HomeMy WebLinkAbout2002-12-10; City Council; 17003; Reimbursement Agreement Terraces at Sunny CreekAB# 17,003
MTG. 1211 0102
DEPT. ENG I I
- TITLE: APPROVE RATIFICATION OF
SUNNY CREE AT INTERSEC
REIMBURSEMENT AGREEMENT WITH THE TERRACES AT
RECOMMENDED ACTION:
Adopt Resolution No. 2002-354 to approve and authorize execution of a Ratification of
Reimbursement Agreement with The Terraces at Sunny Creek, LLC, a California Limited Liability
Company (“Developer”) for the design and construction costs incurred for the modifications
performed on the traffic signal at the intersection of College Boulevard and El Camino Real, and
approving the appropriation of funds and authorizing reimbursement to The Terraces at Sunny
Creek, LLC.
ITEM EXPLANATION:
The Terraces at Sunny Creek LLC, is the developer of 174 residential units located southeast of the
intersection of El Camino Real and College Boulevard, known as the Terraces at Sunny Creek
(CT 96-02). As a condition of project, the Developer designed and performed modifications to the
traffic signal at College Boulevard and El Camino Real. These signal modifications provide the
necessary components for the signal to serve the ultimate traffic volumes along this corridor.
The traffic signal modifications were completed by the Developer in March 2002 and continue to be
in use.
The traffic signal improvements for College Boulevard and El Camino Real are listed in the 2002-03
Capital Improvement Program (see Exhibit 2) with financing provided by the Public Facilities Fee
(PFF) Fund. The Capital Improvement Program identifies a budget of $1 15,000 for these
modifications.
In August 2002, the Developer submitted an expense record for the costs incurred associated with
the design and construction of these signal modifications. This expense record has been reviewed
and approved by staff.
The cost incurred by the Developer for the design and construction of the signal modifications to
College Boulevard and El Camino Real is $1 10,121.
ENVIRONMENTAL REVIEW:
The Planning Director has determined that the requested action is consistent with CEQA review.
The project was reviewed for potential environmental impacts under the Environmental Impact
Assessment (EIA) Form Part II for CT 96-02. The Planning Commission adopted a Program
Environmental Impact Report on July 1, 1998 pursuant to Planning Commission Resolution
No. 4287.
FISCAL IMPACT:
Although the allocation of funds for these traffic signal modifications were anticipated in
FY 2007-2012, staff recommends these funds be allocated at this time to reimburse the Developer
for completing the build-out improvements of the traffic signal. There are sufficient PFF funds
available for the project and staff recommends the appropriation of $110,121 from PFF funds to
reimburse the Developer.
Page 2 of Agenda Bill No. 17,003
EXHIBITS:
1. Location Map.
2. Copy of FY 2002-03 Capital Improvement Program identifying budget for costs of signal
design and construction at College Boulevard and El Camino Real.
3. Resolution No. 2002 - 354 to approve Ratification of Reimbursement Agreement with The
Terraces At Sunny Creek, LLC, for modification of traffic signal at intersection of College
Boulevard and El Camino Real and appropriate funds.
4. Copy of Ratification of Reimbursement Agreement for Traffic Signal Improvements to the
Intersection of College Boulevard and El Camino Real between The Terraces at Sunny
Creek, LLC, and the City of Carlsbad.
LOCATION MAP
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NOT TO SCALE
PROJECT NAME COLLEGE BLVD. /EL CAMINO REAL NUMBER TRAFFIC SIGNAL IMPROVEMENTS CT96-02 1
PROJECT EXHIBIT
\HN BY: SCOTT EVANS, CARLSAD ENGINEERING EPT. 11/26/02 C: \DEKLWMENT PRMClS\CT96-02lS.DW
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RESOLUTION NO. 2002-354
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, TO APPROVE RATIFICATION OF
REIMBURSEMENT AGREEMENT WITH THE TERRACES AT
SUNNY CREEK, LLC, FOR MODIFICATION OF TRAFFIC SIGNAL
AT INTERSECTION OF COLLEGE BOULEVARD AND EL CAMINO
REAL AND APPROPRIATE FUNDS.
