1978-0621_MAURER DEVELOPMENT CO_AgreementAECOED AT THE REQUEST O*
AND. I 'JRN TO:
City,b.f San Juan Capistrano
Office of the City Clerk
32A00 Pa Ad 1 t
(CITY COPY)
RECORDI EES EXEMPT DUE TO
119105 lG/OVV/E,RRNM CODE SECTION 6103 �
,K -ALL' ��V
seo e an 0 Mary Hanover, City erc
San Juan Capistrano, CA 92675 EXEMPT San J n Capistrano, California
C3 r;
AGREEMENT FOR REIMBURSEMENT OF -
CONSTRUCTION COSTS INCURRED IN (,J
THE CONSTRUCTION OF IMPROVEMENTS - W
TO ORTEGA HIGHWAY IN CONNECTION
WITH TRACT 7673, TRACT 8485, AND
TRACT 9382
Cry
THIS AGREEMENT made and entered into this 21stday of
June 1978, by and between the City of San Juan Capistrano,
a body politic of the State of California, hereinafter designated
as "CITY", and Maurer Development Company and R. K. Elliot Con-
struction and Development Company, hereinafter designated as
"DEVELOPER."
W I T N E S S E T H
WHEREAS, CITY has required DEVELOPER to acquire the right-
of-way and to improve Ortega Highway to the vertical and horizontal
alignment approved by the California Department of Transportation
between Ganado Road and Windsong Drive, specifically defined as all
improvements required westerly of the most westerly boundary of
Tract 9382, as a condition of approval for Tract 7673, Tract 8485
and Tract 9382; and
WHEREAS, DEVELOPER has agreed to comply with this condition
of approval but has requested that reimbursement be made by properties
benefiting from above said improvements; and
WHEREAS, CITY has determined that it is equitable and just, -
within certain time limits, to require benefiting properties to reim-
burse DEVELOPER for expenses incurred by DEVELOPER in acquiring right-
of-way for and constructing said improvements.
NOW, THEREFORE, it is mutually agreed by and between CITY and
DEVELOPER as follows:
I. DEVELOPER shall:
A. Provide CITY with copies of documents necessary to
insure proof, as determined by the City Engineer, of
acquisition of at least three bids and payment of the
lowest responsible bidder for construction of said
improvements .RECORDED IN OFFICIAL RECORDS
OF ORANGE COUNTY, CALIFORNIA
3 O Min.
Pa„ 1 P MJUL 1.2 1978
LEE A. BRANCH, Co nfy Recorder
E
0 A 12754P6 542
B. The date of the City Council meeting when approval of
a requested action conditioned by the requirement to
make a reimbursement payment as promulgated herein is
given by the City Council shall be the date whereby
the reimbursement requirement is considered effective.
A Property shall be required to make a reimbursement
if said date occurs between the date first written
above and the dates determined in accordance with
Section III A. and Section III.B. herein; this time
requirement shall be inclusive of the first and last
days of the time periods as promulgated.
ATTEST:
Mary An// -,Hanover, City Clerk
APPROVED AS TO FORM:
mes S. Okazaki, Ci Attorney
CITY OF SAN JUAN CAPISTRANO
BYf/\�
KENNETH E.IFRIESS, MAYOR
MAUR DEVELOPMENT COMPANY
/7 c
B
RWERT- E. MA ER
R. K. ELLIOT CONSTRUCTION & DEVELOPMENT
COMPANY
BY
By
-4-
1
S
BK 12754PG 543
4F stmew
SS.COUNTY
"OF 7ANGE
ON JUNE 21 19_T8
bef� un f rsilfi fi tgy Public in and for the said State, personally appeared
known to me to be the
President, and known to me
to be the —Secretary of_he municipal
SEAL rporation that executed the within Instrument, known to me to be the persons who
OFFICIAL
MARY ANN WAN L executed the within Instrument, on behalf of the Corporation herein named, and acknowledged
m NOTARY PUBLIC - CALIFORNIA to me that such Corporation executed the within Instrument pursuant to its by-laws or a
resolution of its board of directors.
OHANCE COUNTY WITNESS m hand and official seal.
My comm. expires APR Y4, 198p Y
MARY AXT HA O ER, NO'T'ARY PUll
• Notry Public in and for said Shl4. . �. .
STATE OF CAL"MA,
s=+c4 } ss.
OF Orange JJ
ON July 7,
before me, the undersigned, a Notary Public in and for the said State, personally appeared
y. _Robert E aurer _- _ known to me to be the
-_President, and----_ - _— _, known to me
t t;- to be the —Secretary of
1 MATMVL n, 17VT nnheCTTM nn
.+.•••••..«••«•• "'•'••" the Corporation that executed the within Instrument, Known to me to be the persons who
OFFICIAL SEAL executed the within Instrument, on behalf of the Corporation herein named, and acknoededged
BARBARA J. SHELTON to me that such Corporation executed the within Instrument pursuant to its by-laws or a
}� Notary Public - California a resolution of its board of directors.
