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1979-1017_BEAR BRAND RANCH COMPANY_K2a & K2a1_Agenda Report0 0 AGENDA ITEM October 17, 1979 TO: James S. Mocalis, City Manager FROM: W. D. Murphy, Director of Public Works SUBJECT: Status Report - Construction of Via Estelita/Agreement for Sewerline and Street Construction (Bear Brand Ranch) SITUATION Staff has presented a report of the construction of Via Estelita to the adjoining property owners and representatives of the Bear Brand Ranch Company. A suggested cost allocation schedule was presented, a copy of which is enclosed, and discussed at an informal meeting in late September. The reaction was strong opposition to construction of the road. This consensus opinion was based upon a belief that the road would create extreme environmental and socio-economic impacts while serving no practical purpose. In contrast, the City Council approved the concept of three access roads to Bear Brand Ranch on February 1, 1978. This approval was based upon a recommendation generated by the "Bear Brand Ranch Access Committee", a City Council appointed committee. One of the three access roads is to be Via Estelita, then referred to as the Crumrine Road. The Committee was made up of numerous citizens and one Council- man with staff support from the City's Engineering Division, and there was a great deal of study, public input, and controversy during the hearings related to the matter. The development plans for the Bear Brand Ranch elevate the proposed intersection of Pepper Tree Bend and Via Estelita several feet. If the intersection is built in this way, it will require extensive grading within San Juan Capistrano to meet this new elevation. Additional right-of-way will then be required, construction costs will increase, and the environmental impacts of the road will increase. These factors will make the road even less palatable to those persons already in opposition to its construction. FINANCIAL CONSIDERATIONS The people expressing protest to the cost spread as presented by staff, have entered into agreements with the City to construct Via Estelita. One of the primary considerations by Council in allowing them to build upon their lots was a very clear promise by the property owners to participate in an assessment district for public improvements. This obligation is implicit in the agreements deferring the construction of the public improvements which enabled their respective lots to be created. The basis of their protest is that they are required to FOR CITY COUNCIL AGENDA 4000 4 4 E Status Report - Via Estelita -2- October 17, 1979 participate in "any improvement district" as long as "said Improve- ment District encompasses all land owners in the applicable area of benefit." The quotations are taken directly from the previously discussed agreements. They argue that the people in Sun Ranch benefit from the improvement of Via Estelita, and if Sun Ranch is not included within the area of benefit the obligation to participate in the district is negated. However, as a matter of fact, it is up to the Assessment Engineer to determine who benefits from an improvement. A proposed agreement with, and prepared by, the Bear Brand Ranch Company is to be finalized, but in essence, would provide for Bear Brand Ranch paying up to approximately $33,000 upon ultimate con- struction of the roadway. These costs are based upon the estimates in the enclosed August 6th "Spread of Assessments." The agreement with Bear Brand Ranch is enclosed for City Council review. Staff is soliciting comments at this time for modifications to this agreement. Bear Brand Ranch has verbally offered to con- struct the sewer at their expense and participate in the road to a level determined in legal proceedings. This differs from the agree- ment and is, in some form, a probable modification. Staff proposes to bring this agreement to the City Council for approval at the meeting of November 7, 1979. ALTERNATE ACTIONS 1. Commence proceedings for an assessment district, to include Sun Ranch, to construct Via Estelita. 2. Direct Staff to take the necessary action to include the con- sideration of deleting Via Estelita in the next General Plan Amendment. Also provide staff with comments related to the "Agreement For Sewerline and Street Construction" with Bear Brand Ranch Company. 3. Reactivate the Bear Brand Ranch Access Committee. RECOMMENDATION 1) By motion, direct staff to commence proceedings for an assessment district, which would include Tracts 7112 and 6742 in the area of benefit, to construct Via Estelita. 2) Provide staff with comments related to the "Agreement For Sewer - line and Street Construction" with Bear Brand Ranch Company. Respectfully submitted, W. D. Murphy WDM:GML/rem Encls.