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1999-0202_PASEO MONTE VISTA_Funding Agreement FUNDING AGREEMENT PASEO MONTE VISTA SEWER THIS AGREEMENT dated the4 noLday of 1999, is made by and between the City of San Juan Capistrano,hereinafter referred to as CITY, and the Owners of property located on Paseo Monte Vista, hereinafter referred to as OWNERS, specifically noted as: OWNERS' NAMES ADDRESS Jack Huiberts 31891 Paseo Monte Vista, San Juan Capistrano, CA 92675 Thomas W. Hribar 31911 Paseo Monte Vista, San Juan Capistrano, CA 92675 Michael Tracy 31922 Paseo Monte Vista, San Juan Capistrano, CA 92675 WHEREAS,the CITY will construct sewer facilities,hereinafter called"Facilities", in Paseo Monte Vista; and WHEREAS, the aforesaid residents have need for sewer facilities to their property; and WHEREAS, CITY is funding the cost of the sewer facilities in Paseo Monte Vista; and WHEREAS,the owners are willing to reimburse the CITY for their proportionate share of the sewer facilities; and WHEREAS, OWNERS desire to enter into this Agreement to provide a means for allowing the construction of Facilities and related appurtenances; and to provide to the City a mechanism for future reimbursement as other owners connect to the City sewer; and WHEREAS, the proposed Facilities provides benefit to the CITY and OWNERS, the CITY is willing to provide for costs of design and construction. NOW, THEREFORE, in consideration of the premises hereinafter set forth, 1. CITY agrees to: A. Prepararation of bid documents, construction management, design and construction of the "facilities". B. Use its best efforts to complete the improvements in period not to exceed 60 days from start of construction(weather permitting). C. Provide blank easement form for CITY acceptance. D. Alterations: The City Engineer of the CITY may make such changes, alterations or additions to the plans and specifications for said work and improvements, not to exceed ten percent(10%)of the total estimated cost, as may be determined necessary and desirable for the proper completion of said work and improvements or as required for the safety and welfare of the public,and no such changes,alterations,or additions shall relieve OWNERS from faithful performance of this Agreement. 2. The OWNERS agree as follows: A. OWNERS agree to fund their proportionate share of the total construction costs which are currently estimated at$40,290. With a potential of nine (9) properties connecting to the sewer,the proportionate share for the three(3)owners shall total$13,431 ($4,477 per each). B. OWNERS agree to work with all property owners of Paseo Monte Vista to acquire the necessary sewer easements. Work will include preparation of legal descriptions, title reports, and notarization. Costs for said work which OWNERS have paid on behalf of property owners not currently participating in this agreement, shall be included as part of the final accounting and shall be credited to OWNERS against any monies owed. C. OWNERS agree that final accounting of costs shall include direct CITY costs, such as plan check and inspection, for a sum not to exceed $2,000. D. OWNERS agree to deposit $7,500 ($2,500 per each)within 30 days of execution of this Agreement. E. OWNERS agree to remit to the CITY, within 30 days of completion of the project, the balance due based on actual costs. Of the three (3) OWNERS' proportionate shares, estimated at$4,477 each,each OWNER shall be solely responsible for his/her individual proportionate share only. E. OWNERS additionally agree to pay to the City the connection fees which currently are $3,165 per property at time of connection of on-site sewer to City sewer. Such fees are not included in construction costs. Timing of connection shall be at the discretion of each individual OWNER. 3. Liabili A. City shall hold owners harmless from any and all claims or liabilities arising out of the construction activity described in this Agreement. B. CITY shall perform all work in a safe,workmanlike manner and shall take such precautions as may be necessary to warn and protect the public from any dangerous condition caused by the construction of said improvements. C. OWNERS shall hold CITY, its officers and employees harmless from any and all claims, demands,causes of action, liability or loss of any sort because of or arising out of the acts or omissions of OWNERS, his contractor, subcontractors, agents or employees in the performance of this Agreement. 4. Force Majeure: None of the parties hereto shall be deemed to be in default if performance of the obligations required by this Agreement is delayed or becomes impossible because of any act of God, earthquake, fire, strike, sickness, accident, civil commotion, epidemic, act of government, its agencies or officers of any legitimate cause beyond the control of the parties. 