ORANGE COUNTY
Mr Commission spires ug - 30. 191111•• WITNESS my hand and official seal.
1i Palk in and for said Stas.
STATE OF GLIPOBNIR,
h
r. COUNTY OFnste
" y ; ,� T N"�.3A'aarrf'a�b' wA�'d.•., +�Lty„��'�r'd•y
y 0 Y111
before me, the undersigned, a Notary Public in and for the said State, -pegally _appeared
R - x - FT T ; off{ __ "-"" ' , known to me Obe the
_—President, and___ kno* to out
to be the__ _Secretary of-------
Y,
f_ ___
... ..............................: __ iC. FT T rnmm COXaTRUC C ,y"
OFFICIAL SEAL the Corporation that executed the within Instrument, known to me to a he p w
BARBARA J. SHELTON executed the within Instrument, on behalf of the Corporation herein named, and ac drrtadged
Notary Public - Califomia to me that such Corporation executed the within Instrumant porsuant to Its b or a
• ORANGE COUNTY resolution of its board of directors. -.� .
d My Comrrinvien {xpires.Aug. 30, 198••• = WITNESS my hand and off�lal 3`'.
f
BK 12754PG 541
The right-of-way cost per Property shall be determined
by multiplying the area of land in acres acquired from
a Property by the right-of-way unit cost per acre.
C. Allocate the improvement unit cost per lineal foot and
the right-of-way cost per Property as indicated on the
map entitled, Exhibit "A", attached hereto and made a
part of. Those Properties having frontage on Ortega
Highway between Windsong Drive and Ganado Road are
hereby considered as deriving benefit from said improve-
ments and are subject to the reimbursement requirements
of this agreement.
D. At such time as a Property requests an action of
approval by CITY whereby conditions of that approval
can be legally required, require the Property to
make a payment in the amount determined in accordance
with Sections I.B.1., I.B.2., II.C. and II.E. herein.
CITY shall then reimburse DEVELOPER in the amount of
this payment. CITY shall not be required to make
reimbursement of any payment that cannot be legally
required and collected.
E. Require the assessment of 7% (seven) interest per year
on the costs allocated to a property. The interest
period for right-of-way costs shall commence on the date
that the right-of-way to be acquired is transferred to
public ownership. The interest period for construction
costs shall commence on the date that the State of
California Department of Transportation accepts the
improvements. The interest period shall be determined
by rounding off to the nearest full year; the mid -year
date shall be rounded off to the higher year.
II2. Time Requirements
A. This agreement shall be in effect for fifteen (15) years
from the date first above written.
-3-
BK 12754PG 540
B. Provide all funding of right-of-way and construction
costs as defined herein:
1. Right-of-way Costs
Land costs, attorney's fees, real estate appraisal
costs, engineering fees, and administrative costs.
2. Construction Costs
Total construction costs, engineering design costs,
construction survey costs, construction inspection
costs, and administrative costs.
C. Provide all funding for administrative cost incurred
by CITY deriving from the acquisition of right-of-way
and/or the construction of improvements. DEVELOPER
shall further hold CITY harmless from litigation
arising from the acquisition of right-of-way, the
construction of improvements, and/or the collection
of reimbursement payments.
II. CITY shall:
A. Upon receipt of sufficient documents as described and
required in Section I.A. herein, determine the improve-
ment unit cost per lineal foot of said construction
costs as defined in Section I.B.2. herein. Said
improvement unit cost shall be based on the total
length of improvements westerly of the most westerly
boundary of Tract 9382 measured along the ultimate
centerline of Ortega Highway. The improvement unit
cost per lineal foot per Property shall be determined
by taking 50% (fifty percent) of the above said unit
cost per lineal foot; for purposes of this agreement,
"Property" shall be defined as the entity owning and/or
proposing to improve or build upon a parcel of land
affected by this agreement.
B. Upon receipt of sufficient documents as described and
required in Section I.A. herein, determine the right-
of-way unit cost per acre of said right-of-way cost
as defined in Section I.B.1. herein. Said right-of-
way unit cost shall be based on the total area of
right-of-way necessary to construction said improvements.
-2-
BK 12754P- 545
EXHIBIT "A"
Page 2
AP
Owner
Obligation
01
124-301-14
Title Insurance & Trust Co.
Improvements
P.O. Box 88
Santa Ana, Calif.
O124-270-22
James K. Weathers
Improvements
27341 Ortega Highway
San Juan Capistrano, CA
O124-270-23
Juanita Mercado
Improvements
27343 Ortega Highway
San Juan Capistrano, CA
O124-270-14
Henry E. Peters
Improvements
27351 Ortega Highway
San Juan Capistrano, CA
O124-270-30
Leroy C. Stephens, et. al.
Improvements
27401 Ortega Highway
San Juan Capistrano, CA
O124-270-28
Allison W. Shrewsbury
Improvements
27442 Ortega Highway
San Juan Capistrano, CA
7O
124-290-06
Lutheran Church - Missouri
R/W & Improvements
Synod
500 North Broadway
St. Louis, Missouri
08
124-290-39
California First Bank
R/W & Improvements
P.O. Box 109
San Diego, Calif.
