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HomeMy WebLinkAbout06/01/1992, C-8 - PURCHASE OF REAL PROPERTY FOR SITING THE AUTOPARK WAY WATER TREATMENT TANKS AND FACILITIES l�lll�`yIII��IIIIIIIII II vy MEETING DATE: II IIIIII C� Q San ��.�5 �B�Sp� JUNE 2 9992 COUNCIL AGENDA REPORT ITEM NUMBER: FROM: William T. Hetland " PREPARED BY: David Zweig Utilities Director Water Projects Manager SUBJECT: PURCHASE OF REAL PROPERTY FOR SITING THE AUTOPARK WAY WATER TREATMENT TANKS AND FACILITIES CAO RECOMMENDATION: By motion approve and authorize the Mayor to: 1) execute the attached agreement for the purchase of real property from the Hysen Living Trust and the Johnson Living Trust for the sum of $45,000.00, and 2) have funds placed into escrow to cover the agreed upon purchase price plus an additional $5,000.00 for escrow fees, title insurance, recording fees, attorneys fees, and other related expenses. DISCUSSION: Background The Autopark well and associated treatment tanks and booster pump station were constructed in mid-1989 in response to prolonged drought conditions. The well, tanks, and pump house are located in the center island of the Autopark Way Cul-de-sac. The installation of these facilities was approved by the ARC on a temporary basis on July 17, 1989. At that time, the Commission directed the City's Utilities Department staff to explore alternative sites for the facility and to relocate the tanks within 90 days. At its meeting of May 14, 1990 the ARC extended approval for the units to November 17, 1991. An Administrative Use Permit was approved on November 17, 1989 which expired on November 21, 1991. In the years since the Autopark well was put into service, staff has contacted property owners in the area to inquire about possible locations for the water treatment tanks. The City entered into negotiations with several of the property owners in an effort to lease or buy property for the purpose of relocating the tanks. For various reasons, these negotiations failed to produce a new tank site for the City. In October of 1991, Staff approached the owners of the Hysen-Johnson Ford property to see if they might be interested in selling a small undeveloped corner of one of their parcels. The owners responded positively, and negotiations followed for several months thereafter. Items of negotiation included purchase price,easements, access,inconvenience to tenants,and construction arrangements. The proposed tank site property consists of 5894 square feet (approximately 1/8 acre) of land which is currently owned by the Hysen and Johnson families. The agreed upon price for the property was $45,000.00. ev L i��p�l�n►►►i►►illlilllli1° IIIIIN city of sant oBispo COUNCIL AGENDA REPORT Purchase of Real Property Page 2 Importance of Autopark Well At this time, ground water accounts for approximately 45% of the City's water supply. Autopark i well is the City's highest producing well. In 1991, Autopark well produced 1032 acre-feet of water, accounting for 22% of all water delivered during that year. Autopark well is considered to be an . essential element of the City's water supply. It provides flexibility to the water distribution system, i and serves as a reliable "in City" source of water. The development of groundwater in general and Autopark well in particular is in keeping with the City's commitment to a multi-source water supply. j Proposed Site for Tanks and Facilities The proposed site for the Autopark Way tanks and pump house is adjacent to the back parking lot of the Hysen Johnson Ford dealership (see attached sketches). The site is roughly triangular in shape. It is surrounded on two sides by parking lots and bordered on the third side by the Prefumo Creek easement. Trees will be planted at the proposed site to screen the tanks from view. Water will be pumped approximately 300 feet from the existing well in the traffic circle through a pipeline to the tanks. After passing through the tanks, the water will go through the booster pump station and then back through 300 feet of pipe to the water main located in the traffic circle. Restoration of Traffic Circle Island The removal of the water system facilities will disturb less than 1/4 of the existing landscaped area in the traffic circle. The area that is disturbed will be re-landscaped as.part of this project. The landscaping has been, and will