5. Notices: All notices, requests, demands,consents and other communications under this Agreement shall be in writing, including any telex and facsimile transmission, and shall be deemed to have been duly given on the date of service if served personally,by telex or facsimile transmission or 48 hours after mailing if mailed by first class mail, registered or certified, postage prepaid, return receipt requested and properly addressed as follows: For CITY For OWNERS City of San Juan Capistrano Mr. Jack Huiberts Attn: City Clerk 31891 Paseo Monte Vista 32400 Paseo Adelanto San Juan Capistrano, CA 92675 San Juan Capistrano, CA 92675 6. Assignment: This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective representatives, assigns and successors in interest. 7. Entire Agreement: This Agreement contains the entire agreement between the parties hereto and supersedes any prior or concurrent written or oral agreement between said parties concerning this subject matter contained herein. There are no representations, agreements, arrangements or undertakings, oral or written, between or among the parties hereto relating to the subject matter contained in this Agreement which have not been fully expressed herein. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first written above. ATTEST: CITY: BY: BY: CHERYL J S , CITY CLERK JOHN GREINER, MA OR APPROVED AST FO OWNERS: BY: BY: JOHN HAW, TY ATTORNEY BY: BY:' 32400 PASEO ADELANTO MEMBERS OF THE CITY COUNCIL SAN JUAN CAPISTRANO,CA 92675 ILpI JOCAMPBELL OHNN G E R (949)493-1171 �j mwwum MATT HART HART (949)493-1053(FAX) ' Dunnm 1961 GILJONES 1776 DAVID M.SWERDLIN ��• CITY MANAGER GEORGE SCARBOROUGH February 4, 1999 Mr. Jack Huiberts 31891 Paseo Monte Vista San Juan Capistrano, California 92675 Re: Funding Agreement - Paseo Monte Vista Sewer Dear Mr. Huiberts: At their meeting of February 2, 1999, the City Council of the City of San Juan Capistrano approved a Funding Agreement for construction of sewer facilities in Paseo Monte Vista. The Agreement identifies you, Mr. Hribar and Mr. Tracy, as Owners, and commits the City to construction of the sewer improvements. It provides for the Owners to pay their proportionate shares of the total construction costs, estimated at $4,447 each. The Agreement commits the Owners to deposit $2,500 each, within 30 days of the execution of the Agreement, or by March 4, 1999, and to pay the balance due based on actual costs, within 30 days of completion of the project. The Agreement also calls for the Owners to pay the City connection fees at the time of connection of an on-site sewer to the City's sewer system. A fully-signed copy of the Agreement is enclosed for your files. Please feel free to contact Nancy Barney at 443-6362 if you have any questions. Very truly yours, Cheryl Johnson City Clerk Enclosure cc: Thomas Hribar (with enclosure) George Spaulding Michael Tracy (with enclosure) Raymond Leach Robert Lyons Carl Kniza Mary Carroll David Ball MaryAnn Hanover Engineering&Building Director (with Prininsi, ) William Hoffman Nancy Barney (with enclosure) bmwa is AB San Juan Capistrano: Preserving the Past to Enhance the Future -- item. a requested that two Council Members work with the City Manager on this issue. Council mber Campbell recommended that Council Members Jones and Swerdlin work with the Ci Manager to obtain a resolution for this item. She emphasized there were fairness issues volved and it was important that all aspects were considered. Mayor Greiner clari t that the property in question had not been purchased with open space bond money; it had bee edicated to the City through the Glenfed development and there was no debt home on the 1 Continuation of Consideration o ermination of A eement: It was moved by Council Memberpbell, seconded by Council Member Swerdlin and carried with Council Member Hart abs t due to a potential conflict of interest,to continue consideration of the proposed termination f the agreement,and to select Council Members Jones and Swerdlin to work with the Ci Manager in an expedited manner toward a resolution of the issues with fairness to all sides. The City Manager was directed to provide a status report within three weeks. RECESS AND RECONVENE Council recessed at 8:25 p.m. and reconvened at 8:35 p.m. ENGINEERING AND BUILDING DIRECTOR ---� 1. APPROV AL OF FUNDING AGREEMENT AND APPROPRIATION OF FUNDS- PASEO MONTE VISTA SEWER FACILITIES(HUIBERTS,HRIBAR.TRACl� 600.30 4\ Written Communication: Report dated February 2, 1999,from the Director of Engineering and Building,advising that the City had received a request for construction of sewer facilities to serve nine homes located on Paseo Monte Vista which are currently on a