O124-290-40
Paul Y. Goya, et. al.
Improvements
321 East 2nd Street
Los Angeles, Calif.
EXHIBIT "A"
Page 2
San/e:
0
O
0
Q
IN
0
0
O
PROPERTIES AND PROPERTY OWNERS
4RE45 INO/G4TED ON T</E LAST
6V WL/ZED ROLES OF TL/E TqX
g55E649OR AS GF TUE 0,47-E OF
EXECUT/ON OF TUTS 49,VEEMEN7-.
PROPERT/ES SUBJECT TO
ROMBURSEMENT OBU6'AT/ON
CX UTA91 T 4
544
AGENDA ITEM August 15, 1979
TO: James S. Mocalis, City Manager
FROM: W. D. Murphy, Director of Public Works
SUBJECT: Consideration of Requests For Reimbursement Agreement
Modifications - Ortega Highway
SITUATION
The Church of the Nazarene and Ortega Properties (Tarnutzer-Hamilton
Development Company) have requested that the reimbursement procedures
specified in the City's reimbursement agreement with Maurer -Elliott
Construction Company be modified. The off-site Ortega Highway right-
of-way acquired by Maurer -Elliott is totally on the properties of the
Church of the Nazarene and Tarnutzer-Hamilton, and the agreement
calls for those properties to reimburse payments for highway right-
of-way sold at the time they develop. The requested modification
would adjust the reimbursement for right-of-way to one-half the total
amount, splitting the obligation between the properties on both sides
of the street.
The Land Use Management Code requires the dedication and improvement
of public roads on or contiguous to a property at the time it develops.
The reimbursement agreement places fiscal obligations for such improve-
ments on the Church of the Nazarene and Ortega Properties. In that
these two owners will receive payment for right-of-way lost in the
condemnation proceedings, the reimbursement agreement requires return
of the funds to Maurer -Elliott upon development. A reduction in the
amount of reimburdsment required of the property owners would insure
that the required -dedication be partially financed by other parties.
These parties would have reasonable grounds to protest in that they
would be financing the acquisition of others' properties.
Maurer -Elliott Construction Company is opposed to changing the agreement
primarily on the basis of the financial implications. In that the
City has entered into the agreement with Maurer -Elliott, it cannot
unilaterally modify the reimbursement requirement without violating
the agreement.
FINANCIAL CONSIDERATIONS
Modification of the agreement without the consent of Maurer -Elliott
Construction Company could translate into costly obligation against
the City.
FOR CITY COUNCIL AGENDA ....
1<L
0 9
James S. Mocalis, City Manager -2- August 15, 1979
Requests For Reimbursement- Ortega
Highway
ALTERNATE ACTIONS
1. Do not approve the request to modify the agreement.
2. Approve the request to modify the agreement.
3. Negotiate an agreement modification.
RECOMMENDATION
By motion, do not approve the request of the Church of the Nazarene
and Ortega Properties to modify the right-of-way costs reimbursement
procedures specified in the City's reimbursement agreement for
Ortega Highway construction.
Respectfully submitted,
W. D. Murphy��
WDM:GML/rem
Encls.
'Out ern California i l4d .
ROBERT H. SCOTT, District Superintendent
July 21, 1979
Kenneth E. Friess, Mayor
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
THE NAZARENE
C I TY
OF 524 EAST CHAPMAN
SAN jLjA4IRANGE,CALIFORNIA 92666
CA.PISTRaNCj (714)538-1193
Dear Mayor Friess: Re: Eminent Domain Action Ho.29-26-94 and
City Contract with Mauer Development Co.
As owners of land parcel AP -124-290-062 we are writing to inform you of a
serious inequity created by the two companion actions referenced above,
which were taken by the City in accomplishing the realignment of Ortega
Highway.
The Eminent Domain action recognized that the property owner had a right
to receive just compensation for the property taken and made provisions
for such compensation.
The City's contract with Mauer Development et al, dated 21 June 1.978, required
the developer to place funds in a trust account for purposes of reimbursing
the property owners in accordance with the Court approved Eminent Domain action.
This same contract however, made provisions for full reimbursement of the devel-
oper for right-of-way costs by agreeing that the City would impose an assessment
on the property owner for right-of-way in the full amount of the agreed upon
compensation of the property owner. Upon payment, City would reimburse the de-
veloper. The net effect is that the property owner receives zero compensation
for the land taken and still pays a full 50% of the construction costs.
We see the following inequities:
1. There are nine property owners who receive a benefit from the realigned,
repaved, safer Ortega Highway segment, yet only the two property owners
from whom land is taken make any contribution for right-of-way.
2. The property owners on the north side of the highway gain (at no cost to
them) the exact amount of acreage that is taken from the property owners
on the south side at full loss of fair market value.