continue to be maintained by the Public Works Department. CONCURRENCES: In accordance with City policy, the Community Development Department performed an environmental review of the tank relocation project prior to property acquisition. The environmental review resulted in the Director of Community Development filing a mitigated negative declaration for the project. Additionally, the Architectural Review Commission reviewed the proposed tank relocation project and granted final approval on May 4, 1992. A Use Permit was granted for the proposed project by the Community Development Department on May 6, 1992. The two businesses facing the traffic circle have expressed their support for moving the tanks to a new location. These businesses are Rancho Grande Motors and Hysen Johnson Ford (the owners of the Ford dealership lease their location from the Hysen and Johnson families). ii�B�l►�iii�iiilllllillP1° IlUlli city of San ' S OBISPO WiN COUNCIL AGENDA REPORT Purchase of Real Property Page 3 FISCAL IMPACT: A total of $2.35 million was approved for the groundwater development phase III program (1989/91 financial plan supplement and approved 1990/91 budget, page H-16). Funds are available in this project, 050-9744-092-570, to support this activity. A separate Council Agenda Report will be prepared for the construction phase of the tank'; relocation project. The estimated construction cost of relocating the tanks is $175,000. This i figure includes crane costs, piping, fencing, pavement, new concrete slabs, electrical work, painting, landscaping, and willow tree replacement. For an additional $8000, the tank slab and the pump house slab can be removed from the Autopark Way traffic circle, if the Council so desires. ALTERNATIVES: Two alternatives to the recommended course of action are discussed below. ALTERNATIVE 1 - LEAVE THE TANKS IN THE TRAFFIC CIRCLE Leaving the tanks in their present location would require the following: j 1. Environmental review 2. ARC Approval 3. Approval of an administrative use permit 4. Screening the facilities in some manner such that the regulatory bodies and the neighboring property owners are satisfied with the results. This alternative is not recommended because the above mentioned requirements, if possible at all, would be prohibitively expensive. ALTERNATIVE 2 - CONTINUE SEARCHING FOR AN ALTERNATE TANK LOCATION j A new tank location must be as close as possible to the existing well in order to minimize piping costs. The proposed tank site is approximately 300 feet from the well. For three years, other possible tank sites have been examined by Staff and found to be infeasible or prohibitively expensive. Therefore,. this alternative is not recommended. Attachments: 1. Agreement 2. Sketches P:\D\ALJTOPARK\CAR.VVP Recording requested by, when recorded mail to: Utilities Department c/o City Clerk City of San Luis Obispo 990 Palm Street, P.O. box 8100 San Luis Obispo, CA 93403-8100 APN: 053-151-034 053-151-035 AGREEMENT FOR THE PURCHASE OF REAL PROPERTY This agreement is entered into this day of , 1992 , by and between Carl Leslie Hysen and Virginia R. Hysen, Trustees of the Hysen Living Trust dated June 23 , 1988 , and Robert Burton Johnson and Elizabeth Ann Johnson, Trustees of the Johnson Living Trust, dated June 23 , 1988 , joint owners of Parcels 1 and 2 of Parcel Map SLO-79-157 , hereafter collectively referred to as "Owner" , and the City of San Luis Obispo, a chartered municipal corporation, hereafter referred to as "City" , collectively referred to as "Parties" . In consideration of the mutual and respective covenants and promises set forth herein and subject to all the terms and conditions hereof, the Parties hereby agree as follows: 1. Description of Property. The City wishes to' acquire, and Owner agrees to grant and convey to City, a portion of Parcel 2 in Parcel Map SLO-79- 157 , as recorded in Book 29 of Parcel Maps at Page 11 in the office of the San Luis Obispo County Recorder. The portion of Parcel 2 , hereinafter referred to as the "Subject Property" , is surrounded on three sides by the Hysen-Johnson Ford parking lot, and on the fourth side by the Prefumo Creek easement. The Subject Property is shown in the attached "Exhibit All and is more particularly described as follows: Beginning at the northeast corner of Parcel 1, as shown in Parcel Map SLO-79-157, proceed to a point at bearing N 34014130" W, 106. 