septic tank. The design and construction costs for this project were estimated at $45,000. The proposed Funding Agreement provided for construction and funding of the project by the City. The three property owners interested in entering into the Agreement at this time would provide pay their proportionate share in the amount of$13,431, plus $9,495 in sewer connection fees. The City would be reimbursed fully upon connection to the sewer by all nine property owners. Approval of Aereement: It was moved by Council Member Campbell, seconded by Council Member Jones, and unanimously carried to that the Funding Agreement for construction of sewer facilities on Paseo Monte Vista be approved; and that the appropriation of funds from the Sewer Enterprise Fund for project construction costs in the amount of$45,000 be authorized. City Council Minutes -7- 2/2/99 AGENDA ITEM February 2, 1999 TO: George Scarborough, City Manager FROM: William M. Huber, Director of Engineering & Building Services SUBJECT: Consideration of Funding Agreement and Appropriation of Funds - Paseo Monte Vista Sewer Facilities (Huiberts, Hribar, Tracy) RECOMMENDATION By motion, approve a Funding Agreement for construction of sewer facilities on Paseo Monte Vista and authorize the appropriation of funds from the Sewer Enterprise Fund for project construction costs in the amount of$45,000. SITUATION A. Summary and Recommendation The City has received a request for construction of sewer facilities to serve nine homes located on Paseo Monte Vista which are currently on septic tank. Staff supports construction of sewer facilities to replace the need for septic tanks as this reduces the possibility of ground water intrusion and is, therefore, beneficial to the community and its residents. Design and construction costs for this project are estimated at $40,000, plus $5,000 for contingencies, for a total of$45,000. A Funding Agreement has been prepared which allows for construction and funding of this capital project by the City,provides initial reimbursement of$13,431 plus$9,495 in connection fees from three properties, and results ultimately in 100%reimbursement by the remaining property owners upon their connection to the sewer system. Staff recommends that the City Council approve the Funding Agreement for construction of sewer facilities on Paseo Monte Vista and authorize the appropriation of funds from the Sewer Enterprise Fund balance to construct the project. B. Background Three property owners have expressed interest in entering into a Funding Agreement for construction of a sewer line on Paseo Monte Vista, to be funded by the City and reimbursed by the property owners. Each property owner's proportionate share for the project is estimated at $4,477, to be adjusted upon completion to reflect actual costs. These three property owners will pay one half of their proportionate shares upon execution of an agreement and the balance at project completion. The three parties entering into the Agreement agree to acquire the sewer easements required for the project. The costs incurred to acquire the easements will also be included in final project costs which are to be reimbursed by the property owners. FOR CIN COUNCIL AGEN /�2 AGENDA ITEM February 2, 1999 Page Two Those property owners on Paseo Monte Vista not currently entering into the agreement will be required to reimburse the City for their proportionate shares when they connect to the system at a future date. It is anticipated that these property owners will find that continued maintenance on their septic systems and/or need for replacement will be much more costly over time than the one time charge to connect to the City's sewer system. Upon completion of the project, a final assessment of all costs will be made. In order for the City to levy costs on the parties who connect to the system at a later date, Staff will return to the City Council for approval of a"Resolution Establishing Fees"which has been based on the final project costs. Additional fees which the property owners will incur are for connection to the sewer system. As with all residents, property owners must pay a connection fee of$3,165 at time of hook-up and subsequent applicable monthly service charges designed to support continued maintenance of the system. Collection of project construction costs and connection fees from the three homeowners currently involved will generate reimbursement of $22,926 to the Sewer Enterprise Fund upon project completion which will offset the $45,000 needed from the Sewer Fund to complete the project. Additional reimbursement to the fund will occur as the other homeowners connect to the system. This Funding Agreement,as proposed,will result in the property owners funding 100%of the project costs