We feel confident that the City Council could not have been fully aware of
these factors when they authorized the procedure, since they implemented a
much more equitable procedure when they formulated the Assessment District.
J
�z
Therefore, we respectfully request that the City Council reconsider their
prior action, and make provision for an allocation of costs to all bene-
fiting properties on a formula basis similar to the Assessment District,
or by some other means which the Council would deem equitable.
Your assistance in resolving this matter will be greatly appreciated.
Sincerely,)
Jack Morrisit 1
Chairman, Home Mission Board
JM:wm
cc: Members of the City Council
George Lohnes - City of San Juan Capistrano
Bob Hamilton - St Margarets Episcopal Church
John Pugh - Ortega Properties
Robert Scott - Church of the Nazarene
Gale Smedley - Church of the Nazarene
:ORTEGA PROPERTIES
2915 RF_OHILL (F-200)����®
COSTA MESA. CA 92627
714/557-2792 „ �� 88 7.
W_�NGILLI CITY O 4
SAN JUAN
July 17, 1979 CANSTRA4�
Mayor Ken Priess
Members of the City
32400 Paseo Adelanto
San Juan Capistrano,
Council
California 92675
Subject: Agreement for reimbursement of construction
costs incurred in the construction of
improvements to Ortega Highway in connection
with Tract 7673, Tract 8485 and Tract 9382.
Gentlemen:
The purpose of this letter is to protest certain cost allocations
in the above described agreement as they effect Ortega Properties
and to request that the City Council reconsider certain cost
allocations.
Under the agreement, dated June 21, 1978, property owners bene-
fiting from the improvement of Ortega Highway must reimburse
the City for a pro rata share of the improvement. The point of
inequity lies in right-of-way costs. Under the agreement,
property owners who contribute land for right-of-way receive no
reimbursement for the property. Consequently, as an example,
the property directly north of our site receives the benefit of
abandonment of right-of-way properties at no cost, while we
receive no reimbursement (even pro -rata as in the Ortega assess-
ment district).
We specifically request that right-of-way acquisition be treated
as all other costs of the project and that all benefiting
properties bear costs equally. Thank you for your reconsideration
of this issue.
Sincerely,
Johnathan Pugh III
JP: lo
CC: George Lohnes
Jack Morris -
Sob Hamilton
r . i
- City of San Juan Capistrano
Church of Nazarene
St. Margarets Episcopal Church
i.di 6i+uu CONSTRUCTroN COMPANY
August 1, 1979
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
RECEIVED
Am 1 Q 51 PU'1Q
CIT'f OF
SAN -1ijt i
RE: Agreement for Reimbursement of
Construction Costs for Improvement
of Ortega Highway
Gentlemen:
The purpose of this letter is to urge you to deny
the requests of people who are asking you to fail to honor
your commitments under our reimbursement agreement.
Under normal circumstances, a landowner adjoining
a street must, when he proposes development of his property,
dedicate sufficient right-cf-way in front of his property
and improve that right-of-way at his own expense. In the
matters involving our Tract Nos. 7673, 8485, and 9382, we
have been asked to provide such right-of-way and improvements
in front of our properties. Furthermore, we have been asked
to provide the funds necessary for acquiring additional right-
of-way not in front of our property, and to provide for the
construction of additional improvements on those properties.
While it is unusual for the City to impose such a
far reaching requirement on a development like ours, we
complied because the City agreed to obtain appropriate
reimbursement of some of the additional costs we are
incurring.
If the other landowners developed their properties
first, they would have been obliged at the very least to
provide right-of-way in front of their properties, and
appropriate improvements.
ADOI77oN
M
Tv '-�G�ND/�
'F///
r
0 0
City of San Juan Capistrano
August 1, 1979
Page Two
it appears that they are now asking you to allow
them to take a free ride at our expense. That is, they are
requesting that they be paid for their property while being
required to pay only one-half of the improvement costs.
This is clearly unfair to us. We trust that you will agree
with us that it offends even the most callous sense of fair
play for these other landowners to require that we pay all
the costs of improvements not even on our property, and also
pay for property they would otherwise be required to dedi-
cate to the City. They are paying less than they should pay
anyway, and are spared the aggravation of doing the work
involved.
We hope you will point out to them that you have
entered into an agreement pursuant to which you have under-
taken to collect a portion of our costs for us, and reim-
burse them to us, and that their request is unreasonable
and unfair.
Finally, we request that you require dedication
of rights-of-way for maps currently pending, and that you
t} -.en return to us the approximately $87,000 we deposited
with you. This will reduce the costs to all concerned.
REM/sg
Very truly yours,
ert E. Maurer
tner
CO.
E
- CONSTRUCTION COMPANY
0
0
August 1, 1979
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
RECFIVF1)
1 G 51 PM 10,
RE: Agreement for Reimbursement of
Construction Costs for Improvement
of Ortega Highway
Gentlemen:
G13 i J
The purpose of this letter is to urge you to deny
the requests of people who are asking you to fail to honor
your commitments under our reimbursement agreement.
