1964-0909_DIKE & COLEGROVE INC_Agreement n4 ..:. ' a .' ✓ .x fl. '' Aa: ,'.' '..f' '.. - ..Y' .. nv r.i.•: .,._ '.. ., w.:Jr, Y '. ..
1 , A G R E E M E N T
2 THIS AGREEMENT made and entered into this 9th day of September
I
3 1964,
4 BY AND BETWEEN
5 THE CITY OF SAN JUAN CAPISTRANO,
A Manioipal Corporation, here.
6 inafter referred to as
7 "CITY"
8 AND
INC.
9 DISE & COLEGROVE%/A California
Corporation, hereinafter referred
10 to as
I
11 "DEVELOPER"
i
12 WITNESSETH:
Ik 13 j RECITALS:
14 j A. DEVELOPER is developing Tracts numbered 5399 and 5675 within the
15 limits of the City of San Juan Capistrano and in connection therewith has
i
16 developed on-sits and off-sits sewerage facilities with a total capacity
I j
17 I for 275 living units at a oast of $13,000.00.
18 B. DEVELOPER in said Tracts numbered 5399 and 5675 win have con_
i
19 f structed a total of 152 living units, thus utilising 53% of the design
20 capacity of said sewerage system, but making available for the use of
21 others 459 of said capacity.
22 C. CITY in willing, subject to its collection of service connection
23 charges to promote such refund, to refund to DEVELOPER 45% of said
s i I
24 $13%000.00 cost.
25 D. That the area within the gravity flow to the north and west of
26 said Tracts numbered 5399 and 5675 from which said refund shall be made is
27 '', shown on "Exhibit A" attached hereto and made a part hereof.
28 I NOW, THEREFORE% in consideration of the mutual covenants heroin con-
. i
29 ! tained it is agreed by and between the parties hereto as follows:
i
30 ! 1. CITT agrees to make a special connection charge against develop.
i
31 meats within the area designated on "Exhibit A" of $50.00 per living unit
32 to provide funds to service this refund agreement and the CITY shall make
j
� III
• III
1 a ohm-go of 10¢ to cows oasts of administration.
2 2. The total rof=d to the DEVELOPER shall not smseed $50850000
3 (45% of $13,000.00) and mob rofnsd shall be nada to DSVELOPn from the
mmunts oolleoted by CITY under paragraph 19 above, Use the 10% adtido.
i
5 istratiw vest. That mob paysmats shall be redo b, the CITY quarterly
6 I for a period of tan (10) years from and after the date of this agreemmet.
7 3o At the and of said ton (10) years the obligation of CITE to j
8 1 mala further rofnod shall cease.
I,
9 10 WITMOS WMMT9 the parties berate have eomouted this agreement
10 as of the date set opposite their means.
I
11
12 �or CAPT3TRANO
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Date 4 ��-
15 � <
16 tcan 'u� �/ �f Attests - ld�,4 �i
—J Date City Clerk
17
•CITY"
18
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19 DIRE a COIEMtM, INC.
20
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21 I.
September 9, 1964 ,� cc��
Date
22 !I
23 September 9, 1964 �',� �� �!
Date
24
"DS'V'ffi.OPffit"
2.5
26 I,
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27
28
29
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30
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32 III
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August 30, 1965
FOR VALUE RECEIVED: Dike & Colegrove, Inc., a California corporation,
does hereby sell, assign and transfer all its right, title and interest
in sewer refund agreement with the City of San Juan Capistrano dated
September 9, 1964, covering Tracts 5399 and 5675, to Orange Coast
Developers, a California corporation.
DIKE & COLEGROVE, INC.
By Pres.
y SEP
rJkPY
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FIGURE
,flE A - - — .-- SIZ E NUMBER B C D E F G
— — -- -
MEMORANDUM �
To: City of San Juan Capistrano From: JACK Y. KUBOTA
Technical Committee Consulting Engineer
Subject: Sewer Refund Agreements Date: January 8, 1965
Sewer Connection Fees
With the coming of the progressive era of new subdivision
developments in the City of San Juan Capistrano, the programs
of sewer service and its attendent charges by the City and the
extensions to the sewer system by the private developers have
become a major issue as a matter of understanding, interpre-
tation, and overall uniformity of policy. The following are
several items which this office believes are important for the
development of sound policies in these areas and are therefore
offered for discussion and consideration.
A. Sewer Connection Fee :
Creation of the sewer connection fee by the city allows for all
new subscribers of sewer service to pay a "capital contribution"
into the "Sewer Fund" for the purpose of financing the current
and long-range construction programs of the municipal sewer
system. This being the case, there would appear to be no hard-
ship for any development to comprehend such an arrangement
whereby a certain portion of the program is in essence "prepaid".
Such an arrangement is very common in this area of the state.