73 feet; Thence N 56033129" E, 27 . 38 feet to a point; Thence S 81051139" E, 63 . 27 feet to a point; . Thence N 45000146" E, 15. 19 feet to a point; Thence S 44 °25157" E, 20. 00 feet to a point; Thence S 28055100" W, 103 . 76 feet to the point of beginning. C��-y Agreement: Hysen-Johnson Page 2 The City intends to relocate the existing water treatment tanks from the center of the Autopark Way traffic circle to the Subject Property, and add future treatment units as necessary on the Subject Property. Necessary utilities for the Subject Property .will reach the Subject Property through an existing easement in what is now the Hysen-Johnson Ford dealership ' s back parking lot. The Parties acknowledge that the Subject Property is not now an existing and separate parcel of real property. City shall, at City ' s sole cost and expense, apply for and effectuate such lot line adjustments or property division as shall be necessary to create such a legal parcel . Owner agrees to execute such documents or applications as shall be reasonably necessary to accomplish such purpose. City shall reimburse Owner for any expenses incurred by Owner with regard to such lot line adjustment. 2. Purchase Price. The purchase price for the Subject Property and compliance with the provisions described herein will be forty-five thousand dollars ($45, 000. 00) . City shall deposit the entire purchase price into escrow, by certified or cashier' s check, during business hours at least one business day before close of escrow. 3 . Escrow. This sale shall be consummated through an escrow established with Ticor Title Insurance Company of San Luis Ob$spo. The closing date for the escrow shall be no later than sixty (60) days from the date of this agreement, unless extended by mutual agreement of the Parties, which agreement shall not be unreasonably withheld. Escrow shall be considered closed when the grant deed to the property is recorded. Within fifteen (15) days from the execution of this agreement, each party shall execute and deliver to the escrow holder its written instructions consistent with the terms of this agreement and shall provide the escrow holder with such other information, documents and instruments as the escrow holder may reasonably require to enable it to close the transaction on the closing date. 4. Title. Seller shall by grant deed convey to City a fee simple interest in the Subject Property. The conveyance to City shall be of good and marketable title to the Property, as evidenced by a CLTA standard coverage title insurance policy paid for by the buyer and issued by Ticor Title Insurance Company in the full amount of the purchase price, insuring that title to the Property is vested in buyer free and clear of all liens and encumbrances, except those approved by ed Agreement: Hysen-Johnson Page 3 buyer in writing, and a lien for current real property taxes. Buyer shall pay all recording fees, escrow fees, title insurance costs and attorneys ' fees of both parties in preparing and effectuating this agreement. 5 . Obliaations of Parties After Close of Escrow. a. Richt of Access. The Owner further agrees to grant a general right of access to the Subject Property through Parcel 1 and Parcel 2 of Parcel Map No. SLO-79-157 via driveways and parking areas in a form acceptable to both Parties. The Owner shall designate a route to the Subject Property that is satisfactory to the City and existing Tenant (s) of Parcel 1 and Parcel 2 . The Owner will also provide copies of any keys necessary for the City to gain access to the Subject Property. b. Gates. Prior to construction on the Subject Property, the City will install, at City' s sole cost and expense, two new 25 ' wide gates in the existing fence between the Subject Property and the existing paved areas (approximate locations are shown in Exhibit A) . The existing gate will not be used for normal operations. During installation of the gates to the premises, and thereafter, City agrees to provide, at City' s sole cost and expense, such reasonable security measures as Owner and/or Owner' s tenant may require for the protection of tenant's automobile dealership. c. Notice of Access. Daily access to the Subject Property through one gate will be required by the City. Approximately once every eighteen months, access through both proposed