue Conservation Bank are part of the Whelan Ranch Conservatic the City of Encinitas. It is operated by Tech-Bilt, Inc. The area from which the credits will be consists of a large area of land set aside for endangered species. Agencies “buy” credits ‘ the habitat area lost through development. Alternatives to purchasing credits in a land bank for the City to find and buy property or use City property to set aside in open space for el species. The process to find and qualify land would be lengthy and more costly than purchas in land established and acceptable to Federal and State agencies for mitigation purchases.
Staffs recommended action to City Council is as follows:
City Council authorize the purchase of 6.2 acres of mitigation credits from the h Avenue Conservation Bank at a cost of $21 5,964.60.
Authorize the Mayor to execute an agreement with Tech-Bilt, Inc., owner of the h
Avenue Conservation Bank.
The acquisition of land for wildlife conservation purposes is a categorical exemption per
1531 3 of the CEQA guidelines.
FISCAL IMPACT:
TOTAL APPROPRIATIONS TO DATE
Expenditures to Date $1,994,538
Contractual Obligations $1,695,699
Mitigation Credit Purchase $21 5,965
Additional Estimated Costs to 6/30/98 $1,166,441
TOTAL ESTIMATED COSTS TO 6130198 $5,072,643
ESTIMATED REMAINING BALANCE 6/30/98 $345,494
Funds to purchase the 6.2 acres of mitigation credits at a cost of $215,964.60 are availabll been appropriated in the project account.
$541 8,137
Page 2 of Agenda Bill No. %,5Y3 0
EXHl BITS:
1. Resolution No. 98 pJ 9
West.
Conservation Credit Purchase Agreement and Acknowledgment.
authorizing the purchase of mitigation credits for Cannon
2.
3. Project Location Map.
4. Manchester Avenue Conservation Bank Location Map.
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RESOLUTION NO. 98-27
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, AUTHORIZING THE PURCHASE OF MITIGATION
CREDITS FOR CANNON ROAD WEST, PROJECT NO. 3184.
WHEREAS, the City Council of the City of Carlsbad, California has previously
necessary and in the public interest to construct improvements known as Cannon Roa
and
WHEREAS, such construction will result in an impact to 3.1 acres of southern I
chaparral vegetation which requires mitigation; and
WHEREAS, the United States Fish and Wildlife Service and California Departmen
and Game require mitigation at a ratio of 2:l for a total of 6.2 acres as a condition of the
4d Interim Habitat Take Permit; and
WHEREAS, the City of Carlsbad is required to mitigate this impact by purchasing
in an off-site area of southern maritime chaparral or other habitat which is acceptable to
and State agencies; and
WHEREAS, the acquisition of land for wildlife conservation purposes is cate
exempt from environmental review per Section 15313 of the CEQA Guidelines; and
WHEREAS, the Manchester Avenue Conservation Bank has been accepted by
and State agencies for mitigation purposes.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of C
California, as follows:
1.
2.
That the above recitations are true and correct.
That the City Council of the City of Carlsbad, California, authorizes the pur
6.2 acres of mitigation credits from the Manchester Avenue Conservation Bank.
Ill
Ill
111
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Ill
0
3. That the City Council of the City of Carlsbad, California authorizes the
ched hereto as Exhibit "A" and rnac
hereof, for said purchase.
PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad Cit
held on the 3rd day of February , 1998 by the following vote, to wit:
AYES: Council Members Lewis, Finnila, Nygaard, Kulchin, and Hall
(SEAL)
e 8
CONSERVATION CREDIT
PURCHASE AGREEMENT AND ACKNOWLEDGMENT
THIS CONSERVATION CREDIT PURCHASE AGREEMENT AND
ACKNOWLEDGMENT ("Agreement") is entered into this
between Tech-Bilt, Inc., ("Seller") and the City of Carlsbad ("Purchaser").
A.
Agreement (the "Imdementation Ameement") dated September 30,1997 by and among Seller,
as "Property Owner", The California Department of Fish and Game ("CDFG), and The United
States Fish and Wildlife Service (,lUSFWSt') (CDFG and USFWS are referred to collectively
hereinafter the "Wildlife Agencies"), the Wildlife Agencies have acknowledged the creation of
the Manchester Avenue Conservation Bank (the "Conservation Bank") and the right of Seller to
sell southern maritime chaparral and multispecies "Conservation Credits" as provided firrther
therein.