WHEREAS, The Terraces at Sunny Creek, LLC, a California Limited Liability Company
Developer) is the developer of The Terraces at Sunny Creek, CT 96-02; and
WHEREAS, the Developer has performed modifications to the traffic signal at the
ntersection of College Boulevard and El Camino Real; and
WHEREAS, these traffic signal modifications are identified in the 2002-2003 Capital
mprovement Program; and
WHEREAS, the Developer has executed a Ratification of Reimbursement Agreement for
he design and construction costs for the traffic signal modifications at College Boulevard and El
:amino Real, a copy of which is attached hereto and marked as Exhibit "AI and incorporated by
his reference (Agreement); and
WHEREAS, Developer has submitted an accounting of cost incurred for the design and
:onstruction of the traffic signal modifications in accordance with the Agreement which has been
eviewed by staff; and
WHEREAS, the total cost identified in the City's Capital Improvement Program is
;115,000, and the Developer's expense incurred for said traffic signal modifications is $1 10,121;
Ind
WHEREAS, there is sufficient funding available in the Public Facilities Fee Fund to cover
he reimbursement to Developer; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad,
=alifornia, as follows:
1. That the above recitations are true and correct.
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2. That the Ratification of Reimbursement for the Traffic Signal Improvements to the
Intersection of College Boulevard and El Camino Real is hereby approved and the Mayor is
hereby authorized to execute the Reimbursement Agreement with The Terraces at Sunny Creek,
LLC.
3. That the City Finance Director is hereby authorized to appropriate funds in the
amount of $1 10,121 from Public Facilities Fee Funds to reimburse the Terraces at Sunny Creek,
LLC.
PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad City Council
held on the loth day of December , 2002 by the following vote, to wit:
AYES: Council Members Lewis, Kulchin, Finnila, Nygaard, and Hall.
NOES: None
ABSENT: No
XAUDE A. LEWIS, .
4TTEST:
tP
-OgRAI$E M. WOOD, City Clerk
Page 2 of 2 of Resolution No. 2002-354
(S EAL)
RATIFICATION OF
REIMBURSEMENT AGREEMENT
FOR TRAFFIC SIGNAL IMPROVEMENTS TO THE
INTERSECTION OF COLLEGE BOULEVARD AND EL CAMINO REAL
THIS REIMBURSEMENT AGREEMENT FOR TRAFFIC SIGNAL IMPROVEMENTS TO
INTERSECTION OF COLLEGE BOULEVARD AND EL CAMMO REAL, dated as of Id- /I 0
2002 (Agreement), is made at Carlsbad, California, between THE TERRACES AT SUNNY CREEK, LLC, a
California limited liability company (Developer) and the CITY OF CARLSBAD, a municipal corporation of the
State of California (City), with reference to the following recitals:
A. Developer is processing for development within the City a project known as The Terraces at Sunny Creek,
CT 96-02 (Project) located on real property (Property) owned by Developer. A legal description of the Property is
attached hereto as Exhibit “A.”
B. The Project and Property are located within the City’s Public Facilities Fee (“PFF”) program area.
Pursuant to the City’s Municipal Code and per condition 9 of Planning Commission Resolution 4292 as it relates to
Carlsbad Tract no. CT 96-02, the Developer must pay a PFF fee to fund the improvements of the PFF Program. As
part of the Project, the Developer is required to construct a portion of these improvements outlined in the PFF
program. These improvements consist of traffic signal modifications to the intersection of College Boulevard and El
Camino Real to accommodate the proposed street improvements for the Project (Traffic Signal Improvements). By
constructing a portion of the program improvements, the Developer is eligible for reimbursement costs, as approved
by the City pursuant to this Agreement.
C. Developer intends to convey, or cause conveyance, of record title to the Property to other persons pursuant
to contractual commitments not related to this Agreement. Any hrther development activity with respect to any
portion of the Property or Project will be the responsibility of the respective transferee. The original Developer, and
the signatory of this Agreement shall remain solely bound to the terms and obligations of this Agreement, unless and
until this Agreement is modified to the satisfaction of the Public Works/City Engineer, in accordance with Section
6(i), below.
reimb signal (version October I5,2002).doc 1
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D. Conditions 4 1 and 42 of Planning Commission Resolution No. 4292 require Developer to construct
portions of College Boulevard as part of the Project.
E. The total cost of the Traffic Signal Improvements shall be the sum total of (i) the actual contract cost of
modifying and installing the Traffic Signal Improvements (Contract Cost), plus (ii) an overhead allocation of four
percent (4%) multiplied by the Contract Cost, in lieu of other reimbursement for Developer’s cost incurred for salary
and benefits for staff of Developer’s home offices, supervision above the level of on-site superintendent, general
corporate, legal, and accounting fees, the cost of borrowed fimds, insurance and bond premiums, expenses for
meetings with and presentations to governmental agencies which issue permits or otherwise regulate project
approval, and (iii) an additional two and one-half percent (2.5%) multiplied by the Contract Cost covering
Developer’s construction administration of the Traffic Signal Improvements . An estimate of total cost, showing the
categories listed above, is attached hereto as Exhibit “C.”