Thus, any change of the current program does not appear warranted.
Perhaps upon the completion of the Wells-Bartle economic study,
they may recommend certain adjustments in the amounts to be levied.
B. Sewer Extensions and Refund Agreements :
In many instances new developments are occuring on the fringes
of the central city area so that sewer extension, sometimes quite
extensive , becomes necessary by the subdivider. Under the current
policies of the city, the developer has made an engineering study
to determine the location and sizing of the sewer system. Depend-
ing upon the proximity where the tie-in is made and the resultant
status of the existing sewer system, the construction requirements
of the subdivider are based upon the actual conditions of their
area.
Having required the subdivider to install the necessary sewers
to serve his own subdivision, the question then arises as to the
use by other properties which can be served by the facility. It
would be beneficial to all concerned to allow the use of such a
line just as soon as practicable. However, there should be a
general policy whereby the property owner not having paid an
MEMORANDUM
Page 2 of 2
To: City of San Juan Capistrano
equitable share of the cost of such sewer to pay an amount to
the City for such use. It should be added here that in no
circumstance should there be any use of a sewer line by anyone
without the payment of the connection fee and a "line " fee.
The establishment of a "Sewer Fee" will necessitate the study
of an equitable fee schedule which will result in a fair sharing
of the costs and also provide the income to the city to augment
and enlarge its sewer system.
Where the private developer has followed the city' s requirement
for constructing a trunk sewer system serving not only his
development but a regional sector of the city, the propriety
of a "refund agreement", in the opinion of the undersigned,
becomes valid. More specifically, a local extension of a
minimum size sewer line which will in time have to be augmented
by the city does not have any broad benefit so that it represents
an investment the subdivider would make in any event.
Referring back to the "refund agreement", a formula should be
developed whereby the difference in construction cost between
minimum sized sewer and the line as constructed be eligible for
the refund. Obviously such a formula would result in an estimated
amount but that should not limit its usefulness in the agreement.
li One additional item worthy of mention is the need for a cost
factor in any refund agreement to cover the city' s expenses in
administering the contract with developers.
There is attached plats of the various refund agreements now in
force or contemplated as well as the current situations we now
face in the realm of sewer extensions and refund agreement. This
material has been prepared soley for the purpose of evaluation
and study and no specific solutions or formulae are intended.
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REPORT ON SPECIAL SEWERAGE STUDY
FOR VAL VERDE CORP. TENTATIVE TRACT 5429
In accordance with your letter dated 10 February, we have completed a
special sewer study of the area within the City southerly of San Juan Creek and
easterly of the San Diego Freeway, with particular emphasis on the area of tents
tive Tract No. 5429.
The results of this study indicate the necessity of a trunk sewer parallel
with and southerly of San Juan Creek with sewer capacities between respective
points equal to that furnished by the following pipelines:
Item No, Five Size *Minimum $lew Location
1. 15" 0.162 Northerly of San Juan Creek Road
2. 12" 0.161 Within San Juan Creek Road westerly
of Item No. 1
3. 15" 0.161 Within San Juan Creek Road between
Item No. 1 and a point 1,450 feet
easterly thereof.
4. 12" 0.521 Between the easterly terminus of
Item No. 3 and La Novi& Ave.
These pipeline sizes and slopes are in accordance with the enclosed marked
print which also indicates the approximate limits of tentative Tract No. 5429.
This trunk sewer serving the study area is tributary by gravity to the trunk
sewer proposed to be constructed as a part of Assessment Di4trict No,. 64-1 on the
northerly side of San Juan Creek; and in order to effect the greatest economy, the
sewage originating within the study area and that originating within the existing
Assessment District should be conveyed to the existing treatment plant by common
facilities. The cost of the facilities serving both areas can equitably be divided
In proportion to the flow originating within each area.
If such a method of cost distribution between the two areas were adopted, the
cost for offsite sewerage transportation facilities to the study area would be the
same if the study area were made a part of the Assessment District or omitted from
the Assessment District. However, the question as to whether or not the study area
should be included as a part of the currently proposed Assessment District should Feet
berresolved after further discussions with all parties concerned, including represer-
tatives of the City, the Val Verde Corporation and the attorney for the District.
