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1999-1005_DMB LADERA, LLC_H1a_Agenda ReportV& V ri AGENDA ITEM October 5, 1999 TO: Honorable Mayor and City Councilmembers FROM: George Scarborough, City Manager SUBJECT: Consideration of Land Transfer Agreement with DMB Ladera and Residents in the Stoneridge Development to Facilitate Landslide Repair RECOMMENDATION: By motion, approve the attached Land Transfer Agreement between the City of San Juan Capistrano, DMB Ladera, LLC, S. C. Slide, Inc. and the Stoneridge Owners for Landslide Repair. SITUATION: A landslide occurred on land owned by DMB Ladera, LLC ("Ladera") within the unincorporated area immediately adjacent to the rear yards of six homes on Silver Creek Drive in San Juan Capistrano. (Rancho Mission Viejo established DMB Ladera, LLC as the developer of the Ladera community on the Ranch land.) The landslide occurred on natural grazing land, which Ladera has committed to open space. The slide undermined the rear yards and caused damage to some accessory structures. The homeowners have formed a small corporation, S. C. Slide, Inc. (SCS) to acquire rights to enter the slide property and repair the slide. In order to eliminate the potential for future liability, Ladera has required that the land transfer to another owner prior to the repair. As an additional protection from liability, Ladera has insisted that the City of San Juan Capistrano acquire the land rather than SCS. To protect the City from future liability, the land needs to transfer to SCS immediately upon the City acquiring the land from Ladera and prior to the start of repairs. Following negotiations involving Ladera, the City and SCS, the attached agreement was developed. The agreement defines the land transfers and the slide repairs, provides that SCS will hold harmless and indemnify both the City and the Ranch, that SCS will post sufficient bonds to insure performance of the repair and that SCS will pay all costs of the City associated with the transaction. With the winter rains upon us, the transfer of land and start of the slide repairs must be done as quickly as possible. The most expeditious method to transfer the land is for the City to exercise its condemnation powers in a friendly condemnation. Ladera concurs with the friendly condemnation approach (in fact, it was Ladera's suggestion). The agreement FOR CIN COUNCIL AGEN01. /^—► / Agenda Item -2- October 5, 1999 specifies friendly condemnation and provides that SCS will absorb all cost associated with the condemnation. COMMISSION/BOARD REVIEW AND RECOMMENDATIONS: Not Applicable FINANCIAL CONSIDERATIONS: Silver Creek Slide, Inc. will absorb all costs associated with the Agreement. NOTIFICATION: S. C. Slide, Inc. DMB Ladera, LLC ALTERNATE ACTIONS: 1. By motion, approve the attached Land Transfer Agreement between the City of San Juan Capistrano, DMB Ladera, LLC, S. C. Slide, Inc. and the Stoneridge Owners for Landslide Repair. 2. Request additional information. RECOMMENDATION: By motion, approve the attached Land Transfer Agreement between the City of San Juan Capistrano, DMB Ladera, LLC, S. C. Slide, Inc. and the Stoneridge Owners for Landslide Repair. Attachment: Land Transfer Agreement