Under normal circumstances, a landowner adjoining
a street must, when he proposes development of his property,
dedicate sufficient right -o£ -way in front of his property
and improve that right-of-way at his own expense. In the
matters involving our Tract Nos. 7673, 8485, and 9382, we
have been asked to provide such right-of-way and improvements
in front of our properties. Furthermore, we have been asked
to provide the funds necessary for acquiring additional right-
of-way not in front of our property, and to provide for the
construction of additional improvements on those properties.
While it is unusual for the City to impose such a
far reaching requirement on a development like ours, we
complied because the City agreed to obtain appropriate
reimbursement of some of the additional costs we are
incurring.
If the other landowners developed their properties
first, they would have been obliged at the very least to
provide right-of-way in front of their properties, and
appropriate improvements.
ADOI 77ON
1 7 M
X (4c*4 L, 71,11,7
7V .qz�Ewd,,1-7
D Z
City of San Juan Capistrano
August 1, 1979
Page Two
It appears that they are now asking you to allow
them to take a free ride at our expense. That is, they are
requesting that they be paid for their property while being
required to pay only one-half of the improvement costs.
This is clearly unfair to us. We trust that you will agree
with us that it offends even the most callous sense of fair
play for these other landowners to require that we pay all
the costs of improvements not even on our property, and also
pay for property they would otherwise be required to dedi-
cate to the City. They are paying less than they should pay
anyway, and are spared the aggravation of doing the work
involved.
We hope you will point out to them that you have
entered into an agreement pursuant to which you have under-
taken to collect a portion of our costs for us, and reim-
burse them to us, and that their request is unreasonable
and unfair.
Finally, we request that you require dedication
of rights-of-way for maps currently pending, and that you
then return to us the approximately $87,000 we deposited
with you. This will reduce the costs to all concerned.
Very truly yours
T ¢ONSTRUCTION CO.
ert E. Maurer
tner
REM/sg
CJoulhern California fish4d
ROBERT H. SCOTT, District Superintendent
July 21, 1979
Kenneth E. Friess, Mayor
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
0
THE NAZARENE
C ' T '( OF 524 EAST CHAPMAN
SAN jli A(.4RANGE, CALIFORNIA 92666
(714)538-1193
Dear Mayor Friess: Re: Eminent Domain Action Ao.29-26-911 and
City Contract with Mauer Development Co.
As owners of land parcel AP -124-290-069 we are writing to inform you of a
serious inequity created by the two companion actions referenced above,
which were taken by the City in accomplishing the realignment of Ortega
Highway.
The Eminent Domain action recognized that the property owner had a right
to receive just compensation for the property taken and made provisions
for such compensation.
The City's contract with Mauer Development et al, dated 21 June 1978, required
the developer to place funds in a trust account for purposes of reimbursing
the property owners in accordance with the Court approved Eminent Domain action.
This same contract however, made provisions for full reimbursement of the devel-
oper for right-of-way costs by agreeing that the City would impose an assessment
on the property owner for right-of-way in the full amount of the agreed upon
compensation of the property owner. Upon payment, City would reimburse the de-
veloper. The net effect is that the property owner receives zero compensation
for the land taken and still pays a full 50% of the construction costs.
de see the following inequities:
1. There are nine property owners who receive a benefit from the realigned,
repaved, safer Ortega Highway segment, yet only the two property owners
from whom land is taken make any contribution for right-of-way.
2. The property owners on the north side of the highway gain (at no cost to
them) the exact amount of acreage that is taken from the property owners
on the south side at full loss of fair market value.
We feel confident that the City Council could not have been fully aware of
these factors when they authorized the procedure, since they implemented a
much more equitable procedure when they formulated the Assessment District.
1
t (2) to
Therefore, we respectfully request that the City Council reconsider their
prior action, and make provision for an allocation of costs to all bene-
fiting properties on a formula basis similar to the Assessment District,
or by some other means which the Council would deem equitable.
Your assistance in resolving this matter will be greatly appreciated.
Sincerely,
,
� A
7r' &^_AA_4
Jack Morris
Chairman,
Home Mission Board
JM:wm
cc: Members of the City Council
George Lohnes - City of San Juan Capistrano
Bob Hamilton - St Margarets Episcopal Church
John Pugh - Ortega Properties
Robert Scott - Church of the Nazarene
Gale Smedley - Church of the Nazarene
ORTEGA PROPERTIES
2915 REDHILL (F-200)
COSTA MESA. CA 92627�� n r
714/557 -2792y -- ,{ y + 48 � J ,7n
C :'1 11{f � lt'
July 17, 1979 r;
Mayor Ken Friess
Members of the City Council
32400 Paseo Adelanto
San Juan Capistrano, California 92675
Subject: Agreement for reimbursement of construction
costs incurred in the construction of
improvements to Ortega Highway in connection
with Tract 7673, Tract 8485 and Tract 9382.
Gentlemen:
The purpose of this letter is to protest certain cost allocations
in the above described agreement as they effect Ortega Properties
and to request that the City Council reconsider certain cost
allocations.