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:
1. RECITALS AND EXHIBITS. The above Recitals are true and correct. The Exhibits cited above are a
part of this Agreement.
2. SATISFACTION OF OBLIGATION. Developer’s agreement to construct the Traffic Signal
Improvements as set forth herein, with the actual construction thereof, shall fully satisfy and constitute full
compliance with all requirements imposed on the Project with respect thereto.
3. DEVELOPER OBLIGATIONS.
a. In consideration of City’s reimbursement and other undertakings as set forth herein, Developer agrees to
construct and install the Traffic Signal Improvements.
b. Developer shall obtain all property interests necessary for the construction, operation and maintenance of
the Traffic Signal Improvements herein described.
c. Developer shall complete all work on the Traffic Signal Improvements no later than three (3) years from
reimb signal (version October l5,2002).doc 2
the effective date of the Agreement.
d. Developer shall use the complete set of City approved plans, specifications and other design documentation
for the Traffic Signal Improvements. The Traffic Signal Improvements are to be constructed in accordance with
City drawing number 361-6.
e. By entering into this Agreement, Developer waives any and all potential constitutional (NoZfadDoZan)
objections relating to the Traffic Signal Improvements.
4. CITY OBLIGATIONS.
a. City shall reimburse Developer, that eligible portion of the total cost of the Traffic Signal Improvements,
pursuant to Chapter 15.08 of the City’s Municipal Code. The maximum dollar figure available for reimbursement to
the Developer, without revising the PFF Program, is $1 15,000, as shown on Exhibit “B’. If Developer incurs a
Project cost higher than the PFF Program amount, Developer may request City staff to revise the fee program and
prepare and additional reimbursement agreement for the additional amount, subject to approval by City Council.
Notwithstanding anything herein, to the contrary, all reimbursable expenses shall for work that is eligible within the
PFF Program.
b. City shall pay reimbursement for Traffic Signal Improvements to Developer upon review and approval of
incurred costs and verification of eligibility of payment under the PFF Program, pursuant to Section 5 of this
Agreement. Credits on PFF fees are not permitted under the PFF Program.
5. AUDIT OF REIMBURSEABLE EXPENSES
a. Developer may submit for reimbursement upon City acceptance of the Traffic Signal Improvements.
b. All Developer’s Reimbursement Requests will be processed and audited by City staff or for by a reputable
consulting engineer selected by the City (“Auditing Engineer”). The cost of the Auditing Engineer to process and
review the submittal(s) shall be paid by Developer and shall be considered a reimbursable cost covered by the the
PFF Program. The total eligible cost covered under the PFF Program, and which is eligible for reimbursement,
including Audit Engineer’s costs, is $1 15,000.
reimb signal (version October 15, 2002).doc 3
c. Developer shall submit to City two (2) separate complete and detailed reports (Audit Material) accounting
for the incurred costs and expenses by Developer for the Traffic Signal Improvements. Developer shall submit
Audit Materials upon completion of, and City acceptance of, the Traffic Signal Improvements, . Any delay by
Developer in such submittals shall not prejudice its rights, but shall delay day-for-day the time in which City must
take any responsive action.
d. Developer’s submittal of Audit Material shall include, copies of plans, specifications, engineer’s cost
estimates, bids received, contracts, change orders, invoices, payment slips, canceled checks (fi-ont and back), lien
releases and other documentation reasonably required by City to evidence the completion of and payment for the
Traffic Signal Improvements.
e. Upon its receipt of a written request therefor from City, Developer shall allow an audit of such costs and
expenses to be prepared at Developer’s expense by certified public accountants specified by City.
f. Developer shall either construct the Traffic Signal Improvements itself or solicit bids from at least three
reputable contractors. Developer may reject a low bid if, in its reasonable discretion, it does not believe the low
bidder will be able to complete its portion of the Traffic Signal Improvements competently or timely.
g. The Public Works Director/City Engineer shall, within thirty (30) days of receipt of the Audit Material
submittal, issue a report either accepting Developer’s submittal(s) or specifying any reimbursement items or
amounts not approved. Failure to notify Developer shall be deemed to constitute City’s approval of the submittal.
