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Home My WebLink About10/07/1997, C-10 - AGREEMENT TO DISCONTINUE WATER SERVICE - 525 EL CAMINO REAL Date council Oc. 7, 1997 j acEnaa nEpout hmN�. G-•io C ITY O F SAN LU I S O B I S P O FROM: John Moss,Utilities Director01- Prepared by: Dave Pierce,Wastewater Reclamation Coordinator# SUBJECT: Agreement to Discontinue Water Service-525 El Camino Real CAO RECOMMENDATION By motion, approve an agreement with Craig and Sheri Wood in the amount of $59,000.00 to terminate the City's obligation to provide free water to property at 525 El Camino Real, and approve the move of budgeted funds within the Hansen and Gularte Waterline Abandonment CIP account from equipment acquisition to construction. DISCUSSION This recommendation is a component of a project to abandon the Hansen& Gularte water system and the City's obligations to provide certain properties free water from that system. Since 1911,the City has been responsible to provide water to the house,garden and cattle troughs at 525 El Camino Real.This water was provided without charge as a condition of the condemnation of that property's rights to water from San Luis Obispo Creek Since the obligation is to provide water to the house the City is responsible to provide domestic (potable)water for residential use. The quality of the water that has been delivered in the past does not meet State Department of Health Services standards for potable water. Since the storms of 1995,portions of the delivery system have been out of operation and a limited amount of water has been hauled to meet domestic needs. The property has a well that produces water that is high in sulfur, iron and manganese. This water needs some treatment to be palatable.The City drilled two additional wells to locate better water but they were also high in iron,manganese,and sulfur. This agreement provides that the owner of the property will be responsible to install, operate, maintain and repair a well based water system to serve the property.The agreement provides that if the wells fail during the next ten years the owner may at his expense haul water from the City. The cost of drilling the two exploratory wells and a third hole that was dry has been$5,622.00.The proposed payment of $59,000.00 is compensation for the construction, operation, maintenance, repair of a water system to replace the City's obligation to serve water at no cost to the owner. The initial construction costs is $20,738.56.The additional$38,261.44 is for an annuity that if invested in long term bonds at an interest rate of 6%will produce$2,294.00 per year to cover the annualized costs of operation,maintenance,and repair. Council Agenda Report-Agreement to Discontinue Water Service-525 El Camino Real Page 2 Constructioncosts for replacement system: Well pump,storage tank,booster pump 13,438.56 Electric service to well 800.00 Water treatment system 6.500.00 Sub Total $20,738:56 Annualized operation,maintenance,and repair costs: Storage tank 15 year life 134.00 Pumps 5 year life 400.00 Water treatment equipment 10 year life 650.00 Water treatment supplies 250.00 Electrical costs 360.00 Annual maintenance of the system 500.00 Annual O&M costs $2,294.00 FISCAL M PACT: Proposed payment to owner for construction,operation and maintenance of a replacement system is$59,000.00.Funding for this project is available in 500.9080.517.553($170,031.19).This is a portion of the Hansen and Gularte Waterline Abandonment CIP project (1995-97 Financial Plan,AppendixB pages 32 and 33). Remaining projects to be completed 525 El Camino(this agreement) 59,000.00 Hansen&Gularte Diversions 50,000.00 Reservoir Canyon Pipeline 60,000.00 Total 169,000.00 If projects, once bid, exceed identified budget, staff will request approval to use water system improvements CIP finds for additional required budget ALTERNATIVES: Other options that could meet the City's obligation include: 1. Repair the delivery system and add treatment to meet State Department of Health Service requirements.(Estimated cost in excess of$100,000 for pipeline replacement and installation of a small package treatment plant plus annual operation and maintenance of these facilities.) 2. Extend City water service to this property. (Capital Cost of over $50,000 for a booster pump and 3,300 feet of pipe which would have to be maintained by the City plus delivery of at least 900 units of water per year.Current value of 900 units of water is$3,063.00 per year.) 3. Haul potable water to this property.