HomeMy WebLinkAbout01-19-2016 Item 08 - Well Site Relinquishment at 1460 Joaquin
Meeting Date: 1/19/2016
FROM: Carrie Mattingly, Director of Utilities
Prepared By: Aaron Floyd, Deputy Director, Water
Jennifer Metz, Utilities Projects Manager
SUBJECT: WELL SITE RELINQUISHMENT AT 1460 CALLE JOAQUIN
RECOMMENDATION
Authorize the Mayor to execute a Quitclaim Deed and Indemnification Agreement Affecting
Real Property and Bill of Sale (Attachments A and B) for the well located at 1460 Calle Joaquin.
DISCUSSION
Background
The City’s well at 1460 Calle Joaquin was installed in 1989 when the City was actively pursuing
groundwater development to supplement its surface water supply. Improvements include:
underground waterline, building, vault, concrete pad and well and other related equipment.
Groundwater contamination (PCE and nitrates) forced the shutdown of the well in June 1993.
The regulatory status of the well was changed to “inactive” in July 1995. Although it has been
out of service for many years, the well remains connected to the City’s water distribution system
and is viewed as a potential water quality liability.
The City does not currently utilize groundwater as a potable water source. Though groundwater
could be available during water shortage periods, it would require extensive treatment and
infrastructure modifications. Because of these limitations, groundwater was removed from the
water availability calculation with the update of the 2010 amendment of the Water and
Wastewater Management Element.
Use of Non-Potable Water Request
The property at 1460 Calle Joaquin, previously occupied by Denny’s and later Zaki’s Waffle
House, changed ownership in June 2014. The current owner, ARH Quiky Investments, LLC, is
in the process of constructing a Quiky Car Wash and seeks to use the well as a water source for
the car wash. Since the City does not intend to use the well in the future, relinquishing the well
for this use would be beneficial for the City, in that: (1) the water to support the car wash would
be from this non-potable source; and (2) the City would no longer have to maintain this
unneeded infrastructure. In addition, the City does not have an express easement for the well site
and related improvements. At best, the City would have a prescriptive easement; however, due to
non-use for the past twenty years, the scope of those rights would be severely limited even
assuming the City desired the well for future use.
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The owner has provided the attached Indemnification Agreement Affecting Real Property, Bill
of Sale, and Quitclaim Deed. Staff recommends the relinquishment of the well property through
those instruments.
FISCAL IMPACT
No resources had been identified for the abandonment of the existing well. The owner of the
overlying property will pay for all costs related to the disconnection of the well from the City’s
water system. The disconnection of the well from the City’s water distribution system would be
reducing potential maintenance costs.
Attachments:
a - Indemnification Agreement Affecting Real Property and Bill of Sale
b - Quit Claim
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1
INDEMNIFICATION AGREEMENT AFFECTING REAL
PROPERTY AND BILL OF SALE
(Quiky Car Wash Well)
FOR VALUABLE CONSIDERATION RECEIVED,
BE IT KNOWN that, upon recordation of the executed Quitclaim Deed in the form
attached hereto as Exhibit “1”, the City of San Luis Obispo, a chartered municipal
corporation (“City”) hereby sells, transfers, conveys and assigns forever to ARH Quiky
Investments, LLC, a California limited liability company (“Quiky”) and Quiky’s
transferees, grantees, assigns and successors in interest, all of City’s right, title and
interest in and to the underground waterline, building, vault, concrete pad and well and
any other related equipment, improvements or personal property attached thereto situated
in the location depicted in Exhibit B to the Quitclaim Deed (“Transferred Property”).
Quiky acknowledges and agrees that City makes no representation or warranty
whatsoever, express or implied, as to the quality of water underlying the property, the
sufficiency of the well or the condition of the Transferred Property and Quiky accepts the
Transferred Property on an “AS-IS, WHERE IS, WITH ALL FAULTS” basis.
Quiky, and its transferees, grantees, assigns and successors in interest, agree to
indemnify, defend and hold City harmless from and against, any and all losses, damages,
costs and expenses (including, without limitation, reasonable legal fees and costs) arising
out of or incurred with respect to any claims, demands, causes of action of any nature,
any expense incident to defense, for injury to or death of persons or loss of or damage to
property, including any alleged damages or liability resulting from the pumping and
drawing of water from the above-described well, occurring subsequent to the execution
of this Bill of Sale resulting from the use, operation or maintenance by Quiky, or its
officers, agents, employees, transferees, grantees and successors in interest of the
Transferred Property. Quiky acknowledges and agrees that its obligation to indemnify,
defend and hold harmless City as set forth herein is a covenant that shall run with the
land described in said Quitclaim Deed and shall be binding on Quiky’s transferees,
grantees, assigns and successors in interest. Quiky and City agree that upon recordation
of the Quitclaim Deed a Memorandum of Agreement substantially in the form attached
hereto as Exhibit “2” shall be recorded in the Official Records of San Luis Obispo
County. Quiky shall pay for all recording fees, if any.
