HomeMy WebLinkAbout09/05/1995, C-1 - DISPOSITION OF THE PROPERTY PURCHASED FOR RELOCATION OF THE CARBON TREATMENT FACILITIES AT THE AUTO PARKWAY WELL il'I��I In,lll�nl�l „,nll MEETING DATE:
W II ���u��lnUlll Cl� o san tuts osIspo September
tember 5 1995
COUNCIL AGENDA REPORT r'E"'NUMBER:/f//
FROM: John Moss PREPARED BY: Dan Gilmore
Utilities Director Utilities Engineer
SUBJECT:
Disposition of the property purchased for relocation of the carbon treatment facilities at the Auto
Parkway Well
CAO RECOMMENDATION:
By motion, (1)direct staff to discontinue pursuit of treatment for Auto Parkway Well water, (2)
to investigate the non-potable use of Auto Parkway Well water in the Water Reuse program, and
(3) to offer the proposed treatment site property for sale back to the original owner, in
accordance with the original purchase agreement.
DISCUSSION:
Historic Use of Groundwater. In 1988, the City implemented a ground water development
program. Prior to that, ground water had not been used as a source of domestic supply since
the 1940's. During the 1987-1991 drought, ground water accounted for up to 48% of the City's
domestic supply. In 1990 and 1991, ground water production averaged around 1950 acre feet
per year (afy). In May of 1992, the agreement to use the Dalidio Well as a domestic supply
expired, and the well was removed from municipal service. In October of 1992, the Auto
Parkway Well was taken out of service due to an elevated level of nitrate. The Calle Joaquin
(Denny's) Well was also shut down due to nitrate contamination on June 11, 1993.
Current City Policies Relating to Groundwater. On February 24, 1987, City Council directed
staff to proceed with the development of the groundwater resource. Groundwater was identified
as a component of the City's water supply in the Draft Water Management Plan and a Major
Objective of the 1987-89 Financial Plan. On December 7, 1987, Council authorized the first
two phases of a groundwater study, conducted by John L. Wallace and Associates. On April
5, 1988, Council authorized the third phase of the study. And, on October 4, 1988, the final
two phases of the study were authorized.
On September 3, 1991, Council adopted the concept of a "multi-source water supply" to meet
the City's water needs. Since ground water use was reestablished in 1988, ground water has
been a component of every Water Operational Plan and Financial Plan.
The Urban Water Management Plan recommends using the groundwater resource to its full
potential. The City's Safe Annual Yield (SAY), adopted in September of 1992, assumes a
contribution of 500 afy from groundwater. The total SAY from Whale Rock and Salinas
Reservoirs and groundwater production is 7,735acre-feet.
Current Groundwater Situation.. The City currently relies on four domestic water supply
wells, Pacific Beach #1 and #2 on Los Osos Valley Road, the Fire Station No. 4 Well, and the
Mitchell Park Well. Current production rates for these wells total about 400 afy. .
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COUNCIL AGENDA REPORT
Pacific Beach #1 and #2 are relatively close together and the influence they have on each other
limits their use. Continual pumping causes the water table to drop in the area of these wells to
the point where one or both wells must be throttled back or shut down completely. Operating
together, Pacific Beach #1 and #2 can produce as much as 45 of in a month. On average,
however, the two wells can be expected to produce around 25 of per month consistently. This
corresponds with an annual pumping rate of about 300 afy.
The Fire Station No. 4 Well is also very sensitive to ground water levels. The well can produce
around 12 of in a month. But, sustained pumping would only yield around 4 of per month or
48 afy.
The Mitchell Park Well is a relatively low producer, but more consistent. This well will
produce an average of about 4 of per month or 48 afy.
The Auto Parkway-Well was the City's most productive and reliable groundwater production
well. While other wells had to be shut down or throttled back during the recent drought period,
the Auto Parkway Well consistently pumped at capacity contributing nearly 1,000 acre feet per
year (afy). The Auto Parkway Well was taken out of service on October 19, 1992, after routine
sampling showed elevated levels of nitrate. Successive testing has revealed that the nitrate
problem is likely to remain for a long period of time and should be considered a permanent
situation. Any future potable use of the Auto Parkway Well will require a nitrate removal
facility.
The Denny's Well was another consistent producer of groundwater that was lost to elevated
levels of nitrate. Though fairly close to the Auto Parkway Well, both wells can be operated
simultaneously without impacting each other. Prior to being removed from service, the Denny's
Well produced around 25 of per month or 300 afy.
Agricultural wells exist on the Dalidio property between the Central Coast Plaza and the Los
Osos Valley Road area. These wells are situated in the best groundwater producing area of the
basin. It may be possible to utilize these wells with appropriate treatment for potable water
production, or to install new wells as part of the annexation and development of this property
for mall expansion. These .wells are also contaminated with nitrate, likely due to the long
history of agricultural operations on the property. The nitrate contamination is expected to
continue long after farming of this land ceases. However, a more suitable site for treatment of
this water could be considered with the development plan for this area.