gates by a "semi" truck and trailer will be required to exchange carbon in the treatment tanks. The City will provide Owner and existing Tenant with seven (7) days notice prior to scheduling a truck delivery. d. Emergency Access. Emergency access to the Subject Property through both gates shall be allowed at any time upon prior notice to Owner and existing Tenant by City. e. Utilities. Utilities will reach the Subject Property through existing public utilities easements . eve Agreement: Hysen-Johnson Page 4 f. Construction Arrangements. Owner agrees to arrange for the relocation of parked cars and equipment as necessary during the initial relocation of water treatment facilities to the site., City agrees to ensure that construction at the Subject Property will take no longer than 60 days, and that trenching across the parking lot will take no longer than 5 days. During trenching, cars will be provided with some means of crossing -the trench (such as a steel plate) at City ' s sole expense. If, due to unforseen circumstances through no fault of City, additional time is required for trenching and/or construction, a time extension will be granted on reasonable and mutually agreeable terms. g. Dust Control . The City will provide dust control measures during construction at the Subject Property. h. Maintenance of Property. The City will maintain the Subject Property in good condition, and shall effectuate such repairs as may be reasonable necessary to the pavement across which access to the Subject Property is obtained under this agreement. i. Landscaping in Autonark Way Circle. The City, at City's sole cost and expense, agrees to promptly restore and maintain the landscaping within the Autopark Way traffic circle after the removal of the water treatment facilities. 6. Right of First Refusal . City hereby grants to Owner a right of first refusal to repurchase the Subject Property in the event that City determines to sell all or any part of the premises. In such event, City shall notify Owner of the terms on which City is willing to sell the Subject Property. If Owner, within fifteen (15) days after receipt of City' s notice, indicates in writing Owner's agreement to purchase the premises or a part of the premises on the terms stated in City' s. notice, City shall sell and convey the Subject Property or part thereof to Owner on the terms stated in the notice. If Owner does not indicate Owner' s agreement within fifteen (15) days, City shall have 'the right to sell and convey the Subject Property or part of the Property to a third party. Upon any sale of the Subject Property to a third party, the rights of access referenced in Paragraph 5 (a) , above, and all rights thereunder across Parcels 1 and 2 shall immediately terminate. Agreement: Hysen-Johnson Page 5 7. Abandonment. Upon abandonment by the City of the use of the Subject Property for water systems facilities for a period in excess of six (6) months, Owner shall have the option to repurchase the Property at current market value, as determined by an appraiser to be agreed upon by both parties. A temporary shutdown or modification of the treatment facilities for less than three (3) months shall not be construed as an abandonment hereunder. S . Contingencies. The City' s obligation to purchase the Subject Property is contingent on Architectural Review Commission and Planning Commission approval for relocation of the treatment tanks to this site. 9 . Notices. All notices and demands shall be given in writing either by personal service or by registered or certified mail, postage prepaid, and return receipt requested. Notice shall be considered given 48 hours after deposit in mail . Notices shall be addressed as appears below for each party, provided that if any party gives notice of a change. of name or address, notice shall thereafter be given as demanded in that notice. City: Utilities Department c/o City Clerk City of San Luis Obispo 990 Palm Street, P.O. Box 8100 San Luis Obispo, CA 93403-8100 Owner: Hysen Living Trust 1717 Conejo San Luys .Obispo, CA 93401 Johnson Living Trust 618 Al Hill Drive San Luis Obispo, CA 93405 Copy to: Roderick A. Rodewald Diehl & Rodewald P.O. Box 1207 San Luis Obispo, CA 93406 �7! �O Agreement: Hysen-Johnson Page 6 10. Waiver of Rights . Any waiver at any time by either party hereto of its rights with respect to a breach or default, or any other matter arising in connection with this agreement, shall not be deemed to be a waiver with respect to any other breach, default or matter. 