Upon the Public Works Director/City Engineer’s issuance of a report accepting Developer’s submittal, based upon
the Auditing Engineer’s determination on a reimbursable request, City shall, within thirty (30) days thereafter, pay
all undisputed reimbursable expenses to Developer, provided fimds are available. Reimbursement costs are not to
be hnded by the City’s general fund.
h. If the Public Works Director/City Engineer objects to any reimbursable item, Developer and the Public
Works Director/City Engineer shall meet to discuss the disputed amount and attempt to resolve the matter through
good-faith negotiation. If Developer and the Public Works Director/City Engineer are unable to reach agreement,
reimb signal (version October l5,2002).doc 4
Developer may appeal the Public Works DirectorKity Engineer’s decision to the City Council pursuant to
Section 6(a).
i. Before Developer’s final submittal, Developer shall obtain all necessary or appropriate releases from its
contractor(s), and shall obtain from City, and from any and all appropriate governmental agencies, all approvals,
certificates and other documents necessary to indicate completion of the Traffic Signal Improvements. The date
Developer receives all such lien releases, approvals, and certificates shall be deemed the date of completion of the
Traffk Signal Improvements (Completion Date).
6. MISCELLANEOUS.
a. Disputes. If a dispute should arise regarding the performance or interpretation of this Agreement,
Developer shall send a letter to the Public Works DirectorKity Engineer describing the dispute and recommending a
method of resolution. The Public Works Director/City Engineer shall reply to the letter, including a recommended
method of resolution, within ten (10) days of receipt. If the resolution thus obtained is unsatisfactory to Developer,
the Public Works DirectodCity Engineer shall send a letter outlining the dispute to the City Council through the
office of the City Manager for the Council’s resolution. The City Council may, but is not obligated to, resolve the
dispute. If the City Council considers the dispute and directs a solution, the action of the City Council shall be
administratively binding upon the parties, but nothing herein shall prohibit the parties seeking remedies available to
them at law.
b. Jurisdiction. Developer agrees and hereby stipulates that the proper venue and jurisdiction for resolution of
any disputes between the parties arising out of this Agreement is San Diego County, California.
c. Obligations and Benefits Not Running With Land. Any and all reimbursements, whether by crediting fees
or cash payment, shall be made only to Developer or such entity as Developer shall designate in writing pursuant to
Section 6(e).
d. No Third par&^ Beneficiaries. This Agreement shall not be deemed to confer any rights upon any
individual or entity which is not a party hereto. The parties hereto expressly disclaim any such third-party benefit.
reimb signal (version October 15,2002).doc 5
e. Notice. Unless otherwise specifically provided herein, all notices, demands or other communications given
hereunder shall be in writing and shall be deemed to have been duly delivered upon personal delivery, or by Federal
Express (or similar reputable express delivery service), or by facsimile transmission with back-up copy mailed the
same day, or as of the second business day after mailing by United States certified mail, return receipt requested,
postage prepaid, addressed as follows, or to such other address or to such other person as any party shall designate to
the others for such purpose in the manner set forth below:
If to Developer: The Terraces at Sunny Creek, LLC c/o Gateway hey Ranch Associates, Inc.
Attention: Mr. Chris Dahrling
2006 Palomar Airport Road, Suite 1 13
Carlsbad, California 92008
Telephone: (760) 639-6390
Facsimile: (760) 639-6305
If to City: Public Works Director/City Engineer
City of Carlsbad
163 5 Faraday Avenue
Carlsbad, CA 92008
f. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be
deemed an original, but all of which, taken together, shall constitute one and the same instrument.
g. Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the
State of California.
h. Complete Aaeement. This Agreement contains the entire agreement between the parties with respect to the
matters set forth herein, and supersedes all prior or contemperrtneous agreemts (wketker oral or written) between
the parties with respect to the matters set forth herein.
i. Amendment. This Agreement may be amended only by a written instrument signed by both City and
Developer.
j. m. This Agreement shall be effective as of the date written above, and shall terminate on the earlier of
(i) the date City fully reimburses Developer the Reimbursable Amount, or (ii) January 1,2005.
reimb signal (version October l5,2002).doc 6
k. Citv Authoritv. City warrants, represents and agrees that it has the legal authority to collect any and all
hnds that it will use to reimburse Developer. City further warrants, represents and agrees that it has the legal
authority to pay and/or credit these funds to Developer. These warranties, representations and agreements are a
material inducement to Developer to enter into this Agreement.