Under the agreement, dated June 21, 1978, property owners bene-
fiting from the improvement of Ortega Highway must reimburse
the City for a pro rata share of the improvement. The point of
inequity lies in right-of-way costs. Under the agreement,
property owners who contribute land for right-of-way receive no
reimbursement for the property. Consequently, as an example,
the property directly north of our site receives the benefit of
abandonment of right-of-way properties at no cost, while we
receive no reimbursement (even pro -rata as in the Ortega assess-
ment district).
We specifically request that right-of-way
as all other costs of the project and that
properties bear costs equally. Thank you
of this issue.
Sincerely,
"J
Johnathanugh III
JP: lo
acquisition be treated
all benefiting
for your reconsideration
CC: George Lohnes - City of San Juan Capistrano
Jack Morris - Church of Nazarene
Bob Hamilton - St. Margarets Episcopal Church
AGENDA ITEM June 21, 1978
TO: James S. Mocalis, City Manager
FROM: W. D. Murphy, Director of Public Works
SUBJECT: Reimbursement Agreement For Improvement of
Ortega Highway, Tracts 7673, 8485 and 9382
(Maurer Development)
SITUATION
Maurer Development Company is requesting a reimbursement agreement
for expenses incurred in acquiring right-of-way and constructing
improvements for Ortega Highway between Ganado Road and Windsong
Drive. The developer is required to construct these improvements
as a condition of approval of Tracts 7673, 8485 and 9382. A
reimbursement agreement conforming to the outline presented to
the City Council on May 17th is enclosed for Council review.
Succinctly, the agreement calls for reimbursement of the developer
by the properties fronting on Ortega Highway between Ganado Road
and Windsong Drive. The affected properties will be required to
make reimbursement at such time that a request is made for approval
of an action whereby conditions of approval can be legally applied.
The agreement further proposes to limit the time period over which
the reimbursement requirement will exist; the obligation for reim-
bursement of right-of-way acquisition is proposed to run for ten
years and that for construction costs to run for four years.
It should be understood that the probability of total reimbursement
of the developer is extremely slight. This is due to the fact that
many of the properties on the north side of the impacted area of
Ortega Highway are established residential sites and will probably
not be requesting approval actions of the City within the time
periods specified. The developer has expressed concern over the
fact that properties can "wait out" the agreements' time constraints
and, accordingly, takes a strong exception to the four and ten year
limits.
FINANCIAL CONSIDERATI
The improvement costs are estimated to be $150,000. The right-of-
way costs are estimated to be $ 85,000, based upon $30,000 per
acre. This amounts to a total expense of $235,500, to be exper-
ienced by the developer prior to any reimbursement. The spectrum
of probability of reimbursement is quite broad, but staff feels
that total reimbursement of the right-of-way cost and half of the
construction costs is a reasonable prediction.
FOR CITY COUNCIL AGENDA
James S. Mocalis, City Manager -2- June 21, 1978
Reimbursement Agreement For Improvement
of Ortega Highway - Maurer
The City had $100,000 obligated to the proposed City -County
Arterial Highway Financing Program project on Ortega Highway.
With the cancellation of that project, these funds are no
longer obligated to Ortega Highway, and staff is proposing a
reallocation of these funds to other projects in the upcoming
five year budget. Accordingly, there are no direct financial
impacts upon the City resulting from the subject agreement.
ALTERNATE ACTIONS
1. Approve the subject agreement.
2. Do not approve the subject agreement and reimbursement of
the developer.
3. Require a modification of the agreement for future review.
4. Waive the development requirement waiting for the State project.
5. Approve the agreement subject to partial immediate reimburse-
ment by the City.
RECOMMENDATION
By motion, approve the "Agreement For Reimbursement of Con-
struction Costs Incurred in the Construction of Improvements
to Ortega Highway in connection With Tracts 7673, 8485 and
9382, and authorize the Mayor to execute the agreement on
behalf of the City.
Respectfully submitted,
W. .. Mr Pi,
W. D. urp
WDM:GML/rem
Encl.
MEMORANDUM
TO: Members of the City Council
Department Heads
FROM: Mary Ann Hanover, City Clerk
SUBJECT: Reimbursement Agreement for I
41,
June 21, 1978
of
Attached is a revised copy of the subject Agreement. The changes
to the Agreement in the packet are as follows:
Page 2,
Section I C
Delete the last sentence.
Page 2, Add the following to the last sentence:
Section II A , , for purposes of this agreement,
'Property' shall be defined as the entity
owning and/or proposing to improve or
build upon a parcel of land affected by
this agreement,"
Page 4, Fourth line, delete the word "effective."
Section III C
MAH/cj
The following is added to the fourth line:
whereby the reimbursement requirement
is considered effective," and the words
"for this agreement" are deleted at the
beginning of the fifth line.
Sixth line, delete the word "effective."