It should be mentioned that the proposed connection of the Val Verde sewer to
the Assessment District Trunk requires a crossing of the parcel owned by the State
Division of Highways. Since it now appears that it will be necessary to .condemn an
easement across the parcel for the Assessment District trunk line, it appears that an
easement for the Val Verde costo ction should also be acquired by condemnation. The
mechanics of reimbursement for this acquisition should be reviewed by the attorney for
the Assessment District. If this saseaent is to be acquired by the City, the Val verde
Corporation should be aakad to furnish the required legal description as soon as possible., ,
7-27-0/as
•
ENGINEER{ "-4G-SCIENCE , INC
['ebrmar,, N65
City of Sail Jilin C,ap,stlallo
Giry Hall
San Juan Capistrano, California
Attention: Mr. T. J. Meadows
Director of Public Works
GenLlenlen:
Al dched hereto, i 11 ❑etordanco with our d ; Sf i
%'1ri0IIS COStS involved III chc fay i 1 It ices �,;m� T)t Di
s-
trict No. t and the City of Sall duan I`IaPisl
You Will TIOLC that [ lic Val Verde
timated to he $7,1:145.00 in facilities will
from the present dove:opiiicnL . TI'' additional cost 1 , 1. Di ,
Lrict to provide. for the areas souHl of San titan 'X--k,, in, icciiIf tial
Verde, is estilmqEcd to be $] I 488.00-
Our re v I ow would i irate h j i I
the Val Verde Coipur;ji ;'(III udl-ail ;:f c:tf; o I
to "lic t 1 if jf
,,fjCj ,tj-j I', as ojjjj, L.[ j,,tj>; ,trc jjj,j,],L Lo t
arrangement: has been previously nncxf in similar „i ii i;
area.
Should you wish am further in[urniat ion., io S; 1ate f '' (: J 1
Verb- Truly yours,
JLF:vJ
Enc 1 u6itre
0
ENG; NEERING-SCIENCE, INC.
S"El �VDW (: ARCACA GAIT �N.aiA "
.aEPI. �EFNEY ^ • •
SAN JUAN' CAPISTPAo ASSESSMENT DISTRICT t,4 - I
Study of additional costs in providing capac,icy for trihutary ftow ori,cinating
outside the Assessmen.. District Boundaries and within the city limits of Sar;
Juan Capistrano.
Cost comparisons are based en a) Plow origi.natini; wi(_l)in di sctic t. bo,mdarios
only; h) Flow originating within the eity limit;, sout.hw rlp of 9na T(lan
Crra': outside he district boundaries; c) Flow orifi inatil.w, wi tlii;: th; prni)c rr v
of the Val. Verde. Corporation.
Tabulated below are comparative costs of the Assessment: District truck ,ower
downstream of the confluence with the Val Verde trunk sewer for flows a) and
(a + b) above and of the Val Verde trunk sewer upstream of its confluence wi; h
the Assessment District trunk sewer Cor flows c) and b) .
1. . Estimated Costs of Assessment District 64-I 'Erni, Srwt
Flow (a) F1„w (a n)
,on;;th Pipe Ifnit T.>taJ. hen„ti= i_—„t_ tL�i, iitdl
Size_ Price Cast S"i_z_o Pti Cc �t
2155 ti"rh $11 .75 $25, P0.09 i
rn1
Subtotal 25, 920.00 305.(10
157 Incidental Exp. 3,793.00 9C. .o6
Total $29,113.00 $[.q r,O1 0C:
Additional Cost for flow orig.i.natiny, souther iv San .h:nn Crrtk- ${ 1 ,4'tl8.uf+
_. Estimated Costs of Val Verde Trunk Sewer
Flow (c)
L: :,,;th Pile Unit Local S��•._n;r�1l-1 t c !!nit r.>; ni
Size Price Cost
t338 8" $ 8.00 $10, 1:04.00 338 IL" Ou , 4 O.try
704 t0" 4.00 o' 336.0u 704 I � 10.00
2117 LZ" 10.00 Z1 ,170.00
ISO 8" s.00 2,240.00 2H0 I_:'" 10.Of, 2 ,80v.0+,
Total 540,450.00 qr U<,'>.uO
Additional Co::t her flow ori; ; ,_�.t-i,i, f 1I -dr r;,. ._ . 'I
"l .
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5
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7'
"larch 11 1 ^65
Town and Count Homes Inc.
1535 E . 17th S eet
Suite C
Santa Ana , Cal if)rnia
Mi
Subject - Tracg&o . 5624
"asi Capistraro
City San Juan Capistrano
Gentlemen :
Pesponding o your innuiry of "arch 75 , 1165 ,
we are pleased report that the City of San Juan
Capistrano will eceive shortly , the report of the
financial study y Bartle-Wells , financial consul -
tants , covering he entire sewerane financing pro-
grams and polic s . The City council , heinq coq-
nizant of quest s such as you have raised , helievc
it important to ave expert financial advice.
Upon revie f the financial renort . you will
be advised of t' City ' s position to the 01jestions
raised.