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2
Signed January _____, 2015
City of San Luis Obispo
By:
Jan Marx, Mayor
Attest:
____
Jon Ansolabehere, Interim City Clerk
Approved as to Form:
_________________________________
J. Christine Dietrick, City Attorney
ARH Quiky Investments, LLC
By:
Its:
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EXHIBIT “1”
Form Quitclaim Deed with Attachments
RECORDING REQUESTED BY: and
WHEN RECORDED MAIL TO:
ARH Quiky Investments, LLC
c/o Westpac Investments
835 Aerovista Place Suite 230
San Luis Obispo, CA 93405
DOCUMENTARY TRANSFER $_____________________ SPACE ABOVE THIS LINE FOR
RECORDER'S USE
( ) Computed on the consideration or value of property conveyed; OR
( ) Computed on the consideration or value less liens or encumbrances
*________________________________
_______________
( ) remaining at time of sale. Signature of Declarant or Agent
determining tax - Firm Name -
053-412-017
QUITCLAIM DEED
FOR A VALUABLE CONSIDERATION
City of San Luis Obispo, a chartered municipal corporation,
hereby QUITCLAIMS, GRANTS, and CONVEYS to
ARH Quiky Investments, LLC, a California limited liability company,
Any and all rights, title and interests of record or arising by prescription, in and to the
underground waterline, building, vault, concrete pad and well and any other related equipment,
improvements or personal property attached thereto, including the right to draw water from the
above-described well, situated in the location described in Exhibit “A” and depicted in Exhibit
“B” attached hereto.
Dated: __________________, 20____
City of San Luis Obispo, a municipal corporation,
By:
_________________________________
MAIL TAX STATEMENTS TO: Same address as shown above
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Exhibit A
PARCEL 1 OF PARCEL MAP NO. SL 91-227 IN THE CITY OF SAN
LUIS OBISPO, COUNTY OF SAN LUIS OBISPO, STATE OF
CALIFORNIA, ACCORDING TO MAP RECORDED APRIL 20, 1992 IN
BOOK 49, PAGE 40 OF PARCEL MAPS, IN THE OFFICE OF THE
COUNTY RECORDER OF SAID COUNTY.
Exhibit B
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Exhibit 2
Memorandum of Agreement
RECORDING REQUESTED BY: and
WHEN RECORDED MAIL TO:
ARH Quiky Investments, LLC
c/o Westpac Investments
835 Aerovista Place Suite 230
San Luis Obispo, CA 93405
053-412-017
MEMORANDUM OF AGREEMENT
THIS MEMORANDUM OF AGREEMENT (this “Memorandum”) is made and entered
into this day of __________, 2016 by and between the City of San Luis Obispo, (“City”)
and ARH Quiky Investments, LLC (“Quiky”).
Notice is hereby given that the City and Quiky entered into an Indemnification
Agreement Affecting Real Property and Bill of Sale dated _________, 2015
(“Agreement”), which is a covenant that runs with the land described herein below and is
binding on Quiky’s transferees, grantees, assigns and successors in interest.
Real Property:
PARCEL 1 OF PARCEL MAP NO. SL 91-227 IN THE CITY OF SAN LUIS
OBISPO, COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA,
ACCORDING TO MAP RECORDED APRIL 20, 1992 IN BOOK 49, PAGE 40 OF
PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID
COUNTY.
The terms and conditions of the Agreement is incorporated herein by this reference.
Should any party require information concerning said Agreement, they should contact
City or Quiky at the following addresses:
City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93401
ARH Quiky Investments, LLC
c/o Westpac Investments
835 Aerovista Place Suite 230
San Luis Obispo, CA 93405
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IN WITNESS WHEREOF, the parties hereto have executed this Memorandum on the
day and year first above written.
City of San Luis Obispo
By:
Jan Marx, Mayor
Attest:
____
Jon Ansolabehere, Interim City Clerk
Approved as to Form:
_________________________________
J. Christine Dietrick, City Attorney
ARH Quiky Investments, LLC
By:
Its:
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RECORDING REQUESTED BY: and
WHEN RECORDED MAIL TO:
ARH Quiky Investments, LLC
c/o Westpac Investments
835 Aerovista Place Suite 230
San Luis Obispo, CA 93405
DOCUMENTARY TRANSFER $_____________________ SPACE ABOVE THIS LINE FOR RECORDER'S USE
( ) Computed on the consideration or value of property conveyed; OR
( ) Computed on the consideration or value less liens or encumbrances *_______________________________________________
( ) remaining at time of sale. Signature of Declarant or Agent determining tax - Firm Name -
053-412-017
QUITCLAIM DEED
FOR A VALUABLE CONSIDERATION
City of San Luis Obispo, a chartered municipal corporation,
hereby QUITCLAIMS, GRANTS, and CONVEYS to
ARH Quiky Investments, LLC, a California limited liability company,
Any and all rights, title and interests of record or arising by prescription, in and to the
underground waterline, building, vault, concrete pad and well and any other related equipment,
improvements or personal property attached thereto, including the right to draw water from the
above-described well, situated in the location described in Exhibit “A” and depicted in Exhibit
“B” attached hereto.
Dated: __________________, 20____
City of San Luis Obispo, a municipal corporation,
By:
_________________________________ __________________________________
MAIL TAX STATEMENTS TO: Same address as shown above
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Exhibit A
PARCEL 1 OF PARCEL MAP NO. SL 91-227 IN THE CITY OF SAN LUIS OBISPO,
COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, ACCORDING TO MAP
RECORDED APRIL 20, 1992 IN BOOK 49, PAGE 40 OF PARCEL MAPS, IN THE OFFICE
OF THE COUNTY RECORDER OF SAID COUNTY.
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Well Site Relinquishment at
1460 Calle Joaquin
Groundwater
City does not regulate groundwater production
Groundwater rights are for overlying property
Sustainable Groundwater Management Act
Property owners may drill wells for use
Limited to use on their property
Other wells in the area and throughout City
Access to Existing Well
Drilled in 1989 during drought
Shut down in 1993 due to contaminants
Well is on private property – transferred in 2014
No well easements appeared on title search
No City recorded easement to the well
The City does not currently use groundwater for
potable purposes
Industrial Users
Contaminants
Well Use is regulated by County Health
City and Federal Regulations – Pretreatment Program
Metered to establish sewer charges
Status of Well
Not maintained for over 20 years
Would not be part of groundwater program
Disconnection would benefit and further protect City’s
water distribution system
Questions