Auto Parkway Well Background. The Auto Parkway Well is located on the island in the cul-
de-sac at the end of Auto Parkway. On August 21, 1992, the City purchased a separate parcel
of property near the Auto Parkway Well for the purpose of relocating the existing carbon
filtration tanks. The carbon filtration tanks were used for the removal of tetrachloroethylene
(PCE)and trichloroethylene(TCE)at the Auto Parkway Well site. These carbon filtration tanks
were the subject of numerous complaints by Auto Parkway businesses because of thier size and
appearance. When the Auto Parkway Well tested high in nitrate, the carbon filtration tanks were
dismantled and stored at the City's Corporation Yard to appease the Auto Parkway business
owners, pending further tests on the well.
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Saiis COUNCIL AGENDA REPORT
Treatment alternatives for the removal of nitrate were investigated by City staff. Several viable
treatment alteratives exist for the current situation. Detailed technical information was gathered
on each of the treatment options. A report was prepared that analyzed the advantages and
disadvantages of each process. That report is available for review in the Utilities Department
Library. The report drew specific conclusions and recommended a particular nitrate removal
process. A supplemental report addressed the issue of treatment process waste disposal.
Typically, the waste stream is discharged to the sanitary sewer collection system. It was
determined that the recommended treatment process would have a negative effect on reclaimed
water quality and its suitability for irrigation. The supplemental report is also available for
review in the Utilities Department.
The treatment site was purchased for the relocation of the carbon filtration tanks only. The
addition of nitrate removal to the treatment facilities that would be required at Auto Parkway
raises the question of adequacy of the treatment site. The nitrate removal equipment requires
a significant amount of space and weekly deliveries of chemicals by large trucks. The size and
location of the site are inadequate for the nitrate removal facilities and their operation.
Replacement projects. Several opportunities exist for the utilization of the Auto Parkway Well
water. The most beneficial use for the well seems to be as a part of the future reclaimed water
system. Nitrate, PCE, and TCE levels are within allowable limits for landscape and secondary
crop irrigation and would not pose any problems. Therefore, the well could be utilized to meet
peak demands in the reclaimed water distribution system without any treatment. The well could
remain in its current location in the island at the end of Auto Parkway, since the large treatment
facilities would not be reinstalled. Using the well as a part of the water reclamation system
would allow expansion of the water reuse program to meet the needs of a greater number of
reclaimed water customers.
Disposal of Treatment Site. According to the original purchase agreement for the treatment
site, the seller has the first right of refusal to purchase the property back from the City. The
purchase agreement, A-53-92-CC Agreement for the Purchase of Real Property, identifies the
procedures for selling the subject property back to the prior owner. A copy of this agreement
is attached for reference. If the prior owner is not interested in purchasing the property back
from the City, then the City shall have the right to sell the property to a third party. Certain
rights to access and/or easements would terminate in this case.
HSCAL IMPACT:
The subject property was originally purchased with funding for groundwater development
(1989/91 Financial Plan Supplement and Approved 1990/91 Budget, page H-16). Sale of the
property should generate revenues in an amount of$35,000 to $40,000, based on the original
purchase price of$40,000 in August of 1992. This money will be returned to the groundwater
development account to support resolution of subsidence claims against the City.
Attachment: Agreement for the Purchase of Real Property, A-53-92-CC
Recording requested by, Doc. NO. 41023
when recorded mail to: OFFICIAL RECORDS
Utilities Department SAN LUIS OBISPO CO., CA
c/o City Clerk
City of San Luis Obispo JUN 1 8 1992
990 Palm Street, P.O. Box 8100
San Luis Obispo, CA 93403-8100 FRANCIS M. 000NEY
Count'Clerk-Recorder
APN: 053-151-034 TIME 9 : 30W
053-151-035
A-53-92-CC
AGREEMENT FOR THE PURCHASE OF REAL PROPERTY
This agreement is entered into this 1st day of June
19921 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 Neap 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 4402.5157" E, 20. 00 feet to a point;
Thence S 28055100" W, 103 . 76 feet to the point of
beginning.
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A-53-92-CC
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 Obispo. 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
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. Obligations of Parties After Close of Escrow.
a. Right 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.
0nnn inn
Agreement: Hysen-Johnson
Page 4
f. Construction Arranaements.
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. Landscapincr in Autopark 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
arty: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.
C- � 7
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 treatm6nt facilities for
less than three (3) months shall not be construed as an
abandonment hereunder.
8 . 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 Luis .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
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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. Coor)eration.
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 Attorney' 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.
Agreement: Hysen-Johnson CITY OF SAN LUIS OBISPO
Page 7
ATT S on unin
tam Mog.es,• Ci Clerk
APPROVED. AS TO FORM:
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rAt ney
ROVED AS 0 CONTENT:
U) � � Azu
Utilities Director
SENLIVING TRUST
Carl Leslie sen, Vustee of
the Hysen Living Trust, dated .
June 23 , 1988
VirginiH R. Hysen, Trusteef
the Hysen Living Trust, dat d
June 23 , 1988
JOHNS IVING TRUST
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Robert Bu on Johns-o , Trustee
of the Johnson L1vAAn Trust,
dated June 23 , 198b
El4iabeth Ann Johnso. , Trustee
of the Johnson Living Trust,
dated June 23 , 1988
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EXHIBIT A SHEET 1 OF 2
SUBJECT PROPERTY
113
PARCEL 1
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LOS OSOS VALLEY ROAD
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