HomeMy WebLinkAbout04/24(2)/2001, 7 - APPROVAL OF AGREEMENT TO ALLOW FIERO LANE WATER COMPANY TO PROVIDE TEMPORARY WATER SERVICE TO A PRO council Ap
Aril 24 2001
ACEnOA Rep=
CITY OF SAN LUIS 0B' ISP0
FROM: John Moss,Utilities Direct
Prepared by: Dan Gilmore,Utilities Eng! 0
SUBJECT: APPROVAL OF AGREEMENT TO ALLOW FIERO LANE WATER
COMPANY TO PROVIDE TEMPORARY WATER SERVICE TO A
PROPERTY DEVELOPING IN THE CITY
CAO RECOMMENDATION:
By resolution, approve the agreement to allow Fiero Lane Water Company (FLWC) to provide
temporary water service not to exceed eighteen months to the two parcels at 805 and 895 Aerovista
Drive and authorize the Mayor to execute the agreement.
DISCUSSION:
San Luis Obispo has a Council adopted policy that states that the City shall be the only purveyor of
water in the City. The attached agreement and resolution constitute a temporary deviation from this
policy to allow a property that is developing in the City to be served for a limited time by the
FLWC. The annexation and pre-zoning of 805-895 Aerovista (ANNX 80-99) was approved by
Council on August 15, 2000 (see site map, Attachment 1). LAFCO approved the annexation on
February 15, 2001. The annexation is not yet final, however, as the owner still needs to record the
annexation. While the annexation was being processed,building permits were issued by the County
for office buildings on 805 Aerovista and 895 Aerovista. The properties on the opposite side of
Aerovista are currently in the process of annexation, as well (ANNX 09-01, Volny Annexation).
Though Aerovista Drive itself is being annexed with ANNX 80-99,' a water main recently built by
FLWC currently exists in Aerovista. That waterline was planned to be transferred to the City, but
must remain with FLWC until such time as the properties on the north side of Aerovista become
annexed (ANNX 09-01). The agreement contains provisions that require the installation of a
parallel water main in Aerovista, in the event ANNX 09-01 fails.
If the agreement is not approved as recommended, the owner of the properties at 805-895 Aerovista
will be forced to construct the redundant water main, or wait until ANNX 09-01 is finalized so the
existing water main can be transferred to the City. The building being constructed on 805 Aerovista
is expected to be completed in July of this year, while the building on 895 Aerovista is expected to
be complete in December of this year. Construction of the parallel water main in Aerovista is
undesirable for several reasons. The cost of the new water main would be around $200,000. By
comparison, the cost of transferring the existing FLWC water main to the City, disconnecting it
from the FLWC system, and connecting it to the City water distribution system, is expected to cost
around $25,000. A situation where a City water main and a FLWC water main would exist within
the same public street would substantially increase the risk that the two systems could inadvertently
be tied together, or cross-connected. Upon annexation of the properties on the north side of
Aerovista (ANNX 09-01), the redundant water main would then be required to be abandoned,
which would result in additional cost. Though all of these costs would be home by the developer, it
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Council Agenda Report—Resolution allowing temporary water service from FLWC
Page 2
is considered unnecessary and exorbitant when considering the relatively short time differential
between the two annexations (ANNX 80-99 and ANNX 09-01) and the need for the first annexation
to receive water service for development initiated in the County.
This unfortunate situation is not expected to occur again in the future, as properties within the
FLWC service area are either already developed, or are expected to be annexed with the greater
Airport Area Annexation, which has been in the Specific Plan process for a number of years.
CONCURRENCES:
The Fiero Lane Water Company is a party to the agreement, and concurs with the recommended
action.
FISCAL IMPACT:
The recommended action results in no fiscal impact to the City.
ALTERNATIVES:.
Reject the Agreement This alternative is not recommended for the reasons discussed above.
ATTACHl�HNTS:
1. Site Map
2. Agreement
3. Draft Resolution
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JAttachment
Recording requested by: (for Recorder's use only)
CITY OF SAN LUIS OBISPO
When recorded, mail this agreement to:
Utilities Director
879 Morro Street
San Luis Obispo, CA 93401
AGREEMENT TO ALLOW PROPERTIES AT 805 AND 895 AEROVISTA TO RECEIVE
TEMPORARY WATER SERVICE FROM THE FIERO LANE WATER COMPANY
THIS AGREEMENT is made and entered into in the City of San Luis Obispo on this
day of , 2001, by and between the CITY OF SAN LUIS OBISPO, a municipal
corporation, hereinafter referred to as 'City"; the Fiero Lane Water Company, hereinafter referred
to as "FLWC"; and AeroLoop LLC, a California Limited Liability Company, hereinafter referred
to as"Owner".
WITNESSETH:
WI-IEREAS, Owner is developing the properties at 805 and 895 Aerovista Drive, which are
currently in the process of being annexed to the City; and
WHEREAS, the subject properties are currently within the FLWC service boundaries; and
WHEREAS, the properties are eligible to receive City, services once the annexation is
complete; and
WHEREAS, development within the City requires extension of certain infrastructure in
accordance with City standards; and
WHEREAS, the FLWC has an existing waterline in Aerovista Drive that may be suitable for
transfer to City ownership; and
WHEREAS, said waterline is currently required by FLWC to serve properties on Aerovista
Drive that are not yet annexed to the City; and
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WHEREAS, Owner and City wish to avoid installation of redundant infrastructure in
Aerovista Drive; and
WHEREAS, the FLWC has issued a "will serve" letter, indicating their willingness to
provide water service to Owner's property on an interim basis.
