1999-0406_ORTEGA PROPERTIES, INC._D13_Agenda Report AGENDA ITEM April 6, 1999
TO: George Scarborough, City Manager
FROM: William M. Huber, Director of Engineering & Building
SUBJECT: Consideration of Agreement for City Stockpile on Private Property (Ortega
Properties)
RECOMMENDATION
It is recommended that City Council approve the subject Stockpile Agreement with Ortega
Properties.
SITUATION
A. Summary and Recommendation
Since the winter storms of 1995 that damaged a portion of the northerly embankment of San
Juan Creek,the City has stockpiled dirt on a vacant lot owned by Ortega Properties. An agreement
with the property owners to permit the City to stockpile the dirt has expired and the property owner
and City staff have been working on a revised agreement. Staff and the City Attorney have reviewed
the terms and recommend approval of the agreement.
B. Background
With the winter storms of 1995, a significant portion of the northerly bank of San Juan Creek
upstream of I-5 was washed away. In order to facilitate restoration of the bank, dirt was stockpiled
on the adjacent vacant lot owned by Ortega Properties. It was believed at the time that FEMA funds
would be available to cover the repair costs. FEMA, however, determined the repair work was not
eligible under their guidelines. A number of appeals were filed by the City to no avail. It became
apparent that the only way to repair the bank was if the City funded the costs. Staff has been working
to export the dirt from the site by allowing contractors in need of dirt to haul it off on an as-needed
basis.
The City had negotiated an agreement with Ortega Properties to allow the stockpile on their
property, however, the agreement expired. The property owner and City staff have been working
together to negotiate a new agreement. The agreement(Attachment 1)provides the following major
issues:
FOR CITY COUNCIL AGE D
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Consideration of Agreement for City Stock Pile
Page 2
April 6, 1999
1. The City must remove or grade the site if the property develops.
2. The property owner may opt to have the City spread the dirt and grade the site. The property
owner is obligated to pay the City any costs above the City's cost to haul the dirt off.
3. City is responsible to provide security fencing.
4. The City has ingress and egress rights to access the stockpile.
5. The agreement will run to December 31 1999.
6. Extensions may be done by letter with authority delegated to the City Manager to execute
extensions.
While staff is working to get rid of the stockpile, the agreement is necessary to provide
conditions for both the City and Property Owner. Staff, therefore, supports the agreement and
recommends approval.
COMMISSIONBOARD REVIEW AND RECOMMENDATIONS
N/A
FINANCIAL CONSIDERATIONS
The financial costs to implement this agreement would include either the costs to remove the existing
stockpile or grade the site at a cost equal to or less than the costs to remove the dirt. The costs to
remove the stockpile currently are at $200,000-225,000. In addition, there are on-going costs to
repair and maintain the existing perimeter security fencing. All costs are born by the City's sewer
fund.
PUBLIC NOTIFICATION
Steve Riley- Civic Solutions
Margaret Cogdell -Newco Management
ALTERNATE ACTIONS
1. Approve the agreement as recommended.
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Consideration of Agreement for City Stock Pile
Page 3
April 6,1999
2. Do not approve.
3. Return to staff for additional information.
RECOMMENDATION
It is recommended that City Council approve the subject Stockpile Agreement with Ortega
Properties.
Respectfully submitted,
William M. Huber
Director of Engineering & Building
WMH:jt
Attachments: 1. Agreement