(Hauling water to meet the full obligation would cost more than$40,000 per year.) ATTACHMENTS: Agreement 09/25/97 09:31 41805 985 0898 HATCH AND PARENT 1@002/004 RECORDING REQUESTED BY AM WHEN RECORDED MAIL TO: Utilities Department CITY OF SAN LUIS OBISPO 990 Palm Street San Eris Obispo, CA 93401 7MS SPACE RES MVED FORRECORDER ONLY APN: 070-271-019 (Cov.Code§27361.6) AGREEMENT FOR DISCONTINUANCE OF WATER SERVICE and QUITCLAIM DEED TFUS AGREEMENT is entered into this day of September, 1997, by and between CRAIG and SF1,ERi WOOD, hereinafter referred to as "OWNERS," and the CITY OF SAN LUIS OBISPO,a chartered municipal corporation,hereinafter referred to as "C1TY," collectively referred to as Parties. RECITALS WHEREAS, OWNERS are the owners of that certain parcel of real property known as: Parcel 2 of Parcel Map COAL 82-175, recorded in Volume 33 at page 46 of Maps in the Office of the County Recorder of San Luis Obispo County, California; Assessors Parcel Number 070-271-019, hereinafter referred to as "Subject Parcel"; and WHEREAS,water has been supplied by the CITY to the Subject Parcel from the Hansen- Gularte Pipeline to satisfy the order and decree of the Superior Court recorded on January 18, 1911, Judgment Book J,Page 83, Judgment No. 4242, and recorded in Volume 87,Page 485 of Deeds at the San Luis Obispo County Recorder's Office, hereinafter,referred to as"Final Decree"; and WHEREAS,the Hansen-Gularte Pipeline was destroyed during the floods of 1995 and the CITY thereafter provided water to the Subject Parcel by tank truck; and WHEREAS, OWNERS are willing to asz+me all responsibilities, obligations and duties related to the appropriation,distribution,provision,treatment, use and discharge of water to or from the Subject Parcel ("Water Service"), and CITY desires to be relieved of all said responsibilities, obligations and duties related to said Water Service; and WHEREAS, in order to assume said obligation related to said Water Servic-, OWNERS desire to obtain any rights or claims CITY may have to the use of waters in San Luis Obispo Creek under the Fimal Decree or which are otherwise related to the Subject Parcel ("Water Rights"); and e-/D -.3 09/25/97 09:32 '&80S 985 0898 HATCH AND PARENT IZO03/004 Wim,the Parties desire to==ally settle all disputes related to and arising out of the CITY'S appropriation, distribution, provision, tw=enk use or&&barge of water to or from the Subject Parcel- W)E ,REREFORE,the Parties agree as follows: 1. The above stated recitals are expressly made a part hereof 2. CITY shall pay to OWNERS, within ten (10) days of execution of this AGREEMENT, the sum of F=-NINE THOUSAND DOLLARS ($59,000.00). 3. Except as provided in Paragraph 5 below, CITY is hereby released from all responsibilities, obligations and duties related to the provision of Water Service on the Subject Parcel. CITY hereby abandoa9 any portion of the Hansea-Gularte Pipeline that may be on OWNERS's property and shall nave no further responsr'b&y for that pipeline and shall have no farther right of access on or across OWNERS's property. 4. In consideration of the cash payment to OWNERS set forth in Paragraph 2 above, CITY shall not be responsible for providing Water Service to the Subject Parcel and OWNERS expressky and knowingly waive any rights to obtain Water Service from CITY, except as provided in Paragraph 5 below. 5. In the event either of the wells the C1Ty has constructed on the Subject parcel fag within ten(10)years from execution of this AGRE &ENT, CITY agrees to make available,for a reasonable tune, at no cost to OWNERS,treated water,provided OWNERS make reasonable efforts to restore their own water supply. OWNERS shall bear and be responsible for any and in costs associated with delivery and bauling of the treated water to the Subject Parcel from a City hydrant or discharge facility. 'Treated water" mesas potable water that satisfies the State Primary and Secondary Standards for Drinking Water. 6. Upon execution of this A REEMENP, CITY agrees to quitclaim to OWNERS any rights or claims it may have to the water Rights. CITY also agrees not to contest or object to the use of said Water Rigbts on the Subject Parcel by OWNERS or their successors and assigns. City also agrees to execute all fiuther documents necessary to confirm said transfer/relinquishment of the WaWRights to OWNERS under this AGREEMENT. The Parties agree and aclmowledge that the CITY provides no warranty or representations with respect to the quality or quantity of the water Rights quitclaimed to OWNERS by this AGREEBAENT. 7. All notices, statements, requests or other communications that are required either expressly or by implication to be given by either party to the other under this AGREBdENT shall be in writing. 2 S. 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. 9. This AGREEMENT benefits and burdens the Subject Parcel and it shall run with the land; it shall be binding on the heirs, executors, administrators, successors, agents, lessees, and assigns of the respective Parties. 10. 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. I.I. In the event a dispute or controversy arises between the parties concerning the terms, conditions, or provisions of this AGREEMENT, the pmvailing party shall be entitled to recover from the other party reasonable attorney fees. 12. The=shall record this AGREEMENT and shall be responsible for any recording costs. IN WITNESS WHEREOF, the Parties hereunto set their hands they day and year first entered above at San Luis Obispo, California. CITY OF SAN LUIS OBISPO OVAVgS By. 0 � �Q Mayor Allen K Settle Crai Wood ATTEST: 4A I A-U* City Clerk heri Wood APPROVED AS TO FORM:- City ORMCity Attorney 3 /a S