Respectfully submitted,
MARY ANNNOVER
94
0
]IME MC MMMM[fiv TMo
June 16, 1978
Honorable City Council
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, California 92675
d7.76 TD 0*E:1JM
_Z-rml� 6 -y1 -7r
JUN
Re: Ortega Highway Reimbursement Agreement
Gentlemen:
We are pleased to enter into an agreement with you pursuant to
which you will administer the reimbursement to this firm of our
costs incurred both in obtaining rights-of-way for and improving
Ortega Highway. We also agree with you that the proposed amend-
ments will benefit the entire City as well as the lands adjoin-
ing Ortega Highway.
We are prepared to make deposits of over $85,000 so that you
will be able to obtain immediate possession of the property.
We are also ready to expend sums well in excess of $235,000
to complete the acquisition and improvement work. Because of
the substantial amounts we are spending on improvements not
immediately adjacent to our property, we feel it is important
that you provide us with as much assurance as reasonably possible
that we will be reimbursed by other benefited landowners when
they develop their properties.
For these reasons we request only two changes in the draft
Reimbursement Agreement, which you submitted to us on June 7,
1978.
First, the Agreement should remain in effect for fifteen years
in order to allow us to receive reimbursement of both construction
and rights-of-way costs. There is no legal, practical or moral
reason why this Agreement must expire earlier. The purpose of
the Agreement could be defeated if it were allowed to expire
in less than fifteen years, and we naturally assume that this
is neither your desire nor intent.
14841 VORBA STREET / TUSTIN, CALIFORNIA 92680/ (714( 544-8390 • LICENSE 13- 1 269901
N�
Honorable City Council
June 16, 1978 Page 2
Second, we feel the Agreement should be recorded so future
owners of the affected lands will know of their reimbursement
obligation. It would be unfortunate if a new owner were to
complain that you failed to give him an opportunity to be
aware of this obligation.
Neither of these requests places any burden on the City;
both are consistent with the spirit and intent of the Agree-
ment. Failure to allow these changes could only increase our
burden and allow others to unfairly take a "free ride" at our
expense.
Thank you for your cooperation.
Very truly yours,
WrMaurer
OTTONSTRUCTION COMPANY
e
Partner
REM:gb
CiCf� �� � %ll/G � �llll�J7(�/�J•Oldfilllil6
t 32400 PASEO ADELANTO
I
SAN JUAN CAPISTRANO, CALIFORNIA 92675
`-PHONE 493.1171
` 4 {.
August 23, 1979
Mr. Jon Pugh
ORTEGA PEOPERTIES
2915 Redhill (F-200)
Costa Mesa, California 92627
Re: Modification to Reimbursement Agreement -
Ortega Highway Right -of -Way
Dear Mr. Pugh:
Following consideration at their meeting of August 15,
1979, the City Council respectfully denied requests received from
both you and The Church of the Nazarene for modification of the
City's Ortega Highway right-of-way reimbursement agreement with
Maurer -Elliott Construction Company.
If you have any questions, please do not hesitate to
call.
Very truly yours,
��
(MRS) MART ANN HANOVER
City Clerk
MAH/cj
cc: Jack Morris, Church of the Nazarene
Robert Maurer, Maurer -Elliott
Construction Company
Director of Public Works
,..
ifs A ir. Gz�ri�
y32400 PASEO AUELANTO
SAN JUAN CAPISTRANO. CALIFORNIA 92675
PHONE 493'1171
August 2, 1979
Mr. Jon Pugh III
Ortega Properties
2915 Redhill (F-200)
Costa Mesa, California 92627
Re: Reimbursement of Construction Costs -
Ortega Highway
Dear Mr. Pugh:
At their meeting of August 1, 1979, the City Council
received copies of your letter requesting reconsideration of
right-of-way cost acquisition as it relates to the Ortega
Properties. e
The request was referred to the Director of Public
Works for a report at the August 15th Council meeting. Copies
of the Agenda and staff report will be forwarded to you prior
to that meeting. If you have any questions, please do not
hesitate to call.
Verytrulyyours,
G% / L �
(MRS) MAR ANN HANOVER
City Clerk
MAH/cj
cc: Director of Public Works
SAN
y!I/1„ l�ltl? /.rlI vllll�
ti;
,7400 PASEO AOELANTO
8APISTRANO. CALIFORNIA 92675
i
August 2, 1979
Mr. Jack Morris
Southern California District
Church of the Nazarene
524 East Chapman
Orange, California 92666
Re: Reimbursement of Construction Costs -
Ortega Highway
Dear Mr. Morris:
At their meeting of August 1, 1979, the City Council
received copies of your letter requesting reconsideration of
prior Council actions with regard to cost allocations imposed
in conjunction with the realignment of Ortega Highway.
The request was referred to the Director of Public
Works for a report at the August 15th Council meeting. Copies
of the Agenda and staff report will be forwarded to you prior
to that meeting. If you have any questions, please do not
hesitate to call.
