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
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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.,,",