once all residents ultimately connect to the system. COMMISSION/BOARD REVIEW. RECOMMENDATIONS N/A FINANCIAL CONSIDERATIONS The proposed Funding Agreement allows for construction of the sewer facilities by the City, with reimbursement for actual costs by the homeowners. Project costs are estimated at $45,000. Collection of costs and fees from the three homeowners currently involved will generate reimbursement of$22,926 upon project completion. Additional reimbursement to the fund will occur as the other homeowners connect to the system. Staff is requesting appropriation of funds from the Sewer Enterprise Fund balance for completion of this project. NOTIFICATION Each of the property owners along Paseo Monte Vista is being notified of the proposed project per the attached mailing list(Attachment C). AGENDAITEM February 2, 1999 Page Three ALTERNATE ACTIONS 1. Approve a Funding Agreement for construction of sewer facilities on Paseo Monte Vista and authorize the appropriation of funds from the Sewer Enterprise Fund for project construction costs; 2. Do not approve the Funding Agreement or authorize the appropriation of funds for said project; 3. Request additional information from Staff. RECOMMENDATION By motion, approve a Funding Agreement for construction of sewer facilities on Paseo Monte Vista and authorize the appropriation of funds from the Sewer Enterprise Fund for project construction costs in the amount of$45,000. Respectfully Submitted, Prepared by William M. Huber, P.E. 2e7yarey V Director, Engineering & Building Management Analyst WMH/NB:nb Attachment: Location Map Funding Agreement Distribution List x x . to � x �b ✓ Z Vit" fr r Y i• O :}fin"i> 1L � • 1) �� ;.� L � _ 2 :�a�Fy ::.• a: y s.. O ''a>. � J vera ♦♦♦ �e : ATTACHMENT C Mailing List - Paseo Monte Vista Sewer Thomas W. Hribar George E. Spaulding David R. Ball William A. Hoffman Michael Tracy Mary Ann Hanover Carl Kniza Mary Carroll Raymond G. Leach Robert J. Lyons Jack Huiberts ADMINISTRATIVE ITEMS ENGINEERING AND BUILDING DIRECTOR 1. CONTINUATION OF CONSIDERATION OF FUNDING AGREEMENT AND APPROPRIATION OF FUNDS - PASEO MONTE VISTA SEWER FACILITIES (HUBERT/HRIBAR/TRACY) (600.301 Written Communication: Report dated January 5, 1999, from the Director of Engineering and Building, advising that the property owners participating in the referenced Funding Agreement had respectfully submitted a request to continue this item to an undetermined future date. Motion to Reschedule: It was moved by Council Member Campbell, seconded by Council Member Hart, and unanimously carried to reschedule this item for a future meeting. APPROVAL OF FUNDING AGREEMENT AND BUDGET AMENDMENT FOR CITY PARTICIPATION IN THE SAN JUAN CREEK WATERSHED ANAGEMENT STUDY COUNTY OF ORANGE 600.50 Writt Communications: Report ed January 5, 1999, from the Director of Engineering and Building advising that the County d requested that the benefitting agencies enter into a cooperative agreement and provide fundin or a local funding match for the U.S.Army Corps of Engineers'Feasibility Study for the San uan Creek Watershed Management Program. The City was asked to contribute $60,000 to pport the study. Approval of Agreement: It was moved by Council Me er Jones, seconded by Council Member Swerdlin, and unanimously carried that the F ding Agreement and Budget Amendment for City Participation in the San Juan Creek atershed Management Study be approved in the amount of$60,000; an appropriation of 0,000 was authorized from the 1998-99 Sewer Enterprise Fund balance and an appropriatio of$30,000 was authorized from the 1998-99 Water Enterprise Capital funds. 3. CONTINUATION OF CONSIDERATION OF FIN TRACT MAP 15686 AND THE IMPROVEMENT CONSTRUCTION CO APPORTIONMENT REIMBURSEMENT AND FINANCIAL AGR ENT SUNCAL DEVELOPMENT/SJD PARTNERS LTD. - NOR R&D SITE (420.30/600.60.600.50) Written Communications: Report dated January 5, 1999,from the Director of Engineering and BuildinXcommending approval of Final Tract Map 15686. The Final Map encompassed 34.7 ae north Research and Development site,located at the southerly terminus ofg the easterly side of the 1-5 freeway. City Council Minutes -9- 1/5/99 AGENDA ITEM January 5, 1999 TO: George Scarborough, City Manager FROM: William M. Huber, Director of Engineering & Building Services SUBJECT: Consideration of Funding Agreement and Appropriation of Funds - Paseo Monte Vista Sewer Facilities (Huiberts, Hribar, Tracy) SITUATION The property owners participating in the referenced Funding Agreement have respectfully submitted a request to continue this item to a future date, yet to be determined. Respectfully Submitted, Prepared by /G/2! William M. Huber, P.E. C 7aarney (/ Director, Engineering & Building Management Analyst WMH C j FOR CITY COUNCIL AGENDA.,,",