Very truly yours,
(MRS) MARY ANN HANOVER
City Clerk
MAHjcj
cc: Director of Public Works
i
32400 PASF.O ADEIANTO" ;
i
SAN JUAN CAPISTRANO. CALIFORNIA 92675
I
'�PHOM1E 493A I71
o d1
q_
F /
August 2, 1979
Mr. Robert Maurer
Maurer/Elliott. Construction Co.
14841 Yorba Street
Tustin, California 92680
Re: Reimbursement of Construction Costs -
Ortega Highway
Dear Mr. Maurer:
At their meeting of August 1, 1979, the City Council
received copies of your letter urging denial of the requests
for equal participation in right-of-way acquisition costs.
The Council took action to refer your request to the
Director of Public Works for report at the Council meeting of
August 15th. Copies of the Agenda and staff report will be
forwarded to you prior to that meeting. If you have any questions
please do not hesitate to call.
Very truly yours,
(MRS) 14AR ANN HANOVER
City Clerk
MAH/cj
cc: Director of Public Works
CJ ouihern Loalifornia 1istt4d
CEIYED
ROBERT H. SCOTT, District Superintendent � CH QF THE NAIA��F.N�,
1 � � 524 EAST CHAPMAN
5 V �t .I',: fi�ORANGE, CALIFORNIA 92666
(714) 538-1193
July 21� 1979
City Clerk
City of San Juan Capistrano
Dear Friend.
Would you be so kind as to distribute copies of the enclosed letter
to Mayor Friess to members of the City Council. The original has
gone to the Mayor by separate mailing.
Thank you for your assistance.
Sincerely,
L� r !
/Jack Morris
Gfouikern Coahfornial%14c4
ROBERT H. SCOTT, Diarict Superintendent
July 21, 1979
Kenneth E. Friess, Mayor
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
524 EAST CHAPMAN
ORANGE, CALIFORNIA 92666
(714) 538-1193
Dear Mayor Friess: Re: Eminent Domain Action So.29-26-94 and
City Contract with Mauer Development Co.
As owners of land parcel AP -124-290-06, we are writing to inform you of a
serious inequity created by the two companion actions referenced above,
which were taken by the City in accomplishing the realignment of Ortega
Highway.
The �ninent Domain action recognized that the property owner had a right
to receive just compensation for the property taken and made nrovisions
for such compensation.
The City's contract with Mauer Development et al, dated 21 June 1978, required
the developer to place funds in a trust account for purposes of reimbursing
the property owners in accordance with the Court approved imminent Domain action.
This same contract however, made Drovisions for full reimbursement of the devel-
oner for right-of-way costs by agreeing that the City would impose an assessment
on thN property owner for right-of-way in the full amount of the agreed upon
compensation of the pronerty owner. Upon payment, City would reimburse the de-
veloper. The net effect is that the property owner receives zero compensation
for the land taken and still pays a full 50% of the construction costs.
,le see the following inequities:
1. There are nine property owners who receive a benefit from the realigned,
renaved, safer Ortega Highway segment, yet only the two property owners
from whom land is taken make any contribution for right-of-way.
2. 'The property owners on the north side of the highway gain (at no cost to
them) the exact amount of acreage that is taken from the property owners
on the south side at full loss of fair market value.
ie feel confident that the City Council could not have been fully aware of
these factors when they authorized the procedure, since they implemented a
mach more equitable procedure when they formulated the Assessment District.
Therefore, we respectfully request that the City Council reconsider their
prior action, and make provision for an allocation of costs to all bene-
fiting properties on a formula basis similar to the Assessment District,
or by some other means which the Council would deem equitable.
Your assistance in resolving this matter will be greatly apnreciated.
Sincerely, �A
I (&4
Jack Morris 1
Chairman,
lime Mission Board
JM:wm
cc: Members of the City Council
George Lohnes - City of San Juan Capistrano
Bob Hamilton - St Margarets Episcopal Church
John Pugh - Ortega Properties
Robert Scott - Church of the Nazarene
Gale Smedley - Church of the Nazarene
32400 Pl,. EO AJF! ANTI
SAN JUAN CAPISTRANO, CALIFORNIA 42675
PHONF 493 ! I71
June 23, 1978
Mr. Robert E. 'Maurer
MAURER DEVELOPMENT COMPANY
14841 Yorba Street
Tustin, California 92680
Re: Avreement for Reimbursement of Construction Costs
Dear Mr. Maurer:
At their meeting of June 21, 1978, the City Council
approved the reimbursement agreement for Ortega Highway construction
costs in connection with Tracts 7673, 8485, and 9382, subject
to a change in Section III, Time Requirements, to fifteen (15)
years.
Enclosed are the original and two copies of the Agreement,
We would appreciate it if your company and Elliot Construction
Company would execute all three copies and return the copy marked
"City Copy" to this office. The other copies are for your and
Elliot Construction Company's files. Since the Agreement will
be recorded, enclosed also are notary forms for your use.
Thank you for your cooperation.
Very
truly yours,
(MRS) MARY 'ANN HANOVER
City Clerk
MAH/cj
Enclosures
CC! Director of Public works
R. K. Elliot: Construction Company