Very truly vours ,
A*
RI
JACK Y . KUTA , City blqireer
City of Spin Juan Canistrarn
y
0
e
h
S
-a
JYK- ta 13
A
cc , City Adminitil.rator
Director of fublic Works
TOWN AND COUNTRY HOMES - INC
1.535 E. 17th STREET • SUITE C
Santa Ana, California 547-0871
March 5, 1965
EIV[b
City of San Juan Capistrano
31762 Camino Capistrano - MAR 8 196IN�
San Juan Capistrano, Calif. CITY OF 9
SAN JUAN Cdr iSiRANR,
,+ CALIFORNIA JO
Attention: Mr, Jack Y. Kubota N
City Engineer V
Subject: Tract No. 5624
Casitas Capistrano
CR San Juan Capistrano
Gentlemen:
Reference is made to our letter of January 11, 1965 addressed
to the City Council wherein we registered protest regarding the
sewer connection fee policy currently used by the City. Further
we requested the City's considered review of this policy and
that we be notified of your decision.
We would sincerely appreciate your advice as to the current
status of the foregoing matter at your earliest convenience.
Sincerely yours,
TOWN AND COUNTRY HOMES, INC,
Richard G. Kempa
President
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January 11, 1965
Honorable Mayor & Council
City of San Juan Capistrano
31762 Camino Capistrano
San Juan Capistrano, California
Subject: Tract No. 5624
Gentlemen:
We would like to hereby respectfully register our protest against
the City's present policies concerning sewer connection fees and
off-site sewer construction. It is our understanding that sewer
connection fees for multi-family structures are now established
at $125. 00 for the first unit plus $75. 00 for each additional unit
in each structure. It is further our understanding that none of
such payment of sewer connection fees is used to offset the developers
cost of off-site sewer construction.
The basis of our protest is that both of the foregoing policies
appear to be in severe difference with that exampled by most
other communities. In the case of the sewer connection fee the
amount of approximately $800. 00 per acre (for multifamily at
10 units per acre) appears to be exceptionally high. It is con-
sidered excessive due to the fact tHat most other municipalities
of comparable situations char�;c: approximately $350. 00 per acre.
Regardless of the amount of tha assessment, in almost all cases
this amount is reduced by the cost expended by the developer for
off-site sewer construction.
In view of the foregoing and since the City is in a formative stage
of development whereupon it should be concerned with formulating
a policy which will be considered equitable and uniform for all
developers operating within the City, it is requested that a study
'j of these matters be made and that we be accordingly advised.
Sincerely yours,
Town and Country Homes, Inc.
Richard G. Kempa
DRAFT
TO : City Council ro"^! Technical Staff
SUBJECT : Sewer Connection Charge ".ATE : September lr , 105
Request of Town and Country Homes , Inc .
Town and Country Homes , Inc . submitted a letter
on January 11 , 1IFF , to your Loc'y, protesting the
sewer connection fee to their tract "o . 51:24 , and
requested that a study be made to explore their
grievances .
As a result of this inouirv , as well as otter
broad aspects of the miniCiPal seweragP systew ,
Hartle Wells Associates was eonmissior<eO to ma4-c,
a study of the financing program Or thr newer
system. The consultants have since filed the
report and your t:ody has taker action ty virtue
of amending ordinance AQ "ordicar;ce WE , adnoted
4ap 24 , 1965" , and Resolution
In view of tie foregoing , the staff recommerds
that Town and Country Hcmes tc formally advised of
the recent action.
TOWN AND COUNTRY HOME: - INC
Jaituary 11 , 1965
Honorable Mayor & Council
City of San Juan Capistrano
31702 Camino Capistrano
San Juan Capistrano, Catifornia
Subject: Tract No. 5b24
Gentlemen:
We would like to hereby respectfully register c)ur protest against
the City's present policies concerning sewer connection fees and
off-site sewer construction. It is our understanding; that sewer
connection fees for multi-family structures arc now established
at $125. 00 for the first unit plus $75. 00 for ca( h additioual unit
in each structure. It is Gu-iher our unde rstauding that nuuc. of
such payment of sewer counectiou fees is used to offset the developers
cost of off-site sewer construction.
The basis of our protest is that both of the foregoing poiicics
appear to be in severe difference with that exampled by most
other communities. In the ease of the sewer coruiectiou fee the
amount of approximately $£500. 00 per acre (for multi-gamily at
10 units per acre) appears to be exceptionally high. It. is , ou-
sidered excessive due it) the fact that most other muni(ipa,lities
of comparable situations charge approximately `n 50. 00 per ac re.
Regardless of the amount of the assessment, iu alrnuat all cases
this amount is recluced by the cost expended by the developer for
off-site sewer construction.
In view of the foregoing and since the City is in a formative stage
of development whereupon it should be concer7ecl with formulating
a policy which will be considered equitable and uniform for all
developers operating within the City, it is requested that it study
of these matters be made and tIiatwe be acu:ordingly advised.
Sincerely yours,
Town oud Country throes, Inc .
Richard G. Kempa
Presidelli
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