1. Developer Not Agent of Citv. Neither Developer nor any of Developer’s agents or contractors are or shall
be considered to be agents of City in connection with the performance of Developer’s obligations under this
Agreement.
m. No Vesting. Performance by Property Owner of this Agreement shall not be construed to vest Property
Owner’s right with respect to any change in zoning or building law or ordinance.
n. Captions. The captions of this Agreement are for convenience and reference only and shall not define,
explain, modify, limit, exemplify, or aid in the interpretation, construction or meaning of any provision of this
Agreement.
0. Incorporation of Recitals. The Recitals to this Agreement are hereby incorporated into the terms of this
Agreement.
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PROPERTY OWNER:
THE TERRACES AT SUNNY CREEK, LLC,
a California limited liability company
By: GATEWAY IVEY RANCH ASSOCIATES,
MC., a California corporation,
Georqe Szab;, Jr./President
Name and Title of Signatory
By:
Sign here
Name and Title of Signatory
CITY:
APPROVED AS TO FORM:
RONALD R. BALL, City Attorney
uty City Attorney
&&ST:
City"C1erk
(SEAL)
(Chairman, president or vice-president and secretary or assistant secretary, CFO or assistant treasurer must sign for
corporations. Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary
under corporate seal empowering that officer(s) signing to bind the corporation.)
(If signed by an individual partner, the partnership must attach a statement of partnership authorizing the partner to
execute the instrument.)
reimb signal (version October 15, 2002).doc 8
STATE OF CALIFORNIA 1
cowry OF ss.
Onthis Ipday of bi DA) ,2003, be
Notary Public in and for said State, personally appeared
personally known to me (or proved to me on the basis of s
dare subscribed to the within instrument and acknowledged to me that he/she/they executed the same in
hisher/their authorized capacity(ies), and that by hishedtheir signature(s) on the instrument, the person@), or the
entity upon behalf of which the person(s) acted, executed the instrument.
WITNESS my hand and official seal.
STATE OF CALIFORNIA 1'
COUNTY OF 1
On this day of ,20-, before me, ,a
Notary Public in and for said State, personally appeared
personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s)
idare subscribed to the within instrument and acknowledged to me that he/she/they executed the same in
hishedtheir authorized capacity(ies), and that by hisher/their signature(s) on the instrument, the person(s), or the
entity upon behalf of which the person(s) acted, executed the instrument.
) ss.
WITNESS my hand and official seal.
Signature
reimb signal (version October 15,2002).doc 9
EXHIBIT "A"
LEGAL DESCRIPTION OF PROPERTY
Lot's 1 to 181 of Carlsbad Tract No. CT 96-02, the Terraces at Sunny Creek I, according to Map
thereof, No. 14060, filed in the Office of the County Recorder of San Diego County, San Diego,
California, on October 27,2000, in accordance with Document No. 2000-0582955.
EXHIBIT "B"
SUMMARY OF MAXIMUM
REIMBURSEABLE TRAFFIC SIGNAL AMOUNT
BASED ON PUBLIC FACILITIES FEE PROGRAM
Project Location:
Intersection of College Boulevard and El Camino Real.
Project Description:
Installation of an 8-phase fully actuated traffic signal, including a Type 170 trafic signal
controller and Type 176 intersection control program.
Project Need:
Needed to meet Growth Management Standards.
Financing:
Purpose Estimated Cost
DesigdConstruction $1 15,000
TOTAL COST $115,000
Funding Source
PFF
(From City of Carlsbad Capital Improvement Program, Technical Appendix 2000-2001 to Build-out, Page 244.)
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ACTION BY UNANIMOUS WRITTEN
CONSENT OF THE DIRECTORS OF
GATEWAY IVEY RANCH ASSOCIATES, INC.
A CALIFORNIA CORPORATION
IN LIEU OF MEETING
The following action is taken by the Board of Directors of Gateway Ivey Ranch
Associates, Inc., a California corporation, by the unanimous written consent of the directors
without a meeting as of October 18, 2002, in lieu of physically holding a meeting of directors
pursuant to Section 307(b) of the California Corporations Code and the Bylaws of this
corporation permitting such action to be taken. By this writing, the Board of Directors of
Gateway Ivey Ranch Associates, Inc. approves the following resolution and consents to its
adoption:
RESOLVED, that George Szabo, Jr., President of the corporation, is hereby authorized to
execute any and all documents on behalf of the corporation as a member of The Terraces at
Sunny Creek LLC, a California limited liability company.
The undersigned, constituting the sole member of the Board of Directors of Gateway Ivey
Ranch Associates, Inc., hereby consents to and approves of the foregoing actions and resolutions,
and certifies that they are true and cop-ect as of October 18,2002.