B.
located in San Diego County California commonly known as Cannon Road Alignment (the
"Purchaser's Pro-mrtv").
C.
6.2 southern maritime chaparral Conservation Credits (the "Conveyed Credits") fiom the
Conservation Bank on the terms and conditions set forth herein.
day of - 1998 by and
Pursuant to that certain Manchester Avenue Conservation Bank Implementation
Purchaser desires to mitigate the loss of certain natural habitat values on real property
Purchaser has agreed to purchase fiom Seller, and Seller has agreed to sell to Purchaser
NOW, THEREFORE, in consideration of the agreements and acknowledgments set forth
herein and for other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, Seller and Purchaser hereby agree and acknowledge as follows:
1. The purchase price for the Conveyed Credits shall be $215,964.60 (the "Purchase Price").
2. Purchaser has deposited with the Center for Natural Lands Management (the "Center"), 01
shall deposit with the Center on or before March 1, 1998 (the "Closing Date"), immediately
available funds in the amount of $9,709.20 (the "Endowment Deposit"), and Seller has received,
or shall receive prior to the Closing Date, the Center's written acknowledgment of its receipt of
the Endowment Deposit in the form attached hereto as Exhibit A ("Endowment Deposit
Receint"). The Endowment Deposit is a one-time payment. The Purchaser shall have no further
obligation to pay monies or otherwise participate in the maintenance of the Conservation Bank
3. Purchaser has deposited with Seller, or shall deposit with Seller on or before the Closing
Date, immediately available funds in the amount of $206,255.40.
4. Upon satisfaction of the conditions set forth in Paragraphs 2 and 3 above, Seller shall
execute and deliver to Purchaser the Acknowledgment of Sale of Conservation Credits attached
Purchase Agreement Manchester Avenue Conservation Bank Page 1 of 4 v.9169;
0 aB
hereto as Exhibit B.
5. Purchaser acknowledges and agrees that: (a) the purchase and sale of the Conveyed
Credits shall be made on an "AS IS, WHERE IS, WITH ALL FAULTS" basis as provided for in
the Implementation Agreement; and (b) no representations or warranties have been made or are
made and no responsibility has been or is assumed by Seller or by any officer, agent, affiliate, or
representative acting or purporting to act on behalf of Seller as to: (i) the conservation value of
the property conveyed to the Wildlife Agencies in establishing the Conservation Bank, (ii) the
conservation value or mitigation requirements of the Purchaser's Property, (iii) the acceptance of
the Conveyed Credits by the Wildlife Agencies or any other governmental agency as mitigation
for the loss of habitat values associated with the Purchaser's Property, or (iv) any other fact or
circumstance which might affect the Conservation Bank, the Purchaserk Property, or the
Conveyed Credits.
6.
shall be made with the Purchaser having no further responsibilities for the Property as described
in the Implementation Agreement.
7. Time is of the essence in this Agreement. In the event the conditions set forth in
Paragraphs 2 and 3 above have not been satisfied by the Closing Date, at Seller's election in its
sole and absolute discretion, upon written notice to Purchaser, this Agreement shall terminate
and neither party shall have any fiuther obligations hereunder except as provided in Paragraph 8
below.
8.
agreement, or dealings regarding the Conveyed Credits with, nor any communication in
connection with the subject matter of this transaction through, any consultant, broker, agent,
finder, or other person who can claim a right to a consultant fee, commission or finder's fee in
connection with the sale contemplated herein, other than the Seller's consulting contract with
McCollum Associates ("McCollum"). The Seller shall be solely responsible for any consulting
fee owed to McCollum and agrees to indemnify, defend and hold Buyer harmless with respect
thereto. In the event that any other consultant, broker or frnder perfects a claim for a consultant
fee or commission or finder's fee based upon any such contract, agreement, dealings or
communication, the party through whom such claim is made shall be solely responsible for and
shall indemnify, defend, and hold harmless the other party fiom and against said commission or
fee and all costs and expenses (including without limitation reasonable attorneys' fees) incurred
by the other party in defending against such claim. The provisions of this Section 8 shall survivc
the termination of this Agreement.