11. Successors and Assigns . This agreement shall be binding on the heirs, executors, administrators, successors, agents, lessees and assigns of the respective parties. 12 . Cooperation. Each party to this agreement agrees to do all things that may be necessary, including, without limitation, the execution of all documents which may be required hereunder, in order to implement and effectuate this agreement. 13 . Entire Agreement. This agreement is freely and voluntarily entered into by the Parties after having had the opportunity to consult with their respective attorneys. The Parties, in entering into this agreement, do not rely on any inducements, promises, or representations made by each other, -their representatives, or any other person, other than those inducements, promises, and representations contained in this agreement. This agreement represents the entire agreement of the Parties. 14 . Recordation. The City shall record this agreement. The City will be responsible for any recording costs. 15. Time of the Essence. Time is of the essence of this agreement and failure to comply with this provision shall be a material breach of this agreement. 16 . Costs and Attornev' s Fees. The prevailing party in any action between the parties to this agreement- brought to enforce the terms of this agreement or arising out of this agreement may recover its reasonable costs and attorney ' s fees expended in connection with such an action from the other party. IN WITNESS WHEREOF, the Parties have hereunto set their hands the day and year first entered above, at San Luis Obispo, California. CITY OF SAN LUIS OBISPO By. Mayor Ron Dunin C'�=9 Agreement: Hysen-Johnson Page 7 ATTEST: Pam Voges, City Clerk APPROVED AS TO FORM: =ROVED t ney AS 0 CONTENT: Tltil itic� T1i rGrf•nl^ - � } STATE OF CALIFORNIA }ss. COUNTY OF Sq J �a= On Aotz;g, Se /YY L— before me. b personally appeared lststee of ed u personally known to me (or proved to me on the basis of satisfactory evidence)to be the person(s) whose name(s) i$creAubscribed to the within y \ LL instrument and acknowledged to me that he./shehe executed the same in his/he th ' authorized capacity(ies), mand that by his/her ev ignature(s) on the instrument the person(s) or the entity upon behalf of which the 1 tStC� at d person(s) acted, executed the instrument. OFFICUU SEAL KAREN S. BOUCHER WITNESS my hand and offici'Y;I�Jseal. Notary fattr1Y } STATE OF CALIFORNIA )ss. � COUNTY OF - 4 d } > 'Trustee EOn /l?�� /9fJ--- before me, '/1E/J S• da: 2 a Trust, personally appeared /Zv4e-t� A�—lzor.7 /"wy 1 3/r�✓So—r personally known to me (or proved to me on the basis of satisfactory evidence)to be the person(s) whose name(s) iss e) ubscribed to the within 00f, Trustee iI instrument and acknowledged to me that he/she he ecuted the same in his/her ;;authorized capacity(ies), rig Trust, m and that by hisRtc,4�Absp)signature(s) on the instrument the person(s) or the entity upon behalf of which the `o ro persons) acted,executed the instrument. OFFICIAL!61995 L KAREN S. BHER c WITNESS my hand and official seal. Notary FubBeotNa g r ..,� . MA�ILtAS df,r Signature ' �tY Commisat �lres December (This area for official notarial seal) n�/O EXHIBIT A SHEET 1 OF 2 ,.-SEK P. ; � - ., � �• •`•�= <\,i , cu=JEC7 ^- I 1 I t �I �•�I:Y 1 i - -`5 - —'_-- - —-- i L' • /,.f. Til w CN LTJ �!0 LJ i z • 1 - � c � C G t• 1 ``rs� •O ::J 07 S 1•� W •1, O J W c 1 w • i i i AUTOW ' WAY TANK RELOCATION Pr JECT SHEET I OF 5 LOCATION MAP SCALE: I" .100. 0 1r, DEVIL SHOWN ON SHEET 5 'A : -114 %41.le SUBJECT PROPERTY 3: ppj?.CEL YI DETAIL SHOWN ON SHEETS 2 AND 3 o tt LOS OSOS VALLEY ROAD Drawn Dr.DKZ Date:4/20/92 LL ; i O N \ � Jr! W cxl� t 4 J z J l rt ( U} cc 1 o X11 tz I J • W Q co 1 0 6 Z O 1 1 w wo Y Z LL U � Z ? b ' Qx w < m Z 1 l Q I o II 1 N T O N Q is a il C i n " UI Yl Fu ;Cf A /f Jr L O I N ' La —> ca'f'e11) .j GOO, V110 t. FPS l ) J•3�• �t-•Jg G � i 4 LLIr oll CL LLI e % J _ � x W Z W k O N I N EE� Q U W O J �' = N 3 W W U I Z lLco I H O - ¢ a ti N cc 0 CL 1 ' Z N Q 2 x � rwo 0 w i Q 1 1 �1 l N m N N� Y r 7 c i m " W m Fu :FL , Ci �D Q LLto V a r W W co H U O a z 0 a U W a ^ ir v `` Y M . 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