NOW THEREFORE, in consideration of their mutual promises, obligations, and covenants
hereinafter contained, the parties hereto agree as follows:
Owner agrees to:
1. No later than eighteen months from the date this agreement is executed, Owner shall
construct a new water main connecting to the City's existing water main in Broad
Street and extending to the westerly end of Aerovista Drive. If the so-called Volny
Annexation (ANNX 09-01) is completed within the first six months, Owner may
satisfy this requirement by disconnecting the existing FLWC water main in Aerovista
Drive from the FLWC system, making any improvements necessary to bring this
waterline into conformance with all City standards, and connecting it to the City
water distribution system.
2. Owner shall submit a letter of credit in a form acceptable to the City in the amount of
$200,000 to guarantee the water system improvements described above.
3. Owner shall satisfy the City Fire Department that required fire flows can be provided
to the new buildings under either scenario prior to occupancy.
4. Owner agrees to hold harmless and indemnify the City with respect to any issues
related to water service from the FLWC.
FLWC agrees to:
1. The FLWC agrees to provide water service to the Owner's properties at 805 and 895
Aerovista Drive until such time as water service is provided by the City.
2. The FLWC agrees to transfer ownership of the existing water main in Aerovista
Drive to the City once ANNX 09-01 is completed
3. The FLWC agrees to notify the City whenever modifications to the water system in
Aerovista Drive are proposed and prior to being undertaken.
4. The FLWC agrees to properly operate and maintain the water system in Aerovista
Drive to avoid impacts to Owner and to City. The continued operation of the well
and associated facilities shall be in strict compliance with the standards and
requirements of the County Department of Environmental Health.
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5. The FLWC agrees that they have sole liability to Owner and to the public with regard
to issues relating to water service from FLWC and the operation of any wells and
associated facilities owned by the FLWC in the vicinity of Aerovista Drive.
City agrees to:
1. City agrees to allow FLWC to provide water service to Owner's properties at 805
And 895 Aerovista Drive until such time as the City receives a new waterline in
Aerovista Drive or the existing FLWC waterline in Aerovista Drive and begins
providing water service to these properties.
2. City agrees to allow the continued operation of the FLWC well on the property at
895 Aerovista and associated facilities until such time as the well fails or is
disconnected from the FLWC water system.
All parties agree that this agreement can be recorded with the County of San Luis Obispo at the
sole discretion of the City.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year
first above written.
CITY OF SAN LUIS OBISPO,
APPROVED AS TO FORM: A Municipal Corporation
Bar
Y me y City Administrative Officer
AeroLoop LLC (Owner), Fiero Lane Water Company(FLWC)
a California Limited Liability Company
By: By:
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Owner's Notarization
State of California }
County of San Luis Obispo)
On , 20_, before me, Notary Public,
personally appeared , ( ) personally known to me or ( )
proved to me on the basis of satisfactory evidence to be the persons) whose name is/are
subscribed to the within instrument and acknowledged to me that (s)he/they executed the
same in his/her/their capacity(ies), and that by his/her/their signature(s) on the instrument
the person(s) or the entity upon behalf of which the person acted, executed the instrument.
Witness my hand and official seal.
Notary Public
Caeacity claimed by signer1sl•
( )individual(s) ( )corporation ( )partnership ( )attomey-in-fact ( )political agency
FLWC Notarization
State of California }
County of San Luis Obispo}
On 20_, before me, _ , Notary Public,
personally appeared
known to
me or ( ) proved to me on the basis of satisfactory evidence to be,the rpersoln(s) hose
name(s) is/are subscribed to the within instrument and acknowledged to me that
(s)he/they executed the same in his/her/their capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s) or the entity upon behalf of which the
person(s) acted, executed the instrument.
Witness my hand and official seal.
Notary Public
Capacity claimed by signer(s�
( ) individual(s) ( ) corporation ( ) partnership ( ) attomey-in-fact ( ) political agency
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City's Notarization
State of California }
County of San Luis Obispo}
On , 20before me, , Notary Public,
personally appeared ( ) personally known to
me or ( ) proved to me on the basis of satisfactory evidence to be the person(s) whose
name(s) is/are subscribed to the within instrument and acknowledged to me that
(s)he/they executed the same in his/her/their capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s) or the entity upon behalf of which the
person(s) acted, executed the instrument.
Witness my hand and official seal.
Notary Public
Capacity claimed by signer(s):
( ) iridividual(s) ( ) corporation ( ) partnership ( ) attorney-in-fact ( ) political agency
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Attachment 3
RESOLUTION NO. (2001 SERIES)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
APPROVING AGREEMENT TO ALLOW TEMPORARY WATER SERVICE TO TWO
PARCELS IN THE CITY FROM THE FIERO LANE WATER COMPANY
WHEREAS, the City of San Luis Obispo provides water and sewer service to properties
within the City limits; and
WHEREAS, providing City water service to the subject parcels would result in the
undesirable condition of having both a City water main and a Fiero Lane Water Company .
(FLWC)water main in the same street; and
WHEREAS, the FLWC has agreed to provide temporary water service to the subject
properties; and
WHEREAS, the owner of the properties has agreed to conditions that will provide for
either the transfer of the FLWC water main to the City or the construction of a new City water
main in Aerovista within a finite period of time.
NOW, THEREFORE BE IT RESOLVED, the City approves the agreement to allow the
FLWC to provide temporary water service to the subject properties and authorizes the CAO to
execute the agreement.
On motion of and seconded by
and on the following roll call vote:
AYES:
NOES:
ABSENT:
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The foregoing resolution was adopted this day of , 2001.
Mayor Allen Settle
APPROVED AS TO FORM: ATTEST:
J Jor nse Citvxttorney Lee Price, City Clerk
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