9. Purchaser and Seller agree that all understandings and agreements heretofore made
between them or their respective agents or representatives are merged in this Agreement and the
Exhibits attached hereto, and alone hlly and completely express their agreement with respect to
the subject matter hereof and supersede all prior agreements and understandings between the
parties relating to such subject matter. Purchaser and Seller further agree that Purchaser has no
Purchaser acknowledges and agrees that the purchase and sale of the Conveyed Credits
Seller and Purchaser each represent to the other that it has not had any contract,
Purchase Agreement Manchester Avenue Conservation Bank Page 2 of 4 v.9165
0 0
responsibilities Or ob!$j?!!hS WhilkQeY$r €e@&& the "(&fi~$N@~QQ creailf Qx$$p\ $3 aG
expressly stated in this Agreement.
10. All deposits, except the Endowment Deposit, and any notice required or permitted to be
made or given under this Agreement shall be made and delivered to the parties at the addresses
set forth below each party's respective signature. All notices shall be in writing and shall be
deemed to have been given when delivered by courier, when transmitted by facsimile (upon
confirnation of successfully completed transmission), or upon the expiration of two (2) bushes,
days after the date of deposit of such notice in the United States mail, registered or certified rnai
postage prepaid, return receipt required.
1 1.
of California. In the event a dispute arises concerning the meaning or interpretation of any
provision of this Agreement, or in the event of any litigation arising out of or related to this
Agreement, the party not prevailing in such dispute or litigation shall pay any and all costs and
expenses incurred by the other party in establishing or defending its rights hereunder, including,
without limitation, court costs and reasonable attorneys' fees.
This Agreement shall be governed and construed in accordance with the laws of the Sta&
12.
which so executed and delivered shall be deemed to be an original and all of which shall
constitute one and the same instrument.
This Agreement may be executed and delivered in any number of counterparts, each of
Purchase Agreement Manchester Avenue Conservation Bank Page 3 of 4 v.9169'
0 0
WHEREUPON, this Agreement has been executed as of the date first-above written.
SELLER:
TECH-BILT, Inc.,
By:
Name:
Its:
By:
Name:
Its:
TECH-BILT, I~c.
P.O. Box 80036
San Diego, CA 92138
Attention: Mr. Ted Tchang
Fax NO. (6 19) 223-2865
-y UV --
Name: Claude A. Lewis
Its:
City of Carlsbad
2075 Las Pahas Drive
Cadsbad, CA 92009
Attention: Mr. Michael Bock
Mayor
Fax NO. (760) 438-0894
Purchase Agreement
Manchester Avenue Conservation Bank Page 4 of 4 v.916
0 0
NOT TO SCALE
1
0 d,
WRITE IT- DON'T SAY IT!
Date 21 5 1
Sherri Howard, Engineering UReply Wanted To
From Sherrie Worrell, Deputy City Clerk UNO Reply Necessary
Attached per your request are the two original agreements that have bec signed by the Mayor and are ready for further processing.
Once the agreements have been fully executed please return one to our c with a capy of Exhibit A and Exhibit B in order to assure that our recc are complete.
Thank you.
__
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'CITY OF CA D
2075 LAS PALM
CARLSBAD, CALIFORNIA 92009-1 576
(760) 438-1 161
ENGINEERING DEPARTMENT
AGENDA BILL FOR 2/3/98 CITY COUNCIL TO
City Clerk
WE ARE SENDING YOU IxI Attached 0 Under separate cover via the followi
Shop Drawings [7 Prints 0 Plans 0 Samples [7 Specifications
0 Copy of letter [7 Change Order 0 Dated
THESE ARE TRANSMITTED AS CHECKED BELOW:
0 For approval 0 For checking 0 Resubmit copies for ap, 0 Foryouruse 0 Design only, not for constructic 0 As requested Approved as noted Return corrected prints 0 For review and comment 0 Returned for corrections 0 E For your action
0 Approved as submitted
REMARKS Please process this agreement following City Council approval. Return the signed agreements to mt
further processing following their execution.
Thanks!
COPY TO:
SIGNED: /2!&&%
Michael d Bock, Management As w-
If enclosures are not as noted, kindly notify us at once.
v -78TE BT -
Date May 24,
TO File - ABf14,543 Reply Wanted
From Lorraine Wood, Office of the City Clerk UNO Reply Necessary
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_-
The Conservation Credit Purchase Agreement and Acknowledgment between the Cit;
(Purchaser) and Tech-Bilt, Inc. (Seller) dated May 24th 1999 